Financial Crime World

Canada’s Banks Step Up Anti-Money Laundering Efforts with Enhanced Procedures, Experts Say

In a bid to fortify Canada’s financial system against illegal activities, the Bank of Canada has unveiled a comprehensive Financial Crimes Risk Management Program aimed at detecting and deterring money laundering and terrorist financing. This initiative is part of the central bank’s commitment to ensuring a secure, stable, and resilient financial infrastructure.

Expert-Led Initiative

The program is supported by a team of experts with in-depth knowledge of anti-money laundering (AML) and anti-terrorist financing (ATF) sanctions, trends, and typologies. These specialists possess professional experience in detecting and deterring suspected money laundering, terrorist financing, and activities prohibited by sanctions.

Compliance with International Standards

While not a reporting entity under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the Bank proactively complies with the spirit of the law and aligns its policies and procedures with international standards to ensure robust controls are in place.

Key Components of the Program

The Bank’s Financial Crimes Risk Management Program comprises several key components, including:

  • Senior Management Oversight: Regular review and approval of AML and ATF policies and procedures
  • Documented Policies and Procedures: Clear guidelines for employees on AML and ATF procedures
  • Ongoing Awareness Training: Regular training sessions to ensure employees are up-to-date on AML and ATF best practices
  • Periodic Risk-Based Due Diligence: Ongoing assessment of client relationships to identify potential risks
  • Ongoing Monitoring of Transactions and Activity: Continuous monitoring of transactions and activity to detect suspicious behavior
  • Screening against Terrorist and Other Sanctions Watchlists: Regular screening of clients and transactions against designated watchlists
  • Reporting of Prescribed Transactions: Reporting of transactions as required by law or regulation
  • Assessment of Money Laundering, Terrorist Financing, and Sanctions Risk: Regular assessment of potential risks to ensure effective controls are in place
  • Independent Testing of Processes and Controls: Regular testing of processes and controls to ensure their effectiveness

Continuous Improvement

The Bank regularly assesses the program to ensure that its controls and processes continue to meet its evolving needs and are commensurate with the changing financial crimes risk environment.