fintrac reporting service (fintrac.rs)

Proprietaryhttp://www.currency-exchange.net/fintrac

Fintrac.RS © FBE Inc., 2001

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FINTRAC Reporting Service FINTRAC Reporting Service (Fintrac.RS)(Fintrac.RS)

Fintrac.RSClientGovernment



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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



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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



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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



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Focus on Service Success!

No paper pushing, easy to use, no training is required

Rapid approval cycleEnhanced control, reporting and audit trailEffectively 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



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FINTRAC Processes/Forms Integrated

Suspicious/Prescribed Transaction Report Transaction type: Account transaction;

Conducted for another entityConducted 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



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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



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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) Request approval by corporate management 3) Automatic FINTRAC compliance clearance4) Transaction reporting within Fintrac.RS5) Periodic corporate reporting to FINTRAC6) Reporting to CCRA on the import/export of currency 7) Prescribed effective, safe and secure record keeping8) Internal and external auditing

We also implemented numerous interactive enablers that add value to users and lower overall service costs



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Fintrac.RS: (Un)Cooperating Users

FINTRAC

SupervisorInternal/External

Auditors

FintracSchedules

(4)Fintrac.RS

Suspicious/prescribed

TransactionReport

Complianceofficer

CEO

CCRA

Cross-border transactions

Police

Teller

??

Client(s)

? ?

PKI

PKI



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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



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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).



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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



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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 systemsSQL engine

MS Access Implemented as ODBC/SQL compliant

database Upgradable to Oracle



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No installation on a desktop Any browser Any email client

Rich, fully interactive Web site Mailing list Stats, Search engine, Guestbook, etc., etc

Workflow enginePolicy shell

AI smarts if required to deliver policy Full expert system shell can be built in



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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)



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System Architecture

CCRA

Fintrac.RSServer

Internet

Corporateusers

Fintrac

Audit Traildatabases Client and

Transactiondatabases

Fintrac.RSAdministrator(Setup/modifycorporate clients,authorizationsand policy)



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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



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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



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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



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FINTRAC Reporting Service FINTRAC Reporting Service (Fintrac.RS)(Fintrac.RS)

Fintrac.RSClientGovernment

fintrac reporting service (fintrac.rs)

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