•While government issued
identification is required to verify the
existence of an individual, there is
no explicit mention that independent
address verification is required.
•It is industry standard to apply a 25%
shareholding threshold in order to
classify an individual as a “relevant
beneficial owner” who requires
identity verification irrespective of
the risk classification. In comparison,
in the UK for example, it is common
practice that this threshold is
reduced to 10% for higher risk
customers as a form of additional
due diligence to mitigate the higher
risk imposed.
While Canada plays AML/CTF catch-up,
the world is not static. Global AML/CTF
regulations and expectations continue to
evolve which means that there will be
continued changes and enhancements
to Canada’s AML/CTF rules and
regulations.
It is clear that Canada is forging its way
forward but there is much to do to
converge standards with those leading
the global fight. In the end, the message
for Canadian companies is that change
in the world of AML/CTF regulation and
compliance must be seen as the new
normal.
© 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.
© 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.
At Risk | Volume 7, No. 1 | 13