Cullen Commission’s 1,800-page report on money laundering in B.C. includes 13 related to accounting industry
CULLEN COMMISSION FINAL REPORT INCLUDES RECOMMENDATIONS FOR ACCOUNTING INDUSTRY
On June 15, the Commission of Inquiry into Money Laundering in British Columbia released its final report containing 101 recommendations, 13 of which relate to the accounting sector.
Inquiry commissioner Judge Austin Cullen presented the report, which is based on the testimony of nearly 200 witnesses over 130 days of hearings. Among its findings, the report indicates that the federal anti-money laundering regime is not effective and the commissioner recommends that the province of British Columbia establish an independent anti-money laundering commissioner to oversee the provincial response to money laundering.
CPA Canada and CPABC participated in the work of the Cullen Commission, including providing testimony, written submissions and relevant documents. The commissioner endorsed the work done by the profession to raise awareness of the need for a national whistleblower framework and urged its continuation. The Commissioner states that, in his view, the accountancy profession faces risks and vulnerability and, where the federal regime is deemed insufficient in this regard, he recommends that the CPABC do more in parallel with the Center for the Analysis of Operations and Financial Reports of Canada ( FINTRAC).
Given the importance of the Commission’s final report, the profession will take the time necessary to study its conclusions and analyze its recommendations.
“Money laundering is a complex issue that harms our economy and society and challenges the integrity of Canada’s financial system,” said FCPA Michele Wood Tweel, Vice President of Regulatory Affairs at CPA Canada. “Our profession recognizes the threats posed by money laundering and is committed to being part of the solution in the fight against it.”
NEW CANADIAN SUSTAINABILITY STANDARDS COUNCIL APPROVED
The Canadian Sustainability Standards Board (CSSB) has been mutually endorsed by the Accounting Standards Oversight Council (ASOC) and the Auditing and Assurance Standards Oversight Council (ASOC).
In line with the growth of sustainability reporting, the creation of the CSSB was recommended by the Independent Review Committee on Standard Setting in Canada (IRCSS). The new council is created to ensure that Canadian standards continue to be relevant and responsive.
The CSSB will work closely with the International Sustainability Standards Board (ISSB) to ensure that the Canadian perspective is part of the international decision-making process.
“In light of the momentum in this space, the committee felt it was important to expedite our recommendation to establish the CSSB to supervisory boards now,” said Edward J. Waitzer, IRCSS Chair. .
An implementation committee is being set up to support the important work of creating this new council.
The final recommendation report is expected to be released this summer, with the goal of having a fully functional CSSB by April 2023.
THE CANADIAN PRESIDENT OF THE CNCN IS APPOINTED TO THE IASB
FCPA Linda Mezon-Hutter will step down as Chair of the Accounting Standards Board (AcSB) of Canada to join the UK-based International Accounting Standards Board (IASB) as a member in September 2022.
Ms. Mezon-Hutter has been the AcSB Chair since July 2013, where she helped achieve ground-breaking standards milestones, including the adoption of IFRS in Canada, as well as developing key sections of the Handbook for Organizations non-profits, pension plans and private companies.
“My time as Chair of the AcSB has taken me around the world, allowing Canada to build strong relationships with other standard setters, to learn from each other, and to confirm myself to how strong our financial reporting environment is,” says Mezon-Hutter. “I bring this vast experience with me to the IASB, where I look forward to continuing to be a constructive voice in the development of globally accepted accounting standards.
Throughout his career, Mezon-Hutter has held other senior positions, including Chief Accountant at RBC. She also has four years of experience in public accounting.
“Linda’s appointment to the IASB is a tremendous achievement for Canada,” said Lorraine Moore, Chair of the Accounting Standards Oversight Council (AcSB). “Canada’s globally recognized reputation in standardization has been strengthened by Linda’s leadership at the AcSB and her commitment to setting high quality standards in Canada and around the world.
The search for an interim chair of the CNC is underway.
PRACTITIONERS PREPARE FOR NEW QUALITY MANAGEMENT STANDARDS
With the new quality standards coming into effect in December 2022, CPA Canada is educating its members to help firms build their quality management systems and strengthen quality service delivery.
Here are some recently published tips:
Practitioner’s Pulse Webinar: Quality Management, Practical Application Considerations held on June 14 brought together practitioners from BDO Canada LLP and RSM Canada LLP for a live discussion about their personal experiences developing these systems and applying the requirements of the new quality management standards, CSQM 1, CSQM 2 and CAS 220. The webinar is now available on demand.
New standards introduce a robust and proactive approach to quality managementan article by CPA Jacqui Kuypers, director of the Auditing and Assurance Standards Board, describes the three quality management standards and explains how firms can start implementing them.
Quality Management Compliant Amendments is an alert for practitioners that highlights consequential changes to other Canadian standards related to quality management, effective dates for quality management standards, and resources to help prepare for implementation. work.
And Implementation Tool for Practitioners: New Quality Management Standards is a guide for new adopters that answers your questions, from the possible impacts of CSQM 1 on your practice to factors to consider when evaluating your practice’s quality management system.
More information and free resources on quality management are available online.
HOUSING PROBLEMS IN CANADA REVEALED IN NEW SURVEY
CPA Canada’s latest research, The housing puzzle study reveals that it is difficult to penetrate the Canadian housing market.
Of those surveyed, 53% owned a home and 45% rented or leased. Half of non-homeowners surveyed believe they will never buy a home, with 29% saying they are somewhat likely to and only 21% of respondents think it is very likely. they will one day own a house.
The survey cited potential increases in interest rates as the top barrier to home ownership, reported by 89% of respondents. The second biggest challenge is providing a down payment (84%), followed closely by funds for needed renovations (83%) and availability of housing in a desired area (83%).
“Changing your mindset and carefully considering expectations can be a good start when it comes to managing the housing puzzle,” says Doretta Thompson, financial literacy lead at CPA Canada. “Weigh your needs against your wants and consider what you can afford based on your income and lifestyle.
For more details on the investigation, an information document is available online: cpacanada.ca/casse-tetelogement.