Anti-Money Laundering Solutions for
the Insurance Industry
The Canadian insurance industry faces increasingly complex legislative and
regulatory compliance requirements designed to satisfy multiple statutes,
regulations and guidelines. Every life insurance company operating in
Canada is required by law to implement a formal compliance regime for
complying with the Proceeds of Crime (Money Laundering) and Terrorist
Financing Act (the “Act”) and its Regulations. This applies to provincially or
federally incorporated companies and to foreign branches. The compliance
regime must, at a minimum, consist of the following:
the development and application of written compliance policies and
procedures that are approved by a senior officer of the company;
the appointment of an individual who is to be responsible for the
implementation of the compliance program;
a written, ongoing compliance training program for the company’s
employees and agents;
the assessment and documentation of the risk of money laundering or
terrorist financing, in a manner appropriate for the company, taking into
o the company’s clients and business relationships,
o the company’s products and delivery channels,
o the geographic location of the company’s activities, and
o any other relevant factor; and
a biennial review by an internal or external auditor of such policies and
procedures, risk assessment, and training program, for the purpose of
testing their effectiveness.
The Lang Michener Solution
Our lawyers have considerable experience with anti-money laundering (AML)
and anti-terrorism financing (ATF) issues and with drafting compliance
policies and programs for financial institutions. We have also developed a
comprehensive and virtual turnkey solution to assist life insurers in fulfilling
these requirements. Our solution consists of a set of compliance manuals
A Policy and Procedures Manual and Risk Management Program;
An Employee Training Manual; and
A manual consisting of a compendium of applicable legislation, regulatory
guidelines, and other materials.
In addition, these manuals deal with obligations and liabilities imposed on an
insurer concerning the suppression of terrorism under the following
The Criminal Code (Canada)
The United Nations Act (Canada) and the Regulations Implementing the
United Nations Resolutions on the Suppression of Terrorism.
The manuals are licensed for a fixed price, and updates are available.
We also offer live, in-house anti-money laundering training seminars at which
we provide the initial and refresher training that is required by law. We
provide the instructor and PowerPoint®, you provide the audience and venue.
Realize Additional Benefits with a Compliance
The benefits of a well designed and effective compliance program extend
For more information contact: beyond the legal requirements and include:
Reputation and Business Risk: Public confidence in a financial
416-307-4064 institution and hence, its very stability, can be undermined by adverse
email@example.com publicity even as a result of that institution’s unwitting implication in a
scheme to launder money. An erosion of public confidence in a financial
institution creates its own insolvency risk.
Personal Liability: The Act imposes personal liability not only on
directors and officers, but on employees as well. An effective compliance
regime should reduce regulatory risk and thereby reduce the likelihood of
your directors, officers and employees being found personally liable for
breaches of the legislation.
Due Diligence: An effective compliance regime will form the basis of a
statutory due diligence defence for the benefit of corporate directors and
Financial Penalties: Such a regime is designed to avoid exposure to the
considerable penalties under the Act – for some breaches, up to a two
million dollar fine or five years in prison, or both, for individuals; and up to
a two million dollar fine for corporate entities. In the alternative, FINTRAC-
imposed administrative monetary penalties may be levied.
FINTRAC Audit: FINTRAC (the agency established under the legislation
to deal with money laundering and terrorist financing) has the right to
conduct on-site compliance audits. OSFI is currently conducting these
audits on behalf of FINTRAC.
OSFI Audit: OSFI has issued Guideline B-8 on Detecting and Deterring
Money Laundering and Terrorist Financing. The Guideline indicates that
Toronto OSFI expects a documented, stand-alone compliance regime and risk
Brookfield Place management program which has the approval of the board and/or senior
181 Bay Street, Suite 2500 management. OSFI personnel have also been visiting various institutions
P.O. Box 747 for the purpose of auditing their AML/ATF policies and procedures as well
Toronto, ON M5J 2T7
as the level of adherence to and actual implementation of those policies
Fax.: 416-365-1719 and procedures. OSFI has the legislative right to communicate its findings
1500 Royal Centre
1055 West Georgia Street
P.O. Box 11117 Our Insurance Group regularly advises insurers on matters of compliance,
Vancouver, BC V6E 4N7 corporate reorganization, new products, marketing, and reinsurance. Our
extensive experience in the Canadian insurance industry has helped us to
develop a number of strategies and products designed to assist insurers meet
Ottawa their compliance and regulatory requirements.
50 O’Connor Street
Ottawa, ON K1P 6L2
About Lang Michener
Tel.: 613-232-7171 Lang Michener is a leader in Canada's legal profession and has been for more
Fax.: 613-231-3191 than 80 years. Our international firm, with offices in Toronto, Vancouver,
Ottawa and Hong Kong, has over 200 dynamic professionals who provide
1106, Tower 1 effective, innovative solutions to Canadian and international clients.
Lippo Centre, 89 Queensway
Hong Kong, SAR
Tel. : 852 3101 0213 For more information, please visit our website at langmichener.ca.
Fax : 852 3585 1233
langmichener.ca Toronto Vancouver Ottawa Hong Kong