securities dealers

Provincially regulated securities dealers, including broker-dealers, exempt market dealers, investment managers, advisors, and mutual fund dealers are subject to the full-scope of Canada's AML legislation and examination by FINTRAC against those standards. Securities dealers are also subject to the supplemental AML standards and examinations of regulatory bodies to which they belong, including, for instance, the Investment Industry Regulatory Organization of Canada (IIROC) and the Ontario Securities Commission.

Our AML advisors regularly develop and evaluate the AML programs of securities, including some of the largest in Canada, and newer entrants such as dealers in virtual currency.

The relaxation of securities regulator expectations has also led to the development of outsourced AML services for securities dealers - where the dealer delegates CAMLO functions to The AML Shop. This has become a fast growing service offering where we become a part of your team and you gain the assurance that your business meets all regulatory standards.

SECURITIES COMPANIES AND ELECTRONIC COMPLIANCE ASSESSMENT REPORTS

As part of its enhanced risk-based supervisory approach, FINTRAC has recently implemented the use of electronic questionnaires consisting of a self-assessment and request for compliance and business information. The questionnaires may take a variety of forms depending on the sectors, organizations, and assessment objectives and represents the diversification of tools and interventions to promote compliance.  This new process will assist FINTRAC by leveraging data to assess the effectiveness of the compliance programs and MLTF risks of reporting entities.

Similar to a traditional FINTRAC examination, the process begins with a FINTRAC Compliance Officer contacting the Reporting Entity by telephone to notify them that they have been selected. During that call FINTRAC and the Reporting Entity will agree on a date for the FINTRAC representative to conduct a Compliance Officer interview.  This telephone call is followed by a written notification, which is accompanied by the electronic questionnaire.  The questionnaire may request details about Reporting Entities operations, including among other things, compliance program such as the risk assessment and two year effectiveness review, the type and volume of transactions that were conducted during the previous year, as well as incidences of transactions for which there were high-risk or potentially suspicious indicators present. The responses to this questionnaire informs the interview with the FINTRAC Compliance Officer.  After the interview, Reporting Entities can expect to receive a supervisory letter outlining deficiencies or areas for improvement including aspects of the program that require updating, as well as expected actions and recommendations.  

FINTRAC has stated that its electronic questionnaires constitute an examination and the responses that a Reporting Entity provides in the questionnaire or during the interview could result in FINTRAC issuing a monetary penalty or referral for criminal sanctions. 

Reach out to us at contactus@theamlshop.ca if you have been selected and need assistance in preparing your responses or preparing for your interview.

Mark Ambrose - Principal, Anti-Financial Crime and Regulatory Compliance
mark@theamlshop.ca
LinkedIn

Having held Chief Anti-Money Laundering Officer (CAMLO) and Chief Compliance Officer (CCO) roles both in Canada and internationally, Mark’s significant enterprise experience helps Canadian financial institutions (including credit unions), securities businesses, and mortgage lending businesses comprehensively and holistically manage regulatory compliance risk. Read more.

Michael Ecclestone - Governance, Risk and Compliance Leader
michael@theamlshop.ca
LinkedIn

Michael is Governance, Risk and Compliance Leader at The AML Shop, with over 20 years of experience in financial sector risk, regulatory compliance and legislation as an advisor, an executive, a regulator and a practicing lawyer. Throughout his career he has specialized in resolving complex regulatory issues, leveraging his uniquely broad and deep knowledge of financial services law and regulatory frameworks around the world. Read More