The Department of Finance has launched a consultation of proposed changes to Canada’s regime for fighting money laundering and terrorist financing.
On Wednesday, it published a consultation paper that proposes several changes to the anti-money laundering legislation. The proposals target a variety of goals, including:
• strengthening client due diligence standards;
• closing gaps in Canada’s regime;
• improving compliance, monitoring and enforcement;
• strengthening information sharing;
• introducing a list of potential countermeasures; and,
• updating reporting requirements.
In November, Finance published a paper that focused on client due diligence standards specifically. This new paper incorporates the results of that consultation and broadens it to other areas. It also aims to inform a Parliamentary review of the legislation that will be conducted in 2012 by the Standing Senate Committee on Banking, Trade and Commerce.
Back in March, an independent review of the existing anti-money laundering regime identified areas needing improvement. It recommended that Finance lead efforts to improve compliance with international commitments, including an examination of legislative barriers that may limit the ability to effectively share information within the regime.
Additionally, a Special Senate Committee on Anti‑Terrorism released a report earlier this year, recommending that the definition of “monetary instruments” be expanded to recognize prepaid cards and mobile devices, and that consideration be given to reducing the $10,000 threshold that currently applies to cash transactions and international electronic funds transfers that must be reported to the agency that collects and analyzes this data, FINTRAC. The report also raised concerns regarding restrictions on FINTRAC.
Changes to the regime would likely affect all firms within the financial sector, along with lawyers, accountants, and various other industries and professions.
“Money laundering and terrorist financing not only threaten the financial system, they enable crimes that may harm Canadians and threaten our quality of life,” said Finance minister, Jim Flaherty, in launching the consultation. “The potential business and societal damage of these crimes underscore the need for a clear and effective deterrent.”
The deadline for comments is March 1, 2012.