table -top exercise on the key june 2017 aml updates with ......on the key june 2017 aml updates...

Table-topExerciseonthekeyJune2017AMLUpdateswithMattandGene

MatthewMcGuire matt@theamlshop.caChiefAMLExpert@TheAMLShopwww.amlshop.ca

GeneDiMira gene_dimira@Manulife.comManulifeFinancial,CanadianDivisionDirector,ComplianceSharedServices(AML)

Inscope/Outofscope

TestingTodayAreyouready?

Identificationmethodsupdate

DomesticPEP&Close

Associates

Listenforthisintherestoftheconference

ReasonableMeasures

Affiliates&Risk

Rules•Pleaseputyourphonesdown•Fourquestionsateachtable(2each)• Itisonly30minutes,sopleaseputyourphonesdown

IDRound

•Twoquestionsonthechangestoidentificationforeachtable

• Tablesdonothavethesamequestion!

PEPRound

•Twoquestionsonthechangestopoliticallyexposedpersonrulesforeachtable

• Tablesdonothavethesamequestion!

Table-topExercise

YounowhavetheoptionataccountopeningtouseahandwrittenORelectronicsignatureandsignaturecard,whatareexcludedfromtheconstraints?

A)Theelectronicsignaturemustbeuniquetotheclient;B)TheelectronicsignaturecanbeaPINoraPasswordorevenaBiometicmeasure(butnota“ClientAccept”button);C)IdentificationbymeansofanelectronicsignaturemustbedemonstrabletoFINTRAC(butthereisnoneedtounencrypttheidentifierforthem)D)canincludefacialrecognitionoverFacebook.

ID#1

ViewResults

YounowhavetheoptionataccountopeningtouseahandwrittenORelectronicsignatureandsignaturecard,whatareexcludedfromtheconstraints?

A)Theelectronicsignaturemustbeuniquetotheclient;B)TheelectronicsignaturecanbeaPINoraPasswordorevenaBiometicmeasure(butnota“ClientAccept”button);C)IdentificationbymeansofanelectronicsignaturemustbedemonstrabletoFINTRAC(butthereisnoneedtounencrypttheidentifierforthem)D)canincludefacialrecognitionoverFacebook.

D)Facialrecognitionandbiometricsarediscussedintheguidance,howeveryouneedtohaveanagreementwitheachproviderandaclearmethodonhowtomakethiswork.

ID#1

WhencheckingaphotoIDforaclient,whatisnotanAMLrequirement?

A)TheidentificationmustnotbeexpiredB)TheidentificationmustbearthelikenessoftheapplicantC)TheidentificationmustnotbeviewedoveraskypecallD)Theidentificationmustbephotocopiedorscannedforrecord-keepingpurposes

ID#2

ViewResults

WhencheckingaphotoIDforaclient,whatisnotanAMLrequirement?

A)TheidentificationmustnotbeexpiredB)TheidentificationmustbearthelikenessoftheapplicantC)TheidentificationmustnotbeviewedoveraskypecallD)Theidentificationmustbephotocopiedorscannedforrecord-keepingpurposes

D)PhotocopiesofIDmayberequestedforsecuritiesaccountsbythetaxareatomeetUSIRSrules,butnotforAML!

ID#2

From our friends at the Privacy Commission: In some situations, you may need to see or even record a customer’s identity document information to fulfill your organization’s legal obligations or for its business purposes. However, do not make a copy of an identity document unless it is required by law or it is needed for a legitimate business purpose.

EffectiveJune30th,2017,whichofthefollowingcannotbeusedonitsowntoascertainaclient’sidentity?

A)AnacceptableCanadianPhotoIDmustbeissuedbyaFederal/Provincial/TerritorialgovernmentB)Dualrecordoption*usingtwooriginalrecordsfromreliablesources(*Condenseddescription)C)Acreditfilewithfouryearsofhistorythatmatchestheclientsname,dateofbirthandaddressD)Aclearedcheque fromaCanadianfinancialinstitution.

ID#3

ViewResults

EffectiveJune30th,2017,whichofthefollowingcannotbeusedonitsowntoascertainaclient’sidentity?

A)AnacceptableCanadianPhotoIDmustbeissuedbyaFederal/Provincial/TerritorialgovernmentB)Dualrecordoption*usingtwooriginalrecordsfromreliablesources(*Condenseddescription)C)Acreditfilewithfouryearsofhistorythatmatchestheclientsname,dateofbirthandaddressD)Aclearedcheque fromaCanadianfinancialinstitution.

D)Whileaclearedcheque isnicetohave,itisonlypartoftheDualRecordoptioninthesemodels.

ID#3

WhichofthefollowingoptionsisacceptableundertheDualRecordmethod?

A)Twodifferent“Reliable”sourceswhichareoriginal,validandcurrentB)TwoaccountstatementsfromonefinancialinstitutionC)FaxedcopiesoftwopiecesofIDD)FacialrecognitionoverFacebookandaLinked-Inprofile.

ID#4

ViewResults

WhichofthefollowingoptionsisacceptableundertheDualRecordmethod?

A)Twodifferent“Reliable”sourceswhichareoriginal,validandcurrentB)TwoaccountstatementsfromonefinancialinstitutionC)FaxedcopiesoftwopiecesofIDD)FacialrecognitionoverFacebookandaLinked-Inprofile.

A)TimetoreadtheFINTRACIdentificationguidanceappendixifyouareansweringanythingelse

ID#4

WhatisnotachangecomingintoeffectJune17th,2017?

A)ThedefinitionofPoliticallyExposedPersonsisexpandedtoincludebothdomesticandforeignPEPsB)Amayor’swife’smistresswouldnowbeincludedinthePEPdefinitionas“CloseAssociates”C)ThedefinitionofajudgeisnowlimitedtotheSupremeCourtsandAppealsCourtjudgesD)FinancialInstitutionsarerequiredtotreatallPEPsashighrisk.

PEP#1

ViewResults

WhatisnotachangecomingintoeffectJune17th,2017?

A)ThedefinitionofPoliticallyExposedPersonsisexpandedtoincludebothdomesticandforeignPEPsB)Amayor’swife’smistresswouldnowbeincludedinthePEPdefinitionas“CloseAssociates”C)ThedefinitionofajudgeisnowlimitedtotheSupremeCourtsandAppealsCourtjudgesD)FinancialInstitutionsarerequiredtotreatallPEPsashighrisk.

D)TheriskofdomesticPEPsandheadsofinternationalorganizationscanbedeterminedbythefinancialinstitution.

PEP#1

Whichclientisnotapoliticallyexposedperson?

A)Manitoba’sLieutenantGovernorB)JusticeofthePeaceC)CurrentMayorofSudburyD)PastPrimeMinisterBrianMulroney

PEP#2

ViewResults

Whichclientisnotapoliticallyexposedperson?

A)Manitoba’sLieutenantGovernorB)JusticeofthePeaceC)CurrentMayorofSudburyD)PastPrimeMinisterBrianMulroney

D)AsofJune17th,aJusticeofthePeaceisnotwithinthedefinitionofaJudgeforthepurposesofPEPdetermination.Thebusinessrelationshipsofpersonswithpoliticiansareaconsiderationinyourdeterminationaspertheguidance.

HowLongisSomeonePEPy?• PEFP– Forever• PEDP– 5yearsà howeverconsideriftheyarea“closeassociate”• HIO– WhileinOffice

PEP#2

The“HeadofanInternationalOrganization”isnowaPEPandthisincludes

A)ThepresidentofFIFAB)TheCEOofCoca-ColaC)TheUnitedNationsSecretaryGeneralD)TheheadoftheCanadianOlympicCommittee

PEP#3

ViewResults

The“HeadofanInternationalOrganization”isnowaPEPandthisincludes

A)ThepresidentofFIFAB)TheCEOofCoca-ColaC)TheUnitedNationsSecretaryGeneralD)TheheadoftheCanadianOlympicCommittee

C)Internationalorganizationsaredefinedasorganizationsthataresetupbytwoormorecountriesbyatreaty.Thereareanestimated300internationalorganizationsfoundbyresearchers,withmanyoftheseaffiliatedwiththeUnitedNations,NATO,InternationalMonetaryFund.

PEP#3

WhichfamilymemberofanAmbassadorisnotaPEP?

A)Brother-in-lawB)LegallyadoptedsonC)Common-lawpartnerD)Sister

PEP#4

ViewResults

WhichfamilymemberofanAmbassadorisnotaPEP?

A)Brother-in-lawB)LegallyadoptedsonC)Common-lawpartnerD)Sister

A)WithinthePEPdefinitionsintheregulations,abrother-in-laworsister-in-lawisnotincludedinthedefinition,howeveratthediscretionofthefinancialinstitutionorinsuranceadvisor,theycanassessthepersonasa“closeassociate”withapersonalrelationshiptothepoliticalperson.

PEP#4

BonusRound

Whichofthefollowingwouldinvalidateanagentormandataryidentification?

A)NoagreementwiththeagentormandatarytorelyontheiridentificationB)Themandatarybeingtheclient’smother-in-lawC)TheagentormandatoryusingthedualmethodD)Theagentnottakingsuspicioustransactiontraining

BonusRound

ViewResults

Whichofthefollowingwouldinvalidateanagentormandataryidentification?

A)NoagreementwiththeagentormandatarytorelyontheiridentificationB)Themandatarybeingtheclient’smother-in-lawC)TheagentormandatoryusingthedualmethodD)Theagentnottakingsuspicioustransactiontraining

A)Theremustbeapre-existingagreementforrelianceonanagentormandatarytobeeffective.

BonusRound

HowdoIhavetodetermineifmyclientisapoliticallyexposedperson(PEP)?

A)AskthemthequestionB)Scantheirnameagainstadatabaseandthencomparethematchinginformationtotheclient’sfileC)Checktoseeiftheiroccupationis“politician”inawaythatmatchesthedefinitionD)Although(a)and/or(b)aretheminimum,somehowCsnuckintheretoo!

BonusRound

ViewResults

HowdoIhavetodetermineifmyclientisapoliticallyexposedperson(PEP)?

A)AskthemthequestionB)Scantheirnameagainstadatabaseandthencomparethematchinginformationtotheclient’sfileC)Checktoseeiftheiroccupationis“politician”inawaythatmatchesthedefinitionD)Although(a)and/or(b)aretheminimum,somehowCsnuckintheretoo!

D->Askyourfriendlyregulatoraboutthisone…

BonusRound

WhendoIhavetodetermineifmyclientisapoliticallyexposedperson(PEP)?

A)Foranyapplicationforaninsuranceinvestmentsnon-registeredpolicyorpermanentlifepolicywithasideaccountfeatureB)Forthosecontributing$100,000lumpsumormoreintoalifeinsurancecontractC)ForallmysecuritiesandbankingclientsD)Foranyclientswhotellmethattheiroccupationis“politician”regardlessofproduct

BonusRound

ViewResults

WhendoIhavetodetermineifmyclientisapoliticallyexposedperson(PEP)?

A)Foranyapplicationforaninsuranceinvestmentsnon-registeredpolicyorpermanentlifepolicywithasideaccountfeatureB)Forthosecontributing$100,000lumpsumormoreintoalifeinsurancecontractC)ForallmysecuritiesandbankingclientsD)Foranyclientswhotellmethattheiroccupationis“politician”regardlessofproduct

B->Theinsurancerequirementisforthecontributorofthefundsinalumpsumforpoliticallyexposedpersons.Requestingaclient’sPEPstatusatpolicyopeningisnotrequired,howeveraoptionsomeorganizationsmayconsider.Securitiesandbankingclientrequirementsarefornon-exemptproductsataccountopeningandperiodicallythereafter.(D)isagoodideaforall,especiallyforBank/Securitiesnon-exemptproductholderstomeetthe“detectsafact”requirements.

BonusRound

Thankyou!