The Office of the Superintendent of Financial Institutions (OSFI) is seeking to clarify its evolving role in anti-money laundering (AML) efforts.
In a letter to the industry, OSFI reported that it has begun focusing on the prudential implications of federal financial institutions’ AML compliance, while the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is taking over primary responsibility for evaluating firms’ compliance with AML requirements.
OSFI said this new approach to AML supervision reflects an effort to “eliminate duplication” and reduce the regulatory burden.
The agencies began this redistribution of responsibilities in mid-2019 and expect the new approach to take at least two years to implement.
Now, OSFI is reviewing certain guidance in light of the evolving AML oversight landscape. In particular, it’s considering revisions to clarify its mandate when it comes to AML and to prevent continued overlap with FINTRAC’s work in this area.
As part of this effort, OSFI is also considering whether its specific guidance on deterring and detecting money laundering should be withdrawn.
The federal regulator is seeking industry feedback on any potential guidance amendments.
The deadline for submissions is Nov. 30.