OSFI to Focus on Prudential Implications of AML/ATF Compliance
OSFI outlined its revised approach to supervising the anti-money laundering/anti-terrorist financing (AML/ATF) programs and initiated a review of Guideline E-13 (Regulatory Compliance Management) to incorporate expectations for managing compliance in relation to AML/ATF. OSFI is seeking views on the nature and timing of any potential guidance amendments, including whether amendments to Guideline E-13 are needed, and the extent any such changes in relation to AML/ATF supervision or clarifying its expectations for compliance risk management more broadly. OSFI is also seeking views on whether Guideline B-8 (Deterring and Detecting Money Laundering and Terrorist Financing) should be rescinded in full, or if elements of Guideline B-8 should be incorporated in a revised Guideline E-13. OSFI is requesting comments until November 30, 2020.
OSFI provided an update on its revised approach to supervising anti-AML/ATF programs of federally regulated financial institutions. Over the past year, OSFI and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) have entered a new phase in their collaboration on AML/ATF supervision. Going forward, FINTRAC will be the primary agency conducting AML/ATF assessments of federally regulated financial institutions to ensure compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations. OSFI will focus on the prudential implications of AML/ATF compliance, as part of its ongoing assessment of regulatory compliance management frameworks. OSFI and FINTRAC will coordinate on the state of the AML/ATF regime relative to their respective mandates and as it relates to the federally regulated financial institutions. This is consistent with the BCBS guidance on cooperation and information exchange among prudential and anti-money laundering and countering financing of terrorism (AML/CFT) supervisors for banks. The transition to this new approach began in 2019 and is expected to occur over a minimum two-year period. In March 2020, as a result of the COVID-19 pandemic, OSFI put a temporary pause on both policy development work and the transition of AML supervisory activities to FINTRAC, but OSFI has now restarted this effort.
Related Links
Comment Due Date: November 30, 2020
Keywords: Americas, Canada, Banking, AML/CFT, FINTRAC, BCBS, OSFI
Previous Article
EC Publishes Report on Activities of Sustainable Finance PlatformRelated Articles
EBA Updates Filing Rules for Supervisory Reporting
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
EBA Publishes Standards on Disclosure of Investment Policy Under IFR
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
APRA Finalizes Guidance for New Prudential Standard on Remuneration
The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.
OCC Updated LIBOR Self-Assessment Tool for Banks
The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).
TCFD Updates Guidance for Financial Disclosures on Climate Risk
The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
BCBS Report Examines Progress on Adoption of Basel III Framework
The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.
ACPR Implements Updates Related to DPM Version 3.1
The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.
EBA Note Examines Transition Risks of Benchmark Rates
The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.
