Anti money-laundering watchdog assessing vulnerability of fintech startups
TORONTO — The director of Canada’s anti-money laundering watchdog says the agency is studying how vulnerable certain emerging technologies, such as those being pioneered by so-called fintech startups, are to financial crime.
Gerald Cossette says it’s important for the federal government to encourage innovation by emerging financial technology companies.
But, he adds, Ottawa must balance that with the need to protect the integrity and stability of the financial system.
Cossette says many fintech startups — for example those that deal with currency exchange or sending cash — may not realize that they are required to register with Fintrac, the anti money-laundering agency, as money services businesses.