Financial Services Industry Oversight

KNOWLEDGE EXPECTED OF: QAFP^® Professionals

Highest Knowledge Level: Awareness

Knowledge Levels and Associated Verbs

Awareness The state of being aware that something exists / to have familiarity with a particular activity or subject		Understanding To comprehend the general relationship of particulars / to have an expertise with how something works	Application Ability to put information to use / to use knowledge for relevant, practical purposes					Evaluation To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define To state exactly the meaning of	Identify To be aware of / to recognize and correctly name / to locate an appropriate resource	Explain To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it	Determine To ascertain / to come to a decision, such as by investigation or reasoning	Compare To note the similarities and differences between two or more things	Estimate To determine an approximate value for	Calculate To find the value using mathematics	Convert To change from one form or purpose to another	Evaluate To reach a conclusion or make a through careful study	Interpret To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

Identify the financial services oversight bodies under the jurisdiction of the Government of Canada, such as
- Office of the Superintendent of Financial Institutions (OSFI)¹
- Financial Transaction and Report Analysis Centre of Canada (FINTRAC)²
- Financial Consumer Agency of Canada (FCAC)³
- Office of the Privacy Commissioner of Canada (OPC)⁴

Identify the mandate of the Office of the Superintendent of Financial Institutions (OSFI).⁵

Identify the organizations that fall under the supervision and regulation of the Office of the Superintendent of Financial Institutions (OSFI).^6,7

Identify the functions performed by the Office of the Superintendent of Financial Institutions (OSFI).⁸

Identify the mandate of the Financial Transaction and Report Analysis Centre of Canada (FINTRAC).⁹

Identify features of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), including:
- The requirements of an individual employed in the financial services industry to report potential money-laundering schemes to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), such as:
  - Suspicious transactions
  - Terrorist property
  - Large cash transactions
- The sanctions that may be imposed on an individual and their employer for non-compliance of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), such as:
  - Failure to report suspicious transactions
  - Failure to report a large cash transaction
  - Disclosing the fact that a suspicious transaction was made or disclosing the contents of such a report with the intent to prejudice a criminal investigation (“tipping”)

Identify money-laundering red flags, such as:
- Contact information changing often
- Disconnected phone numbers
- Source of assets not easily verifiable
- Transaction history not aligned with employment or business
- Frequent fund transfers
- Large wire transactions
- Exhibited lifestyle cannot be supported by earnings
- Insurance products purchased using single large premium payment
- Large cash holdings

Identify methods for laundering money, such as:
- Use of national and/or international banking system
- Use of trade-based systems
- Use of mobile and internet payment systems
- Use of alternative remittance systems
- Use of precious metals (gold, silver) or jewels (diamonds)

Identify the stages of money laundering:¹⁰
- Placement
- Layering
- Integration

Identify the mandate of the Financial Consumer Agency of Canada (FCAC).¹¹

Identify the mandate of the Office of the Privacy Commissioner of Canada (OPC).¹²

Identify features of the Personal Information Protection and Electronic Documents Act (PIPEDA)¹³ or substantially similar provincial legislation,¹⁴ including:
- The requirement to protect consumer information
- The rights of consumers to request, receive and correct incorrect information
- The sanctions that may be imposed for non-compliance with the Act
Identify which information is considered private information under the Personal Information Protection and Electronic Documents Act (PIPEDA).

REFERENCES

¹ http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/Pages/default.aspx

² http://www.fintrac-canafe.gc.ca/intro-eng.asp

³ https://www.canada.ca/en/financial-consumer-agency.html

⁴ https://www.priv.gc.ca/en/

⁵ http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/Pages/mnd.aspx

⁶ http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/Pages/default.aspx

⁷ http://www.osfi-bsif.gc.ca/Eng/wt-ow/Pages/wwr-er.aspx?1

⁸ http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/Pages/default.aspx

⁹ http://www.fintrac.gc.ca/intro-eng.asp

¹⁰ http://www.fintrac.gc.ca/fintrac-canafe/definitions/money-argent-eng.asp

¹¹ https://www.canada.ca/en/financial-consumer-agency/corporate/mandate.html

¹² https://www.priv.gc.ca/au-ans/mm_e.asp

¹³ https://www.priv.gc.ca/leg_c/r_o_p_e.asp

¹⁴ https://www.priv.gc.ca/leg_c/legislation/ss_index_e.asp

KNOWLEDGE EXPECTED OF: CFP^® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs

Awareness The state of being aware that something exists / to have familiarity with a particular activity or subject		Understanding To comprehend the general relationship of particulars / to have an expertise with how something works	Application Ability to put information to use / to use knowledge for relevant, practical purposes					Evaluation To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define To state exactly the meaning of	Identify To be aware of / to recognize and correctly name / to locate an appropriate resource	Explain To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it	Determine To ascertain / to come to a decision, such as by investigation or reasoning	Compare To note the similarities and differences between two or more things	Estimate To determine an approximate value for	Calculate To find the value using mathematics	Convert To change from one form or purpose to another	Evaluate To reach a conclusion or make a through careful study	Interpret To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

Identify the financial services oversight bodies under the jurisdiction of the Government of Canada, such as
- Office of the Superintendent of Financial Institutions (OSFI)¹
- Financial Transaction and Report Analysis Centre of Canada (FINTRAC)²
- Financial Consumer Agency of Canada (FCAC)³
- Office of the Privacy Commissioner of Canada (OPC)⁴

Identify the mandate of the Office of the Superintendent of Financial Institutions (OSFI).⁵

Identify the organizations that fall under the supervision and regulation of the Office of the Superintendent of Financial Institutions (OSFI).^6,7

Identify the functions performed by the Office of the Superintendent of Financial Institutions (OSFI).⁸

Identify the mandate of the Financial Transaction and Report Analysis Centre of Canada (FINTRAC).⁹

Identify money-laundering red flags, such as:
- Contact information changing often
- Disconnected phone numbers
- Source of assets not easily verifiable
- Transaction history not aligned with employment or business
- Frequent fund transfers
- Large wire transactions
- Exhibited lifestyle cannot be supported by earnings
- Insurance products purchased using single large premium payment
- Large cash holdings

Identify the mandate of the Financial Consumer Agency of Canada (FCAC).¹¹

Identify the mandate of the Office of the Privacy Commissioner of Canada (OPC).¹²

Identify which information is considered private information under the Personal Information Protection and Electronic Documents Act (PIPEDA).

Additional Knowledge Expected of CFP Professionals

Explain the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), including:
- The requirements of an individual employed in the financial services industry to report potential money-laundering schemes to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), such as:
  - Suspicious transactions
  - Terrorist property
  - Large cash transactions
- The sanctions that may be imposed on an individual and their employer for non-compliance of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), such as:
  - Failure to report suspicious transactions
  - Failure to report a large cash transaction
  - Disclosing the fact that a suspicious transaction was made or disclosing the contents of such a report with the intent to prejudice a criminal investigation (“tipping”)
Explain methods for laundering money, such as:
- Use of national and/or international banking system
- Use of trade-based systems
- Use of mobile and internet payment systems
- Use of alternative remittance systems
- Use of precious metals (gold, silver) or jewels (diamonds)
Explain the stages of money laundering:¹⁰
- Placement
- Layering
- Integration
Explain features of the Personal Information Protection and Electronic Documents Act (PIPEDA)¹³ or substantially similar provincial legislation,¹⁴ including:
- The requirement to protect consumer information
- The rights of consumers to request, receive and correct incorrect information
- The sanctions that may be imposed for non-compliance with the Act