FINTRAC recent updates and requirements

December 14, 2021
FINTRAC

FINTRAC guidance related to the Ministerial Directive on Financial Transactions Associated with the Islamic Republic of Iran issued on July 25, 2020

September 2021

This guidance is related to the Ministerial Directive (MD) issued by the Minister of Finance that was published in the Canada Gazette and came into force on July 25, 2020.

This guidance will answer the following questions:

Why was this MD issued?
When does this MD come into force and who does it apply to?
What are the requirements of this MD?
What records must you keep under this MD and what is the retention period?
How do you report the transactions captured under this MD?

Who must report

Reporting entities must report certain transactions including suspicious transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Reporting entities are:

British Columbia notaries

British Columbia notaries public and British Columbia notary corporations must fulfill specific obligations as required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations to help combat money laundering and terrorist activity financing in Canada. For the purpose of the PCMLTFA, a British Columbia notary public is a person who is a member of the Society of Notaries Public of British Columbia; and a British Columbia notary corporation is an entity that carries on the business of providing notary services to the public in British Columbia in accordance with the Notaries Act, R.S.B.C. 1996, c. 334.

Real estate brokers or sales representatives, and real estate developers

Real estate brokers or sales representatives, and real estate developers must fulfill specific obligations as required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations, to help combat money laundering and terrorist activity financing in Canada.

Financial entities

Financial entities must fulfill specific obligations as required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations to help combat money laundering and terrorist activity financing in Canada.

Life insurance companies, brokers and agents

Life insurance companies, brokers and agents must fulfill specific obligations as required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations, to help combat money laundering and terrorist activity financing in Canada.

Casinos

Casinos must fulfill specific obligations as required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations, to help combat money laundering and terrorist activity financing in Canada.

Providing voluntary information to FINTRAC

Penalties for non-compliance

Non-compliance with Parts 1 and 1.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act may result in criminal or administrative penalties. Both criminal and administrative monetary penalties (AMPs) cannot be issued against the same instances of non-compliance.