International Consortium on
Governmental Financial Management
Stopping Money Laundering
Combating Terrorism:
Canadian Legislation and Effort
Jennifer Fiddian-Green
Investigative Forensic Accountant
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Canada: contribution to global effort to combat ML & TF
• Canada’s intelligence unit (FINTRAC) became operational October
2001
• Reporting of suspicious transactions began November 2001
• Large cash, wire transfer transaction reporting and compliance regime
requirements began in June, November 2002.
• Customs seizure reports and Cross Border Currency Reports are
reported to FINTRAC by the CCRA (Canada Customs and Revenue
Agency). All currency >= $10,000 Canadian, imported or exported
into/out of the country, must be reported to the CCRA.
• Previously, Canadian effort was led through police investigative effortsIntegrated Proceeds of Crime Units
• To date FINTRAC has received over 2.2 million reports and made over
103 disclosures to law enforcement (78 ML and 24 TF)
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Requirements: Canadian Legislation
Organizations required to report:
– All banks, credit unions, caisses populaires, life insurance (including
all brokers & agents) and trust and loan companies;
– All persons engaged in the business of dealing in securities;
– Foreign exchange dealers, money transmitters, cheque cashers,
money vendors
– Real estate brokers and agents;
– All casinos;
– All federal and provincial departments or agents engaged in activities
similar to the above; and
– Accountants in regards to specific activities. Note: Lawyers are not
currently required to comply with Part 1 of Canadian PCMLTFA. Part
1 requires reporting of suspicious and prescribed transactions, as well
as ascertaining identity procedures, training, policy and procedure
and program review. This is under review.
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Requirements: Canadian Legislation
Compliance Regime: Canada’s PCMLTFA requires
organizations to implement a compliance regime which
includes designation of a compliance officer,
documented policy and procedure, regular training for
staff and a regular review of the compliance system
Reporting requirements include suspicious, terrorist group
properties (obligation on staff as individuals to report), large
cash transactions and reports of other specific types of
transactions depending on industry sector.
KYC: requirements to ascertain identity include viewing one
piece of original ID (most organizations view two pieces).
FINTRAC has provided guidance for what is acceptable ID
to view.
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What are the results of your training?
• Find out what issues your people are dealing with
in advance of training- ask them to come prepared
with questions. What are they suspicious of?
What is unusual? Often these answers are
presumed. Needs to be a detailed assessment
and understanding process before training can
take place.
• Take the training back to the work space- make
sure people really understand they need to take
ownership. See attached course completion form.
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Training Course Sample Evaluation Form
Objectives
•
What were the most important factors that influenced your decision to take this course? Select all that
apply: need it to do future job assignments, identified as a development opportunity by
coach, personal interest, other (please explain)
•
Did the facilitator review the objectives of the course at the beginning of the course? Yes/No
•
Were you given the opportunity to have input into the objectives for the session? Yes/No
•
Were the objectives identified at the beginning of the course fulfilled by the end? Yes/No/NA
•
Did the objectives published with the registration material give you an accurate indication of course
coverage? Yes/No
•
Did the course coverage include a discussion of responsibility for learning and responsibility for use of
learning? Yes/No
•
Do you feel that you will use the concepts/skills covered in this course when you return to the office?
Yes/No
•
Will you feel confident using the concept/skills when back in your office? Yes/No/NA
•
•
•
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Overall Comments:
Is it important that we repeat this course? If not why? Please give examples Yes/No
Please identify 2 things the facilitator did well
Please provide 2 pieces of advice for the facilitator
Please rate the value of this course to you: Excellent ….Poor
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Canadian Requirements (vs. United States)
Industries impacted includes:
– All persons engaged in the business of dealing in securities, Real
estate brokers and agents
Not included (currently):
– travel agents, vehicle, jewellery, and antique dealers
Understand the Canadian banking system:
– 6 large domestic banks dominate the financial sector- close to
90% of the $1.7 trillion banking assets in the country are with
these banks. All of these banks are reporting regularly, as well as
the credit union system and money services businesses
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Canadian Requirements
• Reporting of all international wire transfers $10,000 or more
(Canadian) (last check approx. $7,500 US)- significant
opportunity for FINTRAC to understand and assess
movement of funds into and out of the country.
• Electronic reporting is mandatory- opportunity for timely
analysis and disclosure (www.fintrac.gc.ca)
• Transaction reporting not activity reporting- no requirement
to report suspicious activity is transaction is not completed.
Voluntary reports can be made.
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Canadian Emerging Challenges
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Canada has significant opportunity to build intelligence on
the movement of funds internationally. Struggle/challenge
is ensuring we have the enforcement resources to
proactively respond:
• Egmont Group for international referrals
• Canadian law enforcement for domestic investigations
FINTRAC has now begun phase of risk based compliance
reviews
Significant organized criminal activity
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Jennifer Fiddian-Green
CAIFA, CAMS, CMA, CFI, CFE
Investigative Forensic Accountant
Contact Information:
416-360-4957
[email protected]
© Grant Thornton