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In a candid interview with SafetyDetectives, Amber Scott and David Vijan, co-founders of Outlier Compliance Group, delve into the intricacies of anti-money laundering (AML) and data privacy in the evolving landscape of financial regulation. With backgrounds as former bankers turned compliance experts, Amber and David offer a unique perspective on the challenges and innovations shaping AML strategies today.
Read more on Interview with SafetyDetectives: A Deep Dive into AML and Data Privacy…
BackgroundOn October 11, 2023, final amendments to regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act were published in the Canada Gazette. The most noteworthy changes fall under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the addition of a new regulation. This round of anticipated changes introduces the compliance requirements for armoured car companies and mortgage lending entities. Additionally, FINTRAC will now be able to charge businesses and individuals for the annual cost of its compliance program as part of its assessment of expenses funding model.
BackgroundBack on June 22, 2023, Bill C-47 received royal assent. As it relates to AML obligations, this has introduced changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). We have summarized what we believe to be the most significant changes below.
Since Hamas’ attacks on Israel on October 7th, 2023, several Canadians have been reported dead. Several more are being held hostage.
Closer to home, on October 12th, a day on which Hamas’ leaders were calling for a “global day of Jihad,” three young men, two of whom were minors, entered a Jewish school in Toronto, ON, destroyed property and uttered threats of death and violence. Ultimately, they left the school and were arrested without any violent fallout. They are now free on bail, while students of the school grapple with mounting terror and trauma.
There have been a number of conversations floating around about FINTRAC Large Virtual Currency Transaction Reporting (LVCTR) obligations as it relates to transactions involving Iran, and potentially involving Iran, under the current Ministerial Directive (MD). While this is not a new requirement (LVCTRs were effective June 1, 2021 and the original MD became effective July 25, 2020), there has been clarification provided with regards to reporting, and what activities trigger which reports.
Read more on Ministerial Directives Related to Iran & LVCTRs…
BackgroundFebruary seems to be the month for proposed legislative changes.
On February 18, 2023, draft amendments to the regulations under the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA), and a net-new draft regulation, were published in the Canada Gazette. If you’re the type that likes to read original legislative text, you can find it here. We (thanks Rodney) also created a redlined version of the regulations, with new content showing as tracked changes, which can be found here.
Read more on Proposed 2023 AML Changes: Mortgage Lenders and Armoured Car Services…
BackgroundOn February 11, 2023, the proposed Retail Payment Activities Regulations were published in the Canada Gazette. This is to support the Retail Payment Activities Act (RPAA) which was released under Bill C-30 and received royal assent in June 2021. The Retail Payment Activities Regulations are required to bring the RPAA into force.
Read more on The Proposed Retail Payment Activities Regulations…
FINTRAC has published a new Operational Alert on the Illegal Wildlife Trade.
The alert includes diagrams of known fund flows, both into and out of Canada (though the latter is most common). Three categories of indicators are included:
FINTRAC has published updated resources related to upcoming changes to suspicious transaction reports (STRs) on its Draft Documents page. This includes updated draft guidance on STRs, expected to come into force in September 2023.
FINTRAC has published updated indicators related to terrorist activity financing.
These are subdivided into three broad types of violent extremism:
