Archive for March, 2011

US worries about Money Laundering in offshore jurisdictions

Saturday, March 12th, 2011

A number of Caribbean countries have been assailed by the United States for their alleged continued facilitation of money laundering and financial crimes.

In the second part of the 2011 International Narcotics Control Strategy Report (INCSR), the United States’ State Department was particularly concerned about efforts made by several jurisdictions in addressing these crimes. The countries named by the authority were the Cayman Islands, Belize, the British Virgin Islands, Antigua and Barbuda, and the Bahamas.

Canada needs better information sharing to fight Money Laundering

Tuesday, March 8th, 2011

According to an evaluation of anti-money laundering and anti-terrorist financing regime of Canada over the past decade, government authorities still do not share enough information among themselves.

A private consulting firm presented to the Finance Department the report suggesting that a lack of proactive disclosures from Canada’s financial intelligence unit hampered efficiency.

The report criticizes Canada as being on high alert for suspicious transactions from countries in North Africa and the Middle East.

According to this report, the inefficiencies in the regime’s efforts related to the Financial Transactions and Reports Analysis Centre of Canada stem from the tight rules under which the agency has to operate. The report says: “The efficiency of the regime has improved, particularly since 2008, but inefficiencies were found related to the full use of FINTRAC proactive disclosures”. It adds that “these stem from organizational mandates and perhaps the allocation of regime funds, and limitations in information sharing attributable to certain legislative and regulatory provisions.”

The current evaluation says that FINTRAC, an independent agency operating in accordance with rules set out in the Process of Crime and Terrorist Financing Act, needs consent from the Office of the Superintendent of Financial Institutions in order to share some particular information with other regime partners. It should be reminded that Canada’s anti-money laundering regime was set up in 2000, and in 2001 the anti-terrorist financing mandate was added.