If you have a place of business in Canada, see Money services businesses.
If you are unsure, see The difference between money services businesses and foreign money services businesses.
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) has been amended to include foreign money services businesses (FMSBs).
If you are an FMSB, as of June 1, 2020, you need to meet the following obligations:
- Register your business with FINTRAC;
- Report certain financial transactions to FINTRAC;
- Keep certain records;
- Identify clients; and
- Have a compliance program in place.
To begin the FMSB registration process, please complete and submit the Pre-registration form.
Who is an FMSB?
You are considered an FMSB if all of the following criteria apply:
- You are engaged in the business of providing at least one money services business (MSB) service;
- You do not have a place of business in Canada;
- You direct your MSB services at persons or entities in Canada; and
- You provide these services to clients in Canada.
1. You are engaged in the business of providing at least one MSB service
Foreign exchange dealing
— Conducting transactions where you exchange one type of currency for another (for example, exchanging USD for CAD).
Money transferring
— Remitting or transmitting funds from one individual or entity to another using an electronic funds transfer network or any other method such as Hawala, Hundi, Fei ch'ien, or Chitti.
Issuing or redeeming money orders, traveller's cheques or anything similar
— Your business issues or redeems money orders, travellers' cheques or other similar negotiable instruments. This does not include cashing cheques made out to a particular individual or entity.
- ISSUING
- To offer your own business's money orders or travellers cheques.
- REDEEMING
- To repurchase your own business's money orders or traveller's cheques by returning the purchase price to the buyer.
- SELLING OR CASHING
- To exclusively sell or cash money orders or traveller's cheques issued by another business does not make you an MSB.
Dealing in virtual currency
— Dealing in virtual currency includes both virtual currency exchange and virtual currency transfer services.
- Virtual currency exchange services include exchanging:
- funds for virtual currency;
- virtual currency for funds or;
- virtual currency for another virtual currency.
- Virtual currency transfer services include:
- transferring virtual currency at the request of a client; or
- receiving a transfer of virtual currency for remittance to a beneficiary.
2. You do not have a place of business in Canada
To not have a place of business in Canada means:
- You are not incorporated in Canada;
- You do not have a physical location in Canada; or,
- You do not have employees, agents or branches in Canada.

Note: If you provide MSB services and have a place of business in Canada, then you may be considered an MSB. Please see Money services businesses for additional information.
3. You direct services at persons or entities in Canada
A business is directing services at persons or entities in Canada if at least one of the following applies:
- The business's marketing or advertising is directed at persons or entities located in Canada;
- The business operates a ".ca" domain name; or,
- The business is listed in a Canadian business directory.
If none of the above apply to you, it is still possible that you are directing services at persons or entities in Canada. A combination of additional criteria may be considered in order to make this determination. For examples of additional criteria, please refer to Annex 1.
Examples of "directing services" at persons or entities in Canada:
- Company A is based in Australia but advertises its online money transfer and exchange services in Canadian newspapers and on websites aimed at clients in Canada who want to transfer or exchange money online. This would constitute directing services at persons or entities in Canada.
- Company B is based in France, but sends emails to clients in Canada, promoting its foreign exchange services. This would constitute directing services at persons or entities in Canada.
4. You provide these services to clients in Canada
A client is deemed to be "in Canada" if they have a connection or residential ties with Canada.
You can determine if your client is "in Canada" based on the information you acquire through your interactions with them, such as when verifying their identity. The client is "in Canada" when:
- the client's address is in Canada;
- the document or information used to verify the client's identity is issued by a Canadian province or territory, or by the federal government; or
- the client's banking, credit card or payment processing service is based in Canada.

Note: An individual may be deemed to be "in Canada" when they are temporarily living, attending school, working, or vacationing outside of Canada.
Please address questions about FMSBs to guidelines-lignesdirectrices@fintrac-canafe.gc.ca.
Your requirements
Your obligations as an FMSB will come into force at two different dates:
- The obligations that will apply to you on June 1st, 2020 are explained in detail below.
- On June 1st, 2021, additional requirements that currently apply to MSBs will also apply to FMSBs. Other amendments to the Regulations will come into force and apply to FMSBs. FINTRAC is currently updating its guidance to explain these obligations to FMSBs and this information will be made available on our website.
Register your FMSB
FMSBs must register with FINTRAC as of June 1st, 2020.
To register your FMSB with FINTRAC the following information must be provided with your completed registration form.
Police record check
You must provide FINTRAC with a criminal record check for the following individuals:
- your chief executive officer;
- your president;
- your directors; and
- each person who owns or controls, directly or indirectly, 20% or more of the entity or the shares of the entity.
If you operate your business yourself (e.g., you are a sole proprietor), you must provide this document about yourself. Police record checks must be issued by a competent authority in the country in which the individual resides.
Translation of the police record check
If the document is in a language other than English or French, it must be translated into English or French by a certified translator in Canada. You must obtain and provide the translation before you register.
This document is required to be translated by a certified Canadian translator. A certified translator is an individual that holds the title of professional certified translator granted by a Canadian provincial or territorial association or body that is competent under Canadian provincial or territorial law to issue such certification.
The following is a list of Canadian associations:
- Association of Translators and Interpreters of Alberta (ATIA)
- Society of Translators and Interpreters of British Columbia (STIBC)
- Association of Translators, Terminologists and Interpreters of Manitoba (ATIM)
- Corporation of Translators, Terminologists and Interpreters of New Brunswick (CTINB)
- Association of Translators and Interpreters of Nova Scotia (ATINS)
- Association of Translators and Interpreters of Ontario (ATIO)
- Association of Translators and Interpreters of Saskatchewan (ATIS)
- L'ordre des traducteurs, terminologues et interprètes agréés du Québec (OTTIAQ)
You must provide the Statement of certification
FINTRAC requires proof that the translated document was issued from a competent and certified translator. This proof can be a certificate of authenticity signed by the certified translator, and containing the translator's stamp, or the translator's membership number from one of the above-mentioned professional translation associations.

Note: We recommend that you scan your three documents into one PDF file for your submission. If the documents are illegible or unclear, FINTRAC will not be able to process your form and will request that you resubmit the documents.
Document submission recommendation
Representative for service in Canada
FMSBs must designate a representative for service in Canada and provide FINTRAC with the name and contact details of this person. This representative must reside in Canada and be authorized to accept, on behalf of your business, FINTRAC related notices and inquiries.
Note that it is the FMSB, and not the representative for service in Canada, who is responsible for meeting the obligations under the PCMLTFA and associated Regulations.

Note: Financial entities (such as banks) may ask you questions regarding your business and whether or not you are registered with FINTRAC. Under the PCMLTFA and associated Regulations, financial entities must ensure that FMSBs for which they open an account, or with which they have a correspondent banking relationship, are registered with FINTRAC.
For further information on registration, see Register your money services business.
Compliance program
A comprehensive and effective compliance program is the basis of meeting all of your obligations under the PCMLTFA and associated Regulations. During a FINTRAC examination, it is important to demonstrate that the required documentation is in place and that employees, agents, and all others authorized to act on your behalf are well trained and can effectively implement all the elements of your compliance program. A senior officer must approve the compliance program and the compliance officer must have the necessary authority to carry out the requirements of the program. You must:
- appoint a compliance officer responsible for the implementation and oversight of the compliance program;
- develop and apply written compliance policies and procedures that are kept up to date and approved by a senior officer;
- apply and document a risk assessment , including mitigation measures and strategies;
- develop and maintain a written training program for employees, agents, and others authorized to act on your behalf;
- review your compliance program (policies and procedures, risk assessment and training program) every two years for the purpose of testing its effectiveness.
See the Compliance program requirements guidance and the Risk assessment guidance for more information.
Know your client
FMSBs must verify the identity of their clients for certain activities and transactions following the methods prescribed the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR). Starting on June 1st, 2020, you will need to verify the identity of your clients for the purpose of submitting suspicious transaction reports (STRs) to FINTRAC.
- You must take reasonable measures to identify individuals who conduct or attempt to conduct suspicious transactions before submitting an STR. Reasonable measures may include asking the individual to provide photo identification.
- You must take reasonable measures to identify clients conducting or attempting to conduct suspicious transactions, even in the case of transactions that are normally exempt from client identity requirements.
Reporting
FMSBs 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 analyze transactions which leads to the development of the financial intelligence that is disclosed to law enforcement and partner agencies. Because these reports are critical, the quality of your reporting will be reviewed in examinations.
As of June 1st, 2020, you will need to report the following transactions:
Suspicious transactions: After determining that there are reasonable grounds to suspect that a transaction or an attempted transaction is related to the commission or attempted commission of a money laundering or terrorist financing offence, you must submit a suspicious transaction report (STR) as soon as practicable. The following guidance explains how to identify and report STRs. See What is a suspicious transaction report?, Reporting suspicious transactions to FINTRAC and Money laundering and terrorist financing indicators - Money services businesses.
Terrorist property: When you know or believe that property in your possession or under your control is owned, controlled by or on behalf of a terrorist group or listed person or entity, you must disclose this information to the Royal Canadian Mounted Police (RCMP), the Canadian Security Intelligence Service (CSIS) and submit a Terrorist Property Report (TPR) to FINTRAC without delay. See Guideline 5: Submitting Terrorist Property Reports.
If you have a computer and an internet connection, you must submit STRs to FINTRAC electronically. TPRs can only be submitted by mail or by fax at 1-866-226-2346.
Record keeping
You are required to keep certain records. They must be kept in such a way that they can be provided to FINTRAC within 30 days if required to do so. As of June 1st, 2020, you will need to keep the following records:
Client verification records: When you verify the identity of a client using one of the prescribed methods, you must record certain information. For more information, see the Methods to verify the identity of an individual and confirm the existence of a corporation or an entity other than a corporation.
Retention: You must keep a record of the information recorded while verifying a client’s identity for at least five years from the date it was created.
Suspicious transaction report records: If you submit an STR to FINTRAC, you must keep a copy of it. This includes STRs for both completed and attempted transactions.
Retention: You must keep STR records for at least five years from the date the report was submitted.
Reasonable measures records: When reasonable measures were taken, but were unsuccessful, you must keep a record. A reasonable measure is unsuccessful when you do not obtain a response, such as a yes or no, and you are unable to make a conclusive determination.
When reasonable measures are unsuccessful, you must record the following information:
- the measures taken;
- the date on which each measure was taken; and
- the reasons why the measures were unsuccessful.
You must outline the reasonable measures that you take in your compliance program’s policies and procedures as outlined by the PCMLTFA and associated Regulations.
Retention: You must keep records of unsuccessful reasonable measures for at least five years following the date they were created.
If you do not meet all of these obligations, you may be assessed, or incur penalties or other consequences.
Glossary
FINTRAC has created a Guidance glossary that defines certain terms used throughout its guidance documents.
ANNEX 1: Examples of additional criteria
The following list provides examples of additional criteria that may be considered when determining whether you "direct services at persons or entities in Canada". This is not an exhaustive list.
- Describing your services as being offered in Canada.
- Offering products or services in Canadian dollars.
- Customer service support is available to clients in Canada.
- If you seek feedback from your clients in Canada.
- Having another business in Canada promote your services to clients in Canada.
Definitions
- Accountant
A chartered accountant, a certified general accountant, a certified management accountant or, if applicable, a chartered professional accountant.Footnote 1 (comptable)
- Accounting firm
An entity that is engaged in the business of providing accounting services to the public and has at least one partner, employee or administrator that is an accountant.Footnote 2 (cabinet d'expertise comptable)
- Act
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).Footnote 3 (la Loi)
- Administrative monetary penalties (AMPs)
Civil penalties that may be issued to reporting entities by FINTRAC for non-compliance with the PCMLTFA and associated Regulations. (pénalité administrative pécuniaire [PAP])
- Affiliate
An entity is affiliated with another entity if one of them is wholly owned by the other, if both are wholly owned by the same entity or if their financial statements are consolidated.Footnote 4 (entité du même groupe)
- Annuity
Has the same meaning as in subsection 248(1) of the Income Tax ActFootnote 5 (rente)
- As soon as practicable
A time period that falls in-between immediately and as soon as possible, within which a suspicious transaction report (STR) must be submitted to FINTRAC. The completion and submission of the STR should take priority over other tasks. In this context, the report must be completed promptly, taking into account the facts and circumstances of the situation. While some delay is permitted, it must have a reasonable explanation. (aussitôt que possible)
- Attempted transaction
Occurs when an individual or entity starts to conduct a transaction that is not completed. For example, a client or a potential client walks away from conducting a $10,000 cash deposit. (opération tentée)
- Authentic
In respect of a government-issued photo identification document that is used to verify identity, is genuine and has the character of an original, credible, and reliable document issued by the competent authority (such as federal, provincial, or territorial governments). (authentique)
- Authorized person
A person who is authorized under subsection 45(2).Footnote 6 (personne autorisée)
- Authorized user
A person who is authorized by a holder of a prepaid payment product account to have electronic access to funds or virtual currency available in the account by means of a prepaid payment product that is connected to it.Footnote 7 (utilisateur autorisé)
- Beneficial Owner(s)
Beneficial owners are the individuals who are the trustees, and known beneficiaries and settlors of a trust, or who directly or indirectly own or control 25% or more of i) the shares of a corporation or ii) an entity other than a corporation or trust, such as a partnership. The ultimate beneficial owner(s) cannot be another corporation or entity; it must be the actual individual(s) who owns or controls the entity. (bénéficiaire effectif)
- Beneficiary
A beneficiary is the individual or entity that will ultimately benefit from a transaction and to which the final remittance is made. (bénéficiaire)
- Branch
A branch is a part of your business at a distinct location other than your main office. (succursale)
- British Columbia notary corporation
An entity that carries on the business of providing notary services to the public in British Columbia in accordance with the Notaries Act, R.S.B.C. 1996, c. 334.Footnote 8 (société de notaires de la Colombie-Britannique)
- British Columbia notary public
A person who is a member of the Society of Notaries Public of British Columbia.Footnote 9 (notaire public de la Colombie-Britannique)
- Cash
Coins referred to in section 7 of the Currency Act, notes issued by the Bank of Canada under the Bank of Canada Act that are intended for circulation in Canada or coins or bank notes of countries other than Canada.Footnote 10 (espèces)
- Casino
A government, organization, board or operator that is referred to in any of paragraphs 5(k) to (k.3) of the Act.Footnote 11 (casino)
- Certified translator
An individual that holds the title of professional certified translator granted by a Canadian provincial or territorial association or body that is competent under Canadian provincial or territorial law to issue such certification. (traducteur agréé)
- Clarification request
A clarification request is a method used to communicate with money services businesses (MSBs) or foreign money services businesses (FMSBs) when FINTRAC needs more information about their registration form. This request is usually sent by email. (demande de précisions)
- Client
A person or entity that engages in a financial transaction with another person or entity.Footnote 12 (client)
- Client identification information
The identifying information that you have obtained on your clients, such as name, address, telephone number, occupation or nature of principal business, and date of birth for an individual. (renseignements d'identification du client)
- Competent authority
For the purpose of the criminal record check submitted with an application for registration, a competent authority is any person or organization that has the legally delegated or invested authority, capacity, or power to issue criminal record checks. (autorité compétente)
- Completed transaction
Is a transaction conducted by a person or entity, that is completed and results in the movement of funds, virtual currency, or the purchase or sale of an asset. (opération effectuée)
- Compliance officer
The individual, with the necessary authority, that you appoint to be responsible for the implementation of your compliance program. (agent de conformité)
- Compliance policies and procedures
Written methodology outlining the obligations applicable to your business under the PCMLTFA and its associated Regulations and the corresponding processes and controls you put in place to address your obligations. (politiques et procédures de conformité)
- Compliance program
All elements (compliance officer, policies and procedures, risk assessment, training program, effectiveness review) that you, as a reporting entity, are legally required to have under the PCMLTFA and its associated Regulations to ensure that you meet all your obligations. (programme de conformité)
- Context
Clarifies a set of circumstances or provides an explanation of a situation or financial transaction that can be understood and assessed. (contexte)
- Correspondent banking relationship
A relationship created by an agreement or arrangement under which an entity referred to in any of paragraphs 5(a), (b), (d) and (e) or an entity that is referred to in section 5 of the Act and that is prescribed undertakes to provide to a foreign financial institution services such as international electronic funds transfers, cash management, cheque clearing and any prescribed services.Footnote 13 (relation de correspondant bancaire)
- Country of residence
The country where an individual has lived continuously for 12 months or more. The individual must have a dwelling in the country concerned. For greater certainty, a person only has one country of residence no matter how many dwelling places they may have, inside or outside of that country. (pays de résidence)
- Credit card acquiring business
A credit card acquiring business is a financial entity that has an agreement with a merchant to provide the following services:
- enabling a merchant to accept credit card payments by cardholders for goods and services and to receive payments for credit card purchases;
- processing services, payment settlements and providing point-of-sale equipment (such as computer terminals); and
- providing other ancillary services to the merchant.
- Credit union central
A central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act, or a credit union central or a federation of credit unions or caisses populaires that is regulated by a provincial Act other than one enacted by the legislature of Quebec.Footnote 14 (centrale de caisses de crédit)
- Current
In respect of a document or source of information that is used to verify identity, is up to date, and, in the case of a government-issued photo identification document, must not have been expired when the ID was verified. (à jour)
- Dealer in precious metals and stones
A person or entity that, in the course of their business activities, buys or sells precious metals, precious stones or jewellery. It includes a department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province when the department or the agent or mandatary carries out the activity, referred to in subsection 65(1), of selling precious metals to the public.Footnote 15 (négociant en métaux précieux et pierres précieuses)
- Deferred profit sharing plan
Has the same meaning as in subsection 248(1) of the Income Tax Act.Footnote 16 (régime de participation différée aux bénéfices)
- Deposit slip
A record that sets out:Footnote 17
- (a) the date of the deposit;
- (b) the name of the person or entity that makes the deposit;
- (c) the amount of the deposit and of any part of it that is made in cash;
- (d) the method by which the deposit is made; and
- (e) the number of the account into which the deposit is made and the name of each account holder.
- Directing Services
A business is directing services at persons or entities in Canada if at least one of the following applies:
- The business's marketing or advertising is directed at persons or entities located in Canada;
- The business operates a ".ca" domain name; or,
- The business is listed in a Canadian business directory.
Additional criteria may be considered, such as if the business describes its services being offered in Canada or actively seeks feedback from persons or entities in Canada. (diriger des services)
- Distributed ledger
For the purpose of section 151 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR), a digital ledger that is maintained by multiple persons or entities and that can only be modified by a consensus of those persons or entities. Footnote 18 (registres distribués)
- Disposition
With respect to a reportable transaction, the disposition is what the funds or virtual currency was used for. For example, an individual arrives at a bank with cash and purchases a bank draft. The disposition is the purchase of the bank draft. (répartition)
- Electronic funds transfer
The transmission—by any electronic, magnetic or optical means—of instructions for the transfer of funds, including a transmission of instructions that is initiated and finally received by the same person or entity. In the case of SWIFT messages, only SWIFT MT-103 messages and their equivalent are included. It does not include a transmission or instructions for the transfer of funds: Footnote 19
- (a) that is carried out by means of a credit or debit card or a prepaid payment product if the beneficiary has an agreement with the payment service provider that permits payment by that means for the provision of goods and services;
- (b) that involves the beneficiary withdrawing cash from their account;
- (c) that is carried out by means of a direct deposit or pre-authorized debit;
- (d) that is carried out by cheque imaging and presentment
- (e) that is both initiated and finally received by persons or entities that are acting to clear or settle payment obligations between themselves; or
- (f) that is initiated or finally received by a person or entity referred to in paragraphs 5(a) to (h.1) of the Act for the purpose of internal treasury management, including the management of their financial assets and liabilities, if one of the parties to the transaction is a subsidiary of the other or if they are subsidiaries of the same corporation.
- Employees profit sharing plan
Has the same meaning as in subsection 248(1) of the Income Tax Act.Footnote 20 (régime de participation des employés aux bénéfices)
- Entity
A body corporate, a trust, a partnership, a fund or an unincorporated association or organization.Footnote 21 (entité)
- Facts
Actual events, actions, occurrences or elements that exist or are known to have happened or existed. Facts are not opinions. For example, facts surrounding a transaction or multiple transactions could include the date, time, location, amount or type of transaction or could include the account details, particular business lines, or the client's financial history. (faits)
- Family member
For the purposes of subsection 9.3(1) of the Act, a prescribed family member of a politically exposed foreign person, a politically exposed domestic person or a head of an international organization is:Footnote 22
- (a) their spouse or common-law partner;
- (b) their child;
- (c) their mother or father;
- (d) the mother or father of their spouse or common-law partner; or
- (e) a child of their mother or father.
- Fiat currency
A currency that is issued by a country and is designated as legal tender in that country.Footnote 23 (monnaie fiduciaire)
- Final receipt
In respect of an electronic funds transfer, means the receipt of the instructions by the person or entity that is to make the remittance to a beneficiary.Footnote 24 (destinataire)
- Financial entity
Means: Footnote 25
- (a) an entity that is referred to in any of paragraphs 5(a), (b) and (d) to (f) of the Act;
- (b) a financial services cooperative;
- (c) a life insurance company, or an entity that is a life insurance broker or agent, in respect of loans or prepaid payment products that it offers to the public and accounts that it maintains with respect to those loans or prepaid payment products, other than:
- (i) loans that are made by the insurer to a policy holder if the insured person has a terminal illness that significantly reduces their life expectancy and the loan is secured by the value of an insurance policy;
- (ii) loans that are made by the insurer to the policy holder for the sole purpose of funding the life insurance policy; and
- (iii) advance payments to which the policy holder is entitles that are made to them by the insurer;
- (d) a credit union central when it offers financial services to a person, or to an entity that is not a member of that credit union central; and
- (e) a department, or an entity that is an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province, when it carries out an activity referred to in section 76.
- Financial Action Task Force
The Financial Action Task Force on Money Laundering established in 1989.Footnote 26 (Groupe d'action financière)
- Financial services cooperative
A financial services cooperative that is regulated by an Act respecting financial services cooperatives, CQLR, c. C-67.3, other than a caisse populaire.Footnote 27 (coopérative de services financiers)
- Foreign currency
A fiat currency that is issued by a country other than Canada.Footnote 28 (devise)
- Foreign currency exchange transaction
An exchange, at the request of another person or entity, of one fiat currency for another. Footnote 29 (opération de change en devise)
- Foreign currency exchange transaction ticket
A record respecting a foreign currency exchange transaction—including an entry in a transaction register—that sets out: Footnote 30
- (a) the date of the transaction;
- (b) in the case of a transaction of $3,000 or more, the name and address of the person or entity that requests the exchange, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
- (c) the type and amount of each of the fiat currencies involved in the payment made and received by the person or entity that requests the exchange;
- (d) the method by which the payment is made and received;
- (e) the exchange rates used and their source;
- (f) the number of every account that is affected by the transaction, the type of account and the name of each account holder; and
- (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number.
- Foreign money services business
Persons and entities that do not have a place of business in Canada, that are engaged in the business of providing at least one of the following services that is directed at persons or entities in Canada, and that provide those services to their clients in Canada: Footnote 31
- (i) foreign exchange dealing,
- (ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,
- (iii) issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments except for cheques payable to a named person or entity,
- (iv) dealing in virtual currencies, or
- (v) any prescribed service.
- Foreign state
Except for the purposes of Part 2 of the Act, means a country other than Canada and includes any political subdivision or territory of a foreign state.Footnote 32 (État étranger)
- Funds
Means:
- (a) cash and other fiat currencies, and securities, negotiable instruments or other financial instruments that indicate a title or right to or interest in them; or
- (b) a private key of a cryptographic system that enables a person or entity to have access to a fiat currency other than cash.
For greater certainty, it does not include virtual currency.Footnote 33 (fonds)
- Head of an international organization
A person who, at a given time, holds—or has held within a prescribed period before that time—the office or position of head of an international organization that is established by the governments of states or the head of an institution of any such organization.Footnote 34 (dirigeant d'une organisation internationale)
- Information record
A record that sets out the name and address of a person or entity and:Footnote 35
- (a) in the case of a person, their date of birth and the nature of their principal business or their occupation; and
- (b) in the case of an entity, the nature of its principal business.
- Initiation
In respect of an electronic funds transfer, means the first transmission of the instructions for the transfer of funds.Footnote 36 (amorcer)
- Institutional trust
For the purpose of section 15 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR), means a trust that is established by a corporation or other entity for a particular business purpose and includes a pension plan trust, a pension master trust, a supplemental pension plan trust, a mutual fund trust, a pooled fund trust, a registered retirement savings plan trust, a registered retirement income fund trust, a registered education savings plan trust, a group registered retirement savings plan trust, a deferred profit sharing plan trust, an employee profit sharing plan trust, a retirement compensation arrangement trust, an employee savings plan trust, a health and welfare trust, an unemployment benefit plan trust, a foreign insurance company trust, a foreign reinsurance trust, a reinsurance trust, a real estate investment trust, an environmental trust and a trust established in respect of endowment, a foundation or a registered charity.Footnote 37 (fiducie institutionnelle)
- International electronic funds transfer
An electronic funds transfer other than for the transfer of funds within Canada.Footnote 38 (télévirement international)
- Inter vivos trust
A personal trust, other than a trust created by will. Footnote 39 (fiducie entre vifs)
- Jewellery
Objects that are made of gold, silver, palladium, platinum, pearls or precious stones and that are intended to be worn as a personal adornment.Footnote 40 (bijou)
- Large cash transaction record
A record that indicates the receipt of an amount of $10,000 or more in cash in a single transaction and that contains the following information:Footnote 41
- (a) the date of the receipt;
- (b) if the amount is received for deposit into an account, the number of the account, the name of each account holder and the time of the deposit or an indication that the deposit is made in a night deposit box outside the recipient's normal business hours;
- (c) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
- (d) the type and amount of each fiat currency involved in the receipt;
- (e) the method by which the cash is received;
- (f) if applicable, the exchange rates used and their source;
- (g) the number of every other account that is affected by the transaction, the type of account and the name of each account holder
- (h) every reference number that is connected to the transaction and has a function equivalent to that of an account number;
- (i) the purpose of the transaction;
- (j) the following details of the remittance of, or in exchange for, the cash received:
- (i) the method of remittance;
- (ii) if the remittance is in funds, the type and amount of each type of funds involved;
- (iii) if the remittance is not in funds, the type of remittance and its value, if different from the amount of cash received; and
- (iv) the name of every person or entity involved in the remittance and their account number or policy number or, if they have no account number or policy number, their identifying number; and
- (k) if the amount is received by a dealer in precious metals and precious stones for the sale of precious metals, precious stones or jewellery:
- (i) the type of precious metals, precious stones or jewellery;
- (ii) the value of the precious metals, precious stones or jewellery, if different from the amount of cash received, and
- (iii) the wholesale value of the precious metals, precious stones or jewellery.
- Large virtual currency transaction record
A record that indicates the receipt of an amount of $10,000 or more in virtual currency in a single transaction and that contains the following information:Footnote 42
- (a) the date of the receipt;
- (b) if the amount is received for deposit into an account, the name of each account holder;
- (c) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
- (d) the type and amount of each virtual currency involved in the receipt;
- (e) the exchange rates used and their source;
- (f) the number of every other account that is affected by the transaction, the type of account and the name of each account holder;
- (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number;
- (h) every transaction identifier, including the sending and receiving addresses; and
- (i) if the amount is received by a dealer in precious metals and precious stones for the sale of precious metals, precious stones or jewellery:
- (i) the type of precious metals, precious stones or jewellery;
- (ii) the value of the precious metals, precious stones or jewellery, if different from the amount of virtual currency received; and
- (iii) the wholesale value of the precious metals, precious stones or jewellery
- Life insurance broker or agent:
A person or entity that is authorized under provincial legislation to carry on the business of arranging contracts of life insurance.Footnote 43 (représentant d'assurance-vie)
- Life insurance company
A life company or foreign life company to which the Insurance Companies Act applies or a life insurance company regulated by a provincial Act.Footnote 44 (société d'assurance-vie)
- Listed person
Has the same meaning as in section 1 of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism.Footnote 45 (personne inscrite)
- Marketing or Advertising
When a person or entity uses promotional materials such as advertisements, graphics for websites or billboards, etc., with the intent to promote money services business (MSB) services and to acquire business from persons or entities in Canada. (marketing ou publicité)
- Minister
In relation to sections 24.1 to 39, the Minister of Public Safety and Emergency Preparedness and, in relation to any other provision of this Act, the Minister of Finance.Footnote 46 (ministre)
- Money laundering offence
An offence under subsection 462.31(1) of the Criminal Code.Footnote 47 The United Nations defines money laundering as "any act or attempted act to disguise the source of money or assets derived from criminal activity." Essentially, money laundering is the process whereby "dirty money"—produced through criminal activity—is transformed into "clean money," the criminal origin of which is difficult to trace. (infraction de recyclage des produits de la criminalité)
- Money laundering and terrorist financing indicators (ML/TF indicators)
Potential red flags that could initiate suspicion or indicate that something may be unusual in the absence of a reasonable explanation. [Indicateurs de blanchiment d'argent (BA) et de financement du terrorisme (FT) (indicateurs de BA/FT)]
- Money services business
A person or entity that has a place of business in Canada and that is engaged in the business of providing at least one of the following services: Footnote 48
- (i) foreign exchange dealing,
- (ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,
- (iii) issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments except for cheques payable to a named person or entity,
- (iv) dealing in virtual currencies, or
- (v) any prescribed service.
- Money services business agent
An individual or entity authorized to deliver services on behalf of a money services business (MSB). It is not an MSB branch. (mandataire d'une entreprise de services monétaires)
- Nature of principal business
An entity's type or field of business. Also applies to an individual in the case of a sole proprietorship. (nature de l'entreprise principale)
- New developments
Changes to the structure or operations of a business when new services, activities, or locations are put in place. For example, changes to a business model or business restructuring. (nouveaux développements)
- New technologies
The adoption of a technology that is new to a business. For example, when a business adopts new systems or software such as transaction monitoring systems or client onboarding and identification tools. (nouvelles technologies)
- No apparent reason
There is no clear explanation to account for suspicious behaviour or information. (sans raison apparente)
- Occupation
The job or profession of an individual. (profession ou métier)
- Person
An individual.Footnote 49 (personne)
- Politically exposed domestic person
A person who, at a given time, holds—or has held within a prescribed period before that time—one of the offices or positions referred to in any of paragraphs (a) to (j) in or on behalf of the federal government or a provincial government or the office or position referred to in paragraph (k) in a municipal government:Footnote 50
- (a) Governor General, lieutenant governor or head of government;
- (b) member of the Senate or House of Commons or member of a legislature;
- (c) deputy minister or equivalent rank;
- (d) ambassador, or attaché or counsellor of an ambassador;
- (e) military officer with a rank of general or above;
- (f) president of a corporation that is wholly owned directly by Her Majesty in right of Canada or a province;
- (g) head of a government agency;
- (h) judge of an appellate court in a province, the Federal Court of Appeal or the Supreme Court of Canada;
- (i) leader or president of a political party represented in a legislature;
- (j) holder of any prescribed office or position; or
- (k) mayor
- Politically exposed foreign person
A person who holds or has held one of the following offices or positions in or on behalf of a foreign state:Footnote 51
- (a) head of state or head of government;
- (b) member of the executive council of government or member of a legislature;
- (c) deputy minister or equivalent rank;
- (d) ambassador, or attaché or counsellor of an ambassador;
- (e) military officer with a rank of general or above;
- (f) president of a state-owned company or a state-owned bank;
- (g) head of a government agency;
- (h) judge of a supreme court, constitutional court or other court of last resort;
- (i) leader or president of a political party represented in a legislature; or
- (j) holder of any prescribed office or position.
- Possibility
In regards to completing a suspicious transaction report (STR), the likelihood that a transaction may be related to a money laundering/terrorist financing (ML/TF) offence. For example, based on your assessment of facts, context and ML/TF indicators you have reasonable grounds to suspect that a transaction is related to the commission or attempted commission of an ML/TF offence. (possibilité)
- Precious metal
Gold, silver, palladium or platinum in the form of coins, bars, ingots or granules or in any other similar form.Footnote 52 (métal précieux)
- Precious stones
Diamonds, sapphires, emeralds, tanzanite, rubies or alexandrite.Footnote 53 (pierre précieuse)
- Prepaid payment product
A product that is issued by a financial entity and that enables a person or entity to engage in a transaction by giving them electronic access to funds or virtual currency paid to a prepaid payment product account held with the financial entity in advance of the transaction. It excludes a product that: Footnote 54
- (a) enables a person or entity to access a credit or debit account or one that is issued for use only with particular merchants; or
- (b) is issued for single use for the purposes of a retail rebate program.
- Prepaid payment product account
An account – other than an account to which only a public body or, if doing so for the purposes of humanitarian aid, a registered charity as defined in subsection 248(1) of the Income Tax Act, can add funds or virtual currency – that is connected to a prepaid payment product and that permits:Footnote 55
- (a) funds or virtual currency that total $1,000 or more to be added to the account within a 24-hour period; or
- (b) a balance of funds or virtual currency of $1,000 or more to be maintained.
- Prescribed
Prescribed by regulations made by the Governor in Council.Footnote 56 (Version anglaise seulement)
- Probability
The likelihood in regards to completing a suspicious transaction report (STR) that a financial transaction is related to a money laundering/terrorist financing (ML/TF) offence. For example, based on facts, having reasonable grounds to believe that a transaction is probably related to the commission or attempted commission of an ML/TF offence. (probabilité)
- Production order
A judicial order that compels a person or entity to disclose records to peace officers or public officers. (ordonnance de communication)
- Public body
Means
- (a) a department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province;
- (b) an incorporated city or town, village, metropolitan authority, township, district, county, rural municipality or other incorporated municipal body in Canada or an agent or mandatary in Canada of any of them; and
- (c) an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority under the Excise Tax Act, or an agent or mandatary of such an organization.Footnote 57
- Real estate broker or sales representative
A person or entity that is authorized under provincial legislation to act as an agent or mandatary for purchasers or vendors in respect of the purchase or sale of real property or immovables.Footnote 58 (courtier ou agent immobilier)
- Real estate developer
A person or entity that, in any calendar year after 2007, has sold to the public, other than in the capacity of a real estate broker or sales representative: Footnote 59
- (a) five or more new houses or condominium units;
- (b) one or more new commercial or industrial buildings; or
- (c) one or more new multi-unit residential buildings each of which contains five or more residential units, or two or more new multi-unit residential buildings that together contain five or more residential units.
- Reasonable measures
Steps taken to achieve a desired outcome, even if they do not result in the desired outcome. For example, this can include doing one or more of the following:
- asking the client,
- conducting open source searches,
- retrieving information already available, including information held in non-digital formats, or
- consulting commercially available information.
- Receipt of funds record
A record that indicates the receipt of an amount of funds and that contains the following information: Footnote 60
- (a) the date of the receipt;
- (b) if the amount is received from a person, their name, address and date of birth and the nature of their principal business or their occupation;
- (c) if the amount is received from or on behalf of an entity, the entity's name and address and the nature of their principal business;
- (d) the amount of the funds received and of any part of the funds that is received in cash;
- (e) the method by which the amount is received;
- (f) the type and amount of each fiat currency involved in the receipt;
- (g) if applicable, the exchange rates used and their source;
- (h) the number of every account that is affected by the transaction in which the receipt occurs, the type of account and the name of each account holder;
- (i) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
- (j) every reference number that is connected to the transaction and has a function equivalent to that of an account number; and
- (k) the purpose of the transaction.
- Registered pension plan
Has the same meaning as in subsection 248(1) of the Income Tax Act.Footnote 61 (régime de pension agréé)
- Registered retirement income fund
Has the same meaning as in subsection 248(1) of the Income Tax Act.Footnote 62 (fonds enregistré de revenu de retraite)
- Reliable
In respect of information that is used to verify identity, means that the source is well known, reputable, and is considered one that you trust to verify the identity of the client. (fiable)
- Representative for service
An individual in Canada that has been appointed by a person or entity that is a foreign money services business (FMSB), pursuant to the PCMLTFA, to receive notices and documents on behalf of the FMSB. (représentant du service)
- Risk assessment
The review and documentation of potential money laundering/terrorist financing risks in order to help a business establish policies, procedures and controls to detect and mitigate these risks and their impact. (évaluation des risques)
- Securities dealer
A person or entity that is referred to in paragraph 5(g) of the Act.Footnote 63 (courtier en valeurs mobilières)
- Senior officer
In respect of an entity, means: Footnote 64
- (a) a director of the entity who is one of its full-time employees;
- (b) the entity's chief executive officer, chief operating officer, president, secretary, treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary, or any person who performs any of those functions; or
- (c) any other officer who reports directly to the entity's board of directors, chief executive officer or chief operating officer.
- Service agreement
An agreement between a money services business (MSB) and an organization according to which the MSB will provide any of the following MSB services on an ongoing basis:
- money transfers;
- foreign currency exchange;
- issuing or redeeming money orders, traveller's cheques or anything similar; or
- dealing in virtual currencies.
- Settlor
A settlor is an individual or entity that creates a trust with a written trust declaration. The settlor ensures that legal responsibility for the trust is given to a trustee and that the trustee is provided with a trust instrument document that explains how the trust is to be used for the beneficiaries. A settlor includes any individual or entity that contributes financially to that trust, either directly or indirectly. (constituant)
- Shell bank
A foreign financial institution that: Footnote 65
- (a) does not have a place of business that:
- (i) is located at a fixed address—where it employs one or more persons on a full-time basis and maintains operating records related to its banking activities—in a country in which it is authorized to conduct banking activities; and
- (ii) is subject to inspection by the regulatory authority that licensed it to conduct banking activities; and
- (b) is not controlled by, or under common control with, a depository institution, credit union or foreign financial institution that maintains a place of business referred to in paragraph (a) in Canada or in a foreign country
- (a) does not have a place of business that:
- Signature
Includes an electronic signature or other information in electronic form that is created or adopted by a client of a person or entity referred to in section 5 of the Act and that is accepted by the person or entity as being unique to that client. Footnote 66 (signature)
- Signature card
In respect of an account, means a document that is signed by a person who is authorized to give instructions in respect of the account, or electronic data that constitutes the signature of such a person. Footnote 67 (fiche-signature)
- Source
The issuer or provider of information or documents for verifying identification. (source)
- SWIFT
The Society for Worldwide Interbank Financial Telecommunication. Footnote 68 (SWIFT)
- Terrorist activity
Has the same meaning as in subsection 83.01(1) of the Criminal Code.Footnote 69 (activité terroriste)
- Terrorist activity financing offence
An offence under section 83.02, 83.03 or 83.04 of the Criminal Code or an offence under section 83.12 of the Criminal Code arising out of a contravention of section 83.08 of that Act.
A terrorist financing offence is knowingly collecting or giving property (such as money) to carry out terrorist activities. This includes the use and possession of any property to help carry out the terrorist activities. The money earned for terrorist financing can be from legal sources, such as personal donations and profits from a business or charitable organization or from criminal sources, such as the drug trade, the smuggling of weapons and other goods, fraud, kidnapping and extortion. Footnote 70 (infraction de financement des activités terroristes)
- Third party
Any individual or entity that instructs another individual or entity to act on their behalf for a financial activity or transaction. (tiers)
- Threats to the security of Canada
Has the same meaning as in section 2 of the Canadian Security Intelligence Service Act.Footnote 71 (menaces envers la sécurité du Canada)
- Training program
A written and implemented program outlining the ongoing training for your employees, agents or other individuals authorized to act on your behalf. It should contain information about all your obligations and requirements to be fulfilled under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations (programme de formation)
- Trust
A right of property held by one individual or entity (a trustee) for the benefit of another individual or entity (a beneficiary). (fiducie)
- Trust company
A company that is referred to in any of paragraphs 5(d) to (e.1) of the Act. Footnote 72 (société de fiducie)
- Trustee
A trustee is the individual or entity authorized to hold or administer the assets of a trust. (fiduciaire)
- Tutor
In the context of civil law, a person who has been lawfully appointed to the care of the person and property of a minor. (tuteur)
- Two year effectiveness review:
A review, conducted every two years (at a minimum), by an internal or external auditor to test the effectiveness of your policies and procedures, risk assessment, and training program. (examen bisannuel de l'efficacité)
- Valid
In respect of a document or information that is used to verify identity, appears legitimate or authentic and does not appear to have been altered or had any information redacted. The information must also be valid according to the issuer, for example if a passport is invalid because of a name change, it is not valid for FINTRAC purposes. (valide)
- Verify client identity
To refer to certain information or documentation, in accordance with the prescribed methods, to identify a client. (vérifier l'identité d'un client)
- Very large corporation or trust
A corporation or trust that has minimum net assets of $75 million CAD on its last audited balance sheet. The corporation's shares or units have to be traded on a Canadian stock exchange or on a stock exchange designated under subsection 262(1) of the Income Tax Act. The corporation or trust also has to operate in a country that is a member of the Financial Action Task Force (FATF). (personne morale ou fiducie dont l'actif est très important)
- Violation
A contravention of the Act or the regulations that is designated as a violation by regulations made under subsection 73.1(1).Footnote 73 (violation)
- Virtual currency
Means: Footnote 74
- (a) a digital representation of value that can be used for payment or investment purposes that is not a fiat currency and that can be readily exchanged for funds or for another virtual currency that can be readily exchanged for funds; or
- (b) a private key of a cryptographic system that enables a person or entity to have access to a digital representation of value referred to in paragraph (a).
- Virtual currency exchange transaction
An exchange, at the request of another person or entity, of virtual currency for funds, funds for virtual currency or one virtual currency for another.Footnote 75 (opération de change en monnaie virtuelle)
- Virtual currency exchange transaction ticket
A record respecting a virtual currency exchange transaction—including an entry in a transaction register—that sets out: Footnote 76
- (a) the date of the transaction;
- (b) in the case of a transaction of $1,000 or more, the name and address of the person or entity that requests the exchange, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
- (c) the type and amount of each type of funds and each of the virtual currencies involved in the payment made and received by the person or entity that requests the exchange;
- (d) the method by which the payment is made and received;
- (e) the exchange rates used and their source;
- (f) the number of every account that is affected by the transaction, the type of account and the name of each account holder;
- (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number; and
- (h) every transaction identifier, including the sending and receiving addresses.
- Working days
In respect of an electronic funds transfer (EFT) report or a large virtual currency transaction report, a working day is a day between and including Monday to Friday. It excludes Saturday, Sunday, and a public holiday. (jour ouvrable)
- Date Modified: