In this episode, host Greg Dent sits down with Chris Thompson, a former lawyer who now works in the provincial government's financial crimes capacity. They dive into the topic of Unexplained Wealth Orders (UWOs), a powerful tool in the fight against financial crime that has recently been introduced in Canada, starting with British Columbia.

Chris provides a comprehensive overview of UWOs, explaining that they are court orders that compel individuals to explain the source of funds for their assets, even without a criminal conviction. He highlights how UWOs are an important tool for law enforcement, as they help overcome the challenges of tracing complex financial transactions, particularly when it comes to organized crime.

The discussion explores the controversial aspects of UWOs, such as the lower standard of proof required compared to criminal convictions. This raises concerns about the presumption of innocence and the potential for abuse. However, Chris argues that there are safeguards in place, such as the need for court approval, and that UWOs are necessary to prevent criminals from living off the proceeds of their crimes.

The episode also delves into a case study of the successful use of UWOs in the UK, the Haji-Ioannou case, which demonstrates the effectiveness of this tool in addressing suspected proceeds of crime. Additionally, the conversation touches on the practical considerations and future directions for UWOs in Canada, as other provinces may follow BC's lead in introducing this legislation.

Overall, this episode provides a comprehensive understanding of Unexplained Wealth Orders, their importance in the fight against financial crime, and the ongoing debate around balancing law enforcement powers and civil liberties.

Key Takeaways:

· Unexplained Wealth Orders (UWOs) are a court order that compels individuals to explain the source of funds for assets, even without a criminal conviction.

· UWOs are an important tool in fighting organized crime and removing the proceeds of

crime, as they help law enforcement overcome challenges in tracing complex financial transactions.

· The lower standard of proof required for UWOs(reasonable grounds to suspect) compared to criminal convictions is controversial, as it raises concerns about the presumption of innocence.

· Effective implementation of UWOs requires a balance between empowering law enforcement and protecting civil liberties, with safeguards such as court approval.

· UWOs have been successfully used in other jurisdictions, such as the high-profile Haji-Ioannou case in the UK, and are now being introduced in Canada, starting with British Columbia.

In this episode of The KYC Podcast, host Greg Dent is joined by Zahra Sunderani and Catagay from the Really Trusted team to discuss the intricacies of the Electronic Compliance Assessment Report (eCAR) - a crucial tool used by FinTRAC to assess compliance with anti-money laundering and counter-terrorist financing regulations. The conversation delves into the purpose and structure of the eCAR, the types of questions it encompasses, and the potential challenges reporting entities may face when completing this assessment. Importantly, the hosts highlight the opportunity the eCAR presents for proactive compliance, emphasizing the benefits of honesty and transparency when addressing any identified deficiencies.

Key Takeaways:

• eCARs are electronic questionnaires used by FinTRAC to evaluate the effectiveness of reporting entities' compliance programs and identify potential risks.
• The questions cover a wide range of topics, including business practices, transaction types, and the five pillars of a compliance program.
• Challenges may arise if the compliance program is not well-documented or if there are gaps in policies and procedures.
• Honesty is crucial when completing the eCAR - voluntary disclosure of non-compliance can be a valuable tool to address deficiencies.
• FinTRAC generally prefers a collaborative approach, providing opportunities for reporting entities to remediate issues and improve their compliance posture.

Featured Guests:

• Zahra Sunderani, Anti-Money Laundering Operations, Really Trusted
• Catagay, Program Lead for the FinTech Space, Really Trusted

Resources:

• Contact the Really Trusted team for guidance on navigating the eCAR process and strengthening your compliance program.

Connect with Greg and ReallyTrusted at:

https://reallytrusted.com/

https://www.facebook.com/ReallyTrusted/

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Part 2 of "The Importance of Suspicious Transaction Reporting in Criminal Investigations": retired RCMP officer Stephen Scott shares a detailed case study that demonstrates how a single suspicious transaction report (STR) filed by a financial institution was crucial in unraveling a complex money laundering and organized crime investigation. The discussion highlights the importance of frontline reporting, the challenges in connecting the dots, and the significant impact that STRs can have in taking down criminal enterprises and seizing their illicit assets.

Key Takeaways:

• A high-level criminal target came to the attention of law enforcement after being shot, leading to a deeper investigation into his activities and assets.
• Despite no initial STRs being filed on the target, the investigation uncovered his lavish lifestyle and suspicious financial transactions, including a $1.6 million home purchase by a 23-year-old with no apparent legitimate income.

• A single STR on an $88,000 Lamborghini purchase led to the identification of a bank account, which then allowed investigators to trace a web of financial transactions and accounts connected to the criminal enterprise.

• The case underscores the importance of frontline reporting, as even small, seemingly insignificant transactions can be the key that unlocks a much larger investigation.

• The discussion emphasizes that money laundering is not just about cash transactions, but also the acquisition of assets and the concealment of the true beneficial ownership, which can occur in small towns and communities as well as larger urban centers.

Stephen Scott

Company: S Scott (AML) and Security Consulting

Email: stephenscott@sscottamlsconsulting.com

Bio

Stephen Scott is a former member of the RCMP and in 2017 through 2021 was an investigations and training consultant to the UNODC GPML in Southern Africa. While in the RCMP, Stephen worked in the Calgary Integrated Proceeds of Crime AML Unit, INSET and the IMET JSIU where he managed and conducted money laundering, asset forfeiture, organized crime and terrorist financing investigations for 24 years. As a member of the RCMP IPOC AML Unit Stephen served as the FINTRAC liaison, CBSA currency interdiction contact and the “gatekeeper” to the Alberta Justice Civil Forfeiture program. He was a designer and facilitator on the RCMP Advanced and Basic Proceeds of Crime / ML courses as well as a facilitator at the Canadian Police College for the National Expert Witness training and Drafting Information to Obtain search warrants courses.

In 2019/20, Stephen Scott served on contract as a sworn member of the Royal Cayman Islands Police Service Bureau of Financial Investigations conducting international money laundering and asset forfeiture investigations.

Currently, Stephen is a licensed Private Investigator in Alberta and is currently contracted to firms that conduct due diligence, background, OSINT and asset recovery investigations.

Connect with Greg and Really Trusted at:

https://reallytrusted.com/

https://www.facebook.com/ReallyTrusted/

Thanks for listening

Thanks so much for listening to our podcast! If you enjoyed this episode and think that others could benefit from listening, please share it using the social media buttons on this page.

Do you have some feedback or questions about this episode? Leave a comment in the section...