Anti-Money Laundering and Financial Crime

Co-Chairs’ Opening Remarks

Karen Creen
Chief Anti-Money Laundering Officer, Chief Compliance Officer
Bank of China

Michael Burgess
Senior Manager, Major Investigations and DeMarkets
BMO

20th Anniversary Alumni Roundtable

Busts, Breakthroughs, Blind spots: Former Law Enforcement Officials Reveal 20 Years of Lessons Learned for Compliance, Intelligence and Enforcement

Supt. Pete Payne
Director, Financial Crime
RCMP

John Shoemaker
VP, CAMLO, Head of Global Financial Crime Risk and Compliance
Great-West Lifeco Inc.

Peter Warrack
Chief Compliance Officer
Bitfinex

Garry Clement
President & CEO
Clement Advisory Group

Moderator:

Cameron Field
Senior Manager, AML Investigations Liaison and Special Initiatives
BMO

In this exclusive session former law enforcement officials gather for a candid conversation about the evolution of financial crime in Canada, examining both the highlights and the lowlights over the past 20 years. They will impart their own unique professional insights and critical lessons learned with an aim to improving compliance, risk management measures and information sharing.

• Analyzing the impact of recent money laundering revelations: From the Dirty Money Reports to the Cullen Commission
• Assess monumental breakthroughs in financial crime cases and major missteps over the past 20 years
  • Hear what’s working and what isn’t across compliance, intelligence, and enforcement teams
  • Key insights on how to stay nimble in response to this rapidly changing financial crime landscape
• Gather insights on compliance and investigative best practices for AML teams
• Examine how typologies are evolving to exploit the digital economy
• Insights on how to engage with new RCMP IPOC unit
• How to produce reports that will advance investigations

CASE STUDY

Securities Fraud Enforcement: What Recent Cases Reveal about the New, Sophisticated Schemes and How to Identify Them

Gerry McGeachy
Partner
McGeachy Graydon Law

Cullen Price
Manager, Market Abuse
Ontario Securities Commission

• Analyzing securities fraud cases, including those involving virtual currency for clues on what to watch for and how to respond
• How financial institutions should respond requests for information from regulators
• COVID-inspired fraud schemes to watch out for: from PPE, to vaccines and potential future tactics
  • Examining enforcement measures related to the “public-interest”
• Gain clarity on reporting obligations for fraud and how to navigate any potential overlap with suspicious transaction reports

Break

How to Comply with the Travel Rule for EFTs and Manage Virtual Currency Risk Along the Way

Amber Scott
CEO
Outlier

Charlene Cieslik
Chief Compliance Officer
Localcoin

Ana Badour
Partner
McCarthy Tétrault LLP

Gabriel Ngo
Senior Advisor, Financial Crimes Policy, Financial Sector Policy Branch
Department of Finance Canada

On June 1, 2021, amended AML regulations will come into force in Canada. Adjusting compliance practices and reconfiguring systems to meet new record keeping and reporting requirements will be no small undertaking for reporting entities. This session is an opportunity hear how industry leaders and fellow AML professionals are approaching this new slate of requirements especially as it relates to the travel rule and how the inclusion virtual currency could lead to an uptick in its adoption.

• Guidance for virtual currency businesses, financial institutions, MSBs and other entities on how to comply with the current and expanded travel rule
  • Identifying and collecting recipient information pertaining to the beneficiary
  • What are reasonable measures in the context of travel rule information
  • Originator, intermediary and final receipt standards
  • How to track and retain data to meet EFT record-keeping and reporting requirements for transactions over $1,000
  • Different approaches across financial institutions and MSBs
• Determining what records are required in the interim
  • Limits to flexible measures
• Understanding the compliance expectations set by traditional financial institutions for virtual currency clients
  • Differentiation between traditional MSBs, foreign MSBs and virtual currency MSBs
  • Determining the AML monitoring obligations for financial institutions interfacing with virtual currency

Special Focus on AML Analytics and Technology Part I

AML Model Management: How to Improve Monitoring and Meet Regulator Expectations through Testing and Advancing Technology

David Creamer
Senior Manager, AML Model Management
Scotiabank

Rock Magleby-Lambert
SVP, Quantitative Analysis and Modeling Group Manager
PNC Bank

• Key considerations when testing and tuning
  • How to measure and report model accuracy, including both false positives and false negatives
  • How adjust models to account for behavioral changes during the pandemic
• Understanding how to read data and remedy deficiencies
• Practical examples of how to turn data into valuable AML insights
• Overcoming challenges to integrating and using advancing technologies such as AI and machine learning
  • Best practices for training
  • The need to test for false negatives
  • The relationship between testing and human subjectivity
• Determining when to tune vs. redesign a model?
  • What is the role of model monitoring and how can it be done effectively?
• How to ensure your models are OSFI compliant

1:1 Networking [Break]

Special Focus on AML Analytics and Technology Part II

Interactive Vendor Showcase

This is your organization’s opportunity to get a closer look at cutting-edge technological solutions, specifically designed to drive workflow efficiencies and enhance your organization’s AML compliance insights. From advanced analytics dashboards to automation, and machine learning tools; it’s not one size fits all for financial institutions. This is your chance to ask questions a learn more about the future of financial crime management tools for KYC, EDD, ongoing monitoring and more…

Developing a Defensible Compliance Program: Best Practices for Navigating Grey Areas Under the PCMLTFR and FINTRAC’s Flexible Measures

Stephanie Irvine
Manager, Canada AML and ABC Compliance
Canada Life Assurance Company

Jacqueline Shinfield
Partner
Blake, Cassels & Graydon LLP

FINTRAC is expected to release more than sixty new and updated pieces of guidance this year. This practical session will provide insights on how to interpret and operationalize newly released guidance while also exploring how to minimize compliance missteps under FINTRAC’s flexible measures during the pandemic.

• AML’s evolving regulatory landscape: ministerial directives, regulatory and guidance updates, and published policy positions
• How to navigate FINTRAC’s flexible measures
• Interpreting regulatory grey areas
  • Defining ‘reasonable measures’ under recording-keeping requirements
  • Best practices for compliance with ‘soon as practicable’ reporting requirements
• Impact of new beneficiary requirements on life insurance business and FINTRAC’s expanding scope beyond death claims
• Interpretating and applying the “loans to public” provision; operationalizing the differences between life insurance and financial entity requirements in respect of these loan products
• How to leverage existing business processes to address the amended suspicious transaction reporting requirements and support ongoing monitoring of low-risk clients

The Fast-Evolving U.S. Economic Sanctions Environment: Key Takeaways 4 Months into the Biden Administration for Canadian Operations

Adam Smith
Partner
Gibson, Dunn & Crutcher LLP

Nicole Erb
Partner
White & Case LLP

Kim Strosnider
Partner
Covington & Burling LLP

• OFAC update
  • Insights on potential sanctions policy shifts and future priorities
  • Cuba – potential easing of measures impacting remittances and business transactions
  • Iran
  • New Myanmar sanctions and anticipated changes to economic sanctions against the Russian Federation
• Emerging sanctions trends and how to prepare your organization
  • Analysis of sanctions hot spots including China, Hong Kong, and Russia
• Screening best practices for Canadian operations
  • List-based sanctions vs. sectoral
• Best practices for navigating the U.S. extraterritorial sanctions regime and conflicting counter measures
• Global focus on Magnitsky

Break

How to Equip Your Organization for the Future of AML Compliance: Best Practices for Developing Talent and Leveraging Resources

Dr. Ian Messenger
TWELVE Financial Crime Program

Laura Houlihan
Associate Director, Financial Crimes Advisory
AML RightSource

Richard Moore
Head of AML Risk (BSA/AML Officer) United States
Scotiabank

Moderator:

Bob Kapur
AML/ATF Specialist

• Assessing how FIU and AML compliance teams are evolving
  • Determining whether financial crime types should be consolidated into one role for a more integrated approach to risk mitigation and compliance
  • Where are the talent gaps?
• How can small to medium financial institutions upskill staff to meet the demands of an integrated financial crime role
  • Best practices for leveraging resources and facilitating training remotely
• Fusion Centres: How to integrate financial crime risk mandates
  • Gain guidance on how to combine policies, procedures, and training across financial crime units
  • Assessing opportunities to leverage this model for comprehensive intelligence and concurrent investigations

End of Day One

Co-Chairs’ Opening Remarks

Karen Creen
Chief Anti-Money Laundering Officer, Chief Compliance Officer
Bank of China

Michael Burgess
Senior Manager, Major Investigations and DeMarkets
BMO

FIRESIDE CHAT

Behind the Headlines: Insights on Uncovering the Dirty Money Trail in Canada

Sam Cooper
Investigative Reporter
Global News

Moderator:

Michael Burgess
Senior Manager, Major Investigations and DeMarkets
BMO

In this interactive conversation, investigative reporter, Sam Cooper will share his biggest revelations tracking dirty money in Canada. From B.C. to Ontario, learn about what his discoveries reveal about the scope of money laundering in Canada, the players involved and his perspective on the steps to address the proliferations of these illicit activities.

FINTRAC Townhall

Meeting your Obligations under the PCMLTFA: Key Compliance Trends to Consider Before you Next Assessment

Nathalie Martineau
Regional Director
FINTRAC

• Insights on compliance trends identified during recent exams
• Learn how FINTRAC conducts assessments during COVID
• Key updates to FINTRAC’s Assessment Approach and implications for reporting entities

Break

Beneficial Ownership Laws: How Changes to the U.S. Regime Could Impact Canadian Transactions and Entities

Marcus Asner
Co-Chair, White Collar Defense and Investigations Practice
Arnold & Porter LLP

Joven Narwal
Partner
Narwal Litigation LLP

Laura Biddle
Partner
Venable LLP

• Interpreting new U.S. Beneficial Ownership Registration Requirements
• Examining the whistleblower program for AML Violations
• Insights on the enhanced powers of the US Treasury Department and Department of Justice to subpeona foreign records
  • Implications for Canadian entities from which the US seeks production of records

First Nations Banking: How to Deliver Custom Financial Services While Meeting Compliance Obligations

Trevor Reid
Manager Indigenous Retail Programs, Eastern Canada, Indigenous Banking, North America
BMO Financial Group

Lauren Rutherford
Manager, Anti-Money Laundering Financial Intelligence Unit
BMO Financial Group

Ryan LaRose
General Counsel and VP Corporate Compliance
First Nations Bank of Canada and FNB Trust

Join an in-depth discussion on how to build relationships with first nation communities, how to understand the services needed within the community and for the individual customer. Learn how to offer better banking services to a unique customer group while complying with financial regulations.

• Identifying bank needs within the community and expanding banking services
• Analyzing customer behaviour patterns with an aim to improving services
  • Evaluating preferences for digital versus cash transactions, and online versus face-to-face communications
  • Transactional trends and implications for monitoring
  • Determining what is and is not an STR
• KYC due diligence considerations
  • PEP considerations
  • Changes in leadership
• Understanding cultural and historical barriers
  • Remoteness challenges and access to basic banking
  • Legal and financial considerations as nations move to self-governance models
• Meeting compliance obligations within the contexts of serving a unique client profile
  • Language barriers and clear language requirements (e.g. Nunavut Language Act)
• On-reserve vs off-reserve rights
• On-reserve housing and Land Registry Regulations

1:1 Networking

Advanced AML Investigative Techniques: How to Leverage Open Source Discovery Methods to Satisfy KYC and EDD Requirements

Chris Pierre
Managing Director
KeyNorth Professional Services Group Inc.

• Explore advanced methods of searching and gathering information as part of the KYC and EDD process
• How to evaluate data and sources
  • Identity verification and source validation
• Lesser known places to look for pertinent information and the tools that will help
• Extract lessons from practical case studies on how to apply open discovery techniques

Trade-Based Money Laundering in the Pandemic: Typologies, Trends and Hot Spots to Watch

David Chenkin
Partner
Zeichner Ellman & Krause LLP

Ross Delston
Attorney + Expert Witness
Law Office of Ross Delston

• Learn about the latest TBML techniques being used to evade detection
  • Lesser known tactics explained, and the red flags to look for
  • Expectations for financial institutions
  • How pandemic pricing issues affect TBML
• Determining high risk TBML jurisdictions
  • Free trade zones
  • Offshore financial centres
  • FATF ICRG list countries
  • The effect of corruption on TBML
• Best practices for evaluating and addressing TBML risks within your organization
• Global gaps in international standards and domestic AML/CFT regimes

Break

Public-Private Partnerships in Action

Project Shadow: How to Identify Money Laundering Linked to Online Exploitation

Shanna Kook
Senior Manager, Special Investigation Unit (SIU)
Scotiabank

This session will put a spotlight on the public-private partnership known as Project Shadow. Hear about how Scotiabank, C3P and FINTRAC have partnered together to detect and prevent the exploitation on children online.

• Learn about the top indicators of financial transactions related to the laundering of funds associated with online child sexual exploitation
• How to gather intelligence and produce reports that will aid law enforcement

Audience Polling

How to Leverage Synergies Across the Three Lines to Identify and Rectify Deficiencies in your AML Compliance Program

Karen Creen
Chief Anti-Money Laundering Officer, Chief Compliance Officer
Bank of China

Andres Betancourt
Senior Audit Manager, AML/ATF and Sanctions
Scotiabank

Moderator:

Rosalind Laruccia
Assistant Vice-President, Internal Audit
Laurentian Bank of Canada

In this session, attendees will hear industry insights on effectiveness testing that extend beyond a check the box approach. Panelists will discuss how to:

• LIdentify ML/TF risk exposure with second line testing techniques
• How to analyze data and adjust existing controls to address potential deficiencies
  • Best practices for risk assessments
  • Setting the proper controls
• How to conduct agile audits: strategies for system reviews in a remote work environment
• Best practices for communication between the three lines for improved compliance outcomes
• How to prepare for new obligations under the PCMLTFR

Conference Concludes