Presentations to Reporting Entities

Slide 1: Presentation Overview

• Introduction
• Objectives of New Requirements
• MSB Registration
• Changes to Reporting
• Changes to Client Identification and Record Keeping
• New Due Diligence Measures
• Changes to Compliance Regime
• Administrative Monetary Penalty Regime
• Other Information

Slide 2: Introduction

• The PCMLTFA was amended in December 2006, authorizing the creation of new requirements through its related regulations:
  • Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
  • Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations
  • Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations.
• Most requirements become effective on June 23, 2008

Slide 3: Objectives of New PCMLTFA Requirements

• Strengthen existing AML/ATF regime and build on FINTRAC's experience
• Address existing gaps in the legislation and regulations
• Enhanced detection and deterrence of money laundering and terrorist financing
• Make illicit transactions more difficult to conduct
• Greater impact against organized crime and terrorists

Slide 4: Definition of a Money Services Business (MSB)

• Definition of MSB will include foreign exchange dealers
• An MSB means an individual or entity engaged in the business of any of the following activities:
  • Foreign exchange dealing;
  • Remitting or transmitting funds; or
  • Issuing or redeeming money orders, travellers cheques or similar negotiable instruments except for cheques payable to a named individual or entity

Slide 5: MSB Registration

• Effective June 23, 2008, all MSBs operating in Canada will have to be registered with FINTRAC.
• It will constitute an offence under the PCMLTFA to operate an unregistered money services business.

Slide 6: MSB Registration (cont'd)

• MSBs must renew their registration every two years.
• Must inform FINTRAC of changes or cessation of activities within 30 days.
• FINTRAC will act as registrar and can deny or revoke the registration.
• Registration is not a FINTRAC endorsement.

Slide 7: Registration Ineligibility Grounds

The following applicants are not eligible for registration:

1. Applicant is a listed person under the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism.
2. Applicant is a listed entity under the Criminal Code terrorism provisions
3. Applicant has been convicted of:
   • a money laundering or a terrorist activity financing offence.
   • a Proceeds of Crime (Money Laundering) and Terrorist Financing Act (on indictment)
   • a terrorism offence under the Criminal Code
   • an organized crime offence under the Criminal Code
   • a serious offences under the Criminal Code pertaining to fraudulent transactions (contracts and trade)
   • a serious offence under the Controlled Drugs and Substances Act (does not include simple possession).