Canada’s banking watchdog beefs up focus on money laundering concerns.

In an effort to combat money laundering, Canada’s banking regulator, the Office of the Superintendent of Financial Institutions (OSFI), has announced plans to increase its focus on money laundering issues. The regulator intends to work more closely with the Financial Transactions and Reports Analysis Centre (FINTRAC) to address significant money laundering concerns and intends to include oversight of non-financial risks such as cybersecurity, money laundering, and terrorist financing. Additionally, FINTRAC plans to increase its usage of artificial intelligence (AI) to detect suspicious transactions and partner with financial institutions to mitigate risks. The announcement comes after both the Royal Bank of Canada and the Canadian Imperial Bank of Commerce were fined a total of approximately $6.68 million for failing to submit suspicious transaction reports. With the growing pace of digitalization and the evolution of AI, the regulators are bolstering their efforts to combat money laundering challenges.