Canada’s anti-money laundering agency on Friday published a compliance guide for securities dealers, investment advisers and portfolio managers.
The Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC) Risk-based approach workbook for securities dealers aims to help dealers identify compliance risks by: products, services and delivery channels; clients and business relationships; geography and other factors.
The publication also aims to help firms implement effective measures to address money laundering risks, and to monitor and review their approach to dealing with these risks.
The guide recommends dealers divide the risk assessment process into two parts:business-based risks, which includes products, services and delivery channels; and relationship-based risks which includes clients’ activities and transaction patterns.
“It is important to note that there is no prescribed methodology for the assessment of risks,” the guide says.