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Money Laundering: Let's not forget that it is Criminal, not just Regulatory.

Money Laundering:  Let's not forget that it is Criminal, not just Regulatory.

 

"...If the current state of your anti-money laundering training or written material says the following is the offence of Money Laundering in Canada, it is wrong..."

"...If the current state of your anti-money laundering training or written material says the following is the offence of Money Laundering in Canada, it is wrong..."

 

Under Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act, the core obligation to submit a suspicious transaction report re money laundering is found in s. 7. It is essential that senior management and front line personnel at any reporting entity understand and can answer the question "Suspicious of what?" because it is not just any old suspicion that triggers the reporting obligation (as it relates to money laundering, similar issues apply to terrorist activity financing offences found in sections 83.02 to 83.04 and 83.12 of the Criminal Code of Canada).

The obligation emanates from reasonable grounds to suspect that the transaction is related to a "money laundering offence" (MLO). The concept of MLO includes but is not limited to "money laundering" (ML).

An MLO can be committed in many ways through the Criminal Code. The vast majority of offences in the Code are hybrid offences which makes them indictable because they can be prosecuted through a summary proceeding or indictably, based on an election by the prosecutor. Similar rules surround indictable offences created by other Acts such as the Income Tax Act (see for example s. 239(2) if the ITA).

I am certified by the Law Society of Ontario as a specialist in criminal law, and was a crown prosecutor for many years. My cases included financial crime, conspiracies and offences involving criminal organizations. I was also senior litigation counsel at the Ontario Securities Commission - Enforcement Branch and when there I investigated a broad range of financial businesses ranging from large banks to international internet-based operations. I am not a criminal defence lawyer. Instead I have chosen to leave full-time prosecution and practice proactive compliance for AML/Financial Crime and related issues. I can help your staff make sense of complex ML issues. Please contact me if your people need training on fundamental AML issues including:

a) conspiracy;

b) attempts;

c) aiding and abetting;

d) counselling someone to commit an offence;

e) being an accessory after the fact....

... Or they need more clarity on:

- What is a money laundering offence (MLO)?

- What is money laundering (ML) in Canadian criminal law?

 

Here is an example of the importance of involving experienced criminal law counsel as an integral part of your AML compliance program:

If the current state of your anti-money laundering training or written material says the following is the offence of Money Laundering in Canada, it is wrong. Please contact me and I will be happy to explain why.

462.31 (1) Every one commits an offence who uses, transfers the possession of, sends or delivers to any person or place, transports, transmits, alters, disposes of or otherwise deals with, in any manner and by any means, any property or any proceeds of any property with intent to conceal or convert that property or those proceeds, knowing or believing that all or a part of that property or of those proceeds was obtained or derived directly or indirectly as a result of

 

 

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