As part of CPA Canada’s commitment to serve the public interest, the organization has consistently taken a strong stand against money laundering.
Accountants and accounting firms are reporting entities under Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act, with specific regulatory requirements when they engage in certain activities.
STRATEGIC FRAMEWORK FOR AML
In the fight against money laundering, Canada needs a strategic framework of cooperation to combat and prosecute the crimes and to minimize the collateral damage from money laundering and terrorist financing.
Elements of such a strategic framework, in our view, include:
- increased corporate ownership transparency via improved access to beneficial ownership information, while maintaining the ease of doing business in Canada
- a national framework for the reporting by and protection of whistleblowers, instead of the current patchwork quilt of provisions at the federal and provincial government levels
Organizational compliance programs
- development of new, national standards outlining expectations for organizational integrity and compliance programs
- development of enhanced, transparent, and streamlined processes for law enforcement, prosecutors, and other parties to address allegations of misconduct
CPA CANADA’S ROLE IN AML POLICY
On behalf of the profession and in the public interest, we engage with the federal government in efforts to strengthen Canada’s anti-money laundering regime.
CPA Canada is represented and actively participates on Finance Canada’s public-private sector Advisory Committee on Money Laundering and Terrorist Financing (ACMLTF) and on two of its public-private subcommittees.
Our organization and the International Federation of Accountants (IFAC), which includes CPA Canada among its members, also work with international organizations such as the Financial Action Task Force (FATF), the Organisation for Economic Co-operation and Development (OECD), Business at the OECD, and the B20.
In February 2018, Finance Canada released a discussion paper seeking stakeholders’ views on how to improve the Canadian AML/ATF regime. Among other subjects, the paper sought views on corporate ownership transparency and mechanisms to improve timely access to beneficial ownership information by authorities while maintaining the ease of doing business in Canada. We submitted a response to the discussion paper providing input on several legislative and regulatory subjects.
The federal government passed legislation in 2018 that amended the Canada Business Corporations Act to require any federally-incorporated corporation that meets certain criteria to keep a register of information on beneficial ownership. This requirement came into force in June 2019. CPA Canada and the federal government teamed up to prepare Canadian CPAs for changes to comply with requirements for new beneficial ownership registers.
Some provinces and territories have implemented similar requirements applicable to provincially-incorporated companies, while others are considering their plans.
Several provinces and territories joined with the federal government in Spring 2020 for public consultations on public registries of beneficial ownership information. CPA Canada participated in the federal consultations on behalf of the accounting profession. Following the release of the government’s “What We Heard” report, which reflects many of our recommendations, the federal government announced in Budget 2021 its intention to invest $2.1 million over two years to support the implementation of a publicly accessible corporate beneficial ownership registry by 2025.
Additionally, as reporting entities with obligations under the AML/ATF regime, accountants and accounting firms have seen changes to regulations in 2019 with some changes regarding identity verification immediately in effect and others which came into effect in June 2020, or in some cases, will be coming into effect in June 2021.
- CPA Canada submission in response to Strengthening Corporate Beneficial Ownership Transparency in Canada, April 2020
- CPA Canada submission to the Department of Finance Canada discussion paper, Reviewing Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime, May 2018
BACKGROUND DOCUMENTS AND RESOURCES
The fight continues
CPA BC | January 2021
Approaches to Beneficial Ownership Transparency: The Global Framework and Views from the Accountancy Profession
CPA Canada and IFAC | May 2020
Strengthening Corporate Beneficial Ownership Transparency in Canada.
Government of Canada | February 2020
Individuals with significant control
(requirement under the Canada Business Corporations Act to keep a register of individuals with significant control)
Reporting Entities: Accountants
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
Guidance for a Risk-Based Approach for the Accounting Profession
Financial Action Task Force (FATF) | 2019
Confronting Money Laundering and Terrorist Financing: Moving Canada Forward
House of Commons Standing Committee on Finance | November 2018
Reviewing Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime
Department of Finance Canada | February 2018