Compliance Examination Outcomes: Ten Years & Counting

Original Broadcast Date:
Wednesday, April 13th, 2011

Compliance Reviews have become a requirement for all designated reporting entities under Canada's Money Laundering Act. Compliance Reviews must be undertaken, at minimum, once every two calendar years and, if not completed, could lead to a citation of non-compliance by FINTRAC or other designated regulatory authority.

Compliance Examinations typically refer to the official audits of a reporting entity's compliance regime by FINTRAC and/or another designated regulatory body (e.g., OSFI). These examinations are not carried out on a scheduled basis but take place once an entity has been identified for review.

For the most part, both types of review address the same things; specifically, the main elements of the designated entity's compliance regime. The process includes both an assessment and testing of the accuracy, completeness, and effectiveness of all required elements, with a primary focus on: policy and procedures; training; risk management; and designated reporting, identification, and record-keeping requirements. The findings are compiled in an official Report, which cites non-compliance issues and practices, and, where appropriate, makes suggestions of 'best practices' to assist the reporting entity with enhancing their regime.

The entity-requested Compliance Review often includes guidance for enhancing observed limitations and/or erroneous practices. The regulatory examination report, on the other hand, usually requests a response from the examined entity outlining their specific work plan for managing the identified non-compliance issues and sets a deadline for the submission of that work plan.

This webcast seminar examines the common findings arising from both types of reviews and discuss how reporting entities can best respond. The discussion explores why some compliance practices do not meet the regulators' expectations and subsequently result in a ruling of noncompliance. Both Chris and Richard draw from their years of experience to highlight various pitfalls, best practices, and limitations found in the Compliance Regimes of different reporting sectors.

Download the webcast seminar archive brochure / registration form