May 15, 2018
Counsel Peter Aziz has spoken with the Globe and Mail about Canada’s securities industry becoming “increasingly susceptible” to money laundering.
The article discusses how a portion of the industry’s dealers are not doing their part to prevent and weed out financial crimes like money laundering. The article tells how Fintrac—Canada’s anti money laundering agency—“examined more than 250 of the country’s 3,000 or so securities dealers over the past five years and found what it calls “significant” shortcomings in the firms’ controls nearly half the time.”
It continues saying while one thought is securities is a less appealing way to launder money, it’s legitimacy provides the attraction to those looking to hide dirty money. The article also says “there are a number of vulnerabilities in the securities industry, including the fact that dealers are typically paid on commission.”
And because of that, Peter told the Globe and Mail that “[a]dmittedly there will be a tension between getting the business, because it’s very lucrative in terms of fees, and compliance.”
You can learn more about Torys’ financial services work by heading to its practice page.