Compliance Program for MSB companies in Canada

ELI Canada

In line with regulation for MSB companies in Canada, each service provider is obliged to apply for Canadian MSB license. The main obligations of being compliant with the enforceable law are described below.

Basic terms for MSB

  • A FINTRΑC cοmpliance examination will be held with the purpose of checking whether your firm is in line with the obligatory recordkeeping rules and whether staff members possess appropriate understanding and experience to be compliant with all obligations.
  • All Canadian MSBs must appoint a cοmpliance οfficer (hereinafter mentioned as CO) whose responsibility is to implement and update the prοgram of cοmpliance, and undertake reasonable steps to eliminate, reduce, control or offset the identified impacts and draw up a training program to guarantee that all staff members possess an up-to-date comprehension of business operations and conditions.
  • As specified in the MSB regulations, a CO should not be engaged in the issuance, transferring, or other operations with monetary units. This would guarantee that there is an efficient system of checks and balances that ensures the transparency of the MSB.
  • A CO is eligible to delegate his or her responsibilities to other staff members of the company. But the liability for the execution of the them is on the CO.
  • The CO should possess excellent comprehension and experience in business functioning, be knowledgeable about possible threats as well as be able to execute an enforceable program in due course. A person in this position should also be granted the ability to inform the senior management about compliance-regarding issues on a scheduled basis.
  • The cοmpliance program must be reconsidered and updated if necessary by the CO every 2 years.
  • The internal documents designed for the operation of the MSB should provide a full overview of risk estimation steps, a prοgram for staff training, and reviews of its efficiency.
  • Know Your Customer papers and payment reports are another crucial part of the CO’s duties. It is essential that government guidelines and payment limitations are properly recorded and kept.
  • All internal documents should have a text form that allows easy access to it. The documents should also be constantly brought up to date for the purpose of maintaining their applicability. Intentions to draw up a new norm should also obtain an approval by the management of the company.
  • When recording assessments of risks, you can estimate the measures applied to prevent, reduce or control risks. As for new goods and services, you should learn and record any risks related to them while mutually planning steps to reduce these threats.
  • A program for staff members training should be executed in text form, regularly analyzed, and brought up to date. It should encompass extensive details on ML/TF crimes and how to combat them and the due liability of each staff member. It must also be specified that your staff members will be capable to define unusual operations and undertake appropriate measures.

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