PROCESSING...

Anti-Money Laundering
Consulting Services & Strategies

0 Items - Total: $0.00 CAD

New Reporting Entity: Factoring Companies

Background

On March 26, 2025 final amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations were officially published in the Canada Gazette (SOR/2025-68). This round of anticipated changes introduces three company types that will become reporting entities. Below, we summarize the requirements that Factoring Companies will have to comply with as of April 1, 2025.

Factoring Companies (Factors)

Factors supply liquidity to a customer in exchange for the cash value of a certain amount of the customer’s accounts receivable (i.e. invoices) to be collected later by the factoring company. A factor is defined as a person or entity that is engaged in the business of factoring, with or without recourse against the assignor.

Requirements

All reporting entities (including Factoring Companies, as of April 1, 2025) must have in place a compliance program as defined under the PCMLTFA and associated regulations. The following is a summary of the requirements, as well as links to FINTRAC guidance (some of which will need to be updated).

Program Elements

  • Appoint a compliance officer who is responsible for implementing the compliance program and have oversight. The Compliance Officer must always have access to management and have the authority to carry out their duties.
  • Develop and apply written compliance policies and procedures that describe what is required under law and how these obligations will be met. These must be kept up to date and approved by a senior officer.
  • Conduct and document a risk assessment of your business. This assessment should include all activities that could make an entity vulnerable to money laundering or terrorist financing, as well as the mitigating controls that are put into place to prevent such risks.
  • Develop and maintain an ongoing compliance training program for your staff and agents. Everyone that deals with customers, customer funds, or transactions must receive AML and CTF training at least annually.
  • Conducting compliance effectiveness reviews. This is an audit that tests a company’s AML and CTF program and its effectiveness. These reviews must be completed at least once every two years.

Operational Elements

  • Reporting certain transactions. Where there are reasonable grounds to suspect that a particular financial transaction is related to the commission of a money laundering or terrorist activity financing offence, a Suspicious Transaction Report must be summitted to FINTRAC. This includes Large Cash and Large Virtual Currency reporting.
  • Follow ministerial directives and perform watchlist screening. Where a company may be in possession of funds or property that belong to a terrorist (either an individual or an organization) or a listed person, a Listed Person or Entity Report must be submitted to FINTRAC.
  • Identifying customers. Upon entering into a factoring agreement or when an information record is created, Factoring Companies will need to verify the identity of a customer using prescribed methods for individuals and entities.
  • Conducting transaction monitoring.
  • Conducting enhanced due diligence and enhanced transaction monitoring for high-risk customers.
  • Keeping certain records. In addition to keeping records related to the requirements above, Factoring Companies are required to keep the following records:
    • an information record in respect of the person or entity with whom it enters into the agreement;
    • if the information record is in respect of an entity, a record of the name, address, and date of birth of every person who enters into the agreement on behalf of the entity and the nature of the person’s principal business or their occupation;
    • if the information record is in respect of a corporation, a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation in respect of transactions with the factor;
    • a record of the financial capacity of the person or entity with which it enters into the agreement and the terms of the agreement;
    • for any payment it makes, a record of:
      • the date of the payment,
      • if the payment is in funds, the type and amount of each type of funds involved,
      • if the payment is not in funds, the type of payment and its value,
      • the method by which the payment is made,
      • the name of every person or entity involved in the payment, and
      • every account number or other equivalent reference number connected to the payment; and
    • a receipt of funds record in respect of every amount of $3,000 or more that it receives, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

What Next?

Factoring Companies should start working on developing their compliance program immediately if they have not done so already. FINTRAC has updated their sector-specific guidance page with relevant information for this new reporting entity and should be read.

We’re Here To Help

If you would like assistance in understanding what these changes mean to your business, or if you need help in creating or updating your compliance program and processes, please get in touch.

New Reporting Entity: Financing and Leasing Entities

Background

On March 26, 2025 final amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations were officially published in the Canada Gazette (SOR/2025-68). This round of anticipated changes introduces three company types that will become reporting entities. Below, we summarize the requirements that Financing and Leasing Entities will have to comply with as of April 1, 2025.

Financing and Leasing Entities

A financing or leasing entity is defined as a person or entity that is engaged in the business of financing or leasing of:

  • property, other than real property or immovables, for business purposes;
  • passenger vehicles in Canada; or
  • property, other than real property or immovables, that is valued at $100,000 or more.

Requirements

All reporting entities (including Financing and Leasing Entities, as of April 1, 2025) must have in place a compliance program as defined under the PCMLTFA and associated regulations. The following is a summary of the requirements, as well as links to FINTRAC guidance (some of which will need to be updated).

Program Elements

  • Appoint a compliance officer who is responsible for implementing the compliance program and have oversight. The Compliance Officer must always have access to management and have the authority to carry out their duties.
  • Develop and apply written compliance policies and procedures that describe what is required under law and how these obligations will be met. These must be kept up to date and approved by a senior officer.
  • Conduct and document a risk assessment of your business. This assessment should include all activities that could make an entity vulnerable to money laundering or terrorist financing, as well as the mitigating controls that are put into place to prevent such risks.
  • Develop and maintain an ongoing compliance training program for your staff and agents. Everyone that deals with customers, customer funds, or transactions must receive AML and CTF training at least annually.
  • Conducting compliance effectiveness reviews. This is an audit that tests a company’s AML and CTF program and its effectiveness. These reviews must be completed at least once every two years.

Operational Elements

  • Reporting certain transactions. Where there are reasonable grounds to suspect that a particular financial transaction is related to the commission of a money laundering or terrorist activity financing offence, a Suspicious Transaction Report must be summitted to FINTRAC. This includes Large Cash and Large Virtual Currency reporting.
  • Follow ministerial directives and perform watchlist screening. Where a company may be in possession of funds or property that belong to a terrorist (either an individual or an organization) or a listed person, a Listed Person or Entity Report must be submitted to FINTRAC.
  • Identifying customers. Upon entering into an agreement for the listed activities under the definition above, Financing and Leasing Entities will need to verify the identity of a customer using prescribed methods for individuals and entities.
  • Conducting transaction monitoring.
  • Conducting enhanced due diligence and enhanced transaction monitoring for high-risk customers.
  • Keeping certain records. In addition to keeping records related to the requirements above, Financing and Leasing Entities are required to keep the following records:
    • an information record in respect of the person or entity with which it enters into the arrangement;
    • if the information record is in respect of an entity, a record of the name, address and date of birth of every person who enters into the arrangement on behalf of the entity and the nature of the person’s principal business or their occupation;
    • if the information record is in respect of a corporation, a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation in respect of transactions with the financial leasing entity;
    • a record of the financial capacity of the person or entity with which it enters into the arrangement and the terms of the arrangement; and
    • in respect of every payment that it receives under the arrangement, other than a payment received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body, a record of
      • the date of the payment,
      • the name of the person or entity that makes the payment,
      • the amount of the payment and of any part of it that is made in cash, and
      • the method by which the payment is made.

What Next?

Financing and Leasing Entities should start working on developing their compliance program immediately if they have not done so already. FINTRAC has updated their sector-specific guidance page with relevant information for this new reporting entity and should be read.

We’re Here To Help

If you would like assistance in understanding what these changes mean to your business, or if you need help in creating or updating your compliance program and processes, please get in touch.

New Reporting Entity: Cheque Cashing

Background

On March 26, 2025 final amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations were officially published in the Canada Gazette (SOR/2025-68). This round of anticipated changes introduces three company types that will become reporting entities. Below, we summarize the requirements that cheque cashing businesses, who will be classified as either domestic or foreign money services businesses (MSBs), will have to comply with as of April 1, 2025.

Requirements

MSBs (including cheque cashing businesses) must register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and have in place a compliance program as defined under the PCMLTFA and associated regulations. The following is a summary of the requirements that MSBs must comply with, as well as links to FINTRAC guidance.

Program Elements

  • Appoint a compliance officer who is responsible for implementing the compliance program and have oversight. The Compliance Officer must always have access to management and have the authority to carry out their duties.
  • Develop and apply written compliance policies and procedures that describe what is required under law and how these obligations will be met. These must be kept up to date and approved by a senior officer.
  • Conduct and document a risk assessment of your business. This assessment should include all activities that could make an entity vulnerable to money laundering or terrorist financing, as well as the mitigating controls that are put into place to prevent such risks.
  • Develop and maintain an ongoing compliance training program for your staff and agents. Everyone that deals with customers, customer funds, or transactions must receive AML and CTF training at least annually.
  • Conducting compliance effectiveness reviews. This is an audit that tests a company’s AML and CTF program and its effectiveness. These reviews must be completed at least once every two years.

Operational Elements

  • Register with FINTRAC before conducting prescribed transactions. The registration information must be kept up to date and renewed every two years;
  • Reporting certain transactions. Where there are reasonable grounds to suspect that a particular financial transaction is related to the commission of a money laundering or terrorist activity financing offence, a Suspicious Transaction Report must be summitted to FINTRAC. This includes Large Cash, Large Virtual Currency and Electronic Funds Transfer reporting;
  • Follow ministerial directives and perform watchlist screening. Where a company may be in possession of funds or property that belong to a terrorist (either an individual or an organization) or a listed person, a Listed Person or Entity Report must be submitted to FINTRAC;
  • Identifying customers. As it relates to cheque cashing services, MSBs will need to verify the identity of a customer using prescribed methods for individuals and entities where there is a request to cash one or more cheques that total $3,000 or more;
  • Conducting ongoing transaction monitoring for customers that have formed a business relationship;
  • Conducting enhanced due diligence and enhanced transaction monitoring for high-risk customers; and
  • Keeping certain records. MSBs must keep specific records. As it relates to cheque cashing activities (over $3,000) the following records must be retained:
    • the date when each cheque is cashed;
    • the person’s or entity’s name and address, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
    • the total amount of the cheque or cheques;
    • the name of the issuer of each cheque;
    • the number of every account that is affected by the cashing of the cheque or cheques, the type of account and the name of each account holder;
    • every reference number that is connected to the cashing of the cheque or cheques and that has a function equivalent to that of an account number; and
    • if the cashing of the cheque or cheques involves virtual currency, every transaction identifier, including the sending and receiving addresses.

What Next?

Companies that perform cheque cashing activities should start working on developing their compliance program immediately if they have not done so already. FINTRAC has updated their sector-specific guidance page with relevant information for this new reporting entity and should be read.

We’re Here To Help

If you would like assistance in understanding what these changes mean to your business, or if you need help in creating or updating your compliance program and processes, please get in touch.

2025 AML Changes: New Import/Export Declarations, Information Sharing, Beneficial Ownership Transparency and New Reporting Entities

Background

On March 26, 2025 final amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and creation of a new regulation were officially published in the Canada Gazette (SOR/2025-67 and SOR/2025-68). This round of anticipated changes introduces three company types that will become reporting entities. Additionally, the amendments bring in changes related to reporting of goods, information sharing, and beneficial ownership discrepancy reporting.

In traditional fashion, to make reading these changes a little easier, we (thanks Rodney) have created a redlined version of the regulations, with new content showing as tracked changes, which can be found in a combined document here.

While there are no substantial changes to the requirements from the draft amendments published on November 30, 2025 in the Canada Gazette, one noteworthy change is that the in-force date of most requirements was moved from October 1, 2025, to April 1, 2025, which will likely leave companies scrambling.

The incoming requirements are meant to improve Canada’s anti-money laundering (AML), Counter Terrorist Financing (CTF) and sanctions regime, and implement measures announced in Budget 2022, Budget 2023, Budget 2024, the 2023 Fall Economic Statement, and Canada’s last Parliamentary Review. On February 4, 2025, the Prime Minister issued the Directive on Transnational Crime and Border Security, which stated the urgent need to disrupt profits laundered by organized crime in connection with illegal trade in drugs such as fentanyl. The amendments provided in the finalized regulations were identified as key measures to support this Directive.

The regulatory impact analysis statement (RIAS) accompanying the finalized regulations indicates that these amendments are also needed for Canada to align to Financial Action Task Force (FATF) standards ahead of Canada’s next mutual examination by the FATF later in 2025. The RIAS states that FINTRAC is committed to working with reporting entities to ease the implementation process along this accelerated and exceptional timeline, and will put emphasis on engagement, outreach and guidance activities related to new regulatory obligations.

What’s Changed?

Trade Based Money Laundering (TBML)

The regulatory amendments introduce a new Proceeds of Crime (Money Laundering) and Terrorist Financing Reporting of Goods Regulation.   

Under the new regulation, anyone who is importing or exporting goods into or out of Canada needs to file a declaration with the Canada Border Services Agency (CBSA) as follows:

  • whether the goods are proceeds of crime as defined by subsection 462.3(1) of the Criminal Code or are goods related to money laundering, to the financing of terrorist activities or to sanctions evasion; and
  • that the goods are actually being imported or exported, as the case may be.

The amendments will also include seizure and forfeiture rules. Under the framework, the CBSA will have powers to seize and forfeit goods when they have reasonable grounds to believe that the goods are proceeds of crime or related to money laundering, terrorist financing, or sanctions evasion.

As part of the new requirements, there are substantial record-keeping obligations, including details such as the origin, making, purchase, importation, costs, and value of the goods, as well as records related to payments for the goods.

This change comes into force April 1, 2025.

Information Sharing

The regulatory amendments introduce measures to allow for reporting entities to share information with each other to detect and deter money laundering, terrorist financing, and sanctions evasion, while maintaining privacy protections for personal information.

Reporting entities that wish to share information (it’s voluntary) would be required to establish and implement a code of practice for disclosing, collecting and using personal information without consent. The code must:

  • describe the personal information of an individual that may be disclosed, collected or used without their knowledge or consent;
  • describe the purposes for which an individual’s personal information may be disclosed, collected or used without their knowledge or consent;
  • describe the manner in which an individual’s personal information may be disclosed, collected or used without their knowledge or consent;
  • describe the measures to be taken to ensure the protection of personal information, including measures concerning the retention of such information and the keeping of records; and
  • include information demonstrating that the code complies with the requirements of the Act.

The Code must be provided to the Office of the Privacy Commissioner of Canada (OPC) for approval, as well as to FINTRAC for comment in advance of use. The OPC must approve the code within 120 calendar days (an increase from the proposed 90 days in the draft amendments). The OPC will continue to have the ability to extend the deadline by an additional 15 days, provided it notifies the reporting entity. Reporting entities would be required to resubmit their Codes to the OPC and FINTRAC every five years regardless of changes or not. The OPC has published guidance on how to submit Codes for review and approval.

This change comes into force immediately.

Discrepancy Reporting

The amendments introduce a requirement for reporting entities dealing with a Canada Business Corporations Act (CBCA) corporation to report any material discrepancies found while obtaining and verifying the accuracy of beneficial ownership information under current AML requirements. The reporting requirement will not apply if the material discrepancy is resolved within 30 days (originally 15 days in the draft amendments) from the date it is identified. Currently, what is deemed to be material is not well defined (outside of missing beneficial owners). There are examples of what is considered not material.

The information with respect to the discrepancy includes:

  • Name of reported company and identifying number on its certificate of incorporation, amalgamation or continuance;
  • Date on which discrepancy was identified; and
  • Description of discrepancy.

This comes into force October 1, 2025.

New Reporting Entities

The regulatory amendments outline the inclusion of three new regulated entities, as announced in Budget 2024, which were highlighted as concerns during Canada’s last FATF mutual evaluation: factoring companies (referred to as “factors”), cheque cashing companies, and financing and leasing companies. These entities will be subject to the PCMLTFA as of April 1, 2025, and must implement compliance programs.

We have created a separate blog post for each of the newly regulated company types (factoring companies, cheque cashing companies, and financing and leasing companies) to make it easier to digest the requirements that apply to each of the new reporting entities.

What Next?

FINTRAC will be issuing and updating guidance related to the changes. While we await guidance, entities should start updating their compliance program and processes to reflect the new requirements as they apply to their business. New reporting entities should start working on developing their compliance program immediately if they have not already done so.

We’re Here To Help

If you would like assistance in understanding what these changes mean to your business, or if you need help in creating or updating your compliance program and processes, please get in touch.

New Year – New Regs. Final Amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations – January 2025

Background

On January 1, 2025 final amendments to regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act were published in the Canada Gazette (SOR 2024-266 and SOR 2024-267). The most noteworthy changes fall under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. The final amendments include changes or new requirements related to:

  • MSB registration framework;
  • Sanctioned property reporting;
  • White-label ATMs;
  • Real estate (title insurance and unrepresented third-parties); and
  • Casino disbursements.

The regulatory impact statement states that these amendments implement measures announced in previous budgets, the 2023 Fall Economic Statement, our Parliamentary Review and Cullen Commission report ahead of Canada’s upcoming mutual evaluation by the Financial Action Task Force (FATF).

To make reading these changes a little easier, as we always do, (thanks Rodney) a redlined version of the regulations, with new content showing as tracked changes, is attached here.

What’s Changing?

From the draft regulations published back in July 2024, there have not been significant changes to the final publication. Some changes were made to address potential gaps, inconsistencies, and business realities in the context of application, and to provide greater flexibility in the coming-into-force dates. The most notable change from the draft relates to obligations for title insurers.

Below is a summary of what we feel are the most noteworthy changes and incoming requirements:

MSB Registration Framework

Money Services Businesses (MSBs) must register with FINTRAC. As part of registration, it will now be required to submit the following documentation as part of the application.

If the applicant is a corporation:

  • a certificate of incorporation or the most recent version of any other record that confirms its existence as a corporation and contains its name and address and the names of its directors; and
  • a document that sets out the ownership, control and structure of the corporation.

If the applicant is an entity other than a corporation:

  • the partnership agreement, articles of association or the most recent version of any other record that confirms its existence and contains its name and address; and
  • a document that sets out the ownership, control and structure of the entity.

Additionally, domestic MSBs will have to submit criminal record checks covering the CEO, President and directors, as well as every person who owns or controls 20% or more of the MSB. These criminal record checks must also be updated every two years as part of the renewal process. Where an MSB uses an agent or mandatary, criminal record checks are also required on those individuals. It should be noted that the 20% threshold does not align with reporting entity requirements for beneficial owners, which is at 25%. While industry asked for these numbers to align, Finance did not accept the change.

Sanctioned Property Reporting

The final amendments expand the definition of a listed person or entity to capture individuals and entities listed under all Canadian sanctions legislation including Special Economic Measures Act, the United Nations Act and the Justice for Victims of Corrupt Foreign Officials Act.

These changes also result in a new sanctioned property report. The report includes information fields such as:

  • how the reporting entity came to know that property in question is owned, held or controlled by or on behalf of listed person or entity;
  • the name of any person or entity that owns, holds or controls property on behalf of listed person or entity;
  • the name of any person or entity that has an interest or right in or is authorized to deal with property; and
  • a description of transactions involving property within previous six months.

White-Label ATMs

Final amendments will require those that provide acquiring services to white-label ATMs (WLATMs) to register with FINTRAC as MSBs and implement a full AML compliance regime. Similar to that of other regulated entities, a compliance regime will have to be in place which includes the following:

  • Appointment of a Compliance Officer;
  • Development of a documented compliance program (policies, procedures, risk assessment, ongoing training);
  • Conducting compliance effectiveness reviews;
  • Reporting certain transactions;
  • Identifying customers;
  • Keeping records;
  • Risk ranking customers and business relationships;
  • Conducting transaction monitoring and watchlist screening;
  • Conducting enhanced due diligence and transaction monitoring for high-risk customers and business relationships; and
  • Follow Ministerial Directives, sanctions, and other relevant transaction restrictions.

In addition to the records that must be retained as an MSB, WLATM operators will need to keep the following records:

  • Information on who owns, leases or operates a private automated banking machine in respect of which they provide acquirer services;
  • Information on the source of the cash that is loaded into a private automated banking machine in respect of which they provide acquirer services;
  • Information on account holder of a settlement account for a private automated banking machine in respect of which they provide acquirer services; and
  • The source and method used to transport cash loaded into a private automated banking machine.

Real Estate – Title Insurance

Final amendments will make title insurers reporting entities under Canada’s AML/ATF Regime. Title insurers are defined as a person or entity that is engaged in the business of providing title insurance, as defined in the schedule to the Insurance Companies Act when they provide a title insurance policy to the purchaser of real property or an immovable.

Specifically, title insurers will be required to develop a compliance program, meet certain identity verification requirements, submit required reporting to FINTRAC, keep certain records, and follow application Ministerial Directives.

It should be noted that changes were made to remove certain record-keeping obligations noted in the draft regulations. Title insurers will only be required to keep records of information that is obtained for the sale of title insurance. The following are the specific records that must be kept for every title insurance policy provided to a purchaser of real property or an immovable:

  • the name and address of the purchaser and, in the case of a person, their date of birth;
  • the legal description and address of the real property or immovable;
  • the closing date of the purchase;
  • the purchase price;
  • the amount of any loan secured by a mortgage on the real property or a hypothec on the immovable and the name of the lender;
  • if known, the name of the vendor; and
  • any title information respecting the real property or immovable that is found in the land registry in which the title to the real property or immovable is recorded.

Given title insurers’ business model, wherein they do not have direct contact with the purchasers of title insurance, final amendments have been updated to remove beneficial ownership requirements as well as exempt third-party determination and PEP requirements for title insurers.

Real Estate – Unrepresented Parties

Final amendments will require real estate brokers and sales representatives to identify the party or parties (including third parties) not represented in real estate transactions. This is a change from the current requirement where real estate brokers and sales representatives are only required to take “reasonable measures” to identify unrepresented parties.

What Next?

The requirements summarized above come into force October 1, 2025. In the meantime, FINTRAC will have to issue guidance which has been promised before the noted in-force date.

While we await guidance, newly regulated entities should start working on developing their compliance program in anticipation of the respective in-force dates noted above. Other Reporting Entity types should take note of MSB framework changes and changes related to sanction property as it relates to their business model.

We’re Here To Help

If you would like assistance in understanding what these changes mean to your business, or if you need help in creating or updating your compliance program and processes, please get in touch.

Proposed 2025 AML Changes: New Import/Export Declarations, Information Sharing, Beneficial Ownership Transparency and New Reporting Entities

Background

On November 30, 2025 draft amendments to the regulations under the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA) were published in the Canada Gazette.

In the interest of time, we have published this blog summarizing what we feel to be the most noteworthy amendments but will follow up with a redlined version of the regulations, with new content showing as tracked changes, at a later date.

The noted changes are meant to improve Canada’s anti-money laundering (AML) and Counter Terrorist Financing (CTF) regime and implement measures announced in Budget 2022, Budget 2023, Budget 2024, the 2023 Fall Economic Statement and Canada’s last Parliamentary Review. This is addressed through six separate measures including the introduction of new regulated entities.

Measure 1: Trade Based Money Laundering (TBML)

The draft amendments include a new Proceeds of Crime (Money Laundering) and Terrorist Financing Reporting of Goods Regulation.

Currently, the Canada Border Services Agency (CBSA) can require receipts and invoices for the purposes of determining compliance with import laws, but they cannot request these documents for the purposes of detecting money laundering or terrorist financing.

 Under the proposed regulations, anyone who is importing or exporting goods into or out of Canada needs to file a declaration with the CBSA as follows:

  • whether the goods are proceeds of crime as defined by subsection 462.3(1) of the Criminal Code or are goods related to money laundering, to the financing of terrorist activities or to sanctions evasion; and
  • that the goods are actually being imported or exported, as the case may be.

The latter is meant to address “phantom shipments” that are used in trade-based money laundering (TBML) which was identified as a primary money laundering concern in Canada’s last Financial Action Task Force (FATF) evaluation.

The new regulations also bring about substantial record keeping requirements which include information such as the origin, marking, purchase, importation, costs and value of the goods, and records relating to payment for the goods. It’s noteworthy that FINTRAC’s 2023-24 Annual Report lists customs and excise related offences as being in the top five predicate offences related to case disclosures during the period.

Measure 2: Information Sharing

Information sharing between private entities has been recognized by the FATF as an important tool for disrupting money laundering and terrorist financing. Budget 2024 introduced legislative amendments to the Criminal Code and the PCMLTFA to enhance the ability of reporting entities to share information with each other as it relates to the detection of money laundering and terrorist financing.

The draft amendments introduce measures to allow for reporting entities to share information with each other to detect and deter money laundering, terrorist financing, and sanctions evasion, while maintaining privacy protections for personal information.

Reporting entities that wish to share information (it’s voluntary) would be required to establish and implement a code of practice for disclosing, collecting and using personal information without consent. The code must:

  • describe the purposes for which an individual’s personal information may be disclosed, collected or used without their knowledge or consent;
  • describe the manner in which an individual’s personal information may be disclosed, collected or used without their knowledge or consent;
  • describe the measures to be taken to ensure the protection of personal information, including measures concerning the retention of such information and the keeping of records;
  • include information demonstrating that the code complies with the requirements of the Act.

The Code must be provided to the Office of the Privacy Commissioner of Canada (OPC) for approval and to FINTRAC for comment in advance of use. The OPC would have a prescribed period of 90 days to approve a Code. The proposed amendments also include procedures for reporting entities to modify the Code, which would need the OPC’s approval if the changes are material. Reporting entities would be required to resubmit their Codes every five years regardless of changes or not.

Measure 3: Discrepancy Reporting

The draft amendments will require reporting entities who are dealing with a Canada Business Corporations Act (CBCA) corporation to report any material discrepancy it finds as part of obtaining and verify the accuracy of beneficial ownership information under current AML requirements. The reporting requirement will not apply if the material discrepancy is resolved within 15 days after the day on which it is identified. Currently, what is deemed to be material is not well defined (outside of missing beneficial owners).

The Information with respect to the discrepancy includes:

  • Name of reported company and identifying number on its certificate of incorporation, amalgamation or continuance,
  • Date on which discrepancy was identified, and
  • Description of discrepancy.

In case you missed it, the federal government launched a public, searchable beneficial ownership registry of federal corporations in early 2024.

Measure 4, 5 and 6: New Reporting Entities

The draft amendments outline the inclusion of three new regulated entities which were announced in Budget 2024 and where noted as concerns during Canada’s last FATF mutual evaluation: factoring companies (referred to as “factors”), cheque cashing companies, and financing and leasing companies.

Similar to that of other regulated entities, a compliance regime will have to be in place which includes the following:

  • Appointment of a Compliance Officer;
  • Development of a documented compliance program (policies, procedures, risk assessment, ongoing training);
  • Conducting compliance effectiveness reviews;
  • Reporting certain transactions;
  • Identifying customers;
  • Keeping records;
  • Risk ranking customers and business relationships;
  • Conducting transaction monitoring and watchlist screening;
  • Conducting enhanced due diligence and transaction monitoring for high-risk customers and business relationships; and
  • Follow Ministerial Directives, sanctions, and other relevant transaction restrictions.

4. Factoring Companies

Factoring companies supply liquidity to a customer in exchange for the cash value of a certain amount of the customer’s accounts receivable (i.e. invoices) to be collected later by the factoring company. A factor is defined as a person or entity that is engaged in the business of factoring, with or without recourse against the assignor.

The draft amendments require factoring companies to keep certain records which include:

  • an information record in respect of the person or entity with whom it enters into the agreement;
  • if the information record is in respect of an entity, a record of the name, address and date of birth of every person who enters into the agreement on behalf of the entity and the nature of the person’s principal business or their occupation;
  • if the information record is in respect of a corporation, a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation in respect of transactions with the factor;
  • a record of the financial capacity of the person or entity with which it enters into the agreement and the terms of the agreement;
  • for any payment it makes, a record of:
    • the date of the payment,
    • if the payment is in funds, the type and amount of each type of funds involved,
    • if the payment is not in funds, the type of payment and its value,
    • the method by which the payment is made,
    • the name of every person or entity involved in the payment, and
    • every account number or other equivalent reference number connected to the payment; and
  • a receipt of funds record in respect of every amount of $3,000 or more that it receives, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

5. Cheque Cashing

Cheque cashing is a financial service that offers clients the ability to cash a cheque immediately and hold free, for a fee.

Cheque cashing where cheques are not payable to a named person or entity is not currently captured under the PCMLTFA, but draft amendments would introduce such as regulated activity.

In addition to current money services business (MSB) requirements, the draft amendments require keeping certain records in respect to where an MSB cashes a cheque for more than CAD 3,000, including:

  • the date when each cheque is cashed,
  • the person’s or entity’s name and address, the nature of their principal business or their occupation and, in the case of a person, their date of birth,
  • the total amount of the cheque or cheques,
  • the name of the issuer of each cheque,
  • the number of every account that is affected by the cashing of the cheque or cheques, the type of account and the name of each account holder,
  • every reference number that is connected to the cashing of the cheque or cheques and that has a function equivalent to that of an account number, and
  • if the cashing of the cheque or cheques involves virtual currency, every transaction identifier, including the sending and receiving addresses.

 6. Finance and Leasing Entities

The draft amendments define a financing or leasing entity as a person or entity that is engaged in the business of financing or leasing of:

  • property, other than real property or immovables, for business purposes;
  • passenger vehicles in Canada; or
  • property, other than real property or immovables, that is valued at $100,000 or more. (entité de financement ou de bail)

The draft amendments require financing or leasing entities to keep certain records in respect of every financing or leasing arrangement which include:

  • an information record in respect of the person or entity with which it enters into the arrangement;
  • if the information record is in respect of an entity, a record of the name, address and date of birth of every person who enters into the arrangement on behalf of the entity and the nature of the person’s principal business or their occupation;
  • if the information record is in respect of a corporation, a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation in respect of transactions with the financial leasing entity;
  • a record of the financial capacity of the person or entity with which it enters into the arrangement and the terms of the arrangement; and
  • in respect of every payment that it receives under the arrangement, other than a payment received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body, a record of
    • the date of the payment,
    • the name of the person or entity that makes the payment,
    • the amount of the payment and of any part of it that is made in cash, and
    • the method by which the payment is made.

What Next?

The proposed changes related to measures 1, 3, 4, 5 and 6 would come into force on October 1, 2025, and the proposed amendments related to information sharing would come into force immediately on final publication in the Canada Gazette.

There is a 30 day comment period ending December 30, 2024 for the proposed regulations. It is strongly recommended that industry, and potentially impacted companies, review carefully and provide feedback. Comments can be submitted online via the commenting feature after each section of the proposed changes, or via email directly to Erin Hunt, Director General, Financial Crimes and Security Division, Financial Sector Policy Branch, Department of Finance, 90 Elgin Street, Ottawa, Ontario, K1A 0G5.

We’re Here To Help

If you have questions related to the proposed changes, or need help starting to plan, you can get in touch using the online form on our website, by emailing us directly at info@outliercanada.com, or by calling us toll-free at 1-844-919-1623.

Final Amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations – October 2023

Background

On October 11, 2023, final amendments to regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act were published in the Canada Gazette. The most noteworthy changes fall under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the addition of a new regulation. This round of anticipated changes introduces the compliance requirements for armoured car companies and mortgage lending entities. Additionally, FINTRAC will now be able to charge businesses and individuals for the annual cost of its compliance program as part of its assessment of expenses funding model.

Other changes include the new requirements for correspondent banking relationships, and additional requirements related to the Money Services Business (MSB) registration.

To make reading these changes a little easier, we (thanks Rodney) have created a redlined version of the regulations, with new content showing as tracked changes, which can be found in a combined document here.

What’s Changed?

From the draft regulations published back in February of this year, there have not been significant changes to the final publication. As expected, entities that collect currency, money orders, traveller’s cheques, or other similar negotiable instruments (except for cheques payable to a named person or entity) will be treated as a new category of MSB. With these changes, such providers will be subject to existing money services businesses requirements.

With respect to mortgage lenders (brokers responsible for mortgage origination, lenders responsible for underwriting the loan or supplying the funds, and administrators responsible for servicing the loan), they will now have to comply with AML compliance requirements imposed on reporting entities. Note the definition of a mortgage lender was changed slightly from the draft regulations, narrowing the scope of who is captured.

As part of the assessment of expenses funding model, the new Financial Transactions and Reports Analysis Centre of Canada Assessment of Expenses Regulations will allow FINTRAC to pass on expenses, to reporting entities, that it incurs in the administration of the PCMLTFA. Note there have been some changes to the formula that will be used for assessment amounts. The base assessment amount for federally regulated banks, trust and loan companies, and life insurance companies will be based on their value of consolidated Canadian assets that excludes its subsidiary’s reported value of Canadian assets. Guidance related to how reporting entities will be charged has been issued and can be found here.

Please refer to our previous blog post that outlines details on the changes and the exact requirements that will come into force.

What Next?

Requirements for armoured car companies come into force on July 1, 2024, and October 1, 2024 for mortgage lending entities. Effective April 1, 2024, FINTRAC will commence recovering costs from the 2024–25 fiscal year.

In the meantime, FINTRAC will have to issue guidance related to cash transport and mortgage lending. Additionally, there may be FINTRAC policy interpretations that will no longer be able to be relied upon, as it relates to cash transport and mortgage lending.

While we await guidance, armoured car and mortgage lending entities should start working on developing their compliance program in anticipation of the respective in-force dates noted above.

We’re Here To Help

If you would like assistance in understanding what these changes mean to your business, or if you need help in creating or updating your compliance program and processes, please get in touch.

Bill C-47 Amendments To the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Background

Back on June 22, 2023, Bill C-47 received royal assent. As it relates to AML obligations, this has introduced changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). We have summarized what we believe to be the most significant changes below.

To make reading these changes a little easier, we (thanks Rodney) have created a redlined version of the legislation, with new content showing as tracked changes, which can be found here.

What’s Changed?

Structuring
Amendments to the PCMLTFA introduce structuring as an offence: “Every person or entity commits an offence that directly or indirectly undertakes, or attempts to undertake, a structured financial transaction.” For clarity, a structured financial transaction is a series of financial transactions that:

  • cause a regulated entity to be in receipt of cash or virtual currency or involve the initiation of an international electronic funds transfer;
  • would, if they occurred as a single financial transaction, require a person or entity referred to report to FINTRAC; and
  • are undertaken with the intent that a regulated entity will not have to report the transaction to FINTRAC.

The offence of structuring would be punishable by a fine and/or imprisonment for a term up to five years.

These requirements come into force on a day to be fixed by order of the Governor in Council (which we are still awaiting).

Money Services Businesses (MSBs)
Amendments to the PCMLTFA will prohibit MSBs from engaging with agents or mandataries convicted of certain types of offences. As such, MSBs will be required to perform due diligence on their agents to ensure that they have not committed certain designated offences.

As part of due diligence, the following documents must be obtained and reviewed:

  • a document that sets out their record of criminal convictions, or states that the person does not have one, that is issued by a competent authority in the jurisdiction in which the person resides; or
  • if the agent or mandatary is an entity, for each of the chief executive officer, the president and the directors of the entity and for each person who owns or controls, directly or indirectly, 20% or more of the entity or the shares of the entity, a document that sets out the person’s record of criminal convictions, or states that the person does not have one, and that is issued by a competent authority in the jurisdiction in which the person resides.

If any documentation is in a language other than English or French, the person or entity shall also obtain and review a translation of it.

These requirements come into force on a day to be fixed by order of the Governor in Council (which we are still awaiting).

Also as it relates to MSBs, this round of changes has criminalized the operation of unregistered money services businesses. Any business or entity that knowingly engages in MSB activity for which it is not registered with FINTRAC is guilty of an offence and liable of a fine up to CAD 500,000 and/or imprisonment up to five years.

These requirements come into force June 22, 2024.

Back in 2022, The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) published an advisory related to Underground Banking through Unregistered Money Services Businesses highlighting the risk of such activity. If you suspect individuals or businesses are operating unregistered money services businesses or foreign money services businesses, you may wish to submit voluntary information to FINTRAC anonymously.

Other Changes
The amendments to the PCMLTFA will require regulated entities to report to FINTRAC where a reporting obligation arises under the Special Economic Measures Act as well as under the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law).

Related to Ministerial Directives, the Minister of Finance may issue orders setting conditions in respect of the trading or suspend or cancel trading of compliance units or invalidate any trade of compliance units if the Ministers are of the opinion that the trade or use of a compliance unit has a negative impact on the integrity of the Canadian financial system or its reputation.

As it relates to sharing of information, FINTRAC will be able to share information with different governmental departments, which includes sharing information with the Department of Finance for the purposes of granting, revoking, suspending or amending approvals under the Retail Payment Activities Act.

What Next?

Regulated entities that have transaction limits in place that are just under reporting thresholds (i.e., CAD 9,990) may want to rethink those limits and the reasons they are in place, due to the offence of “structuring”.

As it relates to MSB specific changes, compliance program updates may be required where existing agent relationships exist.

As with all legislative changes, we await FINTRAC guidance for clarity.

We’re Here To Help

If you would like assistance in understanding what these changes mean to your business, or if you need help in creating or updating your compliance program and processes, please get in touch.

Ministerial Directives Related to Iran & LVCTRs

There have been a number of conversations floating around about FINTRAC Large Virtual Currency Transaction Reporting (LVCTR) obligations as it relates to transactions involving Iran, and potentially involving Iran, under the current Ministerial Directive (MD). While this is not a new requirement (LVCTRs were effective June 1, 2021 and the original MD became effective July 25, 2020), there has been clarification provided with regards to reporting, and what activities trigger which reports.

For background, Outlier Compliance Group wrote an article on what the Iran-related MD entails, so if you are not familiar with the requirements, we suggest starting there.

Existing Guidance

The existing MD guidance does not align with the information provided in a recent policy interpretation for reporting transactions involving Iran that generally are not otherwise reportable, such as a transaction below the reporting threshold. The current guidance says the following:

Any transaction involving the receipt of virtual currency (VC) for exchange to Iranian rial, or VC that is equivalent to an amount under the reporting threshold of $10,000 CAD must be reported using the LVCTR by:

    • Inserting the IR2020 code when using the LVCTR upload; or
    • Selecting IR2020 in the ‘Ministerial Directive’ field of the LVCTR.
    • Because the report is related to the MD, you must ensure that the information provided reflects a connection to Iran.

Recent Interpretation

On June 11, 2023, a policy interpretation was submitted to clarify FINTRAC’s expectations with regards to reporting VC transactions related to the Iran MD. A few specific scenarios were included to ensure an easily digestible response was provided. The portion below is the most noteworthy sections of the response from FINTRAC clarifying the expectation of reporting virtual currency transactions that are below the reporting threshold where there is a nexus to Iran:

To answer your question regarding other instances that could involve the receipt of VC originating from Iran in one or more transactions under the threshold, please refer to section 3) of the Ministerial Directive. It states that any transaction (originating from or bound for Iran) must be treated as a high-risk transaction for the purposes of subsection 9.6(3) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), and must be reported to FINTRAC. Where these transactions involve the receipt of VC but cannot be reported using an LVCTR, they must be reported using the Suspicious Transaction Report (STR) with the IR2020 code.  Only completed transactions can be reported through an STR if the only reason for reporting is that the transaction is originating from or bound for Iran. An attempted transaction should only be reported when you have reasonable grounds to suspect that the transaction is related to the attempted commission of a money laundering or terrorist activity financing offence. 

Further to section 3(a) of the Ministerial Directive, you need to look at a variety of elements when determining whether a transaction originates from or is bound for Iran because the circumstances of each transaction are different. The exchange of VC for Iranian rial is not the only circumstance in which a VC transaction may fall under the Ministerial Directive. After you’ve considered the facts, contexts and indicators of a transaction and you determine it is subject to the Ministerial Directive, you must determine if the transaction(s) should be reported using the LVCTR or STR, as described above.

I’ve provided the reporting information for the scenarios you presented in your email:

    1. Virtual currency that originates from an identified virtual currency exchange in Iran.
      • Report the transaction in the STR with code IR2020.
    2. Virtual currency that originates from a wallet address identified as being in or from Iran.
      • When the conductor, beneficiary or third party address details list Iran as the country, and the transaction is not a VC exchange to Iranian rial, report the transaction in the STR with code IR2020.
    3. Travel rule information from the receiving client (or from a participant in the travel rule network) that sent the virtual currency from an address associated with an Iranian virtual currency exchange, or a person or entity in Iran that is not captured under the Ministerial Directive.
      • If a VC transaction has travel rule information that indicates it originates from or is bound for Iran and it does not meet the LVCTR criteria for the Ministerial Directive, the transaction must be reported using the STR with code IR2020.

So What Do I Need To Do?

What is important to understand in this clarification, is the obligation to report every transaction that has a nexus to Iran, such as originating from a VC exchange in Iran, and how that is to be reported. Where a transaction is not otherwise reportable to FINTRAC via an LVCTR, it must be reported using a Suspicious Transaction Report (STR) and the MD indicator IR2020 must be selected (we also suggest including IR2020 in the opening of the narrative in Section G). Transactions that are not otherwise reportable to FINTRAC include VC exchange transactions below the reporting threshold, as referenced in the response from FINTRAC.

Moving Forward

In order to ensure you are compliant with the MD obligation, a thorough lookback to June 1, 2021 for all VC transactions below the reporting threshold, that may have had a nexus with Iran, needs to be performed. Should transactions that should have been reported be found, a Voluntary Self-Disclosure of Non Compliance (VSDONC) should be submitted to FINTRAC. For more information on VSDONCs and how to complete one, please see our blog post on the topic.

Need a Hand?

If you are looking for help completing a lookback or would like a second set of eyes on a VSDONC, please feel free to contact us.

Proposed 2023 AML Changes: Mortgage Lenders and Armoured Car Services

Background

February seems to be the month for proposed legislative changes.

On February 18, 2023, draft amendments to the regulations under the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA), and a net-new draft regulation, were published in the Canada Gazette. If you’re the type that likes to read original legislative text, you can find it here. We (thanks Rodney) also created a redlined version of the regulations, with new content showing as tracked changes, which can be found here.

These changes are meant to renew and improve Canada’s anti-money laundering (AML) and Counter Terrorist Financing (CTF) regime, adapting to new money laundering (ML) and terrorist financing (TF) risk. One of the most significant changes, in our opinion, is the introduction of two new regulated entity types, mortgage lenders and armoured car companies.

Currently, mortgages issued by financial entities are captured under the PCMLTFA but these amendments would make all entities involved in the mortgage lending process (brokers responsible for mortgage origination, lenders responsible for underwriting the loan, and administrators responsible for servicing the loan) reporting entities. The intent here is to level the playing field between regulated and unregulated mortgage lenders, and to deter misuse of the sector for illicit activities.

While the activity of transportation is not currently supervised for AML purposes per se, armoured car carriers provide services largely to regulated entities. Given the flow of funds that is typically seen in this sector, reconciliation and identification of the origin of funds can sometimes be challenging, and allows funds to move with some degree of anonymity, which is an ML/TF vulnerability.

The draft regulations also introduce new requirements for correspondent banking relationships, and additional requirements related to the Money Services Business (MSB) registration. There are also some technical amendments related to existing reporting requirements and changes related to Administrative Monetary Penalties (AMPs).

Lastly, a new regulation would introduce a prescribed formula for the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to assess the expenses it incurs in the administration of the PCMLTFA against reporting entities. Such models are seen from other regulators, such as the Office of the Superintendent of Financial Institutions (OSFI) and the Financial Consumer Agency of Canada (FCAC). Currently, FINTRAC is funded through appropriations.

In the following sections, we have summarized what we feel are the most important requirements to note.

Armoured Car Companies

The proposed changes would require a company that engages in “transporting currency or money orders, traveller’s cheques or other similar negotiable instruments” (except for cheques payable to a named person or entity) to be considered an MSB. As such, the following obligations will have to be met:

  • Development of a compliance program;
  • Maintaining an up-to-date MSB registration with FINTRAC;
  • Conducting compliance effectiveness reviews;
  • Reporting certain transactions;
  • Identifying customers;
  • Record keeping;
  • Risk ranking customers and business relationships;
  • Conducting transaction monitoring and list screening;
  • Conducting enhanced due diligence and transaction monitoring for high-risk customers and business relationships; and
  • Follow ministerial directives and transaction restrictions.

One record keeping obligation to note, which is new for armoured car companies, is the requirement to record the following information when transporting CAD 1,000 or more of cash or virtual currency, or CAD 3,000 or more in money orders or similar negotiable instruments:

  • The date and location of collection and delivery;
  • The type and amount of cash, virtual currency or negotiable instrument transported;
  • The name and address of the person or entity that made the request, the nature of their principal business/occupation and, in the case of an individual, their date of birth;
  • The name and address, if known, of each beneficiary;
  • The number of every account affected by the transport, the type of account, and the name of the account holder;
  • Every reference number that is connected to the transport, and has a function; equivalent to that of an account number; and
  • The method of remittance.

An additional requirement that will apply to armoured car companies is in relation to PEP determinations (existing PEP requirements for MSBs still apply). Specifically, a PEP determination is required whenever a person requests that the MSB transport more than CAD 100,000 in cash or virtual currency, or in an amount that is not declared.

Under the proposed regulations, there are some exemptions for reporting that are noteworthy. Large Cash and Large Virtual Currency reporting requirements will not apply where there is an agreement of transportation between:

  • The Bank of Canada and a person or entity in Canada;
  • Two financial entities;
  • Two places of business of the same person or entity; or
  • Canadian currency coins for purposes of delivery under the Royal Canadian Mint.

It is noteworthy, based on the definition, that there may be more than just armoured car companies that are captured under these new requirements. This will be clarified in guidance from FINTRAC that will follow publication of the legislation.

The requirements applicable to armoured car companies will come into force eight months after final publication in the Canada Gazette.

Mortgage Lending

The proposed regulations would require mortgage lenders, brokers, and administrators (mortgage participants) to put in place compliance regimes, similar to that of other regulated entities, which include the following:

  • Development of a compliance program;
  • Conducting compliance effectiveness reviews;
  • Reporting certain transactions;
  • Identifying customers;
  • Keeping records;
  • Risk ranking customers and business relationships;
  • Conducting transaction monitoring and list screening;
  • Conducting enhanced due diligence and transaction monitoring for high-risk customers and business relationships; and
  • Follow ministerial directives and transaction restrictions.

It is noteworthy, that many mortgage brokers already have existing voluntary AML compliance programs and already apply AML measures. This is in part due to various securities regulations and lending partners.

The requirements applicable to mortgage lending will come into force six months after final publication in the Canada Gazette.

Cost Recovery

As part of this round of regulatory changes, there is a net-new regulation, the Financial Transactions and Reports Analysis Centre of Canada Assessment of Expenses Regulations. This regulation will allow FINTRAC to pass on expenses, to reporting entities, that it incurs in the administration of the PCMLTFA. Only the following prescribed entity types are affected by this:

  • Banks and authorized foreign banks;
  • Life insurance companies;
  • Trust and loan corporations; and
  • Every entity that made more than 500 threshold reports during the previous fiscal year.

The regulations provide a formula that FINTRAC would use to calculate the assessment amounts payable by reporting entities on the basis of their annual asset value, and the volume of all threshold transaction reports submitted. For clarity, threshold transaction reports include Large Cash Transaction Reports (LCTRs), Large Virtual Currency Transaction Reports (LVCTRs), Electronic Funds Transfer Reports (EFTRs), and Casino Disbursement Reports (CDRs).

The requirement would come into force on April 1, 2024. This means FINTRAC would commence recovering costs from the 2024-2025 fiscal year and forward.

Other Changes

Enhancing MSB registration

Under the proposed amendments, as part of MSB registration, MSBs would now need to include the telephone numbers and email addresses of its president, directors and every person who owns or controls 20% or more of the MSB. This is in addition to current required information. Additionally, the number of the MSB’s agents, mandataries and branches in each country will be added (currently, only those within Canada are required).

This requirement will come into force twelve months after final publication in the Canada Gazette.

Streamlining requirements for sending AMPs

Under the proposed amendments, FINTRAC would be allowed to serve a reporting entity solely by electronic means when issuing an AMP. Currently, FINTRAC would also have to send an additional copy by registered mail.

This requirement would come into force on registration.

What Next?

There is a 30 day comment period (ending March 20, 2023) for the proposed regulations. It is strongly recommended that industry, and potentially impacted companies, review carefully and provide feedback. Comments can be submitted online via the commenting feature after each section of the proposed changes, or via email directly to Julien Brazeau, Associate Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance, 90 Elgin Street, Ottawa, Ontario K1A 0G5.

We’re Here To Help

If you have questions related to the proposed changes, or need help starting to plan, you can get in touch using the online form on our website, by emailing us directly at info@outliercanada.com, or by calling us toll-free at 1-844-919-1623.

Return to Blog Listing