Fiduciary Responsibility vs Regulatory Obligations Workshop



A retired customer comes into your financial institution and makes a withdrawal of $11,500.00. As the teller, you know she has the funds but find it odd that she would withdraw this large an amount. But, it’s really none of your business right? So your prepare the transaction, give her the money, and watch as she leaves the building only to be met by a much younger, but rough looking man at the front door. A man you haven’t seen before. You have a suspicion that something isn’t right. What do you do?

As a financial institution, you have the regulatory obligation to report any transaction over $10,000.00 to FINTRAC, and you do this however, have you fulfilled your fiduciary responsibility of protecting your customer’s money?

In this one hour Power-point workshop we will explore the difference between doing what the law requires, and doing what’s right…not only what’s right but what may keep your financial institution out of litigation gleaned from years of working as a police detective in the Fraud Squad.

Learning Objective:

1) What is the difference between Regulatory Obligations and Fiduciary Responsibility?

2) What are the different Power of Attorney agreements, and what I need to know to keep myself and my financial institution safe?

3) What is the difference between the Privacy Act and PIPEDA, and what do I need to know this when the police come around my branch asking for information?

4) FINTRAC and reporting…what happens to my report after I submit it to FINTRAC? Are the police notified if something suspicious happens?

5) What is a Production Order, and how does it differ from a Search Warrant?

6) What is the “Rule of Whole Numbers”, and how does it affect my ability to detect fraud?

7) Have Canadian courts rendered legal decisions on a financial institutions responsibility in protecting their client’s funds? If so, what have they said?

8) What is meant by a banker’s, “Due Diligence”, “Reasonable Banker” and a “Duty to Inquiry” and why these terms are so important to my institution?

9) How can I keep myself, and my financial institution safe from civil lawsuits?