"The FATF evaluation was done eight months ago, and we have made considerable progress since that time to identify and shut down this criminal activity,"Minister Flaherty said. "When the actions the Government has taken recently are fully implemented, Canada will be compliant with virtually all of the FATF’s Recommendations."

Minister Flaherty said the FATF report shows Canada has a solid regime in place in terms of legal structure, law enforcement powers, international cooperation and anti-terrorist-financing standards.

"This is consistent with the very positive assessment of Canada’s financial sector released by the International Monetary Fund earlier this month," said Minister Flaherty.

The FATF notes that amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related regulations address the deficiencies it identified in the June 2007 report.

"We will be relentless in our efforts to combat money laundering and terrorist financing, and strengthening the Canadian regime is key," Minister Flaherty said.

Mr. Flaherty noted Budget 2008 provides $10 million over two years for the Canadian Security Intelligence Service and the Canada Revenue Agency’s Charities Directorate to bolster existing capacities to combat terrorist financing.

"Our Government is committed to giving our law enforcement agencies the tools and resources they need to tackle crime," said the Honourable Stockwell Day, Minister of Public Safety. "That’s why we are investing $400 million to support the provinces and territories in recruiting 2,500 new front-line police officers."

The FATF is an international body that develops and promotes policies to combat money laundering and terrorist financing.

A summary of the report is available on the FATF website at www.fatf-gafi.org. The full report will be posted on the FATF website in mid-March.

ATMIA Canada was pleased with the press release issued by the Department of Finance today about the FATF report.  The report made no direct mention of white label ATMs.  It did reference know your client requirements, with no direct link to white labels. The report does reference in its 40 recommendations, under #8 non face-to-face business relationships or transactions.  This may be where the ATM comes into light.  This executive summary has not yet prompted any negative press or issues of concern.  The full report is due to come out in a few weeks and will most likely be over 100 pages, and will state that government is working with the industry. 

ATMIA Canada meets again with the Canadian Government and Law Enforcement on March 14th in Toronto to continue our discussions on the following issues:

• what type of info they would like to see on the source of funds declaration
• what events would trigger the requirement to obtain a new source of funds declaration (example contract renewal, change in cash loader of ATM)
• ‘the rationale for obtaining criminal background checks’ as well as who would be required to get a criminal background check

Phase II of the Forum on Electronic Funds Transfer – The first phase of the Forum on Electronic Funds Transfer, which was put in place by the Department of Finance, ended on December 15th, 2007.

Several contributors set out comments responding to questions raised in the “Electronic Transactions Code Discussion Paper”. These comments reflect the participants’ different perspectives and experiences and offer the basis of a richer discussion.

Since the initial submissions were intended to be a starting-point for dialogue, and our participation is once more solicited for the second phase of the Forum. To that effect, the initial written submissions have now been shared with stakeholders to allow them to read the comments submitted and provide a response to one or several of those posted on the Forum webpage.

Participants can also raise additional questions and/or submit commentary on matters of concerns that have not yet been raised.

The second phase of the consultation process will continue until March 15th, 2008, after which we will be informed of our mutual progress and about the next steps of the process.

If you have comments or questions concerning the Forum, do not hesitate to contact, either by email or phone, Pascale Dugré-Sasseville pascale.dugre-sasseville@fin.gc.ca (613-992-7056) or Maurice Poitras maurice.poitras@fin.gc.ca (613-947-5025).

Canadian Standards Association (CSA) and Standard for ATMs – You may or may not be aware that the Canadian Standards Association has for years had a standard for accessibility for ATMs.  This is similar to the ADA standard in the US. 

Currently they are working to revise that standard.  Most major Financial Institutions are aware of and adhere to this standard.  Given ATMIA’s strong relationship with ATM deployers in Canada, we have been asked to participating in the committee.