Training Program and Plan for Employees, Agents, or Authorized Persons
Objective:
The objective of this training program is to educate and empower employees, agents, mandatories, and other authorized persons to understand and comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations specific to the Canadian precious metals and stones industry. By the end of this training, participants should be able to recognize potential risks, understand reporting obligations, and implement best practices to prevent money laundering and terrorist financing activities.
Duration:
The training program will be conducted annually, with additional sessions scheduled for new employees or authorized persons upon their onboarding.
Training Content:
1. Introduction to AML/CTF Regulations:
- AML (Anti-Money Laundering): AML regulations are designed to prevent the illegal process of generating income through activities that hide the true origins of funds.
- CTF (Counter-Terrorist Financing): CTF regulations aim to prevent the funding of terrorist activities.
Sources:
Regulatory guidelines and official documents from the Canada Gazette, including the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) amendments and updates.
https://fintrac-canafe.canada.ca/re-ed/dpms-eng
2. Recognizing Money Laundering and Terrorist Financing:
- AML/CTF Case Studies: Real-life examples and case studies derived from Canada Gazette publications, illustrating potential risks and suspicious behaviours.
Sources:
Specific cases and legal changes related to money laundering and terrorist financing activities published in the Canada Gazette.
3. Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD):
- CDD (Customer Due Diligence): Procedures for verifying customer identity and assessing the risk they pose to the business.
- EDD (Enhanced Due Diligence): Additional measures for high-risk transactions and customers.
Sources:
PCMLTFA regulations published in the Canada Gazette, providing detailed guidelines on customer due diligence and enhanced due diligence procedures.
4. Reporting Obligations:
- LCTs (Large Cash Transactions): Transactions involving a significant amount of cash that need to be reported to authorities.
- STRs (Suspicious Transaction Reports): Reports submitted for transactions suspected to be related to money laundering or terrorist financing activities.
Sources:
Official guidelines and forms related to reporting obligations published in the Canada Gazette.
5. Anti-Money Laundering Procedures:
- AML Compliance Tools: Software and tools used for transaction monitoring and identity verification.
Sources:
Reputable AML compliance software providers and their training resources.
6. Dealing with Politically Exposed Persons (PEPs):
- PEPs (Politically Exposed Persons): Individuals who are or have been entrusted with prominent public functions, presenting a higher risk for potential corruption.
Sources:
Regulatory guidelines from the Canada Gazette regarding identifying and dealing with PEPs in compliance with Canadian laws.
7. Role-Play and Interactive Sessions:
- Real Case Studies: Scenarios derived from real Canada Gazette publications, enabling participants to simulate real-world scenarios and practice identifying suspicious activities.
Sources:
Canada Gazette publications providing real cases and legal changes specific to the Canadian precious metals and stones industry.
8. Testing and Certification:
- Knowledge Assessment: Internal quizzes and assessments based on specific regulations and amendments published in the Canada Gazette, evaluating participants’ understanding of the training content.
Sources:
Online courses and quizzes provided by reputable AML/CTF training organizations, often available for a fee, aligning with the Canadian legal framework.
9. Continuous Learning:
- Industry Updates: Stay updated with amendments and legal changes related to AML/CTF regulations in the Canada Gazette, ensuring continuous learning and compliance with the latest Canadian laws and guidelines.
Sources:
Canada Gazette publications, industry newsletters, webinars, and updates from regulatory bodies, allowing continuous education and adherence to the Canadian regulatory landscape.
By incorporating references to the Canada Gazette and other reputable sources, this training program ensures that employees, agents, and authorized persons are educated with accurate and relevant information aligned with the official Canadian legal framework governing the precious metals and stones industry.
CONCLUSION STATEMENTS
Businesses that deal in precious metals and precious stones, often referred to as dealers in precious metals and stones (DPMS), are considered high-risk entities for money laundering and terrorist financing activities. Therefore, they are subject to specific regulations and guidelines to prevent these illegal activities. In Canada, these guidelines are governed under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Here’s an elaboration on the guidance and resources available for businesses in this sector:
Regulatory Compliance:
- Registration: DPMS businesses in Canada are required to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). This registration ensures that your business is aware of and compliant with the legal obligations.
- Customer Due Diligence (CDD): Businesses need to establish and verify the identity of their customers. This includes identifying the beneficial owners of the transactions, which is a crucial step in preventing money laundering and terrorist financing.
- Record-Keeping: Maintain detailed records of transactions, customer identification, and business correspondence for at least five years. These records should be accessible for audit and inspection purposes.
Reporting Obligations:
- Suspicious Transaction Reports (STRs): If you suspect a transaction is related to money laundering or terrorist financing, you must report it to FINTRAC through a Suspicious Transaction Report.
- Large Cash Transaction Reports (LCTRs): Report cash transactions of $10,000 or more to FINTRAC. This applies to single transactions or multiple transactions that total $10,000 or more within a 24-hour period.
Guidance and Resources:
- FINTRAC Website: The official FINTRAC website provides a wealth of resources, including guidelines, forms, and educational materials specifically tailored to DPMS businesses.
- Training and Workshops: FINTRAC conducts outreach programs, workshops, and webinars to educate businesses on their legal obligations and how to fulfill them effectively.
- Industry Associations: Associations related to the jewelry, precious metals, and gemstone sectors often provide specific guidance and resources to their members. These resources are valuable for staying updated on industry-specific compliance practices.
- Legal, Compliance Professionals and Financial Consultants: Businesses can consult legal, compliance professionals and ,financial professionals with expertise in anti-money laundering (AML) and counter-terrorist financing (CTF) regulations for personalized guidance.
- Regular Updates: Stay informed about changes in regulations and compliance requirements. Regulatory frameworks can evolve, and it’s crucial to keep your knowledge up-to-date.
By following these guidelines and utilizing the available resources, DPMS businesses can effectively comply with regulations, mitigate risks, and contribute to the prevention of money laundering and terrorist financing activities.
Target audiences
- Employees