Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

Which Canadian agency is responsible for reporting and analyzing financial transactions?

1. Bank of Canada

2. FINTRAC

3. Canadian Financial Regulatory Authority

4. Office of the Superintendent of Financial Institutions

The correct answer is: FINTRAC

The correct answer is FINTRAC, which stands for the Financial Transactions and Reports Analysis Centre of Canada. This agency plays a critical role in Canada’s efforts to combat money laundering and terrorist financing. As the national financial intelligence unit, FINTRAC is responsible for receiving, analyzing, and disclosing financial transaction reports. These reports come from various entities, including financial institutions and other businesses, which are required to report certain types of transactions that could indicate money laundering or terrorist financing activities. FINTRAC not only monitors these transactions but also analyzes the gathered data to identify trends and patterns associated with financial crime. This allows law enforcement agencies and other authorities to take appropriate action based on the information provided. In contrast, the other options do not serve the same purpose. The Bank of Canada primarily focuses on monetary policy, currency issuance, and overall financial stability rather than directly analyzing financial transactions for suspicious activity. The Canadian Financial Regulatory Authority does not exist as a federal entity in Canada; financial regulation is managed through various existing bodies. The Office of the Superintendent of Financial Institutions focuses on regulating and supervising banks and insurance companies but does not analyze transaction reports for anti-money laundering purposes.