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𝗙𝗜𝗡𝗧𝗥𝗔𝗖 𝗜𝗺𝗽𝗼𝘀𝗲𝘀 𝗦𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗼𝗻 𝗠𝗮𝘀𝘁𝗲𝗿𝘀 𝗥𝗲𝗮𝗹𝘁𝘆 𝗟𝘁𝗱. 𝗳𝗼𝗿 𝗡𝗼𝗻-𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝘄𝗶𝘁𝗵 𝗔𝗻𝘁𝗶-𝗠𝗼𝗻𝗲𝘆 𝗟𝗮𝘂𝗻𝗱𝗲𝗿𝗶𝗻𝗴 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀 The Financial Transactions and Reports Analysis Centre of Canada has announced that it has levied an administrative monetary penalty of $83,655 against Masters Realty Ltd., operating as RE/MAX Masters Realty in West Vancouver, British Columbia. This penalty follows a compliance examination conducted in 2021, revealing multiple violations of Canada’s anti-money laundering and anti-terrorist financing laws under the Proceeds of Crime and Terrorist Financing Act. 𝗞𝗲𝘆 𝗩𝗶𝗼𝗹𝗮𝘁𝗶𝗼𝗻𝘀 𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝗶𝗲𝗱: ⬜ Inadequate Application of Policies and Procedures: The company failed to apply its policies and procedures related to third-party determinations, receipt of funds records, and the ongoing monitoring of business relationships. 🟧 Risk Assessment Failures: Masters Realty did not assess and document money laundering or terrorist activity financing risks associated with its geographic locations, products, delivery channels, clients, and business relationships. ⬜ Lack of Compliance Reviews: The company failed to institute and document the required reviews of its policies and procedures, risk assessments, and training programs. FINTRAC, Canada’s financial intelligence unit, and anti-money laundering and anti-terrorist financing supervisor emphasises that these penalties are designed to be non-punitive. Instead, they aim to encourage businesses to correct non-compliant behaviours and strengthen their adherence to the law. Statement from FINTRAC: “Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. FINTRAC will continue to work with businesses to help them understand and comply with their obligations under the Act. We will also be firm in ensuring that businesses continue to do their part, and we will take appropriate actions when they are needed,” said Sarah Paquet. 𝗤𝘂𝗶𝗰𝗸 𝗙𝗮𝗰𝘁𝘀: ⬜ Role of FINTRAC: As Canada’s financial intelligence unit, FINTRAC ensures that businesses comply with their obligations under the Proceeds of Crime and Terrorist Financing Act. The Centre also analyses and discloses financial intelligence to law enforcement and national security agencies, aiding in their investigations of money laundering, terrorist financing, and other threats to Canada’s security. 🟧 Importance of Reporting: FINTRAC relies heavily on reports of suspicious transactions, international electronic funds transfers, large cash transactions, and large virtual currency transactions. These reports are crucial in generating actionable intelligence for law enforcement and national security efforts. The penalty imposed on Masters Realty Ltd. has been paid in full, and the proceedings are now concluded. #FINTRAC 

Croatia, Cyprus, and Lithuania have received improved ratings following the reinforcement of their anti-money laundering (AML) measures. New measures aimed at combating money laundering and terrorist financing have been introduced by Croatia, Cyprus, and Lithuania, as revealed in recent reports. MONEYVAL, the anti-money laundering committee of the Council of Europe, disclosed that all three countries have enhanced their compliance with recommendations set forth by the Financial Action Task Force (FATF), an intergovernmental organization dedicated to combating money laundering. The FATF's standards encompass a range of measures designed to assist countries in addressing illicit financial activities, including recommendations pertaining to money laundering and the beneficial ownership of legal entities. While many FATF members demonstrate only partial compliance with numerous measures out of the 40 outlined, some are even non-compliant. For instance, China has been flagged as non-compliant with six recommendations, while the United States has fallen short in three areas. MONEYVAL's assessment indicated significant progress by Croatia in implementing FATF measures over the past year, particularly in enhancing measures related to customer due diligence. Previously rated as 'partially compliant' due to technical issues such as allowing simplified due diligence for all foreign financial institutions, Croatia has now strengthened its approach in this regard, resulting in an upgraded rating. Moreover, Croatia has made strides in various other areas, including improvements to beneficial ownership registers. Presently, out of the 40 FATF recommendations, Croatia's rating stands at five recommendations compliant, 23 largely compliant, and 12 partially compliant. In the case of Lithuania, improvements have been noted in compliance with Recommendation 2 of the FATF, focusing on the exchange of information among domestic competent authorities regarding potential criminal financing. MONEYVAL also highlighted Lithuania's enhanced coordination framework for anti-money laundering (AML) and counter-terrorist financing (CTF), particularly concerning proliferation financing. As for Cyprus, MONEYVAL reported advancements in compliance with Recommendation 15 of the FATF, concerning 'new technologies,' and Recommendation 8, which relates to non-profit organizations. Cyprus has improved its regulation of virtual asset service providers and undertaken measures to assess terrorism financing risk exposure in the non-profit sector. However, some measures are yet to be fully implemented. Currently, out of the 40 FATF recommendations, Cyprus is rated compliant in 16, largely compliant in 21, and partially compliant in 3. These nations will continue to report to MONEYVAL to ensure ongoing improvement in their AML and CTF systems.

Suspicious Transaction Report (STR) A suspicious Transaction Report (STR), also known as a Suspicious Activity Report (SAR) in some jurisdictions, is a document that financial institutions and other obligated entities must submit to regulatory authorities. When they suspect or have reasonable grounds to believe that a transaction or a series of transactions may be related to criminal activities, such as money laundering, terrorism financing, fraud, or other financial crimes. Definition: An STR is a formal report that flags potentially suspicious financial transactions. These reports are essential for detecting and preventing illegal activities such as money laundering, terrorist financing, or fraud. The obligation to submit STRs comes under local and international anti-money laundering (AML) laws and counter-terrorism financing (CTF) regulations. When to File an STR: Entities are required to file an STR when they observe any of the following: Unusual or Complex Transactions: Huge Transactions involve complex structures or do not seem to have a legitimate purpose. Frequent Transfers: Frequent transfers of large sums of money between accounts that seem disproportionate to the client's business profile or financial history. Structuring or Smurfing: A pattern of breaking down large transactions into smaller ones to avoid detection thresholds (e.g., deposits just below the reporting requirement). Transactions Involving Sanctioned Countries or Individuals: Transfers involving countries with known ties to money laundering, terrorism, or sanctioned individuals/entities. Behavior Inconsistent with Known Client Profile: Transactions or behavior that does not match the customer is known economic activity, profession, or usual financial history. Direct Links to Known Criminal Activity: If there are ties or indirect associations to previously flagged or known criminal networks. Filing Process: Detection: The financial institution's internal monitoring systems, compliance officers, or employees identify potentially suspicious transactions. internal Review: The compliance department conducts an internal review, including gathering additional information from the customer if necessary. Filing the Report: The STR is filed with the appropriate government authority, such as the Financial Intelligence Unit (FIU) in many countries, or bodies like FINTRAC in Canada, FINCEN in the U.S., or AUSTRAC in Australia. The report must include details of the suspicious transaction, the individuals involved, and any supporting documentation. Confidentiality: The customer must not be informed about the filing of the STR, as this could constitute "tipping off," which is often illegal and could compromise an investigation.

Hi Linkedin fam! "Knowledge and education are not just about personal transformation, they also play a vital role in driving progress and empowering our surroundings"... Today, I would like to take a moment to discuss an important due deligence aspect of global finance that is FATF ♠︎ what is FATF ? ♠︎ what is Objective of FATF ? ♠︎ what are FATF grey & black list? ♠︎ who are members of FATF ? 📚Theorotically its stands for Financial Action Task Force (FATF). it's an intergovernmental organization established in 1989 by the G7 to combat money laundering. Its mandate expanded in 2001 to include combating the financing of money laundering. It provide a comprehensive framework for countries to develop and implement anti money laundering (AML) and Counter Terrorist Financing (CTF) 【In short, FATF is like a global task force that sets rules to stop money laundering and financing terrorism. It checks if countries follow these rules and punishes those that don't. It's about making sure the financial system stays clean and safe worldwide.】 📚Objectives of FATF are: it sets standards and promotes effective implementation of : ★Legal , regulatory and operational measures for combating money laundry ★The FATF works to identify national level vulnerabilities with the aim of protecting the international financial system from misuse. 📚Here is the short detail about black and grey FATF list ◆ Black list - countries knows as non cooperatives countries are put in black list. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries. ◆ Grey list - countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist. 📚The FATF has 39 member jurisdictions, which include both countries and regions. These member jurisdictions participate in setting and implementing FATF standards and policies to combat money laundering, terrorist financing, and other financial crimes.Here is the list of FATF members. 1. Argentina 2. Australia 3. Austria 4. Belgium 5. Brazil 6. Canada 7. China 8. Denmark 9. Finland 10. France 11. Germany 12. Greece 13. Hong Kong, China 14. Iceland 15. India 16. Indonesia 17. Ireland 18. Israel 19. Italy 20. Japan 21. Luxembourg 22. Malaysia 23. Mexico 24. Netherlands 25. New Zealand 26. Norway 27. Portugal 28. Republic of Korea 29. Russian Federation 30. Saudi Arabia 31. Singapore 32. South Africa 33. Spain 34. Sweden 35. Switzerland 36. Turkey 37. United Arab Emirates 38. United Kingdom 39. United States #FATF #Regulations #complaince #globalfinance #duedeligence

UAE announces new anti-money laundering strategy for 2024-2027 to combat cyber threats, virtual assets risks, and financial crime. The 2024-27 National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism, and Proliferation Financing focuses on regulatory reforms and collaboration between public and private sectors. The UAE Cabinet approved the strategy on September 2, emphasizing the importance of addressing risks related to virtual assets, cybercrime, and enhancing financial regulations. The strategy, developed with input from both the public and private sectors, aims to prevent the impact of illegal activities on society through 11 strategic goals and aligns with international standards. Ratified by the Higher Committee Overseeing National Strategy on AML and CFT, the new national strategy underscores the collaborative efforts of the General Secretariat of the National Committee and key stakeholders. Private sector involvement in the consultations demonstrates a united front in combating money laundering and terrorism financing. This strategic approach, formulated with insights from the latest National Risk Assessment developed with the World Bank Group’s methodology, signifies the UAE's commitment to combating financial crime effectively. The announcement marks a significant step towards strengthening the country's efforts in combating money laundering and terrorism financing over the next three years.

Main recommendation of FATF without which a country cannot be granted the membership of FATF. Recommendation 3: Money Laundering Offense This recommendation requires countries to criminalize money laundering based on the United Nations conventions. It mandates that countries should apply the crime of money laundering to all serious offenses, with a view to including the widest range of predicate offenses. This ensures that criminals cannot hide the proceeds of their crimes by laundering them through financial systems. Recommendation 5: Terrorist Financing Offense Recommendation 5 requires countries to criminalize terrorist financing. This includes the provision of funds for terrorist acts, individual terrorists, or terrorist organizations. It also requires countries to ensure that such offenses are designated as predicate offenses for money laundering. Recommendation 10: Customer Due Diligence (CDD) This recommendation mandates that financial institutions should undertake customer due diligence (CDD) measures when establishing business relationships, carrying out occasional transactions above a designated threshold, or when there is a suspicion of money laundering or terrorist financing. CDD measures include identifying and verifying the identity of customers, understanding the nature of the customer's business, and monitoring transactions for suspicious activity. Recommendation 11: Record Keeping Recommendation 11 requires financial institutions to maintain records of transactions and customer information for at least five years. These records should be sufficient to permit reconstruction of individual transactions, including the amounts and types of currency involved, to provide evidence for prosecution of criminal activity if needed. Recommendation 20: Reporting of Suspicious Transactions This recommendation obliges financial institutions and designated non-financial businesses and professions (DNFBPs) to report promptly to the Financial Intelligence Unit (FIU) when they suspect or have reasonable grounds to suspect that funds are the proceeds of a criminal activity or are related to terrorist financing. This is crucial for the detection and investigation of money laundering and terrorist financing activities. These recommendations form part of the comprehensive framework designed by the FATF to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system.

The Middle East and North Africa Financial Action Task Force (MENAFATF) has introduced a five-point strategic plan to enhance regional efforts against money laundering and terrorist financing. This initiative coincides with Jordan's presidency of the group for 2025. Unveiled during a leadership meeting in Amman, the strategy represents MENAFATF's first comprehensive set of strategic priorities, aiming for a more coordinated approach to combating financial crime across the MENA region. The five key focus areas are: 1. Enhancing the effectiveness of the mutual evaluation process: Improving assessments of member countries' compliance with international anti-money laundering (AML) and counter-terrorist financing (CFT) standards. 2. Strengthening governance: Bolstering internal structures to ensure efficient decision-making and implementation of AML/CFT measures. 3. Implementing Financial Action Task Force (FATF) recommendations: Ensuring member countries adopt and enforce FATF guidelines to combat financial crimes effectively. 4. Boosting international cooperation: Promoting collaboration among member states and with global partners to address transnational financial crimes. 5. Intensifying efforts against emerging financial crime risks: Addressing new challenges such as cybercrime and the misuse of virtual assets. Jordan's Samya Abu Shareef, head of the country's Anti-Money Laundering and Terrorist Financing Unit, will serve as MENAFATF president throughout 2025, with the UAE's Hamed Al Zaabi acting as vice president before assuming the presidency in 2026. This strategic plan underscores MENAFATF's commitment to strengthening regional cooperation and aligning with international standards in the fight against financial crimes. The initiative is particularly timely as regional financial centers face increasing pressure to demonstrate their dedication to combating illicit financial flows

If only the author of this article had spoken to me or read my free analysis, I would have pointed out that the decline in FINTRAC info sharing with police is only attributable to terrorist financing and threats - not money laundering. There has been a decline in money laundering disclosures but it's not statistically significant. Personally, I think the decline in info sharing on terrorism and threats to the security of Canada is the bigger story..... https://lnkd.in/g3eYHHVp

Blame TD Bank Executives and Board members not the Canadian regulators for its US AML/ATF debacle In his comment on October 14, 2024, published in the Globe and Mail, John Turley-Ewart suggests "... restoring OSFI's sole responsibility for supervising every Canadian bank's entire AML compliance and reporting programs." With all due respect to Mr. Turley-Ewart, the roles between OSFI and FINTRAC have been clarified for several years, with FINTRAC legislatively having the sole responsibility for implementing Parts 1 and 1.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) since 2001. That clarification of each other's role is highlighted in an explanation of FINTRAC's Mandate and how both OSFI and FINTRAC work complementarily together. Part of that explanation states: "FINTRAC and OSFI can also share compliance-related information for the purpose of assessing risks to the integrity of Canada's financial system that may arise from the grant, revocation, suspension or amendment of an approval under the Bank Act, the Insurance Companies Act and the Trust and Loan Companies Act where this information also relates to money laundering activities or terrorist activity financing." In addition, FINTRAC can share compliance information with its US counterpart. There is no doubt that both Canadian supervisors can learn lessons from the TD US debacle, but US regulators like FinCEN, the OCC, and the Federal Reserve Board have jurisdiction and a lead in supervising banks operating in the US. Not OSFI. Not FINTRAC. No one else is to blame for TD's egregious violations of American banking regulations but its own Executives and Board members. They finally got the message that skimping on AML/ATF measures can hurt their bottom line. All financial institutions should pay attention. Should harsher penalties (to encourage compliance) and new fines (intended to punish non-compliance) in Canada be increased and created for serious AML/ATF violations. Absolutely. But suggesting OSFI lead on AML/ATF banking supervision is not the right solution when the blame squarely falls on TD's US malpractices for AML/ATF in the US, and, when it is clear how both FINTRAC and OSFI should work as a team. https://lnkd.in/egVYp7ep https://lnkd.in/en9nr8Yi

FINTRAC Fines Jones Lang Lasalle Real Estate Services, Inc. Over CA$100,000 for AML/CTF Noncompliance The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a CA$107,827.50 fine against the Toronto, Canada-based real estate broker for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations. FINTRAC found that Jones Lang Lasalle Real Estate Services, which operates as JLL, committed six violations of its anti-money laundering and counterterrorist financing (AML/CTF) obligations. The violations were uncovered during the course of a compliance examination in 2022. Specifically, JLL failed to: develop a written AML/CTF compliance program that detailed procedures relating to its client identification, third-party determination, and ongoing monitoring obligations; assess and document risks of money laundering or terrorist financing that the company faced; adopt an adequate AML/CTF training program that addressed certain requirements, such as business relationships, ongoing monitoring, reporting obligations, training schedules, and detailed training material for employees; undertake a two-year review to test the effectiveness of its procedures; and to maintain prescribed information, particularly when identifying a person who provided funds for a real estate transaction. In light of the AML/CTF deficiencies, FINTRAC imposed a penalty of $107,827.50 on March 13, 2024. The regulator’s notice of the enforcement action on Oct. 29, 2024, notes that JLL paid the penalty in full and that proceedings against the firm have ended.