Transcript No Slide Title

Slide 1 of 20
http://www.currency-exchange.net/fintrac
Proprietary
FINTRAC Reporting Service
(Fintrac.RS)
Government
Fintrac.RS
Fintrac.RS
Client
© FBE Inc., 2001
Slide 2 of 20
Proprietary
http://www.currency-exchange.net/fintrac
FINTRAC Compliance and Reporting Requirements
 Proceeds of Crime (Money Laundering) Act
received Royal Assent on June 29, 2000
Legislates detection and deterrence of money
laundering
All Canadian deposit-taking institutions are subject to
the Act, Regulations and Guidelines
Suspicious transactions reporting starts 2001-Nov-08
Requires:
Immediately report to FINTRAC all suspicious
transactions
Periodically report and keep the prescribed records
Fintrac.RS
© FBE Inc., 2001
Slide 3 of 20
http://www.currency-exchange.net/fintrac
Proprietary
FINTRAC Enforcement
Failure to implement a compliance regime:
Conviction up to 5 years + $500,000 fine
Failure to report a suspicious transaction could
lead to substantial fines and legal actions
Conviction up to 5 years + $2,000,000 fine
No minimum threshold for reporting
Required maintain effective record-keeping
system (penalty: up to 5 years imprisonment and
$500,000)
 FINTRAC and external auditors should have
access to all the records in a timely fashion
Fintrac.RS
© FBE Inc., 2001
http://www.currency-exchange.net/fintrac
Slide 4 of 20
Proprietary
FINTRAC Enforcement (con’s)
Employees who reported to their superior are
exempted from being charged under the Act!!!
The ultimate executive responsibility
Need to document to discharge responsibility,
archiving is crucial
For electronic records, an electronic signature of the
signing individual “must be retained”
A special Individual Responsible for
implementing FINTRAC Compliance must be
appointed
Typically reports to the CEO or the Board
Fintrac.RS
© FBE Inc., 2001
Slide 5 of 20
http://www.currency-exchange.net/fintrac
Proprietary
Focus on Service Success!
No paper pushing, easy to use, no training is
required
Rapid approval cycle
Enhanced control, reporting and audit trail
Effectively manages executive participation; Line
management and executives are fully in control
Reduces transaction cost of backroom
administrative cycle from $54 to $8
Substantial saving in development, maintenance
and upgrades
Fintrac.RS
© FBE Inc., 2001
http://www.currency-exchange.net/fintrac
Slide 6 of 20
Proprietary
FINTRAC Processes/Forms Integrated
Suspicious/Prescribed Transaction Report
Transaction type: Account transaction;
Conducted for another entity
Conducted for other individual(s)
Large case transactions
Exceptions to large cash transactions
Electronic funds transfers
Cross-border transactions to CCRA
FINTRAC Schedules (as introduced)
1. Suspicious Transaction Report
2. Large Cash Transaction Report
3. Outgoing Electronic Funds Transfer Report Information
4. Incoming Electronic Funds Transfer Report Information
Fintrac.RS
© FBE Inc., 2001
Slide 7 of 20
http://www.currency-exchange.net/fintrac
Proprietary
A New Level of Accountability
Ensures compliance with all respective
government and corporate policies
Additional Processes/Forms Integrated
Fintrac.RS Executive Reports
Cumulative Reporting (for all participants)
Maintains User Profile and reporting relations
Tracking Inquiries/Requests Archives
Transaction Logs
Service Quality Evaluations
Also FINTRAC compliance training and support
Fintrac.RS
© FBE Inc., 2001
Slide 8 of 20
http://www.currency-exchange.net/fintrac
Proprietary
Fintrac.RS Step-by-Step
1) Suspicious/prescribed transaction report request with required
identity data (without disclosing it to the Client)
 Very complex forms with dozens of input fields are required to fill for
every transaction
2)
3)
4)
5)
6)
7)
8)
Request approval by corporate management
Automatic FINTRAC compliance clearance
Transaction reporting within Fintrac.RS
Periodic corporate reporting to FINTRAC
Reporting to CCRA on the import/export of currency
Prescribed effective, safe and secure record keeping
Internal and external auditing
 We also implemented numerous interactive enablers that add value to
users and lower overall service costs
Fintrac.RS
© FBE Inc., 2001
Proprietary
http://www.currency-exchange.net/fintrac
Slide 9 of 20
Fintrac.RS: (Un)Cooperating Users
?
?
Supervisor
Compliance
officer
CEO
Internal/External
Auditors
??
Suspicious/
Teller prescribed
Transaction
Report
Fintrac.RS
Fintrac
Schedules
(4)
FINTRAC
Police
PKI
Cross-border
transactions
PKI
CCRA
Client(s)
Fintrac.RS
© FBE Inc., 2001
Slide 10 of 20
http://www.currency-exchange.net/fintrac
Proprietary
Business Platform
Management framework
Integrated Government and corporate policies and
expertise - on a transactional level
Central reporting
Built in user preferences/Feedback
Exception Management
Service Quality Evaluations — user feedback for
every transaction
Archives, Transaction Logs
Fintrac.RS
© FBE Inc., 2001
Slide 11 of 20
http://www.currency-exchange.net/fintrac
Proprietary
Business Platform (con’s)
Enhanced inherently secure processes
intranet solution — same security level as for all
other legacy applications
Reporting relationships built in
Email approval notification/confirmations for every
business cycle
Prescribed by Regulations safe and secure keeping of
the records
Periodic PKI submission of cumulative records to the
Government (batch file reporting starts Jan 2002).
Fintrac.RS
© FBE Inc., 2001
Slide 12 of 20
http://www.currency-exchange.net/fintrac
Proprietary
Software Platform
Almost 1,000,000 lines of code — and growing...
Ubiquitous
W2k
Perl
.asp
Page style templates
Full compliance with Federal Government IT platform
requirements
SMTP-compatible mail server
Compliant with STD0010
RFC821, RFC1651, RFC1869, RFC1870
Fintrac.RS
© FBE Inc., 2001
http://www.currency-exchange.net/fintrac
Slide 13 of 20
Proprietary
Software Platform (con's)
XML
xHTML
Backward compatible with older browsers
Potential for structuring every field
I.e., transparent interface with financial, HR, etc.
legacy systems
SQL engine
MS Access
Implemented as ODBC/SQL compliant database
Upgradable to Oracle
Fintrac.RS
© FBE Inc., 2001
Slide 14 of 20
http://www.currency-exchange.net/fintrac
Proprietary
Software Platform (con's)
No installation on a desktop
Any browser
Any email client
Rich, fully interactive Web site
Mailing list
Stats, Search engine, Guestbook, etc., etc
Workflow engine
Policy shell
AI smarts if required to deliver policy
Full expert system shell can be built in
Fintrac.RS
© FBE Inc., 2001
http://www.currency-exchange.net/fintrac
Slide 15 of 20
Proprietary
Software Platform (con's)
Smart forms
Always change in context, workflow defined
Little writing in
Input field integrity checking, precise error messages
Integrated window warnings and password requests
Precise label links to the help file (Help in context)
Displays only relevant input/output fields
Always Web page acknowledgement at the end
Email acknowledgements after update sent to the
originator and recipients in context
Email notifications in advance (i.e., to request
updates)
Fintrac.RS
© FBE Inc., 2001
Slide 16 of 20
http://www.currency-exchange.net/fintrac
Proprietary
System Architecture
Audit Trail
databases
Client and
Transaction
databases
Corporate
users
Internet
CCRA
Fintrac.RS
Server
Fintrac.RS
Administrator
(Setup/modify
corporate clients,
authorizations
and policy)
Fintrac.RS
Fintrac
© FBE Inc., 2001
Slide 17 of 20
http://www.currency-exchange.net/fintrac
Proprietary
Advantages
Streamlines and expedites:
Internal suspicious transaction reporting
Authorization processes
Preserves interests of front-line workers,
executives and clients
Avoiding false positives and false negatives
Reporting transactions are completed only after
responsible managers authorize them
Government/corporate suspicious transaction
reporting cycle guidelines and approval procedures
available online to guarantee there are no
misunderstandings of organization's policy
Fintrac.RS
© FBE Inc., 2001
http://www.currency-exchange.net/fintrac
Slide 18 of 20
Proprietary
Advantages (con's)
Enhanced controls
Identifying exceptions
Countrywide and worldwide reach
Secure
Savings
No LAN installation
Low cost per online transactions and maintenance
Very fast payback
Customizable
Addresses your organization’s unique requirements
ERP off-ramps
Fintrac.RS
© FBE Inc., 2001
http://www.currency-exchange.net/fintrac
Slide 19 of 20
Proprietary
Future Customization Options
Banking Systems
Optional customization modules for direct access to
Banking Systems
HR Systems
Modules for direct access to HR Systems
i.e., reporting relationships
Financial Systems
Modules for direct access to Financial Systems
e.g. SAP, Oracle, ACCPAC
Comprehensive Reporting
Fintrac.RS
© FBE Inc., 2001
Slide 20 of 20
http://www.currency-exchange.net/fintrac
Proprietary
FINTRAC Reporting Service
(Fintrac.RS)
Government
Fintrac.RS
Fintrac.RS
Client
© FBE Inc., 2001