Canada
MER-Canada-2016
MER-Canada-2016
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TECHNICAL COMPLIANCE ANNEX – Key Deficiencies<br />
Compliance with FATF Recommendations<br />
Recommendation Rating Factor(s) underlying the rating<br />
22. DNFBPs: Customer due<br />
diligence<br />
NC • AML/CFT obligations are inoperative for legal counsels, legal<br />
firms and Quebec notaries.<br />
• On line gambling, TCSPs that are not trust companies are not<br />
obliged entities.<br />
• No requirement on beneficial owner, PEP, new technologies,<br />
reliance on third parties. With the exception of a limited set<br />
of transactions the fixed threshold (CAD 10,000) of cash<br />
financial transactions and casinos disbursement exceeds that<br />
provided in the Recommendation.<br />
• The circumstances in which accountants and BC notaries are<br />
required to perform CDD are not in line with the FATF<br />
requirement.<br />
23. DNFBPs: Other measures NC • AML/CFT obligations are inoperative for legal counsels, legal<br />
firms and Quebec notaries.<br />
• TSCPs that are not trust and loan companies and on line<br />
gambling are not subject to the AML/CFT obligations; the<br />
circumstances under which accountants and BC notaries are<br />
required to comply with STRs are too limitative.<br />
• Further deficiencies identified under R.20 for DNFBPs that are<br />
subject to the requirements.<br />
24. Transparency and beneficial<br />
ownership of legal persons<br />
PC • No appropriate mechanism to ensure that updated and<br />
accurate beneficial ownership information is collected for all<br />
legal entities in <strong>Canada</strong>, whether established under provincial<br />
or federal legislation.<br />
• Timely access by competent authorities to all beneficial<br />
ownership information is not warranted, in particular in cases<br />
where such information is held by a smaller or provincial FI,<br />
or a DNFBP.<br />
• Insufficient risk mitigating measures in place to address the<br />
ML/TF risk posed by bearer shares and nominee shareholder<br />
arrangements.<br />
• No obligation for legal entities to notify the registry of the<br />
location at which company records are held.<br />
• In some provinces, there is no legal obligation to update<br />
registered information within a designated timeframe.<br />
• No legal obligation on legal entities to authorize one or more<br />
natural person resident in <strong>Canada</strong> to provide to competent<br />
authorities all basic information and available beneficial<br />
ownership information; or to authorize a DNFBP in <strong>Canada</strong> to<br />
provide such information to the authorities.<br />
Technical compliance Annex<br />
25. Transparency and beneficial<br />
ownership of legal<br />
arrangements<br />
NC • No obligation for trustees to obtain and hold adequate,<br />
accurate and current beneficial ownership information for all<br />
legal arrangements in <strong>Canada</strong>, whether established under<br />
provincial or federal legislation, or basic information on other<br />
regulated agents or and service providers to the trust.<br />
• Professional trustees, including lawyers, are not required to<br />
maintain beneficial ownership information for at least five<br />
Anti-money laundering and counter-terrorist financing measures in <strong>Canada</strong> - 2016 © FATF and APG 2016<br />
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