Canada's anti-money laundering agency plans to introduce a system that gives financial institutions and other businesses real-time feedback through scorecards, two sources said, as the regulatory body is increasing initiatives to combat financial crime.
The proposed information system follows the announcement earlier this week of tougher financial crime penalties in Canada, after the country's second largest bank, TD, was ordered to pay a record $3 fine. billion dollars and pleaded guilty in a historic money laundering case in the United States last October.
The regulator, the Financial Transactions and Reports Analysis Center of Canada (FINTRAC), is studying technology, including AI, to provide the scorecard and is expected to introduce it next year, said a source.
FINTRAC aims to give more real-time feedback to reporting entities to improve collaboration across the industry, another source said.
Canada's federal government made new proposals in its fall economic statement Monday to give the regulator more powers, including increasing financial penalties up to 40 times and issuing orders compliance.
U.S. regulators' investigation into TD Bank has led to calls for tighter regulation in Canada. By pleading guilty, TD admitted that former employees helped criminals launder millions of dollars.
Canadian banks TD, Royal Bank of Canada and CIBC have been fined by FINTRAC over the past two years for failing to comply with rules on money laundering and terrorist financing.
Canada is under growing pressure to tackle financial crime ahead of a review by the Financial Action Task Force, an intergovernmental body made up of 40 international members.
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