Canada’s Fight Against Money Laundering: New Regulations and Funding Model

We’ve got some important updates in the world of finance and compliance. The Government of Canada recently announced new Regulations that are aimed at bolstering the country’s efforts to combat money laundering and terrorist financing. These changes not only introduce new obligations for specific sectors but also bring about a shift in how the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is funded. Let’s dive into the details.

New Obligations for Armoured Cars and Mortgage Sector

As of July 2024, there will be new obligations for businesses involved in transporting currency and negotiable instruments. This is a significant move to tighten the screws on anti-money laundering and anti-terrorist financing measures.

From October 2024 onwards, the mortgage sector will also experience a transformation. Mortgage administrators, brokers, and lenders will be required to comply with these new obligations. These changes are designed to create a more secure and transparent mortgage industry.

Additionally, starting in October 2024, financial entities entering into correspondent banking relationships will face additional requirements. This will further enhance the checks and balances in correspondent banking relationships, a crucial aspect of the financial system.

For more information on theses changes, consult: Modernization and upcoming changes impacting reporting entities. Keep an eye out for additional resources and information that will be provided to help businesses prepare for these new obligations.

Regulations for FINTRAC’s New Assessment of Expenses Funding Model

Starting from April 1, 2024, FINTRAC will change how it funds its compliance program. The following businesses and individuals will now be charged for the annual cost of compliance:

1. Banks to which the Bank Act applies, including authorized foreign banks.
2. Trust and loan companies under the Trust and Loan Companies Act.
3. Life insurance companies as defined by the Insurance Companies Act.
4. Other businesses and individuals that submit 500 or more threshold transaction reports to FINTRAC during a fiscal year. This includes reports like casino disbursement reports, electronic funds transfer reports, large cash transaction reports, and large virtual currency transaction reports.

If you fall into one of these categories, keep an eye on your inbox as FINTRAC will be in touch to provide more detailed information on the charges.

For a comprehensive look at how the assessment of expenses funding model will work, head over to FINTRAC’s website and check out the document titled “Charging reporting entities for FINTRAC’s compliance program”.

These changes are part of Canada’s ongoing commitment to protect its financial system from illicit activities and strengthen its financial security. Stay informed, stay compliant, and play your part in creating a safer and more transparent financial landscape.