In their budget released March 4, 2010, the Canadian Government announced the introduction of a legislative framework to enable credit unions to incorporate and continue their operations as federal entities. Currently, credit union operations are constrained by provincial boundaries, however, some credit unions have already incorporated Schedule I banks as subsidiairies to provide extra provincial clients. Federal incorporation comes at the price of federal regulation and supervision, though. Federally Regulated Financial Institutions (FRFIs) in Canada are subject to the supervision of the Office of the Superintendent of Financial Institutions (OSFI). OSFI is known as one of the most effective prudential regulators in the world, and applies particularly strong oversight over anti-money laundering and terrorist financing compliance. Their Guideline B-8 (revised December 2008) sets out their extensive expectations for the AML compliance regimes of the institutions they supervise. While it is driven by legislative requirements and strives for consistency with FINTRAC guidelines, B-8 sets the governance and compliance bar higher.
Williams McGuire AML has professionally advised nearly one hundred credit unions, over a dozen federally regulated financial institutions, and a number of entities applying for federal bank licenses on meeting FINTRAC’s and OSFI’s AML standards. Contact us for more information about the implications of federal operation on AML obligations.
Also announced in the budget was increased funding for FINTRAC of $8 million per year (which represents a year-over-year increase of about 20%). The Government will also introduce new legislative measures to take targeted measures against jurisdictions and entities that lack sufficient and effective AML/ATF controls, and to broaden the application of money laundering provisions related to tax evasion.
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In their budget released March 4, 2010, the Canadian Government announced the introduction of a legislative framework to enable credit unions to incorporate and continue their operations as federal entities. Currently, credit union operations are constrained by provincial boundaries, however, some credit unions have already incorporated Schedule I banks as subsidiairies to provide extra provincial clients. Federal incorporation comes at the price of federal regulation and supervision, though. Federally Regulated Financial Institutions (FRFIs) in Canada are subject to the supervision of the Office of the Superintendent of Financial Institutions (OSFI). OSFI is known as one of the most effective prudential regulators in the world, and applies particularly strong oversight over anti-money laundering and terrorist financing compliance. Their Guideline B-8 (revised December 2008) sets out their extensive expectations for the AML compliance regimes of the institutions they supervise. While it is driven by legislative requirements and strives for consistency with FINTRAC guidelines, B-8 sets the governance and compliance bar higher.
Williams McGuire AML has professionally advised nearly one hundred credit unions, over a dozen federally regulated financial institutions, and a number of entities applying for federal bank licenses on meeting FINTRAC’s and OSFI’s AML standards. Contact us for more information about the implications of federal operation on AML obligations.
Also announced in the budget was increased funding for FINTRAC of $8 million per year (which represents a year-over-year increase of about 20%). The Government will also introduce new legislative measures to take targeted measures against jurisdictions and entities that lack sufficient and effective AML/ATF controls, and to broaden the application of money laundering provisions related to tax evasion.