Anti-Money Laundering

• Revision of the FATF 40+9 Recommendations, expected in February 2012
  • Emphasis on effectiveness
  • Implications regarding domestic PEPs
  • How the G20 emphasis on anti-corruption efforts is informing FATF’s approach to AML
  • The Canadian context
    

• Consultation on amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations on ascertaining identity
  • Proposed measures
  • Feedback from consultation process
  • Next Steps
• The government’s consultation on review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)
  • Proposed measures
  • Feedback from consultation process
  • Next steps
• 2012 Parliamentary Review of the PCMLTFA
  

• Developments since last year in terms of tax evasion as a predicate offence
• Clarifications for FIs on red flags and what they are expected to report
• Tax evasion by abuse of charitable organizations
• Other typologies
  • Offshore accounts and associated credit cards
• Application of risk-based analysis
• An opportunity to ask questions

• The results of the first penalty appeals to the Federal Court of Appeal
• The review agenda for the coming year
• Lessons from the first year of examinations
  • AMPS imposed
  • Non-disclosures referred to law enforcement
  • What are the most common shortcomings observed in examinations?
  • What common “best practices” don’t measure up?
  • How risk assessments could improve
  • Distinctions among the different types of FIs (insurance, securities, banking etc.)
  • Expectations for training
  • An update on examinations and investigations in the securities industry, including risk assessments
• Positive balances on credit cards and reloadable cards
  • What are FINTRAC’s concerns?
  • What is a reasonable threshold amount for concern?
  • What is a reasonable duration for concern?
  • Best practices for due diligence
• Guidance on assessing product risk
• AML implications of Quebec’s Money-Services Businesses Act and associated regulations affecting MSBs and white-label ATMs.
• Expectations for reporting fraud
  • Why FINTRAC wants a report even if the incident is a police matter
    

• What are the money launderers up to these days?
• Layering and integration: how is it being done?
  • Real estate
  • Securities
  • Life insurance
  • Other vehicles
    

This session, always one of our most popular, offers you fascinating insights into international money-laundering investigations — what the crooks were up to, and how they were detected.

• Will we be seeing consolidated lists from DFAIT and OSFI?
• Using risk analysis and mitigation to find your way through the sea of names with respect to PEP screening
• How much is enough?
• Managing the risks of correspondent banking
  • What are you prepared or not prepared to accept in the way of business from high-risk areas?
  • What internal due diligence should you impose on business lines?
• Analyzing geographic risk for PEFPs
• FATF’s evolving anti-corruption push
  • Conformity with the UN Convention Against Corruption
  • When will you need to identify domestic PEPs?
• Advice for Canadian branches of foreign FIs
  • What’s different about Canadian rules for PEFP screening?
  • Which country’s sanction lists apply, particularly in relation to Cuba?
• Developments at SWIFT
  • Real-time scanning of wire-payment traffic
  • Implications for smaller FIs
    

• Are transfers of money stored on or linked to cell/smartphones or other types of electronic devices covered by the PCMLTFA?
  • If not reporting entities, what if any are the obligations of operators?
  • Is such an enterprise an MSB?
• What regulatory regime applies to stored value/prepaid value phone-to-phone transfers?
  • Is the cell phone provider a banker?
  • How does this store value differ from gift cards and other stored-value products? Are top-ups covered?
  • Are virtual currencies subject to the laws?
• What AML requirements are imposed in the USA on mobile payments and prepaid transactions? What types of companies are covered – just financial services providers or retailers/third-party distributors as well?
  • Important recent amendments to the Bank Secrecy Act
• Are cross-border transfers covered? Are there requirements to make disclosures/report if someone carries a smart phone/electronic device loaded with a threshold amount of money across a border?
• Applying FATF recommendations to this sector
• Compliance by design for emerging payment systems
• Risk assessment best practices
  • Where are the vulnerabilities

• How the economic crisis changed the climate for money laundering in this sector
• Why a legislative scheme designed primarily for FIs can be a poor fit with commodity dealers
• Pitfalls and loopholes in the legislation with respect to diamonds and precious metals
• Typologies in this sector
• Telltale signs to watch for in the dealer’s books
• How should a bank deal with a customer that is a reporting entity?
• Considerations where the dealer also operates an MSB
  • Due diligence measures financial institutes should undertake before agreeing to bank dealers in precious commodities
  • Questions to ask