AML Investigations Policy

ByTemitope 'Topsy' Adegun

Investigations Policy for Anti-Money Laundering (AML) – FINTRAC

Purpose: The purpose of this investigations policy is to establish guidelines for conducting investigations related to suspected or known instances of money laundering and to ensure that such investigations are conducted in a consistent, thorough, and timely manner in compliance with the requirements of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Scope: This policy applies to all employees and departments involved in investigating suspected or known instances of money laundering for entities registered with FINTRAC.

Responsibilities:

  1. Money Laundering Reporting Officer (MLRO): The MLRO is responsible for overseeing and managing all aspects of the AML program, including investigations related to money laundering that involve FINTRAC reporting. The MLRO will ensure that all investigations are conducted in accordance with this policy, FINTRAC guidelines, and applicable laws and regulations.
  2. Investigation Team: The investigation team will be responsible for conducting investigations related to money laundering that involve FINTRAC reporting. The team will consist of individuals with the necessary skills, knowledge, and expertise to conduct thorough and effective investigations and to prepare and file accurate and timely reports with FINTRAC.

Procedures:

  1. Reporting Suspected Money Laundering: All employees are required to report any suspected or known instances of money laundering to the MLRO. The report should be made as soon as possible after becoming aware of the suspicious activity, and the MLRO will determine whether the matter should be escalated to FINTRAC for further investigation.
  2. Conducting Investigations: Once a report of suspected money laundering is received, the MLRO will assign the investigation to the investigation team. The investigation team will conduct a thorough investigation, which will include the following steps:

a. Collecting and analyzing information: The investigation team will collect and analyze information from a variety of sources, including internal records, external sources, and interviews with relevant individuals.

b. Identifying suspicious activity: The investigation team will use the information collected to identify any suspicious activity related to money laundering that requires reporting to FINTRAC.

c. Conducting interviews: The investigation team will conduct interviews with relevant individuals to gather additional information.

d. Documenting findings: The investigation team will document all findings related to the investigation and prepare a report for FINTRAC if required.

e. Reporting: The investigation team will prepare and file a suspicious transaction report (STR) or a suspicious attempted transaction report (SATR) with FINTRAC, as required.

  1. Retention of Records: All records related to investigations and FINTRAC reporting must be retained in accordance with applicable laws and regulations, including FINTRAC’s recordkeeping requirements.
  2. Cooperation with FINTRAC: The MLRO will ensure that the investigation team cooperates with FINTRAC as necessary, including providing any additional information or documentation that may be required.
  3. Confidentiality: All information related to investigations and FINTRAC reporting must be kept confidential to the extent possible and in accordance with applicable laws and regulations.
  4. Training: All employees involved in conducting investigations and preparing and filing FINTRAC reports must receive appropriate training to ensure that they have the necessary skills, knowledge, and expertise to conduct thorough and effective investigations and to prepare and file accurate and timely reports with FINTRAC.

Conclusion: This investigations policy is designed to ensure that all instances of suspected or known money laundering that involve FINTRAC reporting are thoroughly and consistently investigated and reported in compliance with FINTRAC requirements and applicable laws and regulations. It is the responsibility of all employees to report any suspicious activity to the MLRO, who will ensure that the investigation team conducts a thorough investigation in accordance with this policy, FINTRAC guidelines, and applicable laws and regulations.