OSFI’s activities on anti-money laundering/anti-terrorist financing (AML/ATF) supervision

​Document Properties

  • Type of Publication: Consultation Response
  • Date: May 17, 2021
  • To: Federally Regulated Financial Institutions (FRFIs)

The Office of the Superintendent of Financial Institutions (OSFI) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) continue to work together to eliminate duplication and redundancy in the application of AML/ATF regulatory requirements for FRFIs.

On October 16, 2020, OSFI issued an Industry Letter seeking FRFI views on the ongoing relevance of OSFI’s Guideline B-8 (Deterring & Detecting Money Laundering and Terrorist Financing), given FINTRAC’s role as the Canadian federal supervisor for AML/ATF. Specifically, the consultation, which closed on November 30, 2020, sought FRFI views on:

  • Whether Guideline B-8 should be rescinded in full, or if elements of Guideline B-8 should be maintained and incorporated in a revised Guideline E-13 (Compliance Management); and
  • Whether further amendments to Guideline E-13 are needed in relation to AML/ATF supervision, or to clarify OSFI’s expectations for compliance risk management more broadly.

Most respondents to the consultation supported rescinding B-8 without any corresponding amendments to other OSFI guidance. Some respondents, however, sought clarification on OSFI’s prudential role with respect to FRFIs’ AML/ATF compliance. In addition, some respondents expressed a need to clarify how OSFI and FINTRAC will work together moving forward.

In response to consultation feedback, OSFI will rescind Guideline B-8 on July 26, 2021. Additionally, no corresponding amendments will be made to Guideline E-13; OSFI’s expectations for compliance risk management enable appropriate oversight of the prudential implications of AML/ATF compliance. Further, other OSFI guidance will be amended, as required (e.g., to remove references to Guideline B-8). OSFI expects to undertake a comprehensive review of Guideline E-13 in 2022, which will focus on OSFI’s compliance risk management approach more generally.

OSFI remains committed to the prudential oversight of AML/ATF risks that could affect the financial soundness of FRFIs. OSFI will continue to coordinate and share relevant information with FINTRAC, the Canadian federal AML/ATF supervisor. This is consistent with Basel Committee for Banking Supervision (BCBS) guidance relating to the cooperation and information exchange between prudential and AML/ATF supervisors.

OSFI and FINTRAC are planning a joint information session for early Fall 2021 to explain how OSFI and FINTRAC will work together, and to answer industry questions.