Financial Crime World

Here is the rewritten article in markdown format:

Canada’s Regulatory Framework for Financial Crime: A Complex Web of Oversight Bodies

In Canada, a multitude of regulatory bodies work together to oversee financial markets and companies, each with its own set of responsibilities. The federal government, provincial governments, and national self-regulatory organizations all play a crucial role in maintaining the stability and integrity of the country’s financial sector.

Federal Level Regulators

Financial Institutions Supervisory Committee (FISC)

The FISC serves as the chief coordinating body for regulatory policy and supervision. It is comprised of:

  • Department of Finance
  • Office of the Superintendent of Financial Institutions (OSFI)
  • Bank of Canada (BoC)
  • Canada Deposit Insurance Corporation (CDIC)
  • Financial Consumer Agency of Canada (FCAC)

Responsibilities

  • The Department of Finance is responsible for:
    • Managing federal borrowing on financial markets
    • Developing financial sector policy and legislation
    • Representing Canada in international financial institutions
  • OSFI supervises all domestic banks, branches of foreign banks operating in the country, trust and loan companies, cooperative credit companies, life insurance companies, and property and casualty insurance companies.
  • The Bank of Canada is primarily responsible for:
    • Conducting monetary policy by setting interest-rate targets and adjusting credit supply
    • Serving as a key component in the payments system
    • Providing liquidity to the financial system
    • Conducting ongoing research into issues related to financial stability and efficiency
  • CDIC promotes the financial system’s stability by providing deposit insurance against loss of eligible deposits at member institutions in the event of failure.
  • FCAC ensures that federally regulated financial entities comply with consumer protection measures, promotes financial education, and raises consumers’ awareness of their rights and responsibilities.

Provincial and Territorial Regulators

Responsibilities

  • Provincial regulators play a crucial role in:
    • Administering and enforcing rules around securities issuance, buying, and selling
    • Regulating marketplaces and clearing agencies
    • Overseeing self-regulatory organizations (SROs)
    • Approving individuals and firms for registration based on proficiency and educational requirements
    • Disciplining them if necessary

Examples

  • Alberta’s Treasury Board and Finance, along with the Alberta Securities Commission, oversee the financial sector.

Self-Regulatory Organizations (SROs)

Canada has two main SROs:

  • Investment Industry Regulatory Organization of Canada (IIROC)
    • Sets and enforces rules for investment dealers and equity markets
    • Monitors trading on those marketplaces
    • Approves training courses
    • Disciplines member firms and individuals
  • Mutual Fund Dealers Association of Canada (MFDA)
    • Regulates the operations, standards of practice, and business conduct of mutual fund dealers
    • Disciplines member firms and individuals

Montreal Exchange

The Montreal Exchange, located in Quebec, is also considered an SRO and is the only financial derivatives exchange in Canada.

Conclusion

All Canadian financial regulators seek to protect those who participate in the industries they govern. While their policies may vary, their areas of coverage often overlap, ensuring that the country’s financial sector remains stable and secure.