October 12, 2007 FINTRAC Notice

In an October 11, 2007 statement, the Financial Action Task Force (FATF) announced that it is concerned that the Islamic Republic of Iran’s lack of comprehensive anti-money laundering / combating the financing of terrorism (AML/CFT) regime represents a significant vulnerability within the international financial system. The FATF has called upon Iran to address, on an urgent basis, its AML/CFT deficiencies, including those identified in the 2006 International Monetary Fund Article IV Consultation Report for Iran. The FATF has further indicated that it looks forward to engaging with Iran to address these deficiencies.

The statement also says that FATF members are advising their financial institutions to take the risk arising from the deficiencies in Iran’s AML/CFT regime into account for enhanced due diligence. Canada has been a member of the FATF since its inception in 1989.

The text of the FATF statement can be found at:

http://www.fatf-gafi.org/dataoecd/1/2/39481684.pdf

Accordingly, financial institutions should give heightened attention to transactions related to Iran. You are also reminded of your obligations under Canada’s Regulations Implementing the United Nations Resolution on Iran. The Office of Superintendent of Financial Institution (OSFI) has also issued a letter to all federally regulated financial institution. For a copy of the letter, visit:

OSFI letter October 12, 2007