Update and consultation on OSFI's activities on anti-money ...

Over the past year, OSFI and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) have entered a new phase in their ... Skiptomaincontent Skiptosecondarymenu UpdateandconsultationonOSFI’sactivitiesonanti-moneylaundering/anti-terroristfinancing(AML/ATF)supervision PageContent TypeofPublication:IndustryLetter Date:October16,2020 To:FederallyRegulatedFinancialInstitutions(FRFIs)ThisletterprovidesanupdateontheOfficeoftheSuperintendentofFinancialInstitutions’(OSFI)revisedapproachtosupervisingFRFIs’anti-moneylaundering/anti-terroristfinancing(AML/ATF)programs.Overthepastyear,OSFIandtheFinancialTransactionsandReportsAnalysisCentreofCanada(FINTRAC)haveenteredanewphaseintheircollaborationonAML/ATFsupervision,aspartofon-goingeffortstoeliminateduplicationandmanagetheregulatoryburdenonFRFIs.Goingforward,FINTRACwillbetheprimaryagencyconductingAML/ATFassessmentsofFRFIstoensurecompliancewiththeProceedsofCrime(MoneyLaundering)andTerroristFinancingActandassociatedregulations(PCMLTFA/R).OSFIwillfocusontheprudentialimplicationsofFRFIs’AML/ATFcompliance,aspartofitson-goingassessmentofFRFIs’regulatorycompliancemanagementframeworks.OSFIandFINTRACwillcoordinateonthestateoftheAML/ATFregimerelativetotheirrespectivemandatesandasitrelatestoFRFIs.ThisisconsistentwithBaselCommitteeguidanceoncooperationandinformationexchangeamongprudentialandanti-moneylaunderingandcounteringfinancingofterrorism(AML/CFT)supervisorsforbanks.InJune2019,OSFIandFINTRACmetwithFRFIstocommunicateanincrementaltransitiontothisnewapproach.Thistransitionbeganin2019andisexpectedtooccuroveraminimumtwo-yearperiod.InMarch2020,asaresultoftheCOVID-19pandemic,OSFIputatemporarypauseonbothpolicydevelopmentworkandthetransitionofAMLsupervisoryactivitiestoFINTRAC,butwehavenowrestartedthiseffort.OnJuly13,2020,theSuperintendentannouncedthatOSFIwouldgraduallyrestartpolicydevelopmentworkinthefall.OnAugust6,2020,theOSFIPillardescribedthepolicyrestart,includinganupcomingreviewofGuidelineE-13(RegulatoryComplianceManagement)toincorporateexpectationsformanagingcomplianceinrelationtoAML/ATF.Aspartofthisreview,wearealsoassessingtheongoingrelevanceofOSFI’sGuidelineB-8(Deterring&DetectingMoneyLaunderingandTerroristFinancing)whichreplicateselementsofthePCMLTFA/RanddoesnotalignwithOSFI’snewsupervisoryapproach.OSFIhasinitiatedthisreviewandisconsideringspecificadjustmentstoGuidelineE-13.ThegoalofthisreviewistoensuregreaterclarityaboutOSFI’smandateinrelationtoAML/ATFandtopreventanyoverlapwithFINTRAC’srole.OSFIisalsoconsideringwhetherGuidelineB-8shouldberescinded.OSFIisseekingFRFIviewsonthenatureandtimingofanypotentialguidanceamendments,including:WhetheramendmentstoGuidelineE-13areneeded,andtheextentanysuchchangesinrelationtoAML/ATFsupervisionorclarifyingOSFI’sexpectationsforcomplianceriskmanagementmorebroadly;andWhetherGuidelineB-8shouldberescindedinfull,orifelementsofGuidelineB-8shouldbeincorporatedinarevisedGuidelineE-13.PleasesubmitcommentstoAML-ATF@osfi-bsif.gc.cabyNovember30,2020.​ ModifiedDate: 2020-10-16 Secondarymenu RegulationandGuidance ActsandRegulations Guidance TableofGuidelines TableofAdvisories ApprovalsandPrecedents ApplicationandApprovalGuides RegulatoryandLegislativeAdvisories LegislativeRulings CapitalRulings NameRequest RiskAssessmentandIntervention SupervisoryPractices GuidetoIntervention TrustAgreements RegulatoryData FilingCorporateReturns FilingFinancialReturns ViewingFinancialData Anti-moneyLaunderingandCompliance Anti-moneyLaundering Anti-terrorismFinancing Sanctions Messages IndustryNotices WebTools WhoWeRegulate