Canada's anti-money laundering agency highlights risks in legal services, urging vigilance in financial oversight
Canada's anti-money laundering agency, Fintrac, has issued a special bulletin highlighting areas where lawyers could be involved in the illicit movement of funds, according to BNN Bloomberg.
The agency calls attention to activities such as the misuse of client or trust accounts, real estate purchases, and the creation and management of companies and trusts as potential risks.
Fintrac notes that legal professionals may inadvertently provide legitimacy to questionable financial transactions, reducing scrutiny from financial institutions.
The agency also points out that, apart from British Columbia, lawyers in Canada are not subject to the obligations of the country's anti-money laundering and anti-terrorist financing regime.
A review of financial intelligence disclosures reveals instances where lawyers have been directly involved in common money laundering schemes.
Fintrac's warning aligns with concerns raised by other agencies, including Canada's banking regulator.
This comes in the wake of TD Bank Group paying over US$3bn in the US for failing to stop criminals from using the bank to move funds.
