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Playing by the Rules...

The competitive world of foreign exchange business and new regulatory environment, have created an increasing pressure on exchange bureaus to conform to new government and banking regulations to deploy automated record keeping software systems.

Your Obligations

In most countries, every Money Service Business (MSB) is usually required to register with a government authority that enforces local, federal, and even international Anti-Money-Laundering (AML) laws. In Canada, every money services business has to be registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). In the US, every MSB should register with FINCEN.

The six major components of compliance are:

  • Reporting
  • Record Keeping
  • Ascertaining identity
  • Third Party Determination
  • Compliance Regime (AML Manual)

The CXR Foreign Exchange POS solution was designed by industry specialists with robust features to meet all these challenges, and enable foreign exchange companies like yours to easily become compliant with such regulations. If you are new to this business or would like to learn about the regulations, this page will give you a quick glance of what compliance means and why you should know about it.

Who is FINTRAC? (Canada only)

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is an independent agency responsible for the collection, analysis, assessment and disclosure of information in order to assist in the detection, prevention and deterrence of money laundering and financing of terrorist activities in Canada and abroad.

FINTRAC receives reports from financial institutions and intermediaries, analyzes and assesses the reported information, and disclose suspicions of money laundering or of terrorist financing activities to police authorities and others as permitted by the Act. FINTRAC will also disclose to CSIS information that is relevant to threat to the security of Canada

Penalties for Non-Compliance

The penalties for non-compliance include significant fines and jail terms. The penalties are outlined in Part 5 of the Act. Failure to comply can lead to criminal charges against the persons and entities subject to the Act. The following are some of the elements of the penalties:

• Failure to report suspicious transaction: conviction could lead to 5 years imprisonment and/or a fine of up to $2,000,000

• Failure to report large cash transaction: conviction could lead to a fine of up to $500,000 for first offence and $1,000,000 for subsequent offences.

• Failure to retain records: conviction could lead to 5 years imprisonment and/or a fine of up to $500,000.

FINTRAC is independent from RCMP AND CSIS

FINTRAC will receive large amounts of data on financial transactions from across the country. FINTRAC has a legislated mandate to ensure that personal financial information in its possession remains confidential. In order to fulfill that part of its mandate, FINTRAC must maintain an arm's length relationship with law enforcement and CSIS.

FINTRAC will only disclose limited information to law enforcement, as set out in the Act, when there are reasonable grounds to suspect that the information would be relevant to the investigation or the prosecution of a money laundering offence or a terrorist financing offence.

When there are reasonable ground to suspect that information relates to threats to the security of Canada, FINTRAC will disclose such information to CSIS. No additional information can be disclosed to law enforcement agencies or CSIS unless a production order is obtained.

What will happen when reports are sent to FINTRAC ?

The reports collected by FINTRAC will be analyzed for unusual patterns of transactions that resemble money laundering or terrorist financing activity. FINTRAC will match these preliminary analyses with information from law enforcement and other databases.

When FINTRAC concludes that it has "reasonable grounds to suspect" that information in its possession "would be relevant to investigating or prosecuting a money laundering offence or a terrorist activity financing offence" it will provide designated information as defined in the Act and Regulations, to the appropriate police force.

When there are reasonable grounds to suspect that the information is relevant to threats to threats to the security of Canada, FINTRAC will disclose the information to CSIS.

For more information about how Clear View Systems can assist you to FINTRAC-Compiant, please see Services or contact us.

Washed Money Picture

You now can download the latest version of the FINTRAC guidelines, as well as several other useful documents directly from our site.You will need Adobe Acrobat Reader to view the guidelines.
        FINTRAC useful brochures
> Connecting Money to the Crime
> Suspicious Transaction Reporting
> PCMLTFA - Proceeds of Crime (Money Laundering) and Terrorist Financing Act
        Currency and Geographical Codes
While filling FINTRAC reports, you will be required to provide certain currency and geographical codes. To obtain a listing of these codes please consult the attached tables before completing your report.

To view the forms below, you will need Microsoft Excel from Microsoft Corporation.

> Currency (.xls)
> Canadian Provinces (.xls)
> State of Mexico or United States (.xls)
> Country (.xls)
 
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