Financial Crime World

Financial Crimes and Terrorism Financing on Radar in Canada

The Bank of Canada has launched a robust Financial Crimes Risk Management Program to strengthen national security and prevent the misuse of financial systems for illicit activities.

Unveiling a Comprehensive Framework

The program is supported by a team of experts with extensive knowledge of anti-money laundering (AML) and anti-terrorist financing (ATF) sanctions, trends, and typologies. It employs cutting-edge technology and analytics to stay ahead of emerging threats.

Key Components

  • Senior Management Oversight: The Bank’s leadership is committed to ensuring that controls are sufficiently robust to prevent financial crimes.
  • Documented Policies and Procedures: A comprehensive framework outlines the Bank’s approach to financial crime prevention.
  • Employee Training: Ongoing AML and ATF awareness training for employees ensures they have the necessary skills to identify and report suspicious transactions.
  • Risk-Based Due Diligence: The Bank assesses client relationships and conducts periodic due diligence to identify potential risks.
  • Ongoing Monitoring of Transactions: The program includes real-time monitoring of transactions to detect and prevent illegal activities.
  • Screening against Sanctions Watchlists: The Bank screens all transactions against terrorist and other sanctions watchlists to ensure compliance with international regulations.
  • Reporting of Prescribed Transactions: The Bank reports any prescribed transactions, as required by law.

Independent Testing and Assessment

To ensure the program remains effective in addressing evolving financial crimes risks, the Bank periodically assesses its controls and processes. This includes:

  • Independent Testing of Processes and Controls: Third-party reviews verify that the Bank’s systems are robust and effective.
  • Assessment of Money Laundering, Terrorist Financing, and Sanctions Risk: The Bank continually evaluates its risk exposure to ensure it is addressing emerging threats.

Experts Warn: Security and Stability Are Key

The Bank’s commitment to security and stability is a vital component in Canada’s efforts to combat financial crimes and terrorism financing. As experts warn, staying ahead of evolving financial crime risks requires ongoing assessments and improvements to controls and processes.