The bank had previously scaled back its ScotiaMocatta metallurgical business after failing to sell the unit in 2017 after being involved in a money laundering scandal. In 2015, Scotiabank reached a written agreement with U.S. regulatory authorities to correct their oversight and oversight of suspicious activity and to correct deficiencies in its compliance program. Scotiabank, based in Toronto, has entered into a written agreement with the Federal Reserve Bank of New York and the New York State Department of Financial Services to address issues ranging from supervision to monitoring suspicious activity. The written agreement released Tuesday by the New York Fed did not contain any fines against the bank. This article was published more than a year ago. Some information may no longer be up to date. Brian Porter, President and CEO of Scotiabank, speaks at the company`s annual meeting, April 12, 2016 in Calgary. The Bank`s Chief Executive Officer, Brian Porter, spoke in favour of a series of new measures introduced by the federal government in last month`s budget and spoke to reporters after Scotiabank`s general meeting on Tuesday. The new initiatives are the government`s response to persistent criticism of significant deficiencies in Canada`s anti-money laundering regime. Welcome to The Globe and Mail`s commentary community. It is a space where subscribers can interact with each other and Globe employees. “I think it`s good for the system, good for the country, and we support it,” Porter said.
Money laundering is only one risk factor that the bank has tried to mitigate by “ceding some small markets.” This is an operational risk management function,” he said. Scotiabank invested nearly $300 million last year to improve anti-money laundering capabilities and expects it to invest “fairly close to 2019,” he said. And he acknowledged that Scotia Bank was aware of the growing money-laundering scandals of two Nordic lenders, Danske Bank and Swedbank, which claimed the employment of executives, tarnished the reputation of these banks and drew attention to global flows of illicit funds. Scotiabank spends more on anti-money laundering controls than some of its colleagues, in part because of their geographic presence. Not so long ago, the Bank operated in more than 50 countries, from Russia and Turkey to the Caribbean and Latin America, many of which were targeted for those who wanted to launder illegal funds. Since Mr. Porter took over as CEO five years ago, the bank has sold operations in about 20 countries, concentrating the bank`s international presence while reducing its exposure to money laundering. . Some estimates suggest that total money laundered each year is between 2% and 5% of gross domestic product (GDP) or billions of dollars, although it is difficult to be precise as to the means that, in essence, exist in the shadows.