The Portfolio Management Association of Canada (“PMAC”) is pleased to have the opportunity to submit the following comments in response to the July 4, 2015 Federal government proposed amended regulations (the “Proposed Amendments”) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), which form part of the Government of Canada’s efforts to strengthen Canada’s anti-money laundering and anti-terrorist financing regime.
PMAC members are entities that fall within the definition of “securities dealers” under the PCMLTFA as persons and entities authorized under provincial legislation to engage in the business of dealing insecurities or any other financial instruments, or to provide portfolio management or investment advising services. As such, our comments relate specifically to the implementation of the Proposed Amendments and the compliance efforts of our Members as it relates to portfolio management. An important point to highlight at the outset of this submission is that our Members do not custody assets for their clients nor have access to cash or accept cash directly from clients. Assets are custodied with a third party bank/custodian. We recognize that the AML regime must provide effective deterrence of unlawful money-laundering and terrorist activities, but it is important that the portfolio management industry is not overburdened with onerous rules and regulations given the risk profile of their business.