CF CANADA FINANCIAL GROUP

Transcription

1 CF CANADA FINANCIAL GROUP Monthly Compliance Training Section 5 Reporting Requirements - reporting procedure - client record keeping & client identification - implementation of compliance regime - written policies & review Thursday 9 August 2018

2 Reporting Requirements FINTRAC in The Act (AML/ATF): 3 sections deals with mandatory reporting requirement: - suspicious transaction or attempted transaction reporting - large cash transaction reporting - terrorist group and listed person property reporting

3 Reporting Requirements FINTRAC in The Act (AML/ATF): Suspicious transaction or attempted transaction reporting: (STATR) - No minimum dollar threshold for reporting - STATR has to occur in your activities as a life insurance broker - indicators of STATR - 30 days reporting timeline for STATR - failure to report STATR carry a maximum fine of 2 million & 5 years in prison

4 Reporting Requirements FINTRAC in The Act (AML/ATF): (continued) Suspicious transaction or attempted transaction reporting: (STATR) - prohibited disclosure to clients - must keep a copy of the report

5 Reporting Requirements FINTRAC in The Act (AML/ATF): Large cash transaction or attempted transaction reporting: (LCTR) - single transaction in an amount of $10,000 or more (CF) - two or more with less than the amount but total $10,000 or more from the same individual or on behalf of the same individual or entity - within a short period of time ( 24 hours ) for multiple small transactions

6 Reporting Requirements FINTRAC in The Act (AML/ATF): Terrorist group and listed person property reporting: - Criminal code defines how to determine Terrorist group and listed person property - The Criminal Code requires us to disclose to the RCMP & CSIS - The Criminal Code has a 10 year maximum jail term for failure to report the RCMP and CSIS

7 Reporting Requirements Reporting Procedure: - Electronic reporting - FINTRAC will send us an acknowledgement message which will include the date, time and FINTRAC will generate an identification number for our records - paper reporting either by fax or registered mail

8 Client Record Keeping & Client Identification Client record keeping & Identification: For individual: - Must record client s name, address, date of birth, nature of the client s business or occupation. Client ID must be verified within 30 days of creating the record For Corporation: - Certificate of corporate status - Annual filing under the applicable provinces securities legislation - Any other record that ascertains its existence as a corporation

9 Client Record Keeping & Client Identification Client record keeping & Identification: (Continued) Record Retention Requirements: - 5 years from the day they were created and in some cases form the date of last transaction conducted

10 Implementation of Compliance Regime Your compliance regime has to include the following 5 requirements: (1) The appointment of a compliance officer (2) A written and kept up to date compliance policies and procedures. For an entity, have to be approved by a senior officer (3) An assessment and documentation of risks related to money laundering and terrorist financing, as well as how to implement measures to deal with those risks (4) Ongoing training to employees and agents in writing and maintained (5) Once every two years to review, reassess on compliance policies and procedures as well as their effectiveness on risks related to money laundering and terrorist financing

11 Implementation of Compliance Regime Responsibilities of entities in life insurance industry: - In addition to the 5 requirements, the following penalties for non-compliance may against you as a reporting entity (a) failure to report a suspicious transaction or failure to make a terrorist property report conviction of this could lead to up to 5 years imprisonment, to a fine of $2,000,000, or both (b) failure to report a large cash transaction or an electronic funds transfer conviction of this could lead to a fine of $500,000 for a first offence and $1,000,000 for each subsequent offence

12 Implementation of Compliance Regime Responsibilities of entities in life insurance industry: (continued) (c) failure to retain records conviction of this could lead to up to 5 years imprisonment, to a fine of $500,000, or both (d) failure to implement a compliance regime conviction to this could lead to up to 5 years imprisonment, to a fine of $500,000, or both

13 Thank you! ANY QUESTIONS?

14 Next Compliance Training THURSDAY 6 SEPTEMBER 2018