Money Laundering Detection and Obligations of CA<br />Kexin Chen Original Production<br />Acc 626 <br />
Agenda<br />What is money laundering and terrorist financing<br />Anti-Money Laundering bodies<br />Requirements for CA fr...
What is Money Laundering<br />
Why Anti-Money Laundering (AML)?<br />Increase the transparency and efficiency of a economy<br />Eliminate or inhibit crim...
Terrorist Financing<br />Similar to money laundering activities<br />Backbone of a terrorist group<br />Source of fund: ga...
AML in Canada<br />
AML Legislation in Canada<br />Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)<br />Financial T...
Requirements for CAs<br />CAs on assurance engagements does not have legislative concerns<br />CAs cannot be associated wi...
Requirement for CAs – Other Engagements<br />(a) engage in any of the following activities on behalf of any person or enti...
Examples of services<br />Some common activities performed by public accountants that requires compliance to anti-money la...
What to Report<br />Large cash transactions<br />Cash or cash like transactions over $10,000<br />Suspicious activities<br />
Establish a Compliance Program<br />Designate Compliance Officer<br />Documentation Program<br />Commit Personnel in  AML ...
Requirements for Other Industries<br />Financial Institutions<br />Casinos<br />Money service<br />Dealers in precious met...
Tools Used<br />Manual<br />Morrill and Janes Bank<br />Computer Assisted Analysis Tools<br />Actimize<br />SAS AML<br />3...
Did it work?<br />How effective is AML activities?<br />“Bin Laden files showed that terrorist activities have scaled back...
Thank You<br />
Upcoming SlideShare
Loading in...5
×

Money laundering detection and obligation of CAs

1,926

Published on

Chartered accountants are the public watchdog for companies and organizations. They have an inherent duty to ensure that companies and organizations are not engaged in money laundering and terrorist financing activities. This slidecast describes legislative requirements for CA firms in regards to anti-money laundering.

Published in: Business, Economy & Finance
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,926
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
113
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • Course: University of Waterloo, ACC 626Image source: http://fratres.files.wordpress.com/2009/11/moneylaundering.jpg
  • Course: University of Waterloo, ACC 626Image source: http://fratres.files.wordpress.com/2009/11/moneylaundering.jpg
  • Money laundering detection and obligation of CAs

    1. 1. Money Laundering Detection and Obligations of CA<br />Kexin Chen Original Production<br />Acc 626 <br />
    2. 2. Agenda<br />What is money laundering and terrorist financing<br />Anti-Money Laundering bodies<br />Requirements for CA frims<br />Establish a compliance program<br />Legislative concerns for other industries<br />Tools used<br />
    3. 3. What is Money Laundering<br />
    4. 4. Why Anti-Money Laundering (AML)?<br />Increase the transparency and efficiency of a economy<br />Eliminate or inhibit criminal activities<br />Eliminate Terrorist Financing activities<br />Tax evaders as use money laundering techniques<br />
    5. 5. Terrorist Financing<br />Similar to money laundering activities<br />Backbone of a terrorist group<br />Source of fund: gang activities, human trafficking, drugs, credit card fraud<br />Uses of fund: Car bomb, train recruit, supplies<br />Effective AML controls could eliminate the flow of funds or predict their activity<br />9/11 and USA Patriot Act<br />
    6. 6. AML in Canada<br />
    7. 7. AML Legislation in Canada<br />Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)<br />Financial Transaction and Reports Analysis Center of Canada (FINTRAC) <br />
    8. 8. Requirements for CAs<br />CAs on assurance engagements does not have legislative concerns<br />CAs cannot be associated with criminal activities<br />Money Laundering/ Terrorist Financing are criminal activities <br />Increase audit risk and impact audit opinion<br />CICA HB, Assurance Section 5136, Misstatements/ Illegal Acts<br />
    9. 9. Requirement for CAs – Other Engagements<br />(a) engage in any of the following activities on behalf of any person or entity, namely,<br />receiving or paying funds, <br />purchasing or selling securities, real property or business assets or entities, or <br />transferring funds or securities by any means;<br />(b) give instructions on behalf of any person or entity in respect of any activity referred to in paragraph (a); or<br />(c) receive professional fees in respect of any activity referred to in paragraph (a) or in respect of any instructions referred to in paragraph (b).”<br />"Frequently Asked Questions | Chartered Accountants of Canada." Cica.ca. Chartered Accountants of Canada. Web. 01 July 2011. http://www.cica.ca/research-and-guidance/money-laundering/item13454.aspx#4<br />
    10. 10. Examples of services<br />Some common activities performed by public accountants that requires compliance to anti-money laundering standards are:<br />offer consulting services and business advice to clients;<br />act as a trustee for clients and any other type of financial intermediaries; and <br />provide income tax advice and tax planning services<br />
    11. 11. What to Report<br />Large cash transactions<br />Cash or cash like transactions over $10,000<br />Suspicious activities<br />
    12. 12. Establish a Compliance Program<br />Designate Compliance Officer<br />Documentation Program<br />Commit Personnel in AML activities<br />Compliance Training<br />Regular Evaluation Program <br />
    13. 13. Requirements for Other Industries<br />Financial Institutions<br />Casinos<br />Money service<br />Dealers in precious metals and stones<br />securities dealers.<br />Receiving or transferring funds<br />
    14. 14. Tools Used<br />Manual<br />Morrill and Janes Bank<br />Computer Assisted Analysis Tools<br />Actimize<br />SAS AML<br />3 Main Features<br />Activity monitoring<br />Watch list filtering<br />Customer due diligence/ know your customers<br />
    15. 15. Did it work?<br />How effective is AML activities?<br />“Bin Laden files showed that terrorist activities have scaled back”<br />CAs role is clear, limit AML activities with:<br />Not accepting audit clients engaged in money laundering<br />Have to report money laundering activities to FINTRAC on other engagements<br />
    16. 16. Thank You<br />
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×