Further to our earlier bulletin titled “Further Proposed Changes to Canada’s AML Regime”, final versions of the Financial Transactions and Reports Analysis Centre of Canada Assessment of Expenses Regulations, the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and the Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations have now been published in Part II of the Canada Gazette.
These regulations, among other things:
- Bring businesses in the armoured car sector and mortgage lending entities within the scope of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. As a result, effective July 1, 2024 for the armoured car sector, and October 11, 2024 for mortgage lending entities, these businesses will be subject to a number of compliance obligations, including those related to developing a compliance program, client identification, reporting and record keeping. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has published new guidance to assist those in the armoured car sector and mortgage administrators, brokers and lenders understand their obligations and what they will need to do to comply with them.
- Require Canadian financial entities to conduct enhanced due diligence on foreign entities with which they have correspondent banking relationships, effective October 11, 2024.
In addition, beginning on April 1, 2024, FINTRAC will charge the following businesses and individuals annual fees as part of its assessment of expenses funding model:
- Canadian banks and authorized foreign banks;
- trust and loan companies;
- life insurance companies; and
- other businesses and individuals that submit 500 or more threshold transaction reports (such as casino disbursement reports, electronic funds transfer reports, large cash transaction reports, and large virtual currency transaction reports) to FINTRAC during a given fiscal year.
