FINTRAC's compliance frameworkFINTRAC's compliance framework (PDF version, 494 Kb)
FINTRAC's compliance program assists and assesses compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its Regulations.
Our guiding principles
- Transparency: FINTRAC provides information and makes our processes accessible to help you understand your obligations.
- Engagement: FINTRAC provides guidance and feedback through a broad range of engagement and outreach activities.
- Clarity: FINTRAC provides clear and concise information to help you meet your obligations.
Who must comply?
Businesses that have obligations under the PCMLTFA are:
- Agents of the Crown
- British Columbia notaries
- Dealers in precious metals and stones
- Financial entities
- Life insurance
- Money services businesses
- Real estate
- Securities dealers
What are the key obligations?
The obligations under the PCMLTFA and associated regulations require you to have the following elements in place:
- Compliance program
- Know your client
- Transactions reporting
- Record keeping
- Money services business registration
Pillars of our compliance framework
FINTRAC is committed to working with you to assist you in understanding and complying with the obligations. We provide assistance through a number of channels to help you implement an effective compliance program:
- Online publications
- Outreach and engagement
- Technical support
Means of assistance
We conduct outreach and engagement with various stakeholders, including industry associations and regulators, to explain obligations, provide updates, or discuss legislative and regulatory changes.
We also provide support through a Helpline (1-866-346-8722 option 4) and offer policy interpretation for specific questions.
We also provide technical information and technology support through FINTRAC's Helpdesk (1-866-346-8722 option 3).
FINTRAC fairly and objectively uses many different assessment tools to ensure that you are meeting your obligations:
- Desk or onsite examinations to assess your compliance program.
- Monitoring of financial transaction reports you submitted to FINTRAC.
- Validations to determine if you are subject to the PCMLTFA.
- Observation letters to highlight your improvements or program gaps.
- Compliance assessment reports to assess your progress in implementing a compliance program.
- We will contact you in advance.
- We will inform you of the areas that we will examine.
- We will send you a letter requesting detailed information.
- We hold an introductory interview with you.
- We review and assess your records, transactions and your processes.
- We conduct interviews with your employees.
- We hold an exit interview with you.
- We assess all facts provided to us during the examination.
- We send you a letter detailing our findings.
- We give you 30 days to provide additional information if we recommend a penalty.
When needed, FINTRAC uses a variety of enforcement tools to address non-compliance situations:
- Compliance meetings to identify and discuss non-compliance gaps with you.
- Findings letters to identify specific areas that require attention.
- Action plans and follow-up examinations to assess if previous non-compliance has been addressed.
- Administrative monetary penalties (AMP) that may be issued in cases of serious or repeated non-compliance.
- Non-compliance disclosures that FINTRAC can provide to law enforcement in cases of extensive non-compliance.
Administrative monetary penalties process
- We will review and assess the non-compliance findings.
- We will explain your violations and the factors taken into account for the penalty calculation.
- We will inform you on the recourses available to you.
- Details of your AMP, including your name, will be subject to publication.
- Date Modified: