AML Development

Anti-Money Laundering Development

Some businesses and financial institutions in Canada are required to fight against the Proceeds of Crime (money laundering) and Terrorist Financing. FINTRAC or Financial Transactions and Reports Analysis of Centre of Canada is required to monitor each business or institution.

FINTRAC is to facilitate, detect and deter money laundering and financing of terrorist activates, there are regulations and guidelines each organization must abided to by, to avoid public monetary penalties.

Regulations involving anti-money laundering can be a challenging task. Understand and learning those obligations and implementing a “Compliance Regime” that is best suited for your organization. We have developed a program regarding anti-money laundering compliance for our business sector, which will provide satisfaction to other business sector. Your concerns with anti-laundering will be solved with the AMLD program.

Anti-money laundering development consulting services:

  • Anti-Money Laundering DevelopmentCompliance Regimes
  • Anti-Money Laundering DevelopmentRisk Assessments
  • Anti-Money Laundering DevelopmentCompliance Training
  • Anti-Money Laundering DevelopmentRisk Mitigation
  • Anti-Money Laundering DevelopmentCompliance Review
  • Anti-Money Laundering DevelopmentAML Training
Requirements of AML Compliance

Canadian legislation of Anti-Money Laundering (AML) require companies to implement, maintain, and develop effective compliance procedures.

Sectors that require Compliance are:

  • Accountants
  • British Columbia Notaries
  • Casinos
  • Dealers in precious metals and stones
  • Financial Entities
  • Life Insurance
  • Money Service Businesses
  • Real estate
  • Securities Dealers
  • Law Enforcement and partner’s agencies

In order for you to be compliant, you must:

  • Appoint a Chief Anti-Money Laundering Officer or Compliance Officer that will be in charge of the AML compliance program’s implementation
  • Develop written procedures and policies for your compliance regime, which have undergone the approval of a senior officer
  • Maintain, update and develop a written and ongoing compliance training program for employees
  • Have on-going training along with independent and effective review of policies, procedures, and risk assessment every 2 years

Record Keeping, Reports and Client Identify

  • Each entity is required to report and keep records of Identifying clients within an obligated timeframe to FINTRAC (Financial Transactions and Reports Analysis Centre of Canada)
  • Entity must identify clients by verifying and collecting information about their identity
  • Reviewing and understanding about your clients history’ activities is also part of the requirements of AML compliance
  • Identify clients who are “PEFP” or Politically Exposed Foreign Person, and or dealing with a 3rd party, and taking essential measurements to determine this
  • FINTRAC legislation reports include
    • Large Cash Transaction
    • Suspicious Transactions
    • Electronic Fund Transfer (incoming and outgoing)
    • Terrorist Property
Administrative Monetary Penalties

As of December 30, 2008, FINTRAC has been issuing administrative monetary penalty to reporting entities that are in non-compliance with Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Criminal Penalties

FINTRAC may publish cases of non-compliance to law enforcement when there is extensive non-compliance. Criminal penalties may include the following:

  • Failure to report suspicious transactions: up to $2 million and/or 5 years imprisonment
  • Failure to report a large cash transaction or an electronic funds transfer: up to $500,000 for the first offence, $1 million for subsequent offences
  • Failure to meet record keeping requirements: up to $500,000 and/or 5 years imprisonment
  • Failure to provide assistance or provide information during compliance examination: up to $500,000 and/or 5 years imprisonment
  • Disclosing the fact that a suspicious transaction report was made, or disclosing the contents of such a report, with the intent to prejudice a criminal investigation: up to 2 years imprisonment

FINTRAC publish guidelines and materials are available at http://www.fintrac.gc.ca

For those businesses that would like to take a pro-active effective solution for anti-money laundering, the available services we offer are custom compliance regime, compliance training, risk mitigation compliance reviews, compliance training, and risk assessments.

vanyang

VAN YANG

Regulatory Anti-Money Laundering Consultant

Direct Line: 647-710-4666
Email: vanyang@goldium.net
Address: 279 Spadina Ave
Toronto, ON M5T2E3