The Superintendent of Financial Institutions spelled out what financial institutions need to do to combat money laundering.

Speaking at an anti-money laundering conference in Toronto yesterday, Nick Le Pan suggested that there are three key areas that firms can work on in implementing sound policies and procedures to deter and detect money laundering.

“Executive management and the board should set the tone for the institution on an enterprise-wide basis, making it clear that loss of reputation due to the financial institutions products and services being used for money laundering or terrorist financing activities will not be tolerated.”

He also said that senior management should ensure that programs and resources are in place to comply with domestic and foreign AML/ATF legislation and, where necessary, be prepared to implement additional risk management controls. “There needs to be a strong AML/ATF compliance risk management culture which can only be developed with senior management’s commitment and support,” he noted.

Finally, he said that there needs to be an ongoing awareness and training at all levels, “from the board of directors to front line staff of how the institution can be used for money laundering and terrorist financing”.