AML Compliance Services for Derivatives Dealers
Derivatives move value through contracts rather than through any actual asset transfers at all, and collateral flows in ways that ordinary transaction monitoring systems were simply never really built to observe properly.
- FINTRAC Registered
- Cross-Border Expertise
- Audit Ready
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Collateral Flows and Contractual Value Transfer
A derivative moves economic value without transferring an underlying asset, which makes it structurally different from anything a monitoring system designed around payments or securities trades will recognise. Value passes through margin calls, collateral postings, and settlement amounts calculated against a reference price, none of which resemble a customer moving money from one account to another.
Collateral is where the observable activity actually sits. Cash and securities move in and out as positions change, and unusual collateral behaviour, including posting that exceeds any plausible exposure or arrives from parties unconnected to the counterparty, is genuinely visible. Building monitoring around those flows rather than around contract notionals is what makes derivatives compliance practical rather than theoretical.
Compliance Support for Derivatives Dealers
We deliver counterparty due diligence frameworks, collateral flow monitoring design, beneficial ownership identification, jurisdiction and sanctions screening, programme development, independent effectiveness reviews, and ongoing compliance officer support for derivatives dealing businesses across Canada.
PSP Registration
End-to-end PSP registration support under Canada's Retail Payment Activities Act framework.
MSB Licensing
Complete MSB licensing and FINTRAC registration for money services businesses nationwide.
Banking
Deliver secure banking compliance solutions supporting regulatory excellence and operational efficiency.
AML Compliance
Build robust AML frameworks ensuring regulatory compliance and effective financial crime prevention.
Regulatory Consulting
Receive strategic regulatory advice supporting sustainable growth and complete compliance confidence.
Transaction Monitoring
Ongoing transaction monitoring and screening to detect and report suspicious activity.
Why Derivatives Dealers Choose Us
We build monitoring around collateral movement rather than around contract notionals, because collateral is the part of a derivatives relationship where money genuinely moves and unusual behaviour actually becomes visible.
Collateral Actively Monitored
We design monitoring around margin and collateral flows, since that is where money genuinely moves in derivatives relationships.
Counterparties Properly Assessed
We build due diligence for counterparties, tracing ownership through structures that frequently sit across several different jurisdictions.
Third Party Collateral
We build checks for collateral arriving from parties unconnected to the counterparty, which warrants explanation rather than processing.
Jurisdiction Risk Assessed
We assess where counterparties and collateral genuinely originate, because derivatives relationships regularly cross borders without anybody noticing.
Derivatives Dealers We Support
We support derivatives dealing businesses in every single province right across the whole of Canada today, alongside foreign dealers that transact with Canadian counterparties or operate through Canadian market infrastructure.
What Our Clients Say
Canadian financial firms trust ABM Global Compliance to navigate complex regulation with clarity and care. From MSB licensing to ongoing AML support, our clients value our responsiveness, expertise, and genuine commitment to their long-term compliance success.
Let's Talk About Your Compliance Needs
Schedule a Free Consultation
Whether you’re starting a new MSB or need ongoing AML support, our team responds within one business day.
Derivatives Compliance Questions
Clear and direct answers to the questions derivatives dealers ask most about monitoring relationships where value moves contractually rather than physically.
Why is monitoring different here?
Because value moves through contracts rather than asset transfers, so systems built around payments or securities trades observe very little.
What should we actually monitor?
Collateral and margin flows, since that is where money genuinely moves and unusual behaviour becomes visible to a dealer.
Collateral arrived from somewhere else
Collateral posted by a party unconnected to your counterparty needs explaining and recording rather than simply being accepted and processed.
Are we a reporting entity?
That depends on your registration and activities, which we establish specifically rather than assuming derivatives dealing answers the question.
What about cross border counterparties?
They require jurisdiction risk assessment alongside ownership identification, recorded so the reasoning survives examination well afterwards.