39 Questions
What is the primary objective of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)?
To combat the laundering of proceeds of crime and the financing of terrorist activities
Which entity is responsible for regulating compliance with the PCMLTFA in Canada?
FINTRAC
Under the PCMLTFA, what are Dealing Representatives required to do?
Report suspicious transactions to FINTRAC
Which legislation safeguards privacy by defining personal information and setting requirements for its protection?
Privacy Act and PIPEDA
What does the Canada's Anti-Spam Law (CASL) primarily focus on regulating?
Telemarketing practices
What is the main purpose of the introduced legislation?
To help detect and deter money laundering and terrorist financing activities
Which entities are subject to reporting and other requirements under the Act?
Real estate professionals
What is FINTRAC's main mission?
To contribute to public safety by detecting and deterring money laundering and terrorist financing
How does Canadian law define money laundering?
Any act intended to disguise the source of money derived from criminal activity inside or outside Canada
What does FINTRAC collect, analyze, and disclose information for?
To help detect and prevent money laundering and financing of terrorist activities
What is the key difference between Tom and Peter's actions regarding booking movie tickets on office computers?
Tom's action violates company policy while Peter's does not.
Why was Marianne's action considered unethical?
She deposited the client's cheque into her personal account.
What consequences must the mutual fund dealer face in Example 2 according to the text?
The dealer must report the breach to the MFDA and take disciplinary action.
In which of the examples provided do we see a case of money laundering?
None of the examples involve money laundering.
Why did Tom's action lead to unethical behavior according to the text?
His company policy prohibited personal internet use on office computers.
What does MFDA Rule 2.3.1 prohibit Dealing Representatives from having?
Control or authority acting under a Power of Attorney
What must be done if a Dealing Representative has authority over a client account?
Disclose the authority to the firm and have the account reassigned
Is lending to clients generally permitted according to the guidelines provided?
Not permitted except for certain exceptions
What is the rule regarding borrowing from clients according to the text?
Prohibited without any exceptions
What is the guideline regarding purchasing assets from clients according to the text?
Not allowed outside the normal course of business
What is the primary purpose of laundering dirty money?
To integrate it into the legitimate economy
How do terrorist groups and criminal organizations resemble each other in terms of fund generation?
They both use similar methods to generate funds from illegal sources
What is one method commonly used by criminals to launder illegal money held in financial accounts?
Purchase of securities
Why do terrorist groups need to launder illicit funds?
To obscure the origins of the funds
What new requirements came into force in June 2020 related to money laundering and terrorist financing?
Revised requirements under PCMLTFA legislation and FINTRAC Guidelines
What is the required action if a Dealing Representative wants to resolve a dispute with a client through a private settlement?
Seek approval from the dealer before proceeding
In which scenario would a conflict of interest be considered material and should be avoided?
When holding real property or assets of significant value
What action should be taken if a Dealing Representative is involved in securities-related business outside of their firm?
Report it to the regulator immediately
Why must all monetary and non-monetary benefits to or from clients be approved by the dealer?
To avoid conflict of interest
What action should be taken if a Dealing Representative occupies a leadership role in the community?
Disclose the role to the regulator and firm
What must a Dealing Representative do in regard to reporting suspicious transactions?
Advise the Compliance Department
What is the minimum cash transaction amount that triggers the requirement for record-keeping by securities dealers?
$10,000
How long do records need to be provided to FINTRAC upon request?
30 days
When must a client's identity be confirmed when conducting a large cash transaction?
For transactions over $10,000
In what situations can an individual be identified for account instructions?
With any recognized official document
What information does FINTRAC provide guidelines on?
When to file suspicious transaction reports
Who is responsible for reporting suspicious transactions to FINTRAC?
Compliance Department
What type of transactions trigger the need for record-keeping by securities dealers?
$10,000 cash transactions
What do Securities dealers need to keep records of besides cash transactions?
Details of suspicious transaction reports.
Learn about the process of transforming dirty money into clean money through various methods like buying securities and understand how terrorist groups obtain funds and obscure their financial links. Explore the risks associated with money laundering and terrorist financing.
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