Almost three years after Canada’s money laundering watchdog refused to release the name of a bank fined $1.1 million for failing to report hundreds of suspicious transactions, the federal government is changing the law to require the identity of money-laundering lawbreakers be made public.And it is investing $163 million over the next five years to crack down on financial crime and fraud.The changes to the proceeds of crime, money laundering and terrorist financing act were detailed in last week’s federal budget. They will eliminate the kind of discretion used by FINTRAC director Gérald Cossette to keep Manulife Bank of Canada’s name out of the headlines back in 2016.At the time, FINTRAC announced only that a bank had been fined $1.1 million, but would not say which bank or what it did to merit the fine.“The proposed measure would make naming of the reporting entity automatic,” said finance ministry spokesperson Marie-France Faucher. “This change would improve transparency.”If an individual or organization appeals their fine, their name, the nature of their offense and the fine imposed would be carved out of any confidentiality order passed by a court, Faucher wrote in an email.“The purpose of this measure is to deter non-compliance on the part of reporting entities and make the court proceedings more transparent,” Faucher said.Forensic accountant Charles Smedmor welcomed the changes.“No longer can a money laundering offence by a person or individual be papered over with a confidentiality agreement, as was apparently the case with Manulife Bank,” he said. “With new laws and resources, Canada can be a less attractive place for recycling proceeds of crime and for stashing loot. Accountants, bankers, lawyers, real estate brokers and other financial professionals will be less willing to recklessly enable money laundering. They will think twice about transactions with the risks of moving fro ...
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