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We’re not lawyers and nothing that we write should be considered a legal opinion. Whether or not a solution will be acceptable to your regulators will always depend on your implementation and documentation – please contact us if you need help with either.
From the time that we launched, we at Outlier have believed strongly that information should be free. When we have received information from regulators or other government agencies that we believe could be useful to our friends and clients, we’ve posted that information on our blog, making the information accessible without cost. This has lead us to make inquiries with agencies including the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Most recently, we’ve requested access to all of the policy positions that FINTRAC has provided from 2008 to the present date. As a consequence of this request, FINTRAC will be releasing this data to the public in the near future.
We were honoured to present at this year’s Canadian MSB Association (CMSBA) conference in Toronto. Speakers included representatives from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the Canadian Federation of Independent Businesses (CFIB), money service businesses (MSBs), consultants, lawyers and technology service providers. Priced between CAD 200 and 250 (depending on membership status and the timing of the registration), the price of this annual event, which includes breakfast, lunch, a post event reception, an annual CMSBA membership and a training certificate is likely one of the most informative and reasonably priced resources for MSBs. We would like to thank the CMSBA for providing a top quality event.
I’ve been asked the question enough times that I probably should have blogged about it a year ago, but the kicker for me was coming across an article that seemed to have no purpose but to question why an AML consulting firm would speak at the Bitcoin Expo. The truth is that a few years ago, I may have approached the situation with the same type of skepticism. In those years, I’ve worked with excellent companies that are working hard to manage their risk (some of them in the absence of any law that would compel them to do so). I’ve not only come to believe that working with companies in the digital currency space is well-aligned with Outlier’s core mission (helping Canadian businesses to succeed), I’ve become enthusiastic about digital currency in general.
I remember my first thoughts on money services businesses (MSBs) very distinctly. Years ago, when I moved from being a banker to being a consultant, I thought of MSBs as being predatory and fly by night. I didn’t know much about MSBs, and I was hesitant to work with them as clients. Fortunately, a colleague determined to change my point of view, brought me to a meeting with one of her clients, a remittance company that served a particular ethnic community.
Read more on Why We Believe In The Right To Business Banking…
Our guest blogger this week is Jonathan Krumins, Vice-President, AML Risk & Compliance, at vCAMLO Solutions Inc. vCAMLO provides anti money laundering (AML) and anti-terrorist financing (ATF) support to Canadian credit unions. You can learn more about vCAMLO at www.vcamlo.ca.
Read more on EFT Reporting Clarification – Field Limitations…
We’ve done many AML Compliance Effectiveness Reviews of late, and my first question to clients is always the same: have you implemented the changes that came into effect in February of this year? The answers have varied from a confident “Yes, of course!” to “What changes?” We have a simple guideline for blogs at Outlier. If we receive a question more than three times, we write about it, and we make as much useful information as possible free. We do this because we believe that knowledge is power – and that everyone should have access to it. In the spirit of making knowledge free and available, we’ve decided to share the most significant changes related to updates to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR) that came into effect earlier this year, and the solutions that we’ve implemented with our clients.
Read more on Implementing 2014 AML & ATF Regulatory Changes…
We’ve recently had quite a few conversations with our clients and friends about electronic fund transfer (EFT) reporting.
For entities that 
are required to report EFTs, any amount valued at CAD 10,000 or more that is sent out of Canada or received from outside of Canada on behalf of a customer is reportable to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) within 5 business days. The question that keeps coming up relates to situations that have multiple senders or beneficiaries.
Late last week, Canadian Bill C-31 received royal assent (meaning that it has been approved and will become Canadian law). The bill covered many areas, one of which was anti money laundering (AML) and anti-terrorist financing (ATF) requirements for Canadian businesses. This included adding “dealers in digital currency” to the definition of money services businesses (MSBs).
There are new regulatory requirements that will soon impact MSBs dealing in foreign exchange (“FX”). Securities are regulated by the provinces and territories, and the dates for implementation and regulators will differ, however, the intent of the law and the basic premise is expected to be the same Canada wide. All FX transactions that settle in a period longer than two days will be required to be reported. In some provinces, these requirements will come into force sooner for registered derivatives dealers dealing in FX, and later for FX dealers not registered as derivatives dealers.
Read more on Foreign Exchange Transactions May Be Derivatives…
