Managing financial crime risks during COVID-19
The COVID-19 pandemic continues to grow with increased impact on the global economy triggering business continuity and crisis management responses across organizations of all sectors and sizes. At the same time, the financial services industry faces new unique threats from fraudsters and continued expectations from regulators that anti-money laundering (AML) compliance must be maintained despite the disruption to business-as-usual.
In addition to addressing the risk of the new fraud typologies, as of March 19, 2020, FINTRAC maintained its expectation that regulated entities, including banks and other financial services companies, should do everything possible to meet all of their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations. In a situation where regulated entities are unable to meet some of their obligations, FINTRAC is requesting that the reasons be documented and maintained. FINTRAC states that when it comes to reporting, priority should be given to submitting suspicious transaction reports (STRs).
KPMG’s Financial Crime services team can assist with fraud risk management, providing short-term resourcing, virtual training, forensic data analytics, and technological solutions to assist in mitigating the risk of financial crimes during these challenging times, while striving to ensure timely compliance.
See our full PDF for key considerations for effectively managing financial crime risks during COVID-19.
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