What is money laundering?
The laundering of the proceeds of crime (or money laundering) is the process whereby "dirty money", produced through criminal activity, is transformed into "clean money", making the criminal origin difficult to trace. Criminals do this by disguising the sources, changing the form, or moving the funds to a place where they are less likely to attract attention.
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How is OSFI involved in deterring and detecting money laundering?
OSFI works closely with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and shares information concerning the policies and procedures that Canadian financial institutions have in place for complying with Part I of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Recently adopted provisions of the PCMLTFA and the Criminal Code give FINTRAC and OSFI the responsibility for dealing with issues related to the financing of terrorist activities. FINTRAC's objectives now include the detection, prevention and deterrence of the financing of terrorist activities, while OSFI has assumed the role of a central reporting point for the aggregate reporting requirements outlined in subsection 83.11(2) of the Criminal Code.
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