Gravitas Securities Inc.
Anti-Money Laundering and Anti-Terrorist Financing Policy
PURPOSE: The purpose of GSI’s Anti-Money Laundering and Anti-Terrorist Financing Policy (AML Policy) is to demonstrate GSI’s commitment to prevent, detect and address non-compliance in regards to money laundering and terrorist financing activities. GSI will not knowingly participate in any capacity in the advancement of a transaction that is suspected to be related to the commission of a money laundering or terrorist financing activity.
LEGISLATION: GSI will comply with record-keeping, client identification, reporting and compliance requirements of the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA); Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations; the Canadian Criminal Code; and the United Nations Suppression of Terrorism Regulations.
PCMLTFA creates a mandatory reporting system for suspicious and prescribed transactions and the cross-border movement of large amounts of currency and monetary instruments.
Canada is also a member of Financial Action Task Force (FATF), the agency that establishes international anti-money laundering standards. Canada has also signed and ratified the United Nations International Convention for the Suppression of the Financing of Terrorism and the Anti-Terrorism Act (ATA). The ATA creates measures to deter, disable, identify, prosecute, convict and punish terrorist organizations. In addition, the ATA provides new investigative tools for law enforcement and national security agencies. Specifically, the ATA make it a crime to: knowingly collecting or providing funds, either directly or indirectly, used to carry out terrorist activities; knowingly participating in, contributing to or facilitating the activities of a terrorist organization; instructing anyone to carry out a terrorist activity on behalf of a terrorist organization; or knowingly harbouring or concealing a terrorist.
The Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism and the United Nations Al-Qaida and Taliban Regulations (UN Regulations) provide a list of individuals or entities believed to be involved in, or associated with, terrorist activity (UN List). The UN Regulations, through resulting amendments to the Criminal Code, make it an offence for anyone in Canada, or any Canadian outside of Canada, to collect funds from, or provide funds to, any individual or entity appearing on the UN List.
FINANCIAL TRANSACTIONS AND REPORTS ANALYSIS CENTRE OF CANADA (FINTRAC): FINTRAC is an anti-money laundering agency established by PCMLTFA.
FINTRAC’s mandate is to collect, analyze, assess and, where appropriate, disclose information relevant to the investigation and prosecution of money laundering and terrorist financing offences. FINTRAC is also responsible for conducting research and for undertaking educational measures to inform the public, those who are required to report suspicious transactions and the law enforcement community about the nature and extent of money laundering and terrorist financing activities, and effective detection, prevention and deterrence measures.
DEFINITION MONEY LAUNDERING: The United Nations (UN) defines money laundering as “any act or attempted act to disguise the source of money or assets derived from criminal activity.” It is the process whereby “dirty money” (money generated through criminal activity) is transformed into “clean money,” the criminal origin of which is difficult to trace. Money laundering has three recognized stages:
1. Placement - placing the proceeds of crime into the financial system. Also referred to as the “physical disposal” of cash proceeds derived from illegal activity.
2. Layering - separating illicit proceeds from their source by creating complex layers of financial transactions designed to disguise the audit trail and the source and ownership of funds (i.e. through the use of monetary instruments and electronic funds transfers).
3. Integration – adding an apparent legitimacy to criminally derived wealth. For instance, via a complicated web of transactions designed to make tracing of the original source nearly impossible. Upon success of stage two of layering, integration then places the laundered funds back into the economy so they look as if they are normally derived proceeds of business.
Any of the three stages may occur consecutively or concurrently.
In Canada, a money laundering offence involves concealing or converting property or the proceeds of property, knowing or believing that the property or proceeds were derived from the commission of another offence (predicate offence). Predicate offenses include, but are not limited to: drug dealing, bribery, gaming, robbery, fraud, theft, extortion and counterfeiting.
Methods of money laundering include:
1. Smurfing – smurfs depositing cash or buying bank drafts at various institutions, or one individual executing a series of consecutive transactions in dollar amounts slightly less than the amount that triggers the requirement to report the transaction to FINTRAC, and the cash is subsequently transferred to a central account.
2. Nominees - recruiting family members, friends or associates who are trusted members of their community in order to conceal the source and ownership of the dirty money being laundered.
3. Bulk Cash Purchases – when individuals purchase large value items such as cars, boats and real estate using cash that are often registered in a friend or relative’s name.
DEFINITION TERRORIST FINANCING: FINTRAC describes terrorist financing as the provision of monies for terrorist activity including funds raised from legitimate sources, such as personal donations and profits from businesses and charitable organizations, as well as from criminal sources, such as from predicate offences.
Similar to money laundering, terrorist financing activity is intended evade authorities' attention and to protect the identity of their sponsors and of the ultimate beneficiaries of the funds. Unlike laundering however, terrorist financing transactions tend to be in smaller amounts and thus, when they are derived from legitimate sources, the detection and tracking of these funds is more difficult.
Terrorist financing comes from two primary sources:
1. Financial Support - financial sponsorship from like-minded countries, sympathetic governments, or individuals with sufficient financial means
2. Revenue Generation - revenue generation typically involves criminal activities (i.e. the activities of criminal organizations).
GSI’s AML COMPLIANCE REGIME: GSI’s AML compliance regime operates on a risk-based approach (RBA). In the context of money laundering and terrorist financing, a RBA is a process that encompasses the following: GSI risk assessment using certain factors; the risk-mitigation to implement controls to handle identified risks; keeping client identification and beneficial ownership information up to date; and the ongoing monitoring of financial transactions.
The GSI Compliance Regime will include:
1. Written Policies and Procedures: The AML Policy will be reviewed regularly to ensure that it is up to date and applicable to the activities of the firm. Several factors could trigger the need to update the AML Policy including changes in legislation, non-compliance issues, or the introduction of new services or products.
Mr. Neil Gilday who is the Ultimate Designated Person (UDP) for GSI will approve the AML Policy. Although some senior officers may not be involved in day-to-day compliance, they understand the statutory duties placed upon them, employees and GSI itself.
2. Designation of a Canadian Anti-Money Laundering Officer (CAMLO): Mr. Neil Gilday is the designated CAMLO. In the event that Mr. Neil Gilday is unavailable, Ms. Lynne Foran, the General Counsel, Legal and Compliance will be the alternate CAMLO.
The CAMLO is ultimately responsible for ensuring day-to-day compliance with the AML Policy; the assessment and documentation of risks for money-laundering and terrorist financing and measures to mitigate high risks; communicating the AML Policy to all employees, fulfilling reporting obligations.
3. Risk Analysis:
a. The risk methodology that GSI applies to its business activities is as discussed in the FINTRAC guidelines. The following factors have been considered:
i. products and services;
ii. delivery channels;
iii. the geographic locations where business is conducted and the geographic locations clients; and
iv. type of clients and the business relationships GSI has with them.
b. The risk assessment is done in two stages: business-based risk assessment and relationships-based risk assessment of products and services:
i. GSI’s business-based risk assessment is LOW of its products, services, delivery channels and the geographic location in which GSI’s business operates. GSI’s business and clients are primarily located in Canada. GSI does not accept cash transactions and does not allow clients to transact electronically on its site.
ii. GSI’s relationships-based risk assessment is MODERATE / MODERATE-HIGH upon reviewing the internal controls pertaining to its clients and services it provides.
c. Risk mitigation is about implementing controls to limit the identified potential money laundering and terrorist financing risks. GSI will take necessary risk mitigation measures including, but not limited to:
i. Effective internal controls such as:
ii. General measures such as:
iii. Risk-focused measures such as:
4. AML Training: GSI will have a written training program detailing the frequency, method, and the repercussions for failure or non-compliance. All employees will receive training upon hire (course must be completed within 3 month’s of hire) and refresher training on a bi-annual basis.
The AML Policy will be distributed to all employees. It will be ensured that all employees understand and adhere to the AML Policy, particularly those who work in the areas relating to client identification, record keeping, and any of the types of transactions that have to be reported to FINTRAC.
Employees will be made aware of circumstances where an enhanced level of caution is required in dealing with transactions, such as those involving countries or territories that have not yet established adequate anti-money laundering or anti‑terrorist financing regimes consistent with international standards.
5. Review of AML Compliance Regime: Every two years an internal auditor who does not participate in the daily AML functions or an independent external auditor will conduct a comprehensive review of the effectiveness of GSI’s AML compliance regime. This review will include an assessment of all policies, testing of procedures, client identification processes, employee training and overall risk assessment. Upon completion of the review, the scope of the review will be documented with detailed findings, recommendations and subsequent updates to policies/procedures. Upon 30 days of the completion of the review, a report to management will be produced and presented. Following the report, the CAMLO will respond with follow up actions in response to recommendations and timeline for completion.
SUSPICIOUS TRANSACTIONS: PCMLTFA defines a suspicious transaction as a “financial transaction that occurs in the course of (business) activities and in respect of which there are reasonable grounds to suspect the transaction is related to the commission of a Money Laundering offence and/or a terrorist activity financing offence”.
Determining suspicious transactions should be on evaluation of a number of factors and consideration of all surrounding circumstances. Industry specific indicators should be assessed. A single indication may not necessarily provide reasonable grounds to suspect money laundering or terrorist financing. However, more than one may. Some common red flags regarding client identification, transfer of funds and employee behaviour are noted in the SCHEDULE to this AML Policy.
REPORTING REQUIREMENTS:
United Nations Suppression of Terrorism and United Nations Act Sanctions Reporting Requirements & Forms (UNSTR): The UN Regulations and the Criminal Code require GSI to determine on a monthly basis whether they are in possession or control of property that is owned or controlled by, or on behalf of, anyone on the UN List by reporting to the firm’s principal supervisory or regulatory body. Names under the Criminal Code and UN Regulations have been combined into the lists currently posted on the Office of the Superintendent of Financial Institutions (OSFI) website.
GSI complies with the UNSTR. After checking accounts against the OFSI lists, GSI submits the UNSTR on a monthly basis (by the 15th of the month) to the Investment Industry Regulatory Organization of Canada (IIROC). The UNSTR relate to terrorist financing and United Nations Act sanctions on certain countries under the following:
GSI will log in to the IIROC UN Reporting System at:
http://ce.iiroc.ca/eis/General/WebForms/Login.aspx?ReturnURL=https%3a%2f%2funreport.iiroc.ca%2fdefault.aspx.
If there are any issues with the report, GSI will contact IIROC at [email protected].
Suspicious Transaction Reporting: GSI must report suspicious transactions to FINTRAC within 30 days of first detection. The CCO will complete the Suspicious Transaction Reports as per FINTRAC Guideline 3A and file them electronically with FINTRAC at:
http://www.fintrac-canafe.gc.ca/publications/guide/Guide3A/str-eng.asp#s3-1.
The Compliance Officer will also retain a copy of these reports for audit purposes. The appropriate law enforcement body will be contacted to report the suspicious transaction.
GSI employees cannot disclose that GSI has made a suspicious transaction report, or disclose the contents of such a report, with the intent to prejudice a criminal investigation, whether it has started or not. No criminal or civil proceedings may be brought against a person for making a report in good faith.
Suspicious transactions related to an attempted commission of money laundering or terrorist activity financing offence also have to be reported. For example, when a transaction – or a group of transactions – raises questions or gives rise to discomfort, apprehension or mistrust.
RECORD KEEPING: In accordance with GSI’s policy on Books and Records, GSI will maintain all client account records created in the normal course of business in a safe and secure location. In addition, all AML related reports including suspicious transaction reports would be maintained.
Records will be maintained in a format and location that will permit them to be provided to FINTRAC within 30 days of request. Records will be maintained for a minimum of seven years.
CLIENT IDENTIFICATION: The collection of client identification issued from by a provincial, territorial or federal government is required in order to open an account with GSI. All client identification must be valid (that is, not expired). Clients that do not wish to provide the mandated ID will not be permitted open accounts with GSI. GSI will aim to have all client identifications verified prior to the transaction date.
GSI is an introducing broker-dealer and has client accounts with both with B2B Bank Securities Services Inc. (“B2B BSSI”) and National Bank Correspondent Network (“NBNC”). GSI client identification procedures are directly tied to the B2BBSSI and NBCN requirements and will be updated from time to time to comply with regulatory updates and operational updates implemented at B2B BSSI and NBCN.
GSI will collect the following identification for clients in order to comply with the AML Policy:
Individuals: To identify an individual, GSI will refer to the individual's birth certificate, driver's license, passport, record of landing, permanent resident card or other similar document.
In some cases GSI can refer to an individual's provincial health card, but only if it is not prohibited by provincial or territorial legislation. GSI cannot refer to an individual's provincial health card from Ontario, Manitoba or Prince Edward Island since health cards cannot be used for this purpose in these provinces. In Quebec, GSI cannot request to see a client's health card, but may accept it if the client wants to use it for identification purposes.
Other permitted documents for verification of client identification include Certificate of Indian Status or provincial or territorial identification card of certain permitted provinces or territories.
Complete and detailed information regarding the client’s occupation is mandatory. If an individual is self-employed, the nature of the business must be provided. If the client is retired, the client’s previous employment should be noted.
Corporations: To open corporate accounts, GSI will require identify of all individuals who beneficially own more than 10% of that corporation, whether directly or indirectly. This involves obtaining the name, address, citizenship, occupation and employer of each beneficial owner and whether he or she is an insider or controlling shareholder of a publicly traded corporation or similar entity.
GSI will also need to verify the identity of owners via collection of the names and occupations of all directors and a certificate of corporate status. Corporate resolutions are also required as evidence of who is authorized to trade in the account – the identity of w
Anti-Money Laundering and Anti-Terrorist Financing Policy
PURPOSE: The purpose of GSI’s Anti-Money Laundering and Anti-Terrorist Financing Policy (AML Policy) is to demonstrate GSI’s commitment to prevent, detect and address non-compliance in regards to money laundering and terrorist financing activities. GSI will not knowingly participate in any capacity in the advancement of a transaction that is suspected to be related to the commission of a money laundering or terrorist financing activity.
LEGISLATION: GSI will comply with record-keeping, client identification, reporting and compliance requirements of the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA); Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations; the Canadian Criminal Code; and the United Nations Suppression of Terrorism Regulations.
PCMLTFA creates a mandatory reporting system for suspicious and prescribed transactions and the cross-border movement of large amounts of currency and monetary instruments.
Canada is also a member of Financial Action Task Force (FATF), the agency that establishes international anti-money laundering standards. Canada has also signed and ratified the United Nations International Convention for the Suppression of the Financing of Terrorism and the Anti-Terrorism Act (ATA). The ATA creates measures to deter, disable, identify, prosecute, convict and punish terrorist organizations. In addition, the ATA provides new investigative tools for law enforcement and national security agencies. Specifically, the ATA make it a crime to: knowingly collecting or providing funds, either directly or indirectly, used to carry out terrorist activities; knowingly participating in, contributing to or facilitating the activities of a terrorist organization; instructing anyone to carry out a terrorist activity on behalf of a terrorist organization; or knowingly harbouring or concealing a terrorist.
The Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism and the United Nations Al-Qaida and Taliban Regulations (UN Regulations) provide a list of individuals or entities believed to be involved in, or associated with, terrorist activity (UN List). The UN Regulations, through resulting amendments to the Criminal Code, make it an offence for anyone in Canada, or any Canadian outside of Canada, to collect funds from, or provide funds to, any individual or entity appearing on the UN List.
FINANCIAL TRANSACTIONS AND REPORTS ANALYSIS CENTRE OF CANADA (FINTRAC): FINTRAC is an anti-money laundering agency established by PCMLTFA.
FINTRAC’s mandate is to collect, analyze, assess and, where appropriate, disclose information relevant to the investigation and prosecution of money laundering and terrorist financing offences. FINTRAC is also responsible for conducting research and for undertaking educational measures to inform the public, those who are required to report suspicious transactions and the law enforcement community about the nature and extent of money laundering and terrorist financing activities, and effective detection, prevention and deterrence measures.
DEFINITION MONEY LAUNDERING: The United Nations (UN) defines money laundering as “any act or attempted act to disguise the source of money or assets derived from criminal activity.” It is the process whereby “dirty money” (money generated through criminal activity) is transformed into “clean money,” the criminal origin of which is difficult to trace. Money laundering has three recognized stages:
1. Placement - placing the proceeds of crime into the financial system. Also referred to as the “physical disposal” of cash proceeds derived from illegal activity.
2. Layering - separating illicit proceeds from their source by creating complex layers of financial transactions designed to disguise the audit trail and the source and ownership of funds (i.e. through the use of monetary instruments and electronic funds transfers).
3. Integration – adding an apparent legitimacy to criminally derived wealth. For instance, via a complicated web of transactions designed to make tracing of the original source nearly impossible. Upon success of stage two of layering, integration then places the laundered funds back into the economy so they look as if they are normally derived proceeds of business.
Any of the three stages may occur consecutively or concurrently.
In Canada, a money laundering offence involves concealing or converting property or the proceeds of property, knowing or believing that the property or proceeds were derived from the commission of another offence (predicate offence). Predicate offenses include, but are not limited to: drug dealing, bribery, gaming, robbery, fraud, theft, extortion and counterfeiting.
Methods of money laundering include:
1. Smurfing – smurfs depositing cash or buying bank drafts at various institutions, or one individual executing a series of consecutive transactions in dollar amounts slightly less than the amount that triggers the requirement to report the transaction to FINTRAC, and the cash is subsequently transferred to a central account.
2. Nominees - recruiting family members, friends or associates who are trusted members of their community in order to conceal the source and ownership of the dirty money being laundered.
3. Bulk Cash Purchases – when individuals purchase large value items such as cars, boats and real estate using cash that are often registered in a friend or relative’s name.
DEFINITION TERRORIST FINANCING: FINTRAC describes terrorist financing as the provision of monies for terrorist activity including funds raised from legitimate sources, such as personal donations and profits from businesses and charitable organizations, as well as from criminal sources, such as from predicate offences.
Similar to money laundering, terrorist financing activity is intended evade authorities' attention and to protect the identity of their sponsors and of the ultimate beneficiaries of the funds. Unlike laundering however, terrorist financing transactions tend to be in smaller amounts and thus, when they are derived from legitimate sources, the detection and tracking of these funds is more difficult.
Terrorist financing comes from two primary sources:
1. Financial Support - financial sponsorship from like-minded countries, sympathetic governments, or individuals with sufficient financial means
2. Revenue Generation - revenue generation typically involves criminal activities (i.e. the activities of criminal organizations).
GSI’s AML COMPLIANCE REGIME: GSI’s AML compliance regime operates on a risk-based approach (RBA). In the context of money laundering and terrorist financing, a RBA is a process that encompasses the following: GSI risk assessment using certain factors; the risk-mitigation to implement controls to handle identified risks; keeping client identification and beneficial ownership information up to date; and the ongoing monitoring of financial transactions.
The GSI Compliance Regime will include:
1. Written Policies and Procedures: The AML Policy will be reviewed regularly to ensure that it is up to date and applicable to the activities of the firm. Several factors could trigger the need to update the AML Policy including changes in legislation, non-compliance issues, or the introduction of new services or products.
Mr. Neil Gilday who is the Ultimate Designated Person (UDP) for GSI will approve the AML Policy. Although some senior officers may not be involved in day-to-day compliance, they understand the statutory duties placed upon them, employees and GSI itself.
2. Designation of a Canadian Anti-Money Laundering Officer (CAMLO): Mr. Neil Gilday is the designated CAMLO. In the event that Mr. Neil Gilday is unavailable, Ms. Lynne Foran, the General Counsel, Legal and Compliance will be the alternate CAMLO.
The CAMLO is ultimately responsible for ensuring day-to-day compliance with the AML Policy; the assessment and documentation of risks for money-laundering and terrorist financing and measures to mitigate high risks; communicating the AML Policy to all employees, fulfilling reporting obligations.
3. Risk Analysis:
a. The risk methodology that GSI applies to its business activities is as discussed in the FINTRAC guidelines. The following factors have been considered:
i. products and services;
ii. delivery channels;
iii. the geographic locations where business is conducted and the geographic locations clients; and
iv. type of clients and the business relationships GSI has with them.
b. The risk assessment is done in two stages: business-based risk assessment and relationships-based risk assessment of products and services:
i. GSI’s business-based risk assessment is LOW of its products, services, delivery channels and the geographic location in which GSI’s business operates. GSI’s business and clients are primarily located in Canada. GSI does not accept cash transactions and does not allow clients to transact electronically on its site.
ii. GSI’s relationships-based risk assessment is MODERATE / MODERATE-HIGH upon reviewing the internal controls pertaining to its clients and services it provides.
c. Risk mitigation is about implementing controls to limit the identified potential money laundering and terrorist financing risks. GSI will take necessary risk mitigation measures including, but not limited to:
i. Effective internal controls such as:
- Customer identification, due diligence and Know Your Client procedures;
- Operational assessment (products, services, clients and geographic locations) that are more vulnerable to abuse;
- Informing staff of compliance initiatives and identified compliance deficiencies;
- Developing operational continuity despite changes in management, employees or structure;
- Striving to meet all regulatory record keeping and reporting requirements; and
- Supervision of employees that handle transactions, complete reports or monitor for suspicious transactions.
ii. General measures such as:
- Development, implementation and review of policies and procedures of GSI’s AML Compliance Regime;
- Appropriate monitoring of transactions;
- Suspicious transaction reporting procedures; and
- Assessment of employment structure to ensure that there are: clear lines of authority, responsibility and accountability; appropriate training, segregation of employment duties and authorization processes; and internal reviews to validate the risk assessment processes.
iii. Risk-focused measures such as:
- seeking additional information to substantiate the client's identity or the beneficial ownership;
- obtaining additional documented information regarding source of funds;
- requesting high risk clients to provide additional documented information to safeguard against money launderers and terrorists;
- seeking independent verification of information;
- freezing a transaction until identification and account opening information has been obtained; and
- analyzing risk vulnerabilities for new acquisition processes and for product development.
4. AML Training: GSI will have a written training program detailing the frequency, method, and the repercussions for failure or non-compliance. All employees will receive training upon hire (course must be completed within 3 month’s of hire) and refresher training on a bi-annual basis.
The AML Policy will be distributed to all employees. It will be ensured that all employees understand and adhere to the AML Policy, particularly those who work in the areas relating to client identification, record keeping, and any of the types of transactions that have to be reported to FINTRAC.
Employees will be made aware of circumstances where an enhanced level of caution is required in dealing with transactions, such as those involving countries or territories that have not yet established adequate anti-money laundering or anti‑terrorist financing regimes consistent with international standards.
5. Review of AML Compliance Regime: Every two years an internal auditor who does not participate in the daily AML functions or an independent external auditor will conduct a comprehensive review of the effectiveness of GSI’s AML compliance regime. This review will include an assessment of all policies, testing of procedures, client identification processes, employee training and overall risk assessment. Upon completion of the review, the scope of the review will be documented with detailed findings, recommendations and subsequent updates to policies/procedures. Upon 30 days of the completion of the review, a report to management will be produced and presented. Following the report, the CAMLO will respond with follow up actions in response to recommendations and timeline for completion.
SUSPICIOUS TRANSACTIONS: PCMLTFA defines a suspicious transaction as a “financial transaction that occurs in the course of (business) activities and in respect of which there are reasonable grounds to suspect the transaction is related to the commission of a Money Laundering offence and/or a terrorist activity financing offence”.
Determining suspicious transactions should be on evaluation of a number of factors and consideration of all surrounding circumstances. Industry specific indicators should be assessed. A single indication may not necessarily provide reasonable grounds to suspect money laundering or terrorist financing. However, more than one may. Some common red flags regarding client identification, transfer of funds and employee behaviour are noted in the SCHEDULE to this AML Policy.
REPORTING REQUIREMENTS:
United Nations Suppression of Terrorism and United Nations Act Sanctions Reporting Requirements & Forms (UNSTR): The UN Regulations and the Criminal Code require GSI to determine on a monthly basis whether they are in possession or control of property that is owned or controlled by, or on behalf of, anyone on the UN List by reporting to the firm’s principal supervisory or regulatory body. Names under the Criminal Code and UN Regulations have been combined into the lists currently posted on the Office of the Superintendent of Financial Institutions (OSFI) website.
GSI complies with the UNSTR. After checking accounts against the OFSI lists, GSI submits the UNSTR on a monthly basis (by the 15th of the month) to the Investment Industry Regulatory Organization of Canada (IIROC). The UNSTR relate to terrorist financing and United Nations Act sanctions on certain countries under the following:
- Criminal Code
- Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism
- United Nations Al-Qaida and Taliban Regulations
- Regulations Implementing the United Nations Resolution on the Democratic People’s Republic of Korea
- Regulations Implementing the United Nations Resolution on Iran
GSI will log in to the IIROC UN Reporting System at:
http://ce.iiroc.ca/eis/General/WebForms/Login.aspx?ReturnURL=https%3a%2f%2funreport.iiroc.ca%2fdefault.aspx.
If there are any issues with the report, GSI will contact IIROC at [email protected].
Suspicious Transaction Reporting: GSI must report suspicious transactions to FINTRAC within 30 days of first detection. The CCO will complete the Suspicious Transaction Reports as per FINTRAC Guideline 3A and file them electronically with FINTRAC at:
http://www.fintrac-canafe.gc.ca/publications/guide/Guide3A/str-eng.asp#s3-1.
The Compliance Officer will also retain a copy of these reports for audit purposes. The appropriate law enforcement body will be contacted to report the suspicious transaction.
GSI employees cannot disclose that GSI has made a suspicious transaction report, or disclose the contents of such a report, with the intent to prejudice a criminal investigation, whether it has started or not. No criminal or civil proceedings may be brought against a person for making a report in good faith.
Suspicious transactions related to an attempted commission of money laundering or terrorist activity financing offence also have to be reported. For example, when a transaction – or a group of transactions – raises questions or gives rise to discomfort, apprehension or mistrust.
RECORD KEEPING: In accordance with GSI’s policy on Books and Records, GSI will maintain all client account records created in the normal course of business in a safe and secure location. In addition, all AML related reports including suspicious transaction reports would be maintained.
Records will be maintained in a format and location that will permit them to be provided to FINTRAC within 30 days of request. Records will be maintained for a minimum of seven years.
CLIENT IDENTIFICATION: The collection of client identification issued from by a provincial, territorial or federal government is required in order to open an account with GSI. All client identification must be valid (that is, not expired). Clients that do not wish to provide the mandated ID will not be permitted open accounts with GSI. GSI will aim to have all client identifications verified prior to the transaction date.
GSI is an introducing broker-dealer and has client accounts with both with B2B Bank Securities Services Inc. (“B2B BSSI”) and National Bank Correspondent Network (“NBNC”). GSI client identification procedures are directly tied to the B2BBSSI and NBCN requirements and will be updated from time to time to comply with regulatory updates and operational updates implemented at B2B BSSI and NBCN.
GSI will collect the following identification for clients in order to comply with the AML Policy:
Individuals: To identify an individual, GSI will refer to the individual's birth certificate, driver's license, passport, record of landing, permanent resident card or other similar document.
In some cases GSI can refer to an individual's provincial health card, but only if it is not prohibited by provincial or territorial legislation. GSI cannot refer to an individual's provincial health card from Ontario, Manitoba or Prince Edward Island since health cards cannot be used for this purpose in these provinces. In Quebec, GSI cannot request to see a client's health card, but may accept it if the client wants to use it for identification purposes.
Other permitted documents for verification of client identification include Certificate of Indian Status or provincial or territorial identification card of certain permitted provinces or territories.
Complete and detailed information regarding the client’s occupation is mandatory. If an individual is self-employed, the nature of the business must be provided. If the client is retired, the client’s previous employment should be noted.
Corporations: To open corporate accounts, GSI will require identify of all individuals who beneficially own more than 10% of that corporation, whether directly or indirectly. This involves obtaining the name, address, citizenship, occupation and employer of each beneficial owner and whether he or she is an insider or controlling shareholder of a publicly traded corporation or similar entity.
GSI will also need to verify the identity of owners via collection of the names and occupations of all directors and a certificate of corporate status. Corporate resolutions are also required as evidence of who is authorized to trade in the account – the identity of w
| AML & ATF Policy as of October 2013.pdf |
