OSFI revises anti-money laundering supervisory approach

Patricia Chehade‎ (Articling Student). In a letter to the industry, the Office of the Superintendent of Financial Institutions (“OSFI”) ... Blogs Events PublicationSeries Publications Resources Topics Email Print PDF +Share Inalettertotheindustry,theOfficeoftheSuperintendentofFinancialInstitutions(“OSFI”)announcedthatitwillberesumingitseffortstocollaboratewiththeFinancialTransactionsandReportsAnalysisCentreofCanada(“FINTRAC”)tocombatmoneylaunderingandterroristfinancing.‎ Aspartofanon-goingefforttoeliminatepotentialoverlapandreduceregulatoryburden,OSFIandFINTRACrevisedtheirapproachtosuperviseFederallyRegulatedFinancialInstitutions(“FRFIs”)anti-moneylaunderingandanti-terroristfinancing(“AML/ATF”)programs. OSFIclarifiedthatgoingforward,FINTRAC’sprimaryfocuswillbetoassesswhetherFRFIsareincompliancewiththeProceedsofCrime(MoneyLaundering)andTerroristFinancingActandassociatedregulations,whereasOSFI’sresponsibilitywillbetheprudentialimplicationsofFRFIs’AML/ATFcompliance.Inotherwords,OSFI’smandateincludesidentifyingsituationsthatgiverisetomaterialrisk,apprisingFRFIsofthesesituations,andrecommendingorrequiringcorrectivemeasures. Inconnectionwiththistransition,OSFIisconsideringrevisingitsRegulatoryComplianceManagementguideline(“GuidelineE-13”).GuidelineE-13outlinesOSFI’sexpectationsinrespecttomitigatingregulatoryrisksinherenttoFRFIsbusinessactivities.OSFIisalsoconsideringwhetherGuidelineB-8,ondeterringanddetectingmoneylaundering,shouldbewithdrawnorincorporatedintoarevisedGuidelineE-13. Pleasenote,OSFIisseekingFRFIsinputbyNovember30,2020.  Thisarticleprovidesonlygeneralinformationaboutlegalissuesanddevelopments,andisnotintendedtoprovidespecificlegaladvice.Pleaseseeour disclaimer formoredetails. Sharethis Authors EricBelli-Bivar EricBelli-Bivar Partner Toronto T:+14169415396 EmailEric Fullbiography Relatedservices Finance WhiteCollarandCorporateCrime Relatedsectors FinancialServices