Agreement also reduces regulatory burden on Canadian investment firms
May 30, 2019 (Toronto, Ontario) - The Investment Industry Regulatory Organization of Canada (IIROC) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) today announced a new Memorandum of Understanding (MOU) to better protect against money laundering and terrorist financing while reducing the compliance burden on IIROC-regulated investment firms.
The MOU strengthens information-sharing between IIROC and FINTRAC to help each organization fulfil its public interest mandate, while minimizing duplication or overlap of work in their shared commitment to combat money laundering and terrorist financing. Under this agreement, IIROC and FINTRAC will share with each other the AML-related findings from their audits and examinations of Canadian investment firms. The two national regulatory organizations will also maintain close, timely and on- going communications about any activities that may impact the other in their pursuits to protect Canadian investors.
“Agreements such as this one between IIROC and FINTRAC demonstrate our collaboration to detect and deter any suspicious activities that could threaten the integrity of Canada’s capital markets,” says Andrew J. Kriegler, IIROC’s President and CEO. “By sharing the information we collect and working cooperatively, we will streamline the compliance burden on the firms IIROC regulates, while maintaining investor protection.”
“We are pleased to work more cooperatively with the Investment Industry Regulatory Organization of Canada to more effectively combat money laundering and terrorist activity financing in the investment industry and Canadian financial system,” says Nada Semaan, Director and Chief Executive Officer, FINTRAC. “Together, we will strengthen oversight in the sector, reduce duplication and burden on securities dealers and help to protect Canadians and Canada’s economy.”
Information-sharing helps IIROC and other regulators close gaps in Canada’s financial regulation framework. This MOU with FINTRAC follows similar arrangements IIROC has established with other provincial and national financial regulators in recent years. IIROC also shares information, where appropriate, with other government bodies and law enforcement agencies or authorities as a part of its efforts to improve the consistency and effectiveness of the regulatory system, to protect Canadian investors and the integrity of Canada’s capital markets.
IIROC is the national self-regulatory organization that oversees all investment dealers and their trading activity in Canada’s debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of more than 170 Canadian investment dealer firms and their more than 29,000 registered employees, the majority of whom are commonly referred to as investment advisors. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces. IIROC does not rely on any government funding to fulfill its mandate to protect investors and support healthy capital markets but does require legislative support to ensure it has the enforcement tools needed to do that job effectively.