When you receive your findings letter: Follow the roadmap
In most cases, FINTRAC will not be assessing penalties, but they will be providing a ‘findings letter.’ This letter summarizes any issues discovered during the examination. While being on the receiving end of criticism may not feel great, it is useful. The findings letter is a roadmap describing the improvements you will need to make to your AML compliance program. This free advice should be used to make updates to your documents and processes.
Though not required, it is best practice to document your response to each finding e.g. what you’re doing to fix the issue. This can be done in the form of a simple log, which can also be used to keep track of the updates you’ve made for other reasons. This type of log is useful if you are asked about the improvements you’ve made to your program by an auditor, supplier, or even FINTRAC at the time of your next examination.
What to do in the event of a penalty
In the event you receive a ‘Notice of Violation,’ this is a document describing a penalty, and it is important you understand your options. A qualified lawyer who has experience in FINTRAC-related appeals can help you to understand the courses of action available to you. Since your lawyer’s ability to be effective will depend on their being able to understand and assess all of the information, and they will have a limited time to respond, it is vital to engage them as early as possible in this process.
An ounce of prevention
The best way to prevent penalties is to have a strong AML compliance program tailored to your business and kept up to date regularly. It doesn’t have to be perfect, but it should describe what you actually do, and how you do it. The program can be in plain language—it doesn’t need to be complicated or in legal terms—and if you’re one of the many jewellers who’ve been putting it off, there are online tools available to help make it easier.
An easy examination can never be promised, but they are manageable with the right preparation. If you’re savvy enough to run a successful business, you can handle this, too.
Amber D. Scott (MBA, CIPPC, CBP, CAMS), is the founder and chief anti-money laundering (AML) ninja at Outlier Solutions Inc. As a compliance professional who has worked with anti-money laundering (AML) and counter terrorist financing (CTF) legislation for over a decade, Scott is passionate about making compliance simple for Canadian businesses. She launched Outlier Solutions Inc., a compliance consulting firm, in 2013.
Soon after, she entered into a partnership with the Canadian Jewellers Association (CJA) and Jewellers Vigilance Canada (JVC) to update the compliance kit materials for dealers in precious metals and stones (DPMSs). These materials are available free to CJA and JVC members, and for a fee to non-members.
She works closely with the Canadian jewellery industry to ensure the online materials and consulting solutions available are meeting its needs. Scott believes good compliance can enable good business. Find out how at www.outliercanada.com or reach out to her directly at amber@outliercanada.com.
