Regulator says AML/ATF measures need work
As OSFI Assistant Superintendent Ted Price said, Canadian banks and insurance companies are front-line participants in the anti-money laundering and anti-terrorist financing (AML/ATF) regime.
But Price said “Although their AMF/ATF programs are generally seen as adequate, there is more work to do. OSFI is not satisfied with the overall quality of the measures in place for identifying and managing higher risks and there is also concern about oversight of these measures by senior management and the board of directors on an enterprise-wide basis.”
He said that executive oversight of AML/ATF programs requires informed, and appropriately targeted independent procedures testing by the internal audit function.
Price added: “OSFI expects to see a firm and ongoing commitment by the Board and CEO to embedding a culture of effective control over money laundering and terrorist financing risks. This commitment should be evident in management oversight of the program, allocation of adequate resources (staff and dollars) and a culture of active assessment of risk together with appropriate control measures. The recognized importance of AML/ATF controls should flow from the top down. While we understand the temptation, devoting fewer resources to the AML/ATF compliance program because of the international financial crisis, is not appropriate. “
