Develop, Implement and Maintain a Compliance Framework:
AML legislation in Canada requires each Reporting Entity to implement a program to ensure compliance:
Appoint someone to be responsible for the implementation of an AML compliance program, often called the Chief Anti-Money Laundering Officer.
Assess and document the money laundering and terrorist financing risk facing the business, and implement measures to control that risk.
Develop, apply, and keep up-to-date written policies and procedures for compliance, that are approved by a senior officer.
Develop and maintain a written ongoing compliance training program for employees and agents.
Institute and document an independent effectiveness review of the risk assessment, policies and procedures, and training at least every two years.
Identify Clients, Keep Records, and File Reports:
AML legislation in Canada also requires each Reporting Entity to identify clients, keep records of client interactions, and file certain reports with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) within prescribed timeframes.
1) Collect, keep, and verify certain information about the identity of clients, in the prescribed circumstances:
Collect information about their identity.
Verify information about their identity.
Gain a more complete understanding of your client and their activities by conducting in-depth analysis (enhanced due diligence).
Take reasonable measures to determine if your client is a politically exposed foreign person (PEFP) or dealing on behalf of a third party.
2) Keep certain records about your client’s interactions and transactions with your business for the prescribed period, in a way that can be quickly accessed to demonstrate compliance, or to assist law enforcement.
3) Report certain transactions and information in proper form to FINTRAC within legislated timeframes:
Suspicious transactions
Terrorist property
Prescribed financial transactions
i. Large cash transactions
ii. Incoming and outgoing electronic funds transfers (EFT)
Register
Money Services Businesses are also required to register with FINTRAC and to keep that registration current.
Develop, Implement and Maintain a Compliance Framework:
AML legislation in Canada requires each Reporting Entity to implement a program to ensure compliance:
Identify Clients, Keep Records, and File Reports:
AML legislation in Canada also requires each Reporting Entity to identify clients, keep records of client interactions, and file certain reports with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) within prescribed timeframes.
1) Collect, keep, and verify certain information about the identity of clients, in the prescribed circumstances:
2) Keep certain records about your client’s interactions and transactions with your business for the prescribed period, in a way that can be quickly accessed to demonstrate compliance, or to assist law enforcement.
3) Report certain transactions and information in proper form to FINTRAC within legislated timeframes:
i. Large cash transactions
ii. Incoming and outgoing electronic funds transfers (EFT)
Register
Money Services Businesses are also required to register with FINTRAC and to keep that registration current.