The Investment Industry Regulatory Organization of Canada has published a new guide to assist firms in complying with anti-money laundering and terrorist financing rules, the regulator said Monday.

The new document replaces the guidance previously produced by IIROC’s predecessor, the Investment Dealers Association of Canada. The new guide is a joint effort between IIROC and the Investment Industry Association of Canada.

Securities dealers have been subject to statutory and regulatory requirements regarding client identification since 1993, the requirements were expanded in 2001, 2002 and 2008, and these requirements are supplemented by IIROC rules also directed at preventing both money laundering and market abuse.

IIROC notes that the latest amendments included several significant changes:

> the requirement to conduct an anti-money laundering risk assessment, which requires an understanding of money laundering and terrorist financing risks and techniques;

> the identification of politically exposed foreign persons and implementation of special procedures for heightened monitoring of their accounts; and

> an increase in the identity verification procedures for clients that are not seen face-to-face.

The guidance document also identifies additional resources that will assist firms that want to go beyond the available materials.

IE