Day One: Monday, September 13, 2021
10:00 EDT
10 minWelcome and Opening Remarks from the Chair
10:10 EDT
50 minUpdate on Reporting Obligations – Electronic Fund Transfers (EFTs), and Suspicious Transaction Reports
Jacqueline D. Shinfield, Partner, Blake, Cassels and Graydon, LLP
- Suspicious transactions reporting
- Industry and industry subsectors required/ not required to report suspicious transactions to FINTRAC
- Standard of Care: Steps that can be taken to determine if you have “reasonable grounds to suspect” that a transaction is related to ML or TF
- Standard of care articulated by FINTRAC / Industry standards of care
- Sector specific indicators
- What does reporting “as soon as reasonably practicable mean?
- EFTs
- Travel rule
- Large cash
11:00 EDT
60 minNew Anti-Money Laundering Rules, Typologies and Hot Spots: Managing Change To Comply with Canada’s Evolving AML/ATF Regime
As rules change so too do the various techniques used to launder money or finance terrorism. This session will look at recent changes in the rules and resulting changes in typologies and new and emerging red flags to be aware of.
- Increased scope to prosecute money laundering under the Criminal Code with the addition of “recklessness” in moving money on someone else’s behalf while being aware that there is a risk of money laundering
- Mandatory public disclosure of administrative monetary penalties
- KYC requirements relaxed for non-face-to-face transactions – original documents no longer required just authentic, valid and current copy
- IROC updated guidance for securities dealers
- Money laundering indicators for casinos to assist casino businesses in identifying and reporting suspicious transactions that may be related to money laundering activities
- Need for reporting entities to align compliance programs and processes to meet regulatory expectations
- Need to update legacy systems
12:00 EDT
45 minID Verification and Beneficial Ownership Registries
Gene DiMira, CAMS-Audit, CGSS, Chief Identity Officer, AML Shop
- Shape and form of registries
- FINTRAC’s amended position on confirming the accuracy of beneficial ownership information
- Best practices to ensure the accuracy of the information obtained?
- Documentary sources
- Non-profits and trusts
- Methods to verify the identify of the most senior management officer
- What if no individual owns or controls 25% or more of a corporation or trust?
- Requirements to keep beneficial ownership information up to date
12:45 EDT
45 minBreak
13:30 EDT
45 minNew Regulatory Requirements for Money Service Businesses (MSBs) and Virtual Currency Businesses
- FINTRAC’s definition of MSBs
- Foreign MSBs
- Virtual currency dealers
- Client identification requirements -authentic, valid and current
- Reporting requirements
- Suspicious transactions
- Large Cash transactions
- EFTs
- Record keeping
- Ongoing monitoring
- Recent changes
- Record keeping
- Exceptions to beneficial ownership determination
- The BC Land Ownership Transparency Act: the first such registry to be fully compliant with best practices
14:15 EDT
45 minFive Important Steps for Casinos to Consider on the Basis of the New Regulatory Requirements
Derek Ramm, Director, Anti-Money Laundering, Alcohol and Gaming Commission of Ontario
Massive questionable transactions flowing through B.C. casinos, the doubling of suspicious cash investigations in Ontario casinos and suspected links to international drug cartels in both provinces have led to new regulatory requirements for casinos and the banks doing business with them.
- What qualifies as a casino under the Act?
- Overview of key compliance program requirements
- Provincial requirements issues
- Reporting requirements
- Record keeping requirements
- Assessing penalties and risks of non-compliance
15:00 EDT
15 minBreak
15:15 EDT
60 minWhat Does the Risk Based Approach Mean for Reporting Entities?
The Risk-Based Approach (RBA) requires reporting entities to conduct assessments of their exposure to money laundering and terrorism financing risk using a number of prescribed criteria. This session will cover:
- FiINTRAC’s expectations
- The new obligations that result from the new regulatory requirements
- The risk based approach cycle
- Risk assessment
- Mitigation
- Client identification, beneficial ownership, business relationship information in accordance with assessed level of risk
- Ongoing monitoring of transactions and business relationships
16:15 EDT
30 minUsing Big Data Intelligence for Big Gains in Fighting Crime
16:45 EDT
End of Day One
Day Two: Tuesday, September 14, 2021
10:00 EDT
15 minWelcome and Opening Remarks from the Chair
Amber D. Scott, Founder, CEO and Chief AML Ninja, Outlier Solutions Inc.
10:15 EDT
45 minBanking Marijuana: An AML perspective
Jacqueline D. Shinfield, Partner, Blake, Cassels and Graydon, LLP
- Need to review or assess whether:
- The business is properly licensed;
- Abides by applicable municipal requirements;
- The transactional activity of the business is consistent with what is expected from other retailers or similar types of businesses; and
- The types and amounts of transactions conducted are consistent with what is known about the business and the industry
- Need to assess, document and take steps to mitigate any risks involved
- Need for enhanced measures to identify the individuals, confirm the existence of entities involved and monitor more frequently
- The new offense for “recklessness” in the Criminal Code
- Need to ensure cannabis is from legal sources
- Need for financing entities to perform due diligence to ensure cannabis is from a legal source
- Need for relevant re
- Need for financing entities to obtain representations and warranties to minimize risk and ensure compliance
- Takeaways for investors and financial institutions
11:00 EDT
60 minAML Compliance Effectiveness Reviews/Audits for Reporting Entities
Moderator: Amber D. Scott, Founder, CEO and Chief AML Ninja, Outlier Solutions Inc.
Andres Betancourt, Senior Manager, AML Solutions - Systems & Metrics, Scotiabank
- Completeness and effectiveness of the anti money laundering (AML) and counter terrorist financing (CTF) compliance program
- Requirements for larger institutions, federally regulated institutions and smaller companies
- Deciding who should perform the review and what to spend
- Testing your documented program (policies, procedures, risk assessment and training) – Do they meet the requirements for your business?
- Testing operations – what was tested and how, including customer identification, recordkeeping and FINTRAC reporting
- Choosing a reviewer
- Document changes to your program or operations following review
12:00 EDT
45 minBreak
12:45 EDT
45 minPreparing and Responding to FINTRAC Examinations
Bruce McMeekin, Regulatory Litigation, J. Bruce McMeekin Law
- The three essentials of due diligence
- The Importance of self-auditing and continuous improvement
- FINTRAC examination practices
- The ubiquitous risk – suspicious transaction reporting
13:30 EDT
45 minImpact of Open Banking on AML and TF
- What changes will open banking create?
- How will these changes impact our vulnerability to money laundering schemes?
- Why will it be harder to spot suspicious behavior?
- What will it take to effectively monitor the increasing number of smaller players
- What should payment service providers be doing?
- What should banks be doing?
- What should regulators be doing?
14:15 EDT
15 minBreak
14:30 EDT
45 minSanctions screenings: Ensuring Better Processes
John Boscariol, Leader, International Trade and Investment Law Group, McCarthy Tétrault
- Interpreting screening obligations
- Managing ongoing screening obligations
- Global versus Canadian screening obligations
- Incorporating sanctions obligations within broader AML obligations
- Reporting obligations
- Assessing non-compliance
15:15 EDT
45 minPayment Service Providers - Direct and Indirect Risks and Regulation
Moderator: Amber D. Scott, Founder, CEO and Chief AML Ninja, Outlier Solutions Inc.
Nelu Sund, Country Manager, PayCompliance
Joseph Iuso, Chief Compliance Officer, Payment Source
Pamela Draper, President & CEO, Pateno Payments Inc. and Bitvo Inc.
- Many reporting entities rely on services provided by PSPs and PSPs rely on services provided by banks
- How to assess and manage PSP risk
16:00 EDT
End of Day Two