Recent Updates to Anti-Money Laundering Rules (AML)
Update on new anti-money laundering requirements came into force on June 1, 2021.
Money laundering is not a new topic, but the stakes are changing rapidly as various jurisdictions seek to clamp down on the torrent of dirty money swirling around the globe, estimated to be worth about 3.6 percent of global GDP. The scale of illegal global currency flows distorts economic indicators, presents risks to firms and professionals, and it erodes trust in finance and transaction systems.
The role of accountants is also coming under increased scrutiny.
A recent federal discussion paper noted that accountants can become involved in “high-risk” activities. Those activities don’t always involve reportable cash transactions, for example, it can be anything like, managing a client’s money and other assets for e.g. savings and securities accounts.
AML experts say that strong beneficial ownership rules—something for which CPA Canada has vigorously advocated—are critical. It became obvious when the Panama Papers were revealed also the widespread use of shell companies in tax havens, including many registered by Canadians.