Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) has entered into a memorandum of understanding with three US federal banking agencies.
The agreement with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board aims to improve cooperation in monitoring and ensuring compliance with AML and anti-terrorist financing (ATF) regulations for banks involved in cross-border operations.
The collaboration will facilitate the exchange of information to help each agency better address emerging risks, improve the detection and prevention of money laundering and terrorist financing, and minimise related risks. This partnership aligns with FINTRAC’s efforts to strengthen its oversight, following the Canadian government’s recent expansion of national security powers.
In recent months, FINTRAC has taken significant action against non-compliant institutions. Earlier in 2024, the agency imposed a record fine of nearly USD 6.54 million on TD Bank for violating AML regulations. Additionally, in December 2023, FINTRAC fined the Royal Bank of Canada and CIBC a combined total of about USD 6.4 million for failing to submit suspicious transaction reports, marking a major enforcement move for the agency.
This development highlights FINTRAC’s ongoing commitment to ensuring financial institutions adhere to robust AML and anti-terrorist financing standards, especially in the context of increasing cross-border financial activity.
FINTRAC’s role in combating money laundering and terrorist financing
The FINTRAC plays a pivotal role in safeguarding the Canadian financial system against money laundering (ML) and terrorist financing (TF). As the national financial intelligence unit, FINTRAC analyses large volumes of financial transactions submitted by Canadian financial institutions, reporting entities, and designated non-financial businesses. In 2022 alone, the agency processed over 36 million financial transaction reports and conducted approximately 2,000 case analyses. These activities have led to significant intelligence sharing with law enforcement and regulatory bodies, enabling the identification of high-risk entities and the prevention of illicit financial flows. The effectiveness of FINTRAC’s operations is highlighted by its ability to identify patterns in suspicious financial activities, which can lead to criminal investigations and the disruption of money laundering and terrorist financing operations.
Source: he PAYPERS
Recent Comments