Oversight by regulators is becoming 
more active and focused. Recent 
experience has indicated that Canadian 
companies are facing greater AML/
CTF regulatory scrutiny which is 
expected to continue, warranting 
industry participants’ concerns in 
relation to the new regulatory changes. 
Our exposure to recent regulatory 
letters or AML/CTF findings indicate 
a more aggressive regulatory posture 
compared to the past. 

Compliance in  

the future

As indicated, Canada continues to 
advance its AML/CTF regulations and 
enforcement efforts closer to current 
international expectations. However, 
even with the proposed changes to 
the PCMLTFA, there will be continuing 

differences in certain requirements 
in Canada in comparison to some our 
major trading partners. For example: 

 

•Canada does not require 

independent documentary 
evidence of a customer’s 
shareholding structure.

 

•Canada does not require validation 

of the source of funds for all 
customers (only required for high 
risk customers where enhanced 
due diligence is performed).

 

•Source of wealth of customers or 

their significant beneficial owners 
is not commonly explored in 
Canada to ensure they are the true 
individuals behind the customer 
for whom the relationship is 
established. This procedure is 
significant because it mitigates 
the risk of omitting nominee 
shareholders or third parties being 
appointed. 

As indicated, 

Canada

 continues 

to advance 

its 

AML/CTF

 

regulations and 

enforcement 

efforts closer 

to current 

international 
expectations

.

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms 
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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At Risk 

 

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Volume 7, No. 1