The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has issued a Ministerial Directive, effective February 24, 2024, addressing financial transactions associated with Russia. This measure aims to protect Canada’s financial system from potential risks related to money laundering, terrorist financing, and sanctions evasion.
Key Obligations for Notaries
High-Risk Classification: All financial transactions originating from or bound for Russia are deemed high risk, irrespective of the amount involved.
Client Identification: Notaries must verify the identity of any individual or entity initiating or benefiting from such transactions, regardless of the transaction’s value.
Enhanced Due Diligence: It’s imperative to ascertain the source and purpose of the funds, as well as to identify the beneficial ownership or control of entities involved.
Record-Keeping: Maintain comprehensive records of these transactions, including details about the source and purpose of the funds, in compliance with FINTRAC regulations.
Why This Matters
Implementing these measures is crucial to uphold the integrity of Canada’s financial system and to prevent the facilitation of illicit activities or sanctions evasion. Notaries play a vital role in ensuring compliance and safeguarding the financial landscape.
For comprehensive guidance, refer to FINTRAC’s official documentation here.
