2014 CMSBA FALL CONFERENCE – TORONTO

The Canadian MSB Association is holding its second annual conference on November 18th, 2014.

The theme this year will be focused on the ‘how’ of what needs to be done: risk mitigation strategies, training tools, monitoring tools, standard operating procedures, the nuts and bolts of enhanced due diligence, etc.

VENDORS AND SPONSORS:

Official Conference Sponsor:

 

 

 

 

Vendor Booths:

 

 

Lunch Sponsor:

Break Sponsor:

Post Conference Reception Sponsor:

Exclusive Media Partner:

Website Sponsor:

LOCATION:

The Bram & Bluma Appel Salon
789 Yonge Street, Toronto
For directions, check out a map of the facility!

 

SCHEDULE

Time	Main Room	Second Room
07:30-8:30	Registration/Breakfast
08:30-08:45	Opening remarks	Main room only
08:45-9:30	FINTRAC: Evolution of Compliance: Examinations and Enhanced Effectiveness– Lisa Douglas	Main room only
9:30-10:15	Panel: CDD & EDD (Matthew McGuire, Naseer Syed, Paul Burak, Susan Han)	Effective Risk Assessment - Garry Clement and Jennifer Fiddian-Green
10:15-10:45	Break/Vendor networking Sponsored by YorkFX
10:45-11:30	Panel: Transaction Monitoring (Joseph Iuso, Adnan Ashraf)	Effective Risk Assessment Part 2– Garry Clement and Jennifer Fiddian-Green
11:30-12:45	Lunch Sponsored by ACAMS
12:45-13:30	Digital Currency – Susan Han and Jillian Friedman	Main room only
13:30-14:15	Panel: FINTRAC Exams- From Information Requests to AMPS (Amber Scott, Tushar K. Pain, Bruce McMeekin)	AML/KYC on e-wallets and prepaid cards – Duane Tough
14:15-15:00	Panel: Cybersecurity  (Garry Clement)	OTC Derivatives and Reporting – Greg Toczylowski, Shaun Olson and Sina Akbari
15:00-15:30	Break/Vendor networking
15:30-16:15	Barriers to Banking MSBs in Canada – Robert Osbourne	Main room only
16:15-16:25	Canadian Federation of Independent Business - Karen Adams	Main room only
16:25-16:45	Closing Remarks	Main Room only
17:00-18:30	Networking and Refreshments Location: Toni Bulloni's 156 Cumberland St, Toronto, ON M5R 1A8

PRESENTATION OUTLINES

EVOLUTION OF COMPLIANCE: EXAMINATIONS AND ENHANCED EFFECTIVENESS

Lisa Douglas

The quality of financial transaction reports submitted to FINTRAC has a fundamental impact on the value of FINTRAC’s financial intelligence. FINTRAC’s Compliance Program is responsible for enabling and enforcing the reporting of high quality financial transaction reports as well as providing meaningful feedback and clear guidance in order to assist reporting entities in meeting their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). This presentation will focus on the assessments and expectations of the Regulator, while outlining the assistance available for reporting entities.

PANEL: CDD & EDD

Matthew McGuire, Naseer Syed, Paul Burak and Susan Han

Money Service Businesses (MSBs) are obligated to perform client due diligence (CDD) on their clients whether as a result of a prescribed transaction or throughout the establishment of a business relationship.  In addition, enhanced due diligence (EDD) is mandatory when the risk associated with a specific factor has been deemed high. The panel discussions will focus on when and how to perform CDD measures related to record keeping, ascertaining identification and transaction monitoring for all client types including individuals, corporations and charities. An overview of effective EDD measures will also be discussed to demonstrate the importance of aligning the EDD measures to the actual risk deemed to be high. The questions that regulators are asking include: What risks are present at this organization? Have they been rated appropriately? Has the risk be mitigated through effective EDD measures? While EDD measures are necessary for high risk areas, the panel discussions will strive to provide examples of EDD measures that actual address and mitigate the high risk identified to satisfy regulator expectations.

 

PANEL: TRANSACTION MONITORING

Joseph Iuso, Adnan Ashraf

Transaction Monitoring Systems (TMS) are used to identify suspicious transactions. They consist of different rules which trigger a response when transactions meet certain threshold or criteria. There are no set rules designed by the industry or FINTRAC, although Financial Institutions (FI) are using them to monitor their transactions. Every business creates different rules based on business profiles or records of past transactions. It is a good tool to protect organizations from ML/TF.

This presentation will answer the following questions:

1. What is a Transaction Monitoring System
2. How to monitor ongoing transactions
3. How to create rules based on a business profile
4. How this tool is helpful to mitigate ML/TF risk within  an organization
5. How this tool can help to identify suspicious transactions
6. What technologies can be used to create TMS

 

EFFECTIVE RISK ASSESSMENT

Garry Clement and Jennifer Fiddian-Green

A need exists to demonstrate both a qualitative and quantitative Risk Assessment model which can be strengthened through technology.  Smaller MSBs also need to be able to evidence a model which ensures clients are rated effectively and efficiently based on the risk tolerance of the owner(s). The presentation will highlight the need for an effective risk methodology and introduce a model using Excel which can be adapted to any small MSB.

Session will include an update and commentary on the latest regulatory changes and requirements, emerging risk assessment expectations and a good detailed review of what is required in a Money Laundering and Terrorist Financing risk assessment to protect organizations. There are now a number of more significant fines levied by FINTRAC, the regulator, as well as increasing fines by the regulators in other nations. In some locations around the world, individual persons are being held responsible for deficiencies and facing personal liability. Where are these increasing and more complex regulations taking us? Are we achieving the intended objectives? How is all of this helping in the fight to detect and prevent fraud and money laundering from occurring in the first place? Jennifer will provide an overview of these issues and lay out some of the considerable challenges now being faced by organizations and AML professionals.

 

BARRIERS TO BANKING MSBs IN CANADA

Robert Osbourne

The goal of this session is to explore the present difficulty that MSBs have in obtaining and maintaining their banking relationships in Canada and to start to set the foundation for strength going forward.  It is planned that we will put together a panel of industry members, bankers and other interested parties (currently being explored) to address this issue, to be facilitated by Robert Osbourne, formerly with RBC bank. The session will include an overview of the GRWG study and the results of the survey that have been published so far. It will also include a review of the General Principles and their relevance, if any, to finding solutions to the problems that MSBs have in obtaining banking.asdf

 

PANEL: FINTRAC EXAMS - FROM INFORMATION REQUESTS TO AMPS

Amber D. Scott, Tushar K. Pain and Bruce McMeekin

In this session we’ll take you through what to expect from a FINTRAC examination, from the time that you’re contacted through to what to do if you’re facing potential penalties.  You’ll hear tips and tricks to help you put your best foot forward when you’re preparing your examination materials (including access to free resources).  We will help you understand what to expect in your regulator interactions, and how to prepare your staff.  And while we hope that you’re not facing a potential penalty, you’ll also benefit from hearing legal professionals with experience in handling appeals.

AML/KYC ON E-WALLETS AND PREPAID CARDS

Duane Tough

This presentation will discuss AML/KYC policies from program and platform inception to what to do, what options there are, and how they work, along with who is using what third party services and platforms. Duane will talk about the top ten most common things that can go wrong, what to do when they do and how to prevent them from happening.

The presentation will include vendor options, program set up and launch requirements, who uses and does what in the space currently, what lies ahead in regulation and compliance in Canada and how to recognize 'hot' transactions and potential transactions.

 

PANEL: CYBERSECURITY

Garry Clement

Garry will examine current trends, the world as it exists today relative to cyber-crime and its impact on financial organizations. The audience will be cognizant of current threats, vulnerabilities and risks associated to cyber-crime. The audience will become familiar with various cyber activities and how hackers are winning.

 

OTC DERIVATIVES AND REPORTING

Greg Toczylowski, Shaun Olson and Sina Akbari

OTC Derivatives Trade Reporting Rules (OSC Rule 91-506 Derivatives: Product Determination and OSC Rule 91-507 Trade Repositories and Derivatives Data Reporting).

Ontario Securities Commission (OSC) staff will summarize these new OSC rules on the reporting of certain OTC derivatives to a trade repository. This presentation will focus on how the rules apply to foreign exchange transactions.

 

DIGITAL CURRENCY

Susan Han and Jillian Friedman

The Government of Canada has introduced legislation which will make persons dealing in digital currencies such as Bitcoins MSBs for purposes of AML regulation.

Through this presentation, the audience will understand more about Bitcoin and the potential impact on regulation and on payments: "I’m an MSB, what does Bitcoin (and Cryptocurrency in general) mean to my business"?

SPEAKER BIOS

Joseph Iuso - CEO, UseMyServices

The visionary and chief architect of the UseMyServices proprietary technology, Joseph has worked in the fields of e-Commerce and EFT integration for over 20 years. His extensive experience within the realm of self-service banking integration has helped many clients provide online, real-time transaction processing within the EFT community. Clients have included CIBC, ISM, IBM, ACI (Astech), ING Direct, Canadian Tire, and Royal Bank. With this understanding, Joseph has been able to link all the existing components to make UseMyServices a leader in real time bank payments technology.

 

Jennifer Fiddian-Green - Partner, Grant Thornton LLP

Jennifer is a partner with Grant Thornton LLP and leads the firm’s Forensic and Dispute Resolution practice as well as the National Anti-Money Laundering Services team.  Jennifer is a qualified investigation and forensic accountant and is an anti-money laundering (“AML”) specialist.

Jennifer has worked with different industry groups to determine the nature of transactions suspicious of money laundering and methods to identify and make determinations on these transactions. Jennifer has also assisted clients in determining the impact on operations and corporate governance of the legislation, this has included identifying and understanding risks, development of risk assessments and risk tolerance, policy decisions, development of procedures, employee training and the implementation of compliance programs.  She participated in consultations with Canada’s Department of Finance and FINTRAC in regards to the development and interpretation of the regulations for the PCMLTFA and compliance expectations.

Jennifer regularly provides consulting and compliance program review services to financial organizations, money services businesses, securities dealers and other industries.

Jennifer was awarded the Institute of Chartered Accountants of Ontario’s Award of Distinction in September 2006.

Matthew McGuire - National Anti-Money Laundering Practice Leader, MNP

Matthew McGuire, CA, is the National Leader of MNP’s AML Services line, part of the firm’s Investigative & Forensic Services practice. His invaluable expertise and knowledge of anti-money laundering (AML) compliance ensures that clients effectively stay abreast of regulatory developments and manage risk through business processes and internal controls.

As founder of the Canadian Institute for Financial Crime Analysis (CIFCA), Matthew utilizes his private and public regulatory and investigative experience to assist clients with AML compliance and financial crime risk mitigation strategies, with a focus on federally regulated financial institutions, emerging payment technologies, and credit unions. His extensive background in strategic and tactical intelligence analysis for the Financial Transactions Reports and Analysis Centre of Canada (FINTRAC) affords him a unique perspective that allows Canadian and international clients to safely achieve success in today’s tightly regulated business climate.

Matthew has been qualified as an expert witness by the Ontario Superior Court of Justice, is a Certified Anti-Money Laundering Specialist by the Association of Certified Anti-Money Laundering Specialists (ACAMS), and is accredited as an Anti-Money Laundering Professional by the Bank Administration Institute.

Dedicated to all issues related to AML, Matthew regularly speaks to reporting entities, law enforcement, and prosecutorial authorities. He also shares his knowledge through university lectures, conferences, and contributes articles to periodicals. His expertise in forensic accounting has involved him in several investigative cases throughout the world.

Lisa Douglas - Regional Compliance Manager, FINTRAC

Lisa Douglas has over 17 years of experience in anti-money laundering and counter terrorist financing. Currently, Lisa is a Regional Compliance Manager for the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and has been for over 12 years. This role includes acting as a Case Manager for compliance examinations in order to ensure the appropriate oversight of major reporting entities. Lisa also leads compliance promotion and enforcement activities involving large and complex reporting entities, including MSBs.

Lisa came to FINTRAC from a large international MSB where she spent ten years in a variety of roles in both front and back office operations, including her final position as the Director of Regulatory Affairs.  Her responsibilities included the administration of the company Anti-Money Laundering Program and the establishment of the Corporate Privacy Program.

Naseer Syed - Lawyer, KSM Law

Naseer (Irfan) Syed is a Business and Charities Lawyer and Trade-mark Agent at the law firm of Kutty, Syed & Mohamed in Scarborough.

Irfan advises a wide range of business clients from individual entrepreneurs and small businesses to public companies as well as money services businesses, charities and not-for-profit organizations. He also manages litigation for his clients and mediates disputes. In addition he and his firm provide specialized legal assistance to individuals and organizations on national-security related matters, including investigations by CSIS and RCMP.

Irfan is currently a member of the Executive of the Charities and Not-for-Profit Law Section of both the Canadian Bar Association and the Ontario Bar Association.

 

Paul Burak - Manager-Anti Money Laundering, MNP

Paul has over six years’ experience with the Financial Transactions & Reports Analysis Centre of Canada (FINTRAC) conducting compliance examinations and training compliance examiners.  Those examinations included the evaluation of the policies and procedures, risk assessments, effectiveness reviews, record keeping, ascertaining identification and transaction reporting for all manners of reporting entities.  Industries within which Paul has an AML compliance expertise include banks, credit unions, money service businesses, dealers in precious metals and stones, casinos, securities dealers and real estate.  While at FINTRAC Paul was instrumental in developing and implementing a compliance enforcement strategy that is as transparent and consistent as can be for any organization spread out across the country.

Since joining MNP in 2013, Paul has assisted clients with developing tailored compliance programs and has guided them through regulator enforcement actions including compliance examinations and administrative monetary penalties (AMPs).  By applying standards above the legislative minimums, established through hundreds of compliance exams Paul’s effectiveness reviews yield valuable results and ensure organizations stay ahead of the enforcement curve.  Possessing an in-depth understanding of Canadian anti-money laundering compliance, Paul continues to assist clients in navigating the regulatory waters by interpreting legislative obligations and developing compliant business processes.

 

Susan Han - Associate Counsel, Miller Thomson LLP

Susan Han is a securities lawyer with Miller Thomson LLP in Toronto. Susan advises portfolio managers, investment advisers, securities dealers, exempt market dealers and other financial services providers on their regulatory obligations, including securities compliance and registration matters. She has extensive experience dealing with investment funds, including public mutual funds and private pooled funds. Susan’s compliance and regulatory practice includes advising clients on anti-money laundering, fiduciary and statutory obligations of investment managers, codes of ethics and personal trading, foreign corrupt practices, privacy, data security and data management, anti-spam legislation and compliance with U.S. Foreign Account Tax Compliance Act (FATCA).

Susan has served as the Corporate Secretary to a number of public companies and large investment fund complexes and their independent review committees (IRCs).  She speaks frequently on directors and officers liability and on corporate, fund and pension governance.

Before joining Miller Thomson, Susan was Senior Vice-President responsible for Legal, Compliance & Risk Management, Dundee Wealth and before that, General Counsel, Canada for Invesco Trimark.

Jillian Friedman - Lawyer

Jillian Friedman is a member of the Quebec bar whose commercial law practice serves the e-commerce, technology and start up industry. She obtained an LL.B. and J.D. from Université de Montréal and holds a B.A. from McGill University. She is currently pursuing a Masters in IT Law. Prior to setting up her own practice, Jillian worked at a national law firm in the domain of financial services and corporate law.

Jillian is considered an expert on crypto-currency law in Canada. She has testified before the Senate Committee on Banking, Trade and Commerce on the legal implications of digital currency in the context of the Senate’s study on digital currency. Jillian has also spoken about consumer law and crypto-currency at conferences in Montreal, Toronto and Amsterdam. She is the author of a number of publications,including an article in the Supreme Court Law Review. She is the co-author of an upcoming book on the law of bitcoin, edits and publishes a blog called bitcoinlegal.ca and has been featured in a number of media outlets including the Huffington Post, Canadian Lawyer and the National. She also acts as counsel to the Bitcoin Embassy, a Montreal based hub that functions as a gathering place for industry groups and is director and chief legal officer of the Bitcoin Foundation Canada.

 

Adnan Ashraf - Compliance Officer, Finmark Financials

Adnan Ashraf has been an entrepreneur and Compliance Officer at Finmark Financials since 2002. He has more than eight years of experience in AML Compliance, web development, data analytics and system implementation within the banking and money service business industry. In his current role he is responsible for developing, directing and overseeing the business line AML/ATF program. Most recently, Adnan designed and launched an Online Money Transfer portal where individuals can transfer funds to their family and friends worldwide. He is a web committee member of CanadianMSB Association and member of ACAMS Canada chapters.

 

Garry Clement - President & CEO, Clement Advisory Group

Garry Clement is in high demand for conferences, workshops and training sessions. He relies on his 34 years of policing experience, having worked in roles as the National Director for the Royal Canadian Mounted Police’s Proceeds of Crime Program, in addition to having worked as an investigator and undercover operator into some of the highest organized crime levels throughout Canada. He is an excellent, highly entertaining speaker for conferences, seminars and training programs. Recent comments from participants at an ACAMS seminar included: “Garry Clement is an excellent speaker, very eloquent and very knowledgeable”;“easy to understand and knowledgeable”; ”speaker was very dynamic and knowledgeable”, “excellent public speaker, very interesting”.

Garry has been widely quoted by many published authors in such books as: The Road to Hell, (Julian Sher) an overview of the Hells Angels, Dispersing the Fog, (Paul Polango) an overview of RCMP, Smokescreen, a book on Garry’s 1996 undercover operation into tobacco smuggling from the US into Canada which resulted in the highest civil penalty against the cigarette companies in Canadian History, Paper Fan (Terry Gould) flowing from Garry’s tour in Hong Kong , the book describes the international search for Wong, Lik Man a notorious “triad” member and other magazines and news print, as well as having been featured in the national news program W-5.

 

Robert Osbourne - Manager, Grant Thornton LLP

Robert is a Certified Anti-Money Laundering Specialist, and is an experienced and highly qualified Manager in our National AML Services Group with significant high-risk client experience.

Robert formerly worked with the Royal Bank of Canada, where he managed their high risk client group in regards to AML and terrorist financing compliance issues.  His Subject Matter Expertise on Canada’s Anti-Money Laundering and Anti-Terrorism Financing regulations and his knowledge of AML/ATF best practices has assisted clients in meeting their regulatory obligations.

He has over 30 years of experience in financial services helping clients understand and meet their regulatory obligations and banking requirements.

Amber D. Scott - Founder & Chief AML Ninja, Outlier Solutions

Amber has broad-based financial compliance experience that includes insurance, mutual funds and banking. In addition to being a Certified Anti-Money Laundering Specialist (CAMS) Amber is also a Certified Privacy Professional (CIPP). She also holds a mutual fund sales designation from the Investment Funds Institute of Canada (IFIC) and a first level Fellow, Life Management Institute (FLMI).  She is also a Certified Bitcoin Professional (CBP).

Amber completed her undergraduate studies at the university of Waterloo. Her academic interests have always included law and criminology. As a teaching assistant she assisted in the development of the university’s first applied psychology course on criminal profiling. She has also received an MBA from the University of Aspen.

The first memory that Amber has about financial crime is hearing her father and a friend of the family discussing the dilemma faced by a local union that had fallen under the influence of an organized crime group. Pension monies had allegedly been deferred into investments that benefitted the crime organization, but not the union membership. Many discussions with her father followed on the structures that could allow a criminal organization to circumvent the controls in an established organization for their own purposes without suffering any consequences. It was all very confusing and fascinating for a ten year old.

While her confusion has faded, her fascination never has. Amber is passionate about ethical and legal compliance. Her obsession with understanding the risks and devising actionable solutions has lead her to work in the financial services industry and with Canadian consulting firms. In 2013, she founded Outlier Solutions Inc. to provide anti-money laundering (AML) solutions to Canadian reporting entities.

 

Tushar K. Pain - Lawyer

Tushar K. Pain a criminal defence lawyer practising in Toronto, Ontario and the surrounding cities. He has represented clients facing a variety of offences including fraud, sexual assault, domestic assault, and drinking and driving. He helps his clients by aggressively defending them against the state. In order to mount an effective defence, he strives first to achieve three things: (1) Know the client (2) Know the case against the client (3) Know the law. Tushar believes that the key to success is thorough preparation.

As a lawyer who has made a career of vigorously defending clients against state action, he also regularly represent clients – mainly organizations such as money service businesses (MSBs) – who are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and find themselves being investigated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

 

Bruce McMeekin - Principal, J. Bruce McMeekin Law

Bruce has 25+ years experience assisting businesses subject to regulatory inspections, orders, penalties and prosecutions. Also assisting businesses and their leadership subjected to criminal investigations and prosecutions for alleged financial crimes. Lexpert rated and Best Lawyers in Canada for many years.

 

Duane Tough - President, Payabillity LLC

Duane Tough is currently the President & CEO of Paybillity Inc. As a 20 plus year veteran of the payments Industry and an expert in Prepaid/Stored Value, Duane has worked with major FINTech organizations around the globe. Duane was one of the original group to bring e-commerce in the Caribbean/Central America to the forefront in his role as Founder & President of OffshoreHost in the 1990’s. Duane is currently in the process of bringing Prepaid Interac/Personal Financial Management and E/M-wallet aggregation to the forefront in Canada and other markets. Duane always considers being able to spend time with his family, son, daughters and grandchildren one of his best privileges in life.

 

Shaun Olson - Specialist, Derivatives Branch, Ontario Security Commission

Shaun is an Analyst in the Derivatives Branch at the Ontario Securities Commission.   During this time he has been involved in the work to implement the OTC derivatives reforms in Canada. Lately, he has been working on gaining access to OTC derivative trade repositories to help analyze the Ontario OTC derivatives market.   He also participates in national and international committees working on the regulation of OTC derivatives markets, including the CSA OTC Derivatives Group and Head of Agencies OTCDWG.

Greg Toczylowski - Derivatives Analyst, Derivatives Branch, Ontario Security Commission

Greg is a Specialist at the OSC focusing on policy initiatives for OTC derivatives and regulatory filings involving complex derivatives, structured products and risk management.  He participates on the CSA OTC Derivatives and Head of Agencies OTC Derivatives working groups and is a plenary member of the LEI Regulatory Oversight Committee. He holds a B.Comm, an M.Sc and is a CFA Charterholder. He previously worked at TD Asset Management and Deloitte.

 

Sina Akbari - Legal Counsel, Derivatives Branch, Ontario Security Commission

Sina is Legal Counsel in the OSC’s derivatives branch.  He participates in the development of OTC derivative policy and regulation through his involvement in the CSA OTC Derivatives Group, the Heads of Agencies OTCDWG and the IOSCO Task Force on Derivatives.  He holds a B.Comm, J.D. and LL.M. and is a dual-qualified lawyer in Ontario and New York.  Prior to joining the OSC, Sina was an Associate with Osler, Hoskin & Harcourt LLP and worked in the corporate finance and investment management industries.