(January 30 – 12:00 ET) – Chartered banks are most prepared for tough new anti-money laundering legislation coming into effect this spring according to a survey of Canadian financial services providers by KPMG.

All banks surveyed said they have anti-money laundering practices in place, while only 47% of financial advisors and 37% of insurance companies — sectors which have not traditionally been targeted for laundering proceeds of crime — reported the same.

The regulations for Bill C-22, the government’s money laundering prevention bill passed last June, are anticipated within weeks says KPMG. The bill is expected to go into effect this spring. At that time, financial services providers will be required to report any “suspicious financial transaction,” and will be legally responsible if they fail to do so.

“After more than 10 years of being criticized as a haven for money launderers, this survey now shows that Canada is getting serious in fighting the crime,” said Norman Inkster, president of KPMG Investigation and Security Inc., which administered the survey. “But complacency is still a threat. The real test will be in companies’ commitment to their practices and the government’s enforcement of the new law.”

The survey found 88% of currency exchange firms, 86% of caisses populaires, 82% of investment dealers and 76% of credit unions said they had developed and implemented policies to address money laundering. For each sector, the degree of preparedness corresponded with the level of exposure to money laundering.

“The very things Canadians are proud of in our banking system — its sophistication and international reach — make it attractive to money launderers,” said Harry Ort, Canadian national industry director of banking for KPMG LLP.

The 431 companies who responded to the survey included chartered banks, currency exchange firms, insurance companies, investment dealers, credit unions, caisses populaires and financial advisors.
-IE Staff