Money Laundering and Terrorist Financing Overview
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Questions and Answers

What is the primary objective of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)?

  • To facilitate terrorist financing activities
  • To combat the laundering of proceeds of crime and the financing of terrorist activities (correct)
  • To encourage money laundering schemes
  • To legalize the proceeds of crime

    • Which entity is responsible for regulating compliance with the PCMLTFA in Canada?

  • FINTRAC (correct)
  • CRA
  • OSFI
  • CSIS

    • Under the PCMLTFA, what are Dealing Representatives required to do?

  • Avoid compliance with anti-money laundering regulations
  • Report suspicious transactions to FINTRAC (correct)
  • Facilitate money laundering transactions
  • Ignore any suspicious activities

    • Which legislation safeguards privacy by defining personal information and setting requirements for its protection?

    <p>Privacy Act and PIPEDA</p> Signup and view all the answers

    What does the Canada's Anti-Spam Law (CASL) primarily focus on regulating?

    <p>Telemarketing practices</p> Signup and view all the answers

    What is the main purpose of the introduced legislation?

    <p>To help detect and deter money laundering and terrorist financing activities</p> Signup and view all the answers

    Which entities are subject to reporting and other requirements under the Act?

    <p>Real estate professionals</p> Signup and view all the answers

    What is FINTRAC's main mission?

    <p>To contribute to public safety by detecting and deterring money laundering and terrorist financing</p> Signup and view all the answers

    How does Canadian law define money laundering?

    <p>Any act intended to disguise the source of money derived from criminal activity inside or outside Canada</p> Signup and view all the answers

    What does FINTRAC collect, analyze, and disclose information for?

    <p>To help detect and prevent money laundering and financing of terrorist activities</p> Signup and view all the answers

    What is the key difference between Tom and Peter's actions regarding booking movie tickets on office computers?

    <p>Tom's action violates company policy while Peter's does not.</p> Signup and view all the answers

    Why was Marianne's action considered unethical?

    <p>She deposited the client's cheque into her personal account.</p> Signup and view all the answers

    What consequences must the mutual fund dealer face in Example 2 according to the text?

    <p>The dealer must report the breach to the MFDA and take disciplinary action.</p> Signup and view all the answers

    In which of the examples provided do we see a case of money laundering?

    <p>None of the examples involve money laundering.</p> Signup and view all the answers

    Why did Tom's action lead to unethical behavior according to the text?

    <p>His company policy prohibited personal internet use on office computers.</p> Signup and view all the answers

    What does MFDA Rule 2.3.1 prohibit Dealing Representatives from having?

    <p>Control or authority acting under a Power of Attorney</p> Signup and view all the answers

    What must be done if a Dealing Representative has authority over a client account?

    <p>Disclose the authority to the firm and have the account reassigned</p> Signup and view all the answers

    Is lending to clients generally permitted according to the guidelines provided?

    <p>Not permitted except for certain exceptions</p> Signup and view all the answers

    What is the rule regarding borrowing from clients according to the text?

    <p>Prohibited without any exceptions</p> Signup and view all the answers

    What is the guideline regarding purchasing assets from clients according to the text?

    <p>Not allowed outside the normal course of business</p> Signup and view all the answers

    What is the primary purpose of laundering dirty money?

    <p>To integrate it into the legitimate economy</p> Signup and view all the answers

    How do terrorist groups and criminal organizations resemble each other in terms of fund generation?

    <p>They both use similar methods to generate funds from illegal sources</p> Signup and view all the answers

    What is one method commonly used by criminals to launder illegal money held in financial accounts?

    <p>Purchase of securities</p> Signup and view all the answers

    Why do terrorist groups need to launder illicit funds?

    <p>To obscure the origins of the funds</p> Signup and view all the answers

    What new requirements came into force in June 2020 related to money laundering and terrorist financing?

    <p>Revised requirements under PCMLTFA legislation and FINTRAC Guidelines</p> Signup and view all the answers

    What is the required action if a Dealing Representative wants to resolve a dispute with a client through a private settlement?

    <p>Seek approval from the dealer before proceeding</p> Signup and view all the answers

    In which scenario would a conflict of interest be considered material and should be avoided?

    <p>When holding real property or assets of significant value</p> Signup and view all the answers

    What action should be taken if a Dealing Representative is involved in securities-related business outside of their firm?

    <p>Report it to the regulator immediately</p> Signup and view all the answers

    Why must all monetary and non-monetary benefits to or from clients be approved by the dealer?

    <p>To avoid conflict of interest</p> Signup and view all the answers

    What action should be taken if a Dealing Representative occupies a leadership role in the community?

    <p>Disclose the role to the regulator and firm</p> Signup and view all the answers

    What must a Dealing Representative do in regard to reporting suspicious transactions?

    <p>Advise the Compliance Department</p> Signup and view all the answers

    What is the minimum cash transaction amount that triggers the requirement for record-keeping by securities dealers?

    <p>$10,000</p> Signup and view all the answers

    How long do records need to be provided to FINTRAC upon request?

    <p>30 days</p> Signup and view all the answers

    When must a client's identity be confirmed when conducting a large cash transaction?

    <p>For transactions over $10,000</p> Signup and view all the answers

    In what situations can an individual be identified for account instructions?

    <p>With any recognized official document</p> Signup and view all the answers

    What information does FINTRAC provide guidelines on?

    <p>When to file suspicious transaction reports</p> Signup and view all the answers

    Who is responsible for reporting suspicious transactions to FINTRAC?

    <p>Compliance Department</p> Signup and view all the answers

    What type of transactions trigger the need for record-keeping by securities dealers?

    <p>$10,000 cash transactions</p> Signup and view all the answers

    What do Securities dealers need to keep records of besides cash transactions?

    <p>Details of suspicious transaction reports.</p> Signup and view all the answers

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