At least the Bank`s revised compliance program should provide that money laundering is just one risk factor that the bank wanted to mitigate by “divesting some smaller markets.” It`s an operational risk management function,” he said. Scotiabank has hired significant employees in recent months to support its anti-money laundering efforts, including the appointment of Stuart Davis as global head of financial crime risk management. Mr. Davis was the Global Director of Anti-Money Laundering at the Bank of Montreal. Scotiabank spends more on anti-money laundering than some of its competitors, in part based on its geographic presence. Not so long ago, the Bank was active in more than 50 countries, from Russia and Turkey to the Caribbean and Latin America, many of which were targets for those who wanted to launder illegal funds. Since Mr. Porter bought Ceo five years ago, the bank has sold operations in two dozen countries, focusing on the bank`s international presence, but also reducing the risk of money laundering. Scotiabank deployed nearly $300 million last year to improve anti-money laundering capabilities and expects to invest “fairly close to that” in 2019, he said. And he acknowledged that Scotiabank was aware of the growing money laundering scandals at two Nordic lenders, Danske Bank and Swedbank, which claim executive jobs, have tarnished the reputation of these banks and drawn attention to the global flows of illicit funds.

The enforcement measures come as Canadian banks come under increased pressure from global regulators to eradicate potential sources of money laundering and terrorist financing from their operations. == Supervisors are forcing the Bank of Nova Scotia, Canada`s third-largest bank by asset, to review its anti-money laundering controls to address “deficiencies” in the lender`s compliance program. The bank had previously scaled back its ScotiaMocatta metallurgical business after failing to sell the unit in 2017, after being linked to a money laundering scandal. In 2015, Scotiabank entered into a written agreement with U.S. supervisors to correct their oversight and surveillance of suspicious activity and to address deficiencies in its compliance program. . . .