Guidance

Individuals and entities that are designated as reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) have certain obligations to fulfill under the PCMLTFA and its associated Regulations. Each reporting entity has specific obligations to fulfill and all are required to develop and maintain a compliance program, know their client, report transactions and keep records.

FINTRAC is responsible for ensuring compliance with the PCMLTFA and associated Regulations. FINTRAC also provides guidance on the obligations set out by the PCMLTFA and associated Regulations and how individuals and entities can incorporate these obligations into their operations.

FINTRAC has published new suspicious transaction guidance: “What is a suspicious transaction report”, “Reporting suspicious transactions to FINTRAC” and sector-specific “Money laundering and terrorist financing indicators”. This guidance replaces “Guideline 2: Suspicious transactions”, “Guideline 3A: Submitting Suspicious Transaction Reports to FINTRAC electronically” and “Guideline 3B: Submitting Suspicious Transaction Reports to FINTRAC by paper”.

Overview and interpretation

Background information on FINTRAC and its role in detecting, deterring and preventing money laundering and terrorist activity financing in Canada, as well as FINTRAC’s Compliance framework. This section also provides policy interpretations of questions related to the PCMLTFA and its associated Regulations.

Compliance program requirements

A documented and comprehensive compliance program is the basis of meeting all of your obligations under the PCMLTFA and its associated Regulations.

Know your client requirements

Reporting entities must verify the identity of their clients for certain activities and transactions according to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR).

Transactions reporting requirements

Reporting entities are required to complete reports about certain transactions and property and submit them to FINTRAC. Financial transaction reports are critical to FINTRAC’s ability to develop and disseminate financial intelligence.

Record keeping requirements

You are responsible for keeping certain account, transaction and client identification records. These records are to be kept in such a way that they can be provided to FINTRAC within 30 days upon request.

Correspondent banking relationship requirements

If your business enters into a correspondent banking relationship with a foreign financial institution, you have specific obligations related to this agreement.

Foreign branches, subsidiaries and affiliates requirements

If you have foreign branches, foreign subsidiaries or affiliates, you have to develop policies to establish requirements with respect to record keeping and retention, and client identification.

Register your money services business (MSB)

Before beginning to operate in Canada, you must register your money services business (MSB) with FINTRAC.

Examinations

How FINTRAC conducts examinations to ensure compliance with the PCMLTFA and associated Regulations.  This section includes the FINTRAC Assessment Manual and provides information on submitting a voluntary self-declaration of non-compliance.

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 monetary penalties. For more information on penalties, you can also consult the Penalties for non-compliance page.


Please direct questions to guidelines-lignesdirectrices@canafe-fintrac.gc.ca.

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