The head of Canada's banking regulator says he's ramping up scrutiny of money laundering as risks increase. Money seized by police during a bust is displayed at RCMP headquarters In Surrey, B.C., on December 7, 2022. THE CANADIAN PRESS/Jonathan Hayward
TORONTO – The head of Canada’s banking regulator says he’s ramping up scrutiny of money laundering in the financial sector as risks increase.
Peter Routledge, who leads the Office of the Superintendent of Financial Institutions, says the intensity of money laundering risk is underappreciated and increasing in sophistication with artificial intelligence.
Speaking at the TD Securities Financial Services Conference in Toronto, Routledge said the regulator is also increasing its focus in the area after parliament amended OSFI’s mandate to explicitly include monitoring how well financial institutions protect against threats to their integrity and security.
The increased attention comes as Fintrac, Canada’s financial intelligence agency, has also ramped up enforcement, including penalties levied against RBC and CIBC last month for non-compliance with anti-money laundering and terrorist financing measures.
Routledge says the increased digitization and integration of the global economy have contributed to the rise of the problem, which remains a challenge to detect.
He says the regulator is also working to move forward on reducing climate-related risks in the financial sector, but doesn’t see OSFI’s role as an instigator of climate policy.
This report by The Canadian Press was first published Jan. 19, 2024.
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