FM Magazine Article: Protecting Your Organisation Against Money Laundering

Matt McGuire (of The AML Shop) has contributed an insightful new article “Protecting your organisation against money laundering: A look at some of the indicators of the processing of profits of crime” in FM Magazine’s October 2021 Issue. Matt’s article focuses on money laundering targeted to the accounting sector. Read it now at FM Magazine.

The Future of Financial Crime - Interview with Matt McGuire

The AML Shop’s Matt McGuire (Co-Founder and Practice Leader) recently sat down with Kyckr to discuss the Future of Financial Crime.

This in-depth interview discusses the evolution of Financial Crime over the years and through the pandemic and also contemplates the future of this rapidly accelerating issue in the face of technology and fewer in person transactions.

The AML Shop partners with ACAMS to support Training for Anti-Financial Crime Professionals in Canada

Under a partnership agreement with ACAMS, The AML Shop will offer training to prepare candidates for the gold-standard Certified Anti-Money Laundering Specialist (CAMS) certification program in Canada.

TORONTO – As part of its effort to bolster anti-financial crime (AFC) compliance for banks and other institutions, The AML Shop has partnered with ACAMS to provide Certified Anti-Money Laundering Specialist (CAMS) certification training to professionals working in the Canadian financial sector, and promote the Certified AML FinTech Compliance Associate (CAFCA) program. The globally-recognized certifications are widely used for AFC compliance at traditional financial institutions, designated non-financial businesses and professions (DNFBPs), and FinTech firms.

The most sought-after credential for anti-money laundering (AML) professionals around the world, CAMS serves as a global benchmark for compliance knowledge and training in the the AFC space. CAMS applicants must demonstrate their knowledge of how to effectively safeguard their institutions against illicit finance, including transactions linked to money laundering, terrorism financing, sanctions evasion, fraud and bribery. Successful candidates must complete a timed examination and maintain their credential with continuing education to support their career path as an AFC professional. 

The CAFCA certification, which was launched last December, is designed to strengthen the compliance toolkit of FinTech personnel involved in financial-crime prevention at the entry level. This includes personnel working at FinTech firms that operate as prepaid card issuers, Payment Service Providers, neo-banks, Insuretech companies, crowdfunding and peer-to-peer organizations, among other businesses in the sector. CAFCA applicants must train on governance and regulations, customer due diligence controls, transaction monitoring best practices, investigatory procedures, regulatory reporting and other topics. To attain the accreditiation candidates must also pass the CAFCA certification exam, which tests the ability of applicants to apply the knowledge of their training to real-life, contextualized scenarios.

“We couldn’t be more excited to partner with ACAMS to offer CAMS training and promote CAFCA to AFC professionals in the Canadian market,” said Matthew McGuire, co-founder and practice leader of The AML Shop. “These are highly regarded credentials, fundamental to the development of industry best practices in AFC compliance as it adapts to new technologies and methods.”

“As institutions everywhere continue to face the threats posed by a historic rise in fraud and other illicit finance that law enforcement officials have identified over the past 18 months, having a strong compliance program has never been more important,” said Scott Liles, president and managing director of ACAMS.

In addition to their accreditations, successful applicants will receive an ACAMS membership, as well as access to certain content published via ACAMS.org, ACAMSToday.org, ACAMS webinars, forum discussions and ACAMS newsletters.

Click the button below to learn more about The AML Shop x ACAMS Partnership and to register for the CAMS Prep Course.

Matt McGuire announced as a CIX Selection Committee judge for 2021 Top 20 Early and Growth Awards

The AML Shop’s Matt McGuire has been announced as a 2021 CIX Selection Committee Judge for this year’s awards. Matt encourages all early and growth-stage start-ups to apply to be considered. This is a great opportunity to be seen by over 100 investor judges and a chance to present at the CIX Digital Summit in October to 700+.

For over 14 years, the CIX Top awards program has identified Canada's most innovative startups from coast to coast. The 250+ alumni are an impressive list of Canada's fastest growing startups and each year, investors and corporates rely on the CIX awards program to find companies to invest and partner with. Be sure to apply!

Deadline to apply is: August 4, 2021.

Episode 6: Complete CU Services Interview | Romance Scams and Virtual Currency

Talk Shop is back with Episode 6! This week Matt McGuire (Practice Leader, The AML Shop) covers some very interesting ground with Complete CU Services hosts Pierre Jean Gallant and Erika V Aguilar.

Topics include:

  • Romance Scams and average levels of fraud

  • Issues faced by credit unions in regards to virtual currencies and the importance of implementing controls to mitigate risk

Episode 4: Complete CU Services interview | Diverse Issues in Large Scale Fraud

Another fun and informative interview from the “Talk Shop” series with The AML Shop Practice Leader, Matt McGuire, has been released.

In Episode 4, Pierre Jean Gallant and Erika V Aguilar from Complete CU Services discuss with Matt the latest trends and diverse issues in large scale fraud, touching on important subjects such as:

  • Synthetic Identities and Identity Theft

  • The use of EFT’s for money laundering activities

  • Reasonable grounds for suspicion 

Watch the video below and stay tuned for Episode 5 - coming soon!

Episode 2: Complete CU Service interview with Matt McGuire of The AML Shop

Talk Shop with Complete CU Services is back with another insightful (and fun!) interview with The AML Shop Practice Leader, Matt McGuire.

As always, in the spirit of "Talk Shop", this episode touches on a few key AML hot topics of interest, including:

- AML Controls in a digitally disruptive world

- Remote identification

- Setting baselines for expected customer activity to assist in detecting abnormal behaviours

- The evolution of FINTRAC examinations and recent emphasis on Enhanced Due Diligence

Check out the video below and stay tuned for Episode 3 - coming soon!

PODCAST: Explaining the June 1st FINTRAC changes for REALTORS

Adam Feldman (AML Advisor, at The AML Shop) was recently featured as a guest on the Open House by BCREA Podcast to share an overview of the updated FINTRAC AML regulations that come into effect on June 1, 2021 and to explain how these updates will impact real estate practice.

Topics covered on this podcast include key information about Regulatory Changes, Beneficial Ownership, Business Relationships, Politically Exposed Persons and Virtual Currency.

WATCH VIDEO: Complete CU Services Interview with Matthew McGuire - Episode 1

Matthew McGuire, Practice Leader, from The AML Shop recently sat down (virtually) with Pierre Jean Gallant and Erika Aguilar of Complete CU Services for a fun and insightful interview to ‘talk shop’ about all things AML.

Topics covered include:

  • An overview of The AML Shop

  • How the proceeds of crime equate to money laundering in Canada

  • How Risk Assessment has changed in the face of evolving technologies and online transactions

  • The importance of monitoring digital transactions efficiently, to swiftly assess risk


WATCH EPISODE 1

Approach for New Obligations Under the PCMLTFA - Points to Ponder by Tuhina Seth

Are you reporting to FINTRAC?  Do you have concerns about reporting obligations? Are you over reporting?  Are you under reporting?  Changes in FINTRAC reporting requirements are underway!

The AML Shop’s Tuhina Seth (AML Analyst) breaks down the forthcoming changes in FINTRAC reporting requirements that are coming into effect on June 1st and what these changes means for Reporting Entities, when voluntary disclosures are required, and more.

Read the full article below.

Does FINTRAC Issue Registration Certificates? - Points to Ponder by Marcelle Dadoun

Have you ever received a “FINTRAC Money Services Business” certificate?  Is it legitimate?  Does FINTRAC even issue Registration Certificates? The simple answer is NO!  The information in the certificate might be real, but the certificate itself is a fake.  

The AML Shop’s Marcelle Dadoun (AML Advisor) insightfully breaks down the actual process that FINTRAC conducts when they approve an MSB/FMSB, and what to do if you receive a fake certificate.

Read the full article below.

New Regulations for Crypto Companies - Points to Ponder by Adam Feldman

By now, you probably have heard that IIROC and the CSA released a joint statement outlining the application of securities law to crypto trading platforms. This means that dealers in virtual currency could meet the definition of a securities dealer, as defined in paragraph 5(g) of the PCMLTFA, which includes “persons and entities authorized under provincial legislation to engage in the business of dealing in securities”.  However, dealers in virtual currency also meet the definition of an MSB that is given in paragraph 5(h).  This definition includes “persons and entities that have a place of business in Canada and that are engaged in the business of…dealing in virtual currency”.  This got me to thinking: “are dealers in virtual currency securities dealers now, or are they still MSBs?” 

FINTRAC, released policy interpretation 5404 in 2012, which at first glance would appear to address this issue.  This policy interpretation states:

“Should a securities dealer provide money services business (MSB) activities, such as foreign exchange, outside of their securities dealer activities, the securities dealer would be required to register as an MSB. Upon registration as an MSB, the registrant would indicate that their business is also another type of reporting entity (i.e., a securities dealer). As an MSB and a securities dealer, the entity would be subject to all applicable sections of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated regulations.”

However, as security tokens and crypto contracts are now considered to be securities, dealing in those types of products would not be providing a product or service that is separate from securities dealer activities, so this policy interpretation does not provide additional clarity vis-à-vis whether a dealer in virtual currency that is subject to provincial securities legislation is considered to be a securities dealer or an MSB under the PCMLTFA.

As the amendments to the PCMLTFR don’t impose any obligations on securities dealers relating to the exchange or transfer of virtual currency, I would assume that the intent is to continue to regulate  dealers in virtual currency as MSBs regardless of whether they are captured by provincial securities legislation, but in light of IIROC and the CSA’s joint statement, it would be nice if FINTRAC were to release an interpretative notice providing clarification on this point.

For more information on the new regulations for Crypto companies, watch this webinar hosted by The AML Shop’s Adam Feldman and Marcelle Dadoun.

WATCH VIDEO: New Regulations for Crypto Companies - TAS Webinar


On March 29th, the Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) released a joint statement indicating that securities legislation could be applicable to crypto asset trading platforms (CTP) and that these platforms will be required to register with IIROC and their local securities administrator.  In response, the Ontario Securities Commission (OSC) has established a deadline of April 19th for covered CTPs that are based in Ontario or that have a substantial connection to Ontario to register with the OSC.

Please find below a podcast wherein Advisors Marcelle Dadoun and Adam Feldman of The AML Shop are joined by Matthew Burgoyne, Partner and Head of the Cryptocurrency Blockchain group at McLeod Law to discuss "New Regulations for Crypto Companies'.

Advisors Marcelle Dadoun and Adam Feldman of The AML Shop are joined by Matthew Burgoyne, Partner and Head of the Cryptocurrency Blockchain group at McLeod Law to discuss "New Regulations for Crypto Companies'.

Discussed are the following topics:
- High Level overview of the CSA notice
- What we believe would not qualify as 'dealing in securities'
- What are the next steps/What do you need to do?

WATCH THE VIDEO

Real Estate brokerages run afoul of money laundering rules via The Globe and Mail

Matt McGuire, The AML Shop Practice Leader, recently contributed his expert insights in this Globe and Mail piece regarding the Real Estate industry and Anti-Money Laundering Regulation.

via the Globe and Mail:

“I’ve audited dozens of real estate brokerages,” said Matt McGuire, a financial crime expert who is the co-founder of The AML Shop, a 20-person consultancy that trains and audits compliance programs. “If you look [at] FINTRAC’s results from conducting examinations you’ll find that nearly all of them have had a significant deficiency."

Points to Ponder by The AML Shops Abhishek Desai

FINTRAC has acknowledged that Covid-related staffing challenges might make it challenging to fulfil certain anti-money laundering obligations.   

In their April 2020 guidance, they wrote:

“Once the COVID-19 situation normalizes and compliance activities resume, FINTRAC will consider the impact of the associated challenges, when assessing reporting entities’ compliance with the obligations identified in the PCMLTFA and its associated regulations. This will include being flexible and reasonable in assessing the ability of a reporting entity to update policies and procedures, in adhering with interim COVID-19 related measures, and effectively fulfilling certain time-bound obligations such as undertaking the two-year effectiveness review. FINTRAC will also take into account the additional time needed for reporting entities to fully address and remediate certain recommendations identified in previous FINTRAC examinations. Finally, FINTRAC will exercise careful judgement on other aspects of its examination mandate, such as determining the date of future compliance examinations.”

FINTRAC has further advised that in cases where there is an impact on a reporting entity’s ability to meet a given obligation, including the use of temporarily relaxed identification rules, the entity should keep a record indicating that deviation, why it occurred, and, where possible, include any measures being taken to mitigate the risk of non-compliance. 

In view of the same, it would be noteworthy for reporting entities to keep and maintain a documented record (such as an issues log) for any non-compliances in view of Covid-19 and such record could be valuable at the time of future FINTRAC examinations.  

Canadian FinTech Mission Abu Dhabi/Dubai 

The AML Shop is honoured to be selected as a delegate from one of 8 innovative Canadian Fintech companies, to participate in the #fintech trade mission to the UAE.  

This significant initiative is organized by Toronto Finance International in partnership with the Trade Commissioner Service I Service des délégués commerciaux at the Consulate General of Canada in Dubai.  

“Anti-money laundering, counter-terrorist financing and sanctions standards are based on a global framework, and we are experts in meeting those expectations.  Many of our clients have reach into the UAE, and we are excited about the opportunity to provide cross-border support
to the existing financial services and growing fintech sectors there.” 
- Matt McGuire, The AML Shop Practice Leader