Transactions that aren’t as vulnerable to money launderers should be subject to less stringent due diligence measures, argues the Canadian Life and Health Insurance Association.
Appearing Thursday before the Senate Standing Committee on Banking, Trade and Commerce to testify on its review of anti-money laundering legislation, Frank Swedlove, president of the CLHIA, stressed the importance of a risk-based approach to anti-money laundering requirements, and called for policymakers to allow firms to follow less stringent procedures in cases where the risks are judged to be low.
“Measures to prevent and mitigate money laundering and terrorist financing must be commensurate with the risks identified. This approach is meant to ensure efficient allocation of resources and minimize the compliance burden,” he said.
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