In response to the new anti-terrorism financing regulations, the Office of the Superintendent of Financial Institutions will require banks to report monthly on possible dealings with terrorist organizations.

The Government of Canada has enacted new regulations to implement the U.N. Security Council resolution dealing with the suppression of terrorism.

Among other requirements, the regulations make it the duty of every Canadian financial institution and foreign branch operating in Canada to review their records on a continuing basis for the names of individuals and organizations believed to be involved with terrorism.

OSFI now says that institutions will be required to report their findings on a monthly basis to the relevant regulator. Federally regulated financial institutions are expected to file their first reports with OSFI by October 19, with subsequent reports to be provided on the 15th day of each month thereafter.

Information about the format to be used for reporting purposes will be provided shortly. At the same time, OSFI encourages its institutions to approach OSFI informally to report any material findings as they become available.

If institutions discover they are holding accounts or contracts of or on behalf of persons covered by the regulations, they are required to report such information to the RCMP and CSIS immediately. OSFI will continue to alert financial institutions to new names as the list is updated.