Institution

Published

Title and Brief Summary

Status

OSFI

July 30, 2021

This Operational Alert (Reference: FINTRAC-2021-OA001) updates the Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC’s) 2016 Operational Alert “Indicators: The laundering of illicit proceeds from human trafficking for sexual exploitation” with additional indicators in support of Project Protect to assist reporting entities in recognizing financial transactions suspected of being related to the laundering of proceeds associated to human trafficking for sexual exploitation. Through financial transaction reports, FINTRAC is able to facilitate the detection, prevention and deterrence of all stages of money laundering (placement, layering and integration) and the financing of terrorist activities by providing actionable financial intelligence disclosures to law enforcement and national security agencies.

OSFI

July 26, 2021

The Office of the Superintendent of Financial Institutions (OSFI) remains committed to working with the industry and key stakeholders to support a robust implementation of International Financial Reporting Standard 17 – Insurance Contracts (IFRS 17).
OSFI is seeking feedback on the proposed consequential changes to existing guidance as a result of IFRS 17.
Provide feedback/comments on the proposals in this letter by no later than September 15, 2021. In particular, feedback is requested on:

Potential risks with the proposed deletions and amendments.
The appropriateness of the text of proposed changes.
Other suggestions for guideline amendments not already in progress that may require further refinement to reflect IFRS 17 or IFRS 9.

Questions and comments about the letter can be sent by email to [email protected].

Comments by September 15, 2021

OSFI

July 6, 2021

On December 15, 2020, OSFI concluded a consultation process on its discussion paper, Developing Financial Sector Resilience in a Digital World that highlighted certain aspects of operational resilience. On May 10, 2021, OSFI subsequently published a summary of next steps in areas related to non-financial risk more broadly. OSFI views operational resilience as an important objective of operational risk management and, as a result, critical for the overall safety and soundness of a financial institution.
OSFI is now seeking FRFIs’ views on:

How to position OSFI’s perspective on operational risk and resilience within its principles-based guidance framework (including Guideline E-21); and
How to address connections to related risks—including, but not limited to, technology and cyber risks, third-party risk, model risk, culture, compliance and reputation risk—within OSFI’s approach to operational risk management and operational resilience.

Submit comments by September 10, 2021 to [email protected].

Comments by September 10, 2021

OSFI

July 5, 2021

OSFI aims to raise awareness of international consultations on the prudential treatment of crypto assets, and seeks views from all federally regulated financial institutions.
Feedback from domestic institutions should be sent to OSFI via email by September 30, 2021. Comments to the Basel Committee on Banking Supervision on its consultant paper may be submitted here by September 10, 2021.

Comments by September 10, 2021

IAIS

July 9, 2021

IAIS Announces the Climate Training Alliance, a Joint Initiative to Enhance the Availability of Training Resources for Authorities Responding to Climate Risks
The International Association of Insurance Supervisors (IAIS) announced the Climate Training Alliance (CTA), a joint initiative to enhance the availability of training resources for authorities responding to climate risks. The CTA is a collaboration between the Bank for International Settlements, the IAIS, the Central Banks and Supervisors Network for Greening the Financial System, and the UN-convened Sustainable Insurance Forum.
For more information, read the full release here.

Bank of Canada

July 20, 2021

To provide support for the upcoming introduction of the Lynx payment system, the Bank of Canada (Bank) is announcing changes to the Standing Liquidity Facility (SLF) Collateral Policy that will be effective July 26, 2021. These changes will ensure Lynx participants have access to a broad set of collateral that will help them appropriately manage their liquidity requirements under Lynx and facilitate a smooth transition to this new payment system.
The changes to the policy are as follows:

certain USD-denominated securities are being added to the list of eligible collateral, including securities issued or guaranteed by Canadian and provincial governments, eligible Other Public Sector securities, and covered bonds registered with the Covered Bond Registrar;
participants are now permitted to request a same-day non-mortgage loan portfolio concentration limit increase to accommodate their liquidity needs for extremely large and/or critical payment flows; and
as part of the ongoing review of the SLF Collateral Policy, the Bank has revised the margin requirements and some maturity buckets applied to securities accepted as SLF collateral.

The updated list of Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility, including the updated margin requirements, is available on the Bank of Canada website.

Effective July 26, 2021

Bank of Canada

July 14, 2021

As the economy reopens after the third wave of COVID-19, growth is expected to rebound strongly. The Bank is forecasting growth of about six per cent this year, slowing to about 4.5 per cent in 2022 and 3.25 per cent in 2023.

Bank of Canada

July 6, 2021

The Canadian Alternative Reference Rate working group (CARR) published the results of its consultation on its proposed methodology for calculating CORRA-in-arrears as well as draft fallback language for floating rate notes (FRNs) that reference CDOR. At the same time, CARR published its final recommended CDOR FRN fallback language.
CARR thanks all those who provided feedback on the consultation. All comments received were carefully reviewed by CARR members. Reflecting feedback from the consultation, the Bank of Canada began publishing a CORRA Compounded Index in April 2021. The CDOR FRN fallbacks were also redrafted to closely align them with ISDA’s fallback language for derivatives, reflecting consultation feedback, including from a number of large CDOR FRN issuers.

CDIC

July 9, 2021

The Canada Deposit Insurance Corporation (CDIC) recently spearheaded a research project on contingency plan testing, revealing common challenges faced by regulatory authorities and the measures they’ve taken to bolster resilience.
Conducted on behalf of the North American arm of the International Association of Deposit Insurers (IADI), the research analyses the contingency plan testing programs of deposit insurers and resolution authorities in Canada, the United States and Mexico. The research paper explores the development of contingency plan testing programs and identifies best practices and lessons learned from CDIC and the other contributors to the research project including: the Autorité des marchés financiers (AMF), the Federal Deposit Insurance Corporation (FDIC), and the Instituto para la Protección al Ahorro Bancario (IPAB).
For the full research paper, see the Contingency Plan Testing in North America (PDF, 539 KB).

FSB

July 13, 2021

The Financial Stability Board (FSB) published its Interim Report on the Lessons Learnt from the COVID-19 Pandemic from a Financial Stability Perspective. The report identifies preliminary lessons for financial stability and aspects of the functioning of the G20 financial reforms that may warrant attention at the international level.
The COVID-19 pandemic is the first major test of the global financial system since the G20 reforms were put in place following the financial crisis of 2008. Thus far, the financial system has weathered the pandemic thanks to greater resilience, supported by the G20 reforms, and the swift, determined and bold international policy response. Authorities broadly used the flexibility within international standards to support financing to the real economy. Monitoring and coordination, guided by the FSB COVID-19 Principles, has discouraged actions that could distort the level playing field and lead to harmful market fragmentation.
The report identifies preliminary lessons for financial stability from the COVID-19 experience and aspects of the functioning of the G20 financial reforms that may warrant attention at the international level.
The FSB will engage with external stakeholders on preliminary findings and issues raised in this report. The final report, which will incorporate this feedback and set out tentative lessons and next steps to address the identified issues, will be delivered to the G20 Summit in October.

FSB

July 7, 2021

Globally consistent and comparable disclosures by firms of their climate-related financial risks are increasingly important to market participants and financial authorities.
The implementation of climate-related disclosures, using a framework based on the TCFD Recommendations, would be an important step forward on the path towards convergence with anticipated international reporting standards on climate. Global alignment of practices would help deliver consistent and comparable disclosures and foster convergence.
The FSB surveyed its members in H1 2021 to explore national/regional practices of financial authorities on promoting climate related disclosures. The survey identified gaps and challenges in the implementation of requirements or guidance based on the TCFD Recommendations.

[Read More] […]

Read More…

Institution

Published

Title and Brief Summary

Status

OSFI

July 30, 2021

This Operational Alert (Reference: FINTRAC-2021-OA001) updates the Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC’s) 2016 Operational Alert “Indicators: The laundering of illicit proceeds from human trafficking for sexual exploitation” with additional indicators in support of Project Protect to assist reporting entities in recognizing financial transactions suspected of being related to the laundering of proceeds associated to human trafficking for sexual exploitation. Through financial transaction reports, FINTRAC is able to facilitate the detection, prevention and deterrence of all stages of money laundering (placement, layering and integration) and the financing of terrorist activities by providing actionable financial intelligence disclosures to law enforcement and national security agencies.

OSFI

July 26, 2021

The Office of the Superintendent of Financial Institutions (OSFI) remains committed to working with the industry and key stakeholders to support a robust implementation of International Financial Reporting Standard 17 – Insurance Contracts (IFRS 17).
OSFI is seeking feedback on the proposed consequential changes to existing guidance as a result of IFRS 17.
Provide feedback/comments on the proposals in this letter by no later than September 15, 2021. In particular, feedback is requested on:

Potential risks with the proposed deletions and amendments.
The appropriateness of the text of proposed changes.
Other suggestions for guideline amendments not already in progress that may require further refinement to reflect IFRS 17 or IFRS 9.

Questions and comments about the letter can be sent by email to [email protected].

Comments by September 15, 2021

OSFI

July 6, 2021

On December 15, 2020, OSFI concluded a consultation process on its discussion paper, Developing Financial Sector Resilience in a Digital World that highlighted certain aspects of operational resilience. On May 10, 2021, OSFI subsequently published a summary of next steps in areas related to non-financial risk more broadly. OSFI views operational resilience as an important objective of operational risk management and, as a result, critical for the overall safety and soundness of a financial institution.
OSFI is now seeking FRFIs’ views on:

How to position OSFI’s perspective on operational risk and resilience within its principles-based guidance framework (including Guideline E-21); and
How to address connections to related risks—including, but not limited to, technology and cyber risks, third-party risk, model risk, culture, compliance and reputation risk—within OSFI’s approach to operational risk management and operational resilience.

Submit comments by September 10, 2021 to [email protected].

Comments by September 10, 2021

OSFI

July 5, 2021

OSFI aims to raise awareness of international consultations on the prudential treatment of crypto assets, and seeks views from all federally regulated financial institutions.
Feedback from domestic institutions should be sent to OSFI via email by September 30, 2021. Comments to the Basel Committee on Banking Supervision on its consultant paper may be submitted here by September 10, 2021.

Comments by September 10, 2021

IAIS

July 9, 2021

IAIS Announces the Climate Training Alliance, a Joint Initiative to Enhance the Availability of Training Resources for Authorities Responding to Climate Risks
The International Association of Insurance Supervisors (IAIS) announced the Climate Training Alliance (CTA), a joint initiative to enhance the availability of training resources for authorities responding to climate risks. The CTA is a collaboration between the Bank for International Settlements, the IAIS, the Central Banks and Supervisors Network for Greening the Financial System, and the UN-convened Sustainable Insurance Forum.
For more information, read the full release here.

Bank of Canada

July 20, 2021

To provide support for the upcoming introduction of the Lynx payment system, the Bank of Canada (Bank) is announcing changes to the Standing Liquidity Facility (SLF) Collateral Policy that will be effective July 26, 2021. These changes will ensure Lynx participants have access to a broad set of collateral that will help them appropriately manage their liquidity requirements under Lynx and facilitate a smooth transition to this new payment system.
The changes to the policy are as follows:

certain USD-denominated securities are being added to the list of eligible collateral, including securities issued or guaranteed by Canadian and provincial governments, eligible Other Public Sector securities, and covered bonds registered with the Covered Bond Registrar;
participants are now permitted to request a same-day non-mortgage loan portfolio concentration limit increase to accommodate their liquidity needs for extremely large and/or critical payment flows; and
as part of the ongoing review of the SLF Collateral Policy, the Bank has revised the margin requirements and some maturity buckets applied to securities accepted as SLF collateral.

The updated list of Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility, including the updated margin requirements, is available on the Bank of Canada website.

Effective July 26, 2021

Bank of Canada

July 14, 2021

As the economy reopens after the third wave of COVID-19, growth is expected to rebound strongly. The Bank is forecasting growth of about six per cent this year, slowing to about 4.5 per cent in 2022 and 3.25 per cent in 2023.

Bank of Canada

July 6, 2021

The Canadian Alternative Reference Rate working group (CARR) published the results of its consultation on its proposed methodology for calculating CORRA-in-arrears as well as draft fallback language for floating rate notes (FRNs) that reference CDOR. At the same time, CARR published its final recommended CDOR FRN fallback language.
CARR thanks all those who provided feedback on the consultation. All comments received were carefully reviewed by CARR members. Reflecting feedback from the consultation, the Bank of Canada began publishing a CORRA Compounded Index in April 2021. The CDOR FRN fallbacks were also redrafted to closely align them with ISDA’s fallback language for derivatives, reflecting consultation feedback, including from a number of large CDOR FRN issuers.

CDIC

July 9, 2021

The Canada Deposit Insurance Corporation (CDIC) recently spearheaded a research project on contingency plan testing, revealing common challenges faced by regulatory authorities and the measures they’ve taken to bolster resilience.
Conducted on behalf of the North American arm of the International Association of Deposit Insurers (IADI), the research analyses the contingency plan testing programs of deposit insurers and resolution authorities in Canada, the United States and Mexico. The research paper explores the development of contingency plan testing programs and identifies best practices and lessons learned from CDIC and the other contributors to the research project including: the Autorité des marchés financiers (AMF), the Federal Deposit Insurance Corporation (FDIC), and the Instituto para la Protección al Ahorro Bancario (IPAB).
For the full research paper, see the Contingency Plan Testing in North America (PDF, 539 KB).

FSB

July 13, 2021

The Financial Stability Board (FSB) published its Interim Report on the Lessons Learnt from the COVID-19 Pandemic from a Financial Stability Perspective. The report identifies preliminary lessons for financial stability and aspects of the functioning of the G20 financial reforms that may warrant attention at the international level.
The COVID-19 pandemic is the first major test of the global financial system since the G20 reforms were put in place following the financial crisis of 2008. Thus far, the financial system has weathered the pandemic thanks to greater resilience, supported by the G20 reforms, and the swift, determined and bold international policy response. Authorities broadly used the flexibility within international standards to support financing to the real economy. Monitoring and coordination, guided by the FSB COVID-19 Principles, has discouraged actions that could distort the level playing field and lead to harmful market fragmentation.
The report identifies preliminary lessons for financial stability from the COVID-19 experience and aspects of the functioning of the G20 financial reforms that may warrant attention at the international level.
The FSB will engage with external stakeholders on preliminary findings and issues raised in this report. The final report, which will incorporate this feedback and set out tentative lessons and next steps to address the identified issues, will be delivered to the G20 Summit in October.

FSB

July 7, 2021

Globally consistent and comparable disclosures by firms of their climate-related financial risks are increasingly important to market participants and financial authorities.
The implementation of climate-related disclosures, using a framework based on the TCFD Recommendations, would be an important step forward on the path towards convergence with anticipated international reporting standards on climate. Global alignment of practices would help deliver consistent and comparable disclosures and foster convergence.
The FSB surveyed its members in H1 2021 to explore national/regional practices of financial authorities on promoting climate related disclosures. The survey identified gaps and challenges in the implementation of requirements or guidance based on the TCFD Recommendations.

[Read More] […]

Read More…

Institution

Published

Title and Brief Summary

Status

OSFI

July 30, 2021

This Operational Alert (Reference: FINTRAC-2021-OA001) updates the Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC’s) 2016 Operational Alert “Indicators: The laundering of illicit proceeds from human trafficking for sexual exploitation” with additional indicators in support of Project Protect to assist reporting entities in recognizing financial transactions suspected of being related to the laundering of proceeds associated to human trafficking for sexual exploitation. Through financial transaction reports, FINTRAC is able to facilitate the detection, prevention and deterrence of all stages of money laundering (placement, layering and integration) and the financing of terrorist activities by providing actionable financial intelligence disclosures to law enforcement and national security agencies.

OSFI

July 26, 2021

The Office of the Superintendent of Financial Institutions (OSFI) remains committed to working with the industry and key stakeholders to support a robust implementation of International Financial Reporting Standard 17 – Insurance Contracts (IFRS 17).
OSFI is seeking feedback on the proposed consequential changes to existing guidance as a result of IFRS 17.
Provide feedback/comments on the proposals in this letter by no later than September 15, 2021. In particular, feedback is requested on:

Potential risks with the proposed deletions and amendments.
The appropriateness of the text of proposed changes.
Other suggestions for guideline amendments not already in progress that may require further refinement to reflect IFRS 17 or IFRS 9.

Questions and comments about the letter can be sent by email to [email protected].

Comments by September 15, 2021

OSFI

July 6, 2021

On December 15, 2020, OSFI concluded a consultation process on its discussion paper, Developing Financial Sector Resilience in a Digital World that highlighted certain aspects of operational resilience. On May 10, 2021, OSFI subsequently published a summary of next steps in areas related to non-financial risk more broadly. OSFI views operational resilience as an important objective of operational risk management and, as a result, critical for the overall safety and soundness of a financial institution.
OSFI is now seeking FRFIs’ views on:

How to position OSFI’s perspective on operational risk and resilience within its principles-based guidance framework (including Guideline E-21); and
How to address connections to related risks—including, but not limited to, technology and cyber risks, third-party risk, model risk, culture, compliance and reputation risk—within OSFI’s approach to operational risk management and operational resilience.

Submit comments by September 10, 2021 to [email protected].

Comments by September 10, 2021

OSFI

July 5, 2021

OSFI aims to raise awareness of international consultations on the prudential treatment of crypto assets, and seeks views from all federally regulated financial institutions.
Feedback from domestic institutions should be sent to OSFI via email by September 30, 2021. Comments to the Basel Committee on Banking Supervision on its consultant paper may be submitted here by September 10, 2021.

Comments by September 10, 2021

IAIS

July 9, 2021

IAIS Announces the Climate Training Alliance, a Joint Initiative to Enhance the Availability of Training Resources for Authorities Responding to Climate Risks
The International Association of Insurance Supervisors (IAIS) announced the Climate Training Alliance (CTA), a joint initiative to enhance the availability of training resources for authorities responding to climate risks. The CTA is a collaboration between the Bank for International Settlements, the IAIS, the Central Banks and Supervisors Network for Greening the Financial System, and the UN-convened Sustainable Insurance Forum.
For more information, read the full release here.

Bank of Canada

July 20, 2021

To provide support for the upcoming introduction of the Lynx payment system, the Bank of Canada (Bank) is announcing changes to the Standing Liquidity Facility (SLF) Collateral Policy that will be effective July 26, 2021. These changes will ensure Lynx participants have access to a broad set of collateral that will help them appropriately manage their liquidity requirements under Lynx and facilitate a smooth transition to this new payment system.
The changes to the policy are as follows:

certain USD-denominated securities are being added to the list of eligible collateral, including securities issued or guaranteed by Canadian and provincial governments, eligible Other Public Sector securities, and covered bonds registered with the Covered Bond Registrar;
participants are now permitted to request a same-day non-mortgage loan portfolio concentration limit increase to accommodate their liquidity needs for extremely large and/or critical payment flows; and
as part of the ongoing review of the SLF Collateral Policy, the Bank has revised the margin requirements and some maturity buckets applied to securities accepted as SLF collateral.

The updated list of Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility, including the updated margin requirements, is available on the Bank of Canada website.

Effective July 26, 2021

Bank of Canada

July 14, 2021

As the economy reopens after the third wave of COVID-19, growth is expected to rebound strongly. The Bank is forecasting growth of about six per cent this year, slowing to about 4.5 per cent in 2022 and 3.25 per cent in 2023.

Bank of Canada

July 6, 2021

The Canadian Alternative Reference Rate working group (CARR) published the results of its consultation on its proposed methodology for calculating CORRA-in-arrears as well as draft fallback language for floating rate notes (FRNs) that reference CDOR. At the same time, CARR published its final recommended CDOR FRN fallback language.
CARR thanks all those who provided feedback on the consultation. All comments received were carefully reviewed by CARR members. Reflecting feedback from the consultation, the Bank of Canada began publishing a CORRA Compounded Index in April 2021. The CDOR FRN fallbacks were also redrafted to closely align them with ISDA’s fallback language for derivatives, reflecting consultation feedback, including from a number of large CDOR FRN issuers.

CDIC

July 9, 2021

The Canada Deposit Insurance Corporation (CDIC) recently spearheaded a research project on contingency plan testing, revealing common challenges faced by regulatory authorities and the measures they’ve taken to bolster resilience.
Conducted on behalf of the North American arm of the International Association of Deposit Insurers (IADI), the research analyses the contingency plan testing programs of deposit insurers and resolution authorities in Canada, the United States and Mexico. The research paper explores the development of contingency plan testing programs and identifies best practices and lessons learned from CDIC and the other contributors to the research project including: the Autorité des marchés financiers (AMF), the Federal Deposit Insurance Corporation (FDIC), and the Instituto para la Protección al Ahorro Bancario (IPAB).
For the full research paper, see the Contingency Plan Testing in North America (PDF, 539 KB).

FSB

July 13, 2021

The Financial Stability Board (FSB) published its Interim Report on the Lessons Learnt from the COVID-19 Pandemic from a Financial Stability Perspective. The report identifies preliminary lessons for financial stability and aspects of the functioning of the G20 financial reforms that may warrant attention at the international level.
The COVID-19 pandemic is the first major test of the global financial system since the G20 reforms were put in place following the financial crisis of 2008. Thus far, the financial system has weathered the pandemic thanks to greater resilience, supported by the G20 reforms, and the swift, determined and bold international policy response. Authorities broadly used the flexibility within international standards to support financing to the real economy. Monitoring and coordination, guided by the FSB COVID-19 Principles, has discouraged actions that could distort the level playing field and lead to harmful market fragmentation.
The report identifies preliminary lessons for financial stability from the COVID-19 experience and aspects of the functioning of the G20 financial reforms that may warrant attention at the international level.
The FSB will engage with external stakeholders on preliminary findings and issues raised in this report. The final report, which will incorporate this feedback and set out tentative lessons and next steps to address the identified issues, will be delivered to the G20 Summit in October.

FSB

July 7, 2021

Globally consistent and comparable disclosures by firms of their climate-related financial risks are increasingly important to market participants and financial authorities.
The implementation of climate-related disclosures, using a framework based on the TCFD Recommendations, would be an important step forward on the path towards convergence with anticipated international reporting standards on climate. Global alignment of practices would help deliver consistent and comparable disclosures and foster convergence.
The FSB surveyed its members in H1 2021 to explore national/regional practices of financial authorities on promoting climate related disclosures. The survey identified gaps and challenges in the implementation of requirements or guidance based on the TCFD Recommendations.

[Read More] […]

Read More…

Institution

Published

Title and Brief Summary

Status

OSFI

July 30, 2021

This Operational Alert (Reference: FINTRAC-2021-OA001) updates the Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC’s) 2016 Operational Alert “Indicators: The laundering of illicit proceeds from human trafficking for sexual exploitation” with additional indicators in support of Project Protect to assist reporting entities in recognizing financial transactions suspected of being related to the laundering of proceeds associated to human trafficking for sexual exploitation. Through financial transaction reports, FINTRAC is able to facilitate the detection, prevention and deterrence of all stages of money laundering (placement, layering and integration) and the financing of terrorist activities by providing actionable financial intelligence disclosures to law enforcement and national security agencies.

OSFI

July 26, 2021

The Office of the Superintendent of Financial Institutions (OSFI) remains committed to working with the industry and key stakeholders to support a robust implementation of International Financial Reporting Standard 17 – Insurance Contracts (IFRS 17).
OSFI is seeking feedback on the proposed consequential changes to existing guidance as a result of IFRS 17.
Provide feedback/comments on the proposals in this letter by no later than September 15, 2021. In particular, feedback is requested on:

Potential risks with the proposed deletions and amendments.
The appropriateness of the text of proposed changes.
Other suggestions for guideline amendments not already in progress that may require further refinement to reflect IFRS 17 or IFRS 9.

Questions and comments about the letter can be sent by email to [email protected].

Comments by September 15, 2021

OSFI

July 6, 2021

On December 15, 2020, OSFI concluded a consultation process on its discussion paper, Developing Financial Sector Resilience in a Digital World that highlighted certain aspects of operational resilience. On May 10, 2021, OSFI subsequently published a summary of next steps in areas related to non-financial risk more broadly. OSFI views operational resilience as an important objective of operational risk management and, as a result, critical for the overall safety and soundness of a financial institution.
OSFI is now seeking FRFIs’ views on:

How to position OSFI’s perspective on operational risk and resilience within its principles-based guidance framework (including Guideline E-21); and
How to address connections to related risks—including, but not limited to, technology and cyber risks, third-party risk, model risk, culture, compliance and reputation risk—within OSFI’s approach to operational risk management and operational resilience.

Submit comments by September 10, 2021 to [email protected].

Comments by September 10, 2021

OSFI

July 5, 2021

OSFI aims to raise awareness of international consultations on the prudential treatment of crypto assets, and seeks views from all federally regulated financial institutions.
Feedback from domestic institutions should be sent to OSFI via email by September 30, 2021. Comments to the Basel Committee on Banking Supervision on its consultant paper may be submitted here by September 10, 2021.

Comments by September 10, 2021

IAIS

July 9, 2021

IAIS Announces the Climate Training Alliance, a Joint Initiative to Enhance the Availability of Training Resources for Authorities Responding to Climate Risks
The International Association of Insurance Supervisors (IAIS) announced the Climate Training Alliance (CTA), a joint initiative to enhance the availability of training resources for authorities responding to climate risks. The CTA is a collaboration between the Bank for International Settlements, the IAIS, the Central Banks and Supervisors Network for Greening the Financial System, and the UN-convened Sustainable Insurance Forum.
For more information, read the full release here.

Bank of Canada

July 20, 2021

To provide support for the upcoming introduction of the Lynx payment system, the Bank of Canada (Bank) is announcing changes to the Standing Liquidity Facility (SLF) Collateral Policy that will be effective July 26, 2021. These changes will ensure Lynx participants have access to a broad set of collateral that will help them appropriately manage their liquidity requirements under Lynx and facilitate a smooth transition to this new payment system.
The changes to the policy are as follows:

certain USD-denominated securities are being added to the list of eligible collateral, including securities issued or guaranteed by Canadian and provincial governments, eligible Other Public Sector securities, and covered bonds registered with the Covered Bond Registrar;
participants are now permitted to request a same-day non-mortgage loan portfolio concentration limit increase to accommodate their liquidity needs for extremely large and/or critical payment flows; and
as part of the ongoing review of the SLF Collateral Policy, the Bank has revised the margin requirements and some maturity buckets applied to securities accepted as SLF collateral.

The updated list of Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility, including the updated margin requirements, is available on the Bank of Canada website.

Effective July 26, 2021

Bank of Canada

July 14, 2021

As the economy reopens after the third wave of COVID-19, growth is expected to rebound strongly. The Bank is forecasting growth of about six per cent this year, slowing to about 4.5 per cent in 2022 and 3.25 per cent in 2023.

Bank of Canada

July 6, 2021

The Canadian Alternative Reference Rate working group (CARR) published the results of its consultation on its proposed methodology for calculating CORRA-in-arrears as well as draft fallback language for floating rate notes (FRNs) that reference CDOR. At the same time, CARR published its final recommended CDOR FRN fallback language.
CARR thanks all those who provided feedback on the consultation. All comments received were carefully reviewed by CARR members. Reflecting feedback from the consultation, the Bank of Canada began publishing a CORRA Compounded Index in April 2021. The CDOR FRN fallbacks were also redrafted to closely align them with ISDA’s fallback language for derivatives, reflecting consultation feedback, including from a number of large CDOR FRN issuers.

CDIC

July 9, 2021

The Canada Deposit Insurance Corporation (CDIC) recently spearheaded a research project on contingency plan testing, revealing common challenges faced by regulatory authorities and the measures they’ve taken to bolster resilience.
Conducted on behalf of the North American arm of the International Association of Deposit Insurers (IADI), the research analyses the contingency plan testing programs of deposit insurers and resolution authorities in Canada, the United States and Mexico. The research paper explores the development of contingency plan testing programs and identifies best practices and lessons learned from CDIC and the other contributors to the research project including: the Autorité des marchés financiers (AMF), the Federal Deposit Insurance Corporation (FDIC), and the Instituto para la Protección al Ahorro Bancario (IPAB).
For the full research paper, see the Contingency Plan Testing in North America (PDF, 539 KB).

FSB

July 13, 2021

The Financial Stability Board (FSB) published its Interim Report on the Lessons Learnt from the COVID-19 Pandemic from a Financial Stability Perspective. The report identifies preliminary lessons for financial stability and aspects of the functioning of the G20 financial reforms that may warrant attention at the international level.
The COVID-19 pandemic is the first major test of the global financial system since the G20 reforms were put in place following the financial crisis of 2008. Thus far, the financial system has weathered the pandemic thanks to greater resilience, supported by the G20 reforms, and the swift, determined and bold international policy response. Authorities broadly used the flexibility within international standards to support financing to the real economy. Monitoring and coordination, guided by the FSB COVID-19 Principles, has discouraged actions that could distort the level playing field and lead to harmful market fragmentation.
The report identifies preliminary lessons for financial stability from the COVID-19 experience and aspects of the functioning of the G20 financial reforms that may warrant attention at the international level.
The FSB will engage with external stakeholders on preliminary findings and issues raised in this report. The final report, which will incorporate this feedback and set out tentative lessons and next steps to address the identified issues, will be delivered to the G20 Summit in October.

FSB

July 7, 2021

Globally consistent and comparable disclosures by firms of their climate-related financial risks are increasingly important to market participants and financial authorities.
The implementation of climate-related disclosures, using a framework based on the TCFD Recommendations, would be an important step forward on the path towards convergence with anticipated international reporting standards on climate. Global alignment of practices would help deliver consistent and comparable disclosures and foster convergence.
The FSB surveyed its members in H1 2021 to explore national/regional practices of financial authorities on promoting climate related disclosures. The survey identified gaps and challenges in the implementation of requirements or guidance based on the TCFD Recommendations.

[Read More] […]

Read More…

Institution

Published

Title and Brief Summary

Status

OSFI

July 30, 2021

This Operational Alert (Reference: FINTRAC-2021-OA001) updates the Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC’s) 2016 Operational Alert “Indicators: The laundering of illicit proceeds from human trafficking for sexual exploitation” with additional indicators in support of Project Protect to assist reporting entities in recognizing financial transactions suspected of being related to the laundering of proceeds associated to human trafficking for sexual exploitation. Through financial transaction reports, FINTRAC is able to facilitate the detection, prevention and deterrence of all stages of money laundering (placement, layering and integration) and the financing of terrorist activities by providing actionable financial intelligence disclosures to law enforcement and national security agencies.

OSFI

July 26, 2021

The Office of the Superintendent of Financial Institutions (OSFI) remains committed to working with the industry and key stakeholders to support a robust implementation of International Financial Reporting Standard 17 – Insurance Contracts (IFRS 17).
OSFI is seeking feedback on the proposed consequential changes to existing guidance as a result of IFRS 17.
Provide feedback/comments on the proposals in this letter by no later than September 15, 2021. In particular, feedback is requested on:

Potential risks with the proposed deletions and amendments.
The appropriateness of the text of proposed changes.
Other suggestions for guideline amendments not already in progress that may require further refinement to reflect IFRS 17 or IFRS 9.

Questions and comments about the letter can be sent by email to [email protected].

Comments by September 15, 2021

OSFI

July 6, 2021

On December 15, 2020, OSFI concluded a consultation process on its discussion paper, Developing Financial Sector Resilience in a Digital World that highlighted certain aspects of operational resilience. On May 10, 2021, OSFI subsequently published a summary of next steps in areas related to non-financial risk more broadly. OSFI views operational resilience as an important objective of operational risk management and, as a result, critical for the overall safety and soundness of a financial institution.
OSFI is now seeking FRFIs’ views on:

How to position OSFI’s perspective on operational risk and resilience within its principles-based guidance framework (including Guideline E-21); and
How to address connections to related risks—including, but not limited to, technology and cyber risks, third-party risk, model risk, culture, compliance and reputation risk—within OSFI’s approach to operational risk management and operational resilience.

Submit comments by September 10, 2021 to [email protected].

Comments by September 10, 2021

OSFI

July 5, 2021

OSFI aims to raise awareness of international consultations on the prudential treatment of crypto assets, and seeks views from all federally regulated financial institutions.
Feedback from domestic institutions should be sent to OSFI via email by September 30, 2021. Comments to the Basel Committee on Banking Supervision on its consultant paper may be submitted here by September 10, 2021.

Comments by September 10, 2021

IAIS

July 9, 2021

IAIS Announces the Climate Training Alliance, a Joint Initiative to Enhance the Availability of Training Resources for Authorities Responding to Climate Risks
The International Association of Insurance Supervisors (IAIS) announced the Climate Training Alliance (CTA), a joint initiative to enhance the availability of training resources for authorities responding to climate risks. The CTA is a collaboration between the Bank for International Settlements, the IAIS, the Central Banks and Supervisors Network for Greening the Financial System, and the UN-convened Sustainable Insurance Forum.
For more information, read the full release here.

Bank of Canada

July 20, 2021

To provide support for the upcoming introduction of the Lynx payment system, the Bank of Canada (Bank) is announcing changes to the Standing Liquidity Facility (SLF) Collateral Policy that will be effective July 26, 2021. These changes will ensure Lynx participants have access to a broad set of collateral that will help them appropriately manage their liquidity requirements under Lynx and facilitate a smooth transition to this new payment system.
The changes to the policy are as follows:

certain USD-denominated securities are being added to the list of eligible collateral, including securities issued or guaranteed by Canadian and provincial governments, eligible Other Public Sector securities, and covered bonds registered with the Covered Bond Registrar;
participants are now permitted to request a same-day non-mortgage loan portfolio concentration limit increase to accommodate their liquidity needs for extremely large and/or critical payment flows; and
as part of the ongoing review of the SLF Collateral Policy, the Bank has revised the margin requirements and some maturity buckets applied to securities accepted as SLF collateral.

The updated list of Assets Eligible as Collateral under the Bank of Canada’s Standing Liquidity Facility, including the updated margin requirements, is available on the Bank of Canada website.

Effective July 26, 2021

Bank of Canada

July 14, 2021

As the economy reopens after the third wave of COVID-19, growth is expected to rebound strongly. The Bank is forecasting growth of about six per cent this year, slowing to about 4.5 per cent in 2022 and 3.25 per cent in 2023.

Bank of Canada

July 6, 2021

The Canadian Alternative Reference Rate working group (CARR) published the results of its consultation on its proposed methodology for calculating CORRA-in-arrears as well as draft fallback language for floating rate notes (FRNs) that reference CDOR. At the same time, CARR published its final recommended CDOR FRN fallback language.
CARR thanks all those who provided feedback on the consultation. All comments received were carefully reviewed by CARR members. Reflecting feedback from the consultation, the Bank of Canada began publishing a CORRA Compounded Index in April 2021. The CDOR FRN fallbacks were also redrafted to closely align them with ISDA’s fallback language for derivatives, reflecting consultation feedback, including from a number of large CDOR FRN issuers.

CDIC

July 9, 2021

The Canada Deposit Insurance Corporation (CDIC) recently spearheaded a research project on contingency plan testing, revealing common challenges faced by regulatory authorities and the measures they’ve taken to bolster resilience.
Conducted on behalf of the North American arm of the International Association of Deposit Insurers (IADI), the research analyses the contingency plan testing programs of deposit insurers and resolution authorities in Canada, the United States and Mexico. The research paper explores the development of contingency plan testing programs and identifies best practices and lessons learned from CDIC and the other contributors to the research project including: the Autorité des marchés financiers (AMF), the Federal Deposit Insurance Corporation (FDIC), and the Instituto para la Protección al Ahorro Bancario (IPAB).
For the full research paper, see the Contingency Plan Testing in North America (PDF, 539 KB).

FSB

July 13, 2021

The Financial Stability Board (FSB) published its Interim Report on the Lessons Learnt from the COVID-19 Pandemic from a Financial Stability Perspective. The report identifies preliminary lessons for financial stability and aspects of the functioning of the G20 financial reforms that may warrant attention at the international level.
The COVID-19 pandemic is the first major test of the global financial system since the G20 reforms were put in place following the financial crisis of 2008. Thus far, the financial system has weathered the pandemic thanks to greater resilience, supported by the G20 reforms, and the swift, determined and bold international policy response. Authorities broadly used the flexibility within international standards to support financing to the real economy. Monitoring and coordination, guided by the FSB COVID-19 Principles, has discouraged actions that could distort the level playing field and lead to harmful market fragmentation.
The report identifies preliminary lessons for financial stability from the COVID-19 experience and aspects of the functioning of the G20 financial reforms that may warrant attention at the international level.
The FSB will engage with external stakeholders on preliminary findings and issues raised in this report. The final report, which will incorporate this feedback and set out tentative lessons and next steps to address the identified issues, will be delivered to the G20 Summit in October.

FSB

July 7, 2021

Globally consistent and comparable disclosures by firms of their climate-related financial risks are increasingly important to market participants and financial authorities.
The implementation of climate-related disclosures, using a framework based on the TCFD Recommendations, would be an important step forward on the path towards convergence with anticipated international reporting standards on climate. Global alignment of practices would help deliver consistent and comparable disclosures and foster convergence.
The FSB surveyed its members in H1 2021 to explore national/regional practices of financial authorities on promoting climate related disclosures. The survey identified gaps and challenges in the implementation of requirements or guidance based on the TCFD Recommendations.

[Read More] […]

Read More…

OTTAWA — Transactional clues — from hotel bills paid in cash to purchases of escort-service ads — are helping Canada’s financial intelligence agency detect human trafficking in the sex trade.
The Financial Transactions and Reports Analysis Centre of Canada is now learning from its sleuthing efforts in recent years to make pinpointing traffickers a little easier.
article continues below

Fintrac identifies cash linked to money laundering by sifting through millions of pieces of information each year from banks, insurance companies, securities dealers, money service businesses, real estate brokers, casinos and others.
It says data received from these organizations has enabled it to disclose 979 packets of intelligence to police and other law-enforcement agencies about suspected cases of sex trafficking, almost all involving exploitation of young women, in the last five years.

The disclosures, flowing from an initiative dubbed Project Protect, are helping Fintrac zero in even more closely on signs of money dealings linked to the crime.
The project, a public-private partnership initiative launched in 2016, is led by the Bank of Montreal and supported by Fintrac and Canadian law enforcement.
Fintrac is issuing a new operational alert to banks and other reporting organizations, advising them to be on the lookout for certain kinds of transactions now known to be associated with trafficking women and girls.
“The goal is to save lives, and every single one matters,” said Fintrac director Sarah Paquet. “So we really want this to succeed and continue to improve on strengthening the regime.”
The federal centre analyzed about 100,000 individual transactions contained in the intelligence disclosures to police from 2018 to 2020 to glean trends.
The newly issued alert says the majority of the disclosures involved victims providing sexual services from temporary locations such as hotels. However, sexual exploitation also took place at businesses, such as spas, massage parlours and private clubs, that offered illicit services, as well as at private residences such as apartments.
“All used advertisements of escort services to obtain clients and some traffickers operated their own escort agencies,” the alert says.
Victims were nearly all females, 60 per cent were under 25 and some were minors, the analysis found. Traffickers were generally men, 24 to 36 years old. Female traffickers were between 27 and 32 years old, although most were also victims connected to male traffickers.
Traffickers who exploited their victims out of private residences or in illicit storefront businesses offering sexual services, however, were mostly females over 40 years old, and many operated with their spouses, the alert says.
Email money transfers and cash deposits were the primary types of transactions. But Fintrac also saw money laundering methods including use of casinos, virtual currencies, prepaid credit cards, gift cards, front companies owned by traffickers or their associates, funds layered between related accounts, and investment accounts.
Analyzing transactions over time has allowed Fintrac to identify particular financial dealings often associated with trafficking tied to the sex trade, said Barry MacKillop, the agency’s deputy director.
“We’ll see things like pre-approved credit card charges, which are then not actually followed through because they’ll end up paying cash at the end. But they use their cards to reserve the rooms, for example. So it’s getting that specific.”
Many sex traffickers were believed to be involved in other illegal activities, such as drug trafficking or fraud and were members or associates of criminal groups, the alert says. “Many traffickers used their victims to conduct other crimes.”
The centre said indicators of suspicious transactions outlined in 2016 remain relevant, but it has added several others based on the latest research.
It cautioned that on their own, these indicators may not be indicative of money laundering or other suspicious activity, and should be assessed in combination with what organizations know about their client and other factors.
“It is a constellation of factors that strengthen the determination of suspicion.”
The latest indicators include:
— Frequent transfers to virtual currency exchangers, particularly if these funds were sourced from incoming email money transfers from multiple individuals;
— transfers to individuals or companies that advertise their virtual currency services on escort websites;
— frequent purchases or payments to online gambling or casino platforms;
— a female’s reloadable prepaid credit card being funded by reloads or transfers from a male, usually the same one; and
— excessive payments to multiple telephone or internet service providers.
This report by The Canadian Press was first published July 30, 2021.

[Read More] […]

Read More…

OTTAWA — Transactional clues — from hotel bills paid in cash to purchases of escort-service ads — are helping Canada’s financial intelligence agency detect human trafficking in the sex trade.
The Financial Transactions and Reports Analysis Centre of Canada is now learning from its sleuthing efforts in recent years to make pinpointing traffickers a little easier.
article continues below

Fintrac identifies cash linked to money laundering by sifting through millions of pieces of information each year from banks, insurance companies, securities dealers, money service businesses, real estate brokers, casinos and others.
It says data received from these organizations has enabled it to disclose 979 packets of intelligence to police and other law-enforcement agencies about suspected cases of sex trafficking, almost all involving exploitation of young women, in the last five years.

The disclosures, flowing from an initiative dubbed Project Protect, are helping Fintrac zero in even more closely on signs of money dealings linked to the crime.
The project, a public-private partnership initiative launched in 2016, is led by the Bank of Montreal and supported by Fintrac and Canadian law enforcement.
Fintrac is issuing a new operational alert to banks and other reporting organizations, advising them to be on the lookout for certain kinds of transactions now known to be associated with trafficking women and girls.
“The goal is to save lives, and every single one matters,” said Fintrac director Sarah Paquet. “So we really want this to succeed and continue to improve on strengthening the regime.”
The federal centre analyzed about 100,000 individual transactions contained in the intelligence disclosures to police from 2018 to 2020 to glean trends.
The newly issued alert says the majority of the disclosures involved victims providing sexual services from temporary locations such as hotels. However, sexual exploitation also took place at businesses, such as spas, massage parlours and private clubs, that offered illicit services, as well as at private residences such as apartments.
“All used advertisements of escort services to obtain clients and some traffickers operated their own escort agencies,” the alert says.
Victims were nearly all females, 60 per cent were under 25 and some were minors, the analysis found. Traffickers were generally men, 24 to 36 years old. Female traffickers were between 27 and 32 years old, although most were also victims connected to male traffickers.
Traffickers who exploited their victims out of private residences or in illicit storefront businesses offering sexual services, however, were mostly females over 40 years old, and many operated with their spouses, the alert says.
Email money transfers and cash deposits were the primary types of transactions. But Fintrac also saw money laundering methods including use of casinos, virtual currencies, prepaid credit cards, gift cards, front companies owned by traffickers or their associates, funds layered between related accounts, and investment accounts.
Analyzing transactions over time has allowed Fintrac to identify particular financial dealings often associated with trafficking tied to the sex trade, said Barry MacKillop, the agency’s deputy director.
“We’ll see things like pre-approved credit card charges, which are then not actually followed through because they’ll end up paying cash at the end. But they use their cards to reserve the rooms, for example. So it’s getting that specific.”
Many sex traffickers were believed to be involved in other illegal activities, such as drug trafficking or fraud and were members or associates of criminal groups, the alert says. “Many traffickers used their victims to conduct other crimes.”
The centre said indicators of suspicious transactions outlined in 2016 remain relevant, but it has added several others based on the latest research.
It cautioned that on their own, these indicators may not be indicative of money laundering or other suspicious activity, and should be assessed in combination with what organizations know about their client and other factors.
“It is a constellation of factors that strengthen the determination of suspicion.”
The latest indicators include:
— Frequent transfers to virtual currency exchangers, particularly if these funds were sourced from incoming email money transfers from multiple individuals;
— transfers to individuals or companies that advertise their virtual currency services on escort websites;
— frequent purchases or payments to online gambling or casino platforms;
— a female’s reloadable prepaid credit card being funded by reloads or transfers from a male, usually the same one; and
— excessive payments to multiple telephone or internet service providers.
This report by The Canadian Press was first published July 30, 2021.

[Read More] […]

Read More…

OTTAWA — Transactional clues — from hotel bills paid in cash to purchases of escort-service ads — are helping Canada’s financial intelligence agency detect human trafficking in the sex trade.
The Financial Transactions and Reports Analysis Centre of Canada is now learning from its sleuthing efforts in recent years to make pinpointing traffickers a little easier.
article continues below

Fintrac identifies cash linked to money laundering by sifting through millions of pieces of information each year from banks, insurance companies, securities dealers, money service businesses, real estate brokers, casinos and others.
It says data received from these organizations has enabled it to disclose 979 packets of intelligence to police and other law-enforcement agencies about suspected cases of sex trafficking, almost all involving exploitation of young women, in the last five years.

The disclosures, flowing from an initiative dubbed Project Protect, are helping Fintrac zero in even more closely on signs of money dealings linked to the crime.
The project, a public-private partnership initiative launched in 2016, is led by the Bank of Montreal and supported by Fintrac and Canadian law enforcement.
Fintrac is issuing a new operational alert to banks and other reporting organizations, advising them to be on the lookout for certain kinds of transactions now known to be associated with trafficking women and girls.
“The goal is to save lives, and every single one matters,” said Fintrac director Sarah Paquet. “So we really want this to succeed and continue to improve on strengthening the regime.”
The federal centre analyzed about 100,000 individual transactions contained in the intelligence disclosures to police from 2018 to 2020 to glean trends.
The newly issued alert says the majority of the disclosures involved victims providing sexual services from temporary locations such as hotels. However, sexual exploitation also took place at businesses, such as spas, massage parlours and private clubs, that offered illicit services, as well as at private residences such as apartments.
“All used advertisements of escort services to obtain clients and some traffickers operated their own escort agencies,” the alert says.
Victims were nearly all females, 60 per cent were under 25 and some were minors, the analysis found. Traffickers were generally men, 24 to 36 years old. Female traffickers were between 27 and 32 years old, although most were also victims connected to male traffickers.
Traffickers who exploited their victims out of private residences or in illicit storefront businesses offering sexual services, however, were mostly females over 40 years old, and many operated with their spouses, the alert says.
Email money transfers and cash deposits were the primary types of transactions. But Fintrac also saw money laundering methods including use of casinos, virtual currencies, prepaid credit cards, gift cards, front companies owned by traffickers or their associates, funds layered between related accounts, and investment accounts.
Analyzing transactions over time has allowed Fintrac to identify particular financial dealings often associated with trafficking tied to the sex trade, said Barry MacKillop, the agency’s deputy director.
“We’ll see things like pre-approved credit card charges, which are then not actually followed through because they’ll end up paying cash at the end. But they use their cards to reserve the rooms, for example. So it’s getting that specific.”
Many sex traffickers were believed to be involved in other illegal activities, such as drug trafficking or fraud and were members or associates of criminal groups, the alert says. “Many traffickers used their victims to conduct other crimes.”
The centre said indicators of suspicious transactions outlined in 2016 remain relevant, but it has added several others based on the latest research.
It cautioned that on their own, these indicators may not be indicative of money laundering or other suspicious activity, and should be assessed in combination with what organizations know about their client and other factors.
“It is a constellation of factors that strengthen the determination of suspicion.”
The latest indicators include:
— Frequent transfers to virtual currency exchangers, particularly if these funds were sourced from incoming email money transfers from multiple individuals;
— transfers to individuals or companies that advertise their virtual currency services on escort websites;
— frequent purchases or payments to online gambling or casino platforms;
— a female’s reloadable prepaid credit card being funded by reloads or transfers from a male, usually the same one; and
— excessive payments to multiple telephone or internet service providers.
This report by The Canadian Press was first published July 30, 2021.

[Read More] […]

Read More…

OTTAWA — Transactional clues — from hotel bills paid in cash to purchases of escort-service ads — are helping Canada’s financial intelligence agency detect human trafficking in the sex trade.
The Financial Transactions and Reports Analysis Centre of Canada is now learning from its sleuthing efforts in recent years to make pinpointing traffickers a little easier.
article continues below

Fintrac identifies cash linked to money laundering by sifting through millions of pieces of information each year from banks, insurance companies, securities dealers, money service businesses, real estate brokers, casinos and others.
It says data received from these organizations has enabled it to disclose 979 packets of intelligence to police and other law-enforcement agencies about suspected cases of sex trafficking, almost all involving exploitation of young women, in the last five years.

The disclosures, flowing from an initiative dubbed Project Protect, are helping Fintrac zero in even more closely on signs of money dealings linked to the crime.
The project, a public-private partnership initiative launched in 2016, is led by the Bank of Montreal and supported by Fintrac and Canadian law enforcement.
Fintrac is issuing a new operational alert to banks and other reporting organizations, advising them to be on the lookout for certain kinds of transactions now known to be associated with trafficking women and girls.
“The goal is to save lives, and every single one matters,” said Fintrac director Sarah Paquet. “So we really want this to succeed and continue to improve on strengthening the regime.”
The federal centre analyzed about 100,000 individual transactions contained in the intelligence disclosures to police from 2018 to 2020 to glean trends.
The newly issued alert says the majority of the disclosures involved victims providing sexual services from temporary locations such as hotels. However, sexual exploitation also took place at businesses, such as spas, massage parlours and private clubs, that offered illicit services, as well as at private residences such as apartments.
“All used advertisements of escort services to obtain clients and some traffickers operated their own escort agencies,” the alert says.
Victims were nearly all females, 60 per cent were under 25 and some were minors, the analysis found. Traffickers were generally men, 24 to 36 years old. Female traffickers were between 27 and 32 years old, although most were also victims connected to male traffickers.
Traffickers who exploited their victims out of private residences or in illicit storefront businesses offering sexual services, however, were mostly females over 40 years old, and many operated with their spouses, the alert says.
Email money transfers and cash deposits were the primary types of transactions. But Fintrac also saw money laundering methods including use of casinos, virtual currencies, prepaid credit cards, gift cards, front companies owned by traffickers or their associates, funds layered between related accounts, and investment accounts.
Analyzing transactions over time has allowed Fintrac to identify particular financial dealings often associated with trafficking tied to the sex trade, said Barry MacKillop, the agency’s deputy director.
“We’ll see things like pre-approved credit card charges, which are then not actually followed through because they’ll end up paying cash at the end. But they use their cards to reserve the rooms, for example. So it’s getting that specific.”
Many sex traffickers were believed to be involved in other illegal activities, such as drug trafficking or fraud and were members or associates of criminal groups, the alert says. “Many traffickers used their victims to conduct other crimes.”
The centre said indicators of suspicious transactions outlined in 2016 remain relevant, but it has added several others based on the latest research.
It cautioned that on their own, these indicators may not be indicative of money laundering or other suspicious activity, and should be assessed in combination with what organizations know about their client and other factors.
“It is a constellation of factors that strengthen the determination of suspicion.”
The latest indicators include:
— Frequent transfers to virtual currency exchangers, particularly if these funds were sourced from incoming email money transfers from multiple individuals;
— transfers to individuals or companies that advertise their virtual currency services on escort websites;
— frequent purchases or payments to online gambling or casino platforms;
— a female’s reloadable prepaid credit card being funded by reloads or transfers from a male, usually the same one; and
— excessive payments to multiple telephone or internet service providers.
This report by The Canadian Press was first published July 30, 2021.

[Read More] […]

Read More…

OTTAWA — Transactional clues — from hotel bills paid in cash to purchases of escort-service ads — are helping Canada’s financial intelligence agency detect human trafficking in the sex trade.
The Financial Transactions and Reports Analysis Centre of Canada is now learning from its sleuthing efforts in recent years to make pinpointing traffickers a little easier.
article continues below

Fintrac identifies cash linked to money laundering by sifting through millions of pieces of information each year from banks, insurance companies, securities dealers, money service businesses, real estate brokers, casinos and others.
It says data received from these organizations has enabled it to disclose 979 packets of intelligence to police and other law-enforcement agencies about suspected cases of sex trafficking, almost all involving exploitation of young women, in the last five years.

The disclosures, flowing from an initiative dubbed Project Protect, are helping Fintrac zero in even more closely on signs of money dealings linked to the crime.
The project, a public-private partnership initiative launched in 2016, is led by the Bank of Montreal and supported by Fintrac and Canadian law enforcement.
Fintrac is issuing a new operational alert to banks and other reporting organizations, advising them to be on the lookout for certain kinds of transactions now known to be associated with trafficking women and girls.
“The goal is to save lives, and every single one matters,” said Fintrac director Sarah Paquet. “So we really want this to succeed and continue to improve on strengthening the regime.”
The federal centre analyzed about 100,000 individual transactions contained in the intelligence disclosures to police from 2018 to 2020 to glean trends.
The newly issued alert says the majority of the disclosures involved victims providing sexual services from temporary locations such as hotels. However, sexual exploitation also took place at businesses, such as spas, massage parlours and private clubs, that offered illicit services, as well as at private residences such as apartments.
“All used advertisements of escort services to obtain clients and some traffickers operated their own escort agencies,” the alert says.
Victims were nearly all females, 60 per cent were under 25 and some were minors, the analysis found. Traffickers were generally men, 24 to 36 years old. Female traffickers were between 27 and 32 years old, although most were also victims connected to male traffickers.
Traffickers who exploited their victims out of private residences or in illicit storefront businesses offering sexual services, however, were mostly females over 40 years old, and many operated with their spouses, the alert says.
Email money transfers and cash deposits were the primary types of transactions. But Fintrac also saw money laundering methods including use of casinos, virtual currencies, prepaid credit cards, gift cards, front companies owned by traffickers or their associates, funds layered between related accounts, and investment accounts.
Analyzing transactions over time has allowed Fintrac to identify particular financial dealings often associated with trafficking tied to the sex trade, said Barry MacKillop, the agency’s deputy director.
“We’ll see things like pre-approved credit card charges, which are then not actually followed through because they’ll end up paying cash at the end. But they use their cards to reserve the rooms, for example. So it’s getting that specific.”
Many sex traffickers were believed to be involved in other illegal activities, such as drug trafficking or fraud and were members or associates of criminal groups, the alert says. “Many traffickers used their victims to conduct other crimes.”
The centre said indicators of suspicious transactions outlined in 2016 remain relevant, but it has added several others based on the latest research.
It cautioned that on their own, these indicators may not be indicative of money laundering or other suspicious activity, and should be assessed in combination with what organizations know about their client and other factors.
“It is a constellation of factors that strengthen the determination of suspicion.”
The latest indicators include:
— Frequent transfers to virtual currency exchangers, particularly if these funds were sourced from incoming email money transfers from multiple individuals;
— transfers to individuals or companies that advertise their virtual currency services on escort websites;
— frequent purchases or payments to online gambling or casino platforms;
— a female’s reloadable prepaid credit card being funded by reloads or transfers from a male, usually the same one; and
— excessive payments to multiple telephone or internet service providers.
This report by The Canadian Press was first published July 30, 2021.

[Read More] […]

Read More…