Compliance & Documents Center
The Proceeds of Crime and Terrorist Financing Act (PCMLTFA) makes it mandatory that all financial entities, including life insurance agents and brokers, have in place a compliance regime or program, with formally-adopted policies and procedures. CLHIA, in collaboration with FINTRAC and LIMRA, has developed a guidance manual that can be used by life insurance brokers and agents in developing their mandated written policies and procedures regarding anti-money laundering and anti-terrorist financing.
There are liabilities for advisors that fail to follow the PCMLTFA law. Not complying with this law can be deemed a criminal offense, punishable by fines of up to $2 million and imprisonment of up to five years. The losses affiliated with this charge can include loss of your licence or contracting to sell or provide advice. Your E&O insurance will not cover you in this situation.
The take away from all of this is that compliance is the back bone to our indusrty and is something every advisor should take very seriously to keep his/her clients safe and protected, while keeping himself, the advisor, safe and protected as well! This is why our compliance document center below is here to help you keep your business fully compliant and up to date.
