Following last April’s Notice about amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR) and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties (PCMLTFAMP) Regulations, we wish to remind reporting entities that crowdfunding platforms and certain payment service providers are covered as money services businesses (MSBs) or foreign money services businesses (FMSBs) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
Please read our follow-up Notice to reporting entities on how businesses that are engaged in providing certain payment services have MSBs or FMSBs obligations under the PCMLTFA, including the need to register with FINTRAC. For detailed information about these obligations, see information about MSBs and FMSBs.
Further to these amendments, FINTRAC has retracted its positions with respect to merchant servicing and payment processing (PI-7670).
As payment services are not a prescribed service under the PCMLTFA, FINTRAC is taking the position that persons or entities that provide invoice payment services or payment services for goods and services are engaged in the business of remitting or transmitting funds, or dealing in virtual currency.
FINTRAC is currently working with businesses to register certain payment service providers over the next several weeks. The regulatory amendments and FINTRAC’s retraction of its previous position may also affect MSBs and FMSBs already registered with FINTRAC.
Registering with FINTRAC as an MSB or FMSB
Crowdfunding platforms that provide services to raise funds or virtual currency and certain payment service providers must register as MSBs or FMSBs.
MSBs and FMSBs that are already registered with FINTRAC, and which offer services now subject to the Act, must update their registration information to reflect this.
For information on how how to register as an MSB/FMSB, please visit the following pages on our website:
We understand that there will be challenges in meeting certain obligations. FINTRAC will be reasonable in its assessment and enforcement approach, and is committed to working with reporting entities subject to the PCMLTFA and its Regulations to increase their awareness, understanding and compliance with their obligations. Please continue to monitor our website for updates or additional guidance.
For questions, please contact FINTRAC by telephone at 1-866-346-8722 (toll free) or by email at email@example.com.
Financial Transactions and Reports Analysis Centre of Canada
24th floor, 234 Laurier Avenue West, Ottawa, Canada K1P 1H7
Government of Canada