Federal officials signal a more risk-based approach to AML compliance
A new regulatory streamlining initiative could create opportunities to reduce unnecessary compliance burden while maintaining the effectiveness of Canada's
On Sept. 18th, OSFI published its expectations with respect to the 2024 internal capital adequacy assessment process (ICAAP) submission as well as the internal audit review relating to ICAAP. This applies to all small and medium-sized banks (SMSBs) including Category III institutions using the simplified risk-based approach.
For 2024, OSFI is not requesting all SMSBs to submit their 2024 ICAAP documents and internal audit of the ICAAP. However, lead supervisors may request specific institutions to submit their 2024 ICAAP and related internal audits as part of OSFI’s ongoing supervisory process in 2025. They will communicate directly to each institution, by no later than September 30, 2024, the specific risks and downturn severity for the prescribed single-factor stress tests that institutions should undertake as part of their 2024 ICAAP and ICAAP data return.
