knowledge topics
Financial Services Industry Oversight
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify the financial services oversight bodies that are 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 that the Office of the Superintendent of Financial Institutions (OSFI) performs.8
- Identify the mandate of the Financial Transaction and Report Analysis Centre of Canada (FINTRAC).9
- 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”)
- 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:
- 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
- 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
- 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
- Explain the Personal Information Protection and Electronic Documents Act (PIPEDA)13 or substantially similar provincial legislation14, 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).
Glossary of Verbs (mouse over to see definition)
-
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
-
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 judgement through careful study
-
Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
REFERENCES
- http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/Pages/default.aspx
- http://www.fintrac-canafe.gc.ca/intro-eng.asp
- https://www.canada.ca/en/financial-consumer-agency.html
- https://www.priv.gc.ca/en/
- http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/Pages/mnd.aspx
- http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/Pages/default.aspx
- http://www.osfi-bsif.gc.ca/Eng/wt-ow/Pages/wwr-er.aspx?1
- http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/Pages/default.aspx
- http://www.fintrac.gc.ca/intro-eng.asp
- http://www.fintrac.gc.ca/fintrac-canafe/definitions/money-argent-eng.asp
- https://www.canada.ca/en/financial-consumer-agency/corporate/mandate.html
- https://www.priv.gc.ca/au-ans/mm_e.asp
- https://www.priv.gc.ca/leg_c/r_o_p_e.asp
- https://www.priv.gc.ca/leg_c/legislation/ss_index_e.asp