May 30, 2019 – Ottawa – Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) Regulators are strengthening their collaborative efforts to identify and combat money laundering and terrorist activity financing risks in the securities dealers sector across Canada. FINTRAC announced today that its Memorandum of Understanding with the Investment Industry Regulatory Organization of Canada (IIROC) has been strengthened to allow for greater cooperation and information sharing in the fight against money laundering and terrorist activity financing, while reducing the duplication of effort and the compliance burden for Canadian securities dealers.
Under this enhanced Memorandum of Understanding, FINTRAC and IIROC will be able to share compliance-related information, including the results of compliance examinations, in order to strengthen the compliance of securities dealers with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The sharing of information facilitated by this Memorandum of Understanding will also help increase the knowledge and expertise of each organization in relation to new and evolving trends and money laundering and terrorist activity financing risks in the investment sector and broader Canadian financial system.
“We are pleased to work more cooperatively with the Investment Industry Regulatory Organization of Canada to more effectively combat money laundering and terrorist activity financing in the investment industry and Canadian financial system. Together, we will strengthen oversight in the sector, reduce duplication and burden on securities dealers and help to protect Canadians and Canada’s economy.”
Nada Semaan, Director and Chief Executive Officer, Financial Transactions and Reports Analysis Centre of Canada
“Agreements such as this one between IIROC and FINTRAC demonstrate our collaboration to detect and deter any suspicious activities that could threaten the integrity of Canada’s capital markets. By sharing the information we collect and working cooperatively, we will streamline the compliance burden on the firms IIROC regulates, while maintaining investor protection.”
Andrew J. Kriegler, President and CEO of Investment Industry Regulatory Organization of Canada
- FINTRAC has signed over 20 Memoranda of Understanding with federal and provincial partners to strengthen its ability to ensure compliance across various sectors. These agreements allow FINTRAC to coordinate examinations with regulatory bodies and share the results, minimize overlap and the duplication of effort, and reduce the burden on Canadian businesses.
- Compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act brings transparency to certain financial activities, helping to deter criminals and terrorists from operating within the legitimate channels of Canada’s economy. Compliance also ensures that FINTRAC receives the information that it needs to generate financial intelligence for Canada’s police, law enforcement and national security agencies.
- FINTRAC provided 2,274 disclosures of actionable financial intelligence last year to Canada’s police, law enforcement, and national security agencies to assist in their investigations of money laundering, terrorist activity financing, and threats to the security of Canada.