On June 9th 2018, the Department of Finance issued proposed new regulations announcing a number of amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The proposed amendments are open for consultation and feedback until September 7, 2018.
Upon completion of the consultation period, there will follow a period of implementation to give reporting entities time to put in place the required changes. On this point, Finance Canada stated that it “…recognizes that businesses, irrespective of size, will require time to implement these changes and will therefore provide 12 months of transition to comply with the new requirements.”
Once the proposed amendments are approved, FINTRAC will update its guidance to set out its expectations for how the obligations are to be met as well as undertake possible outreach activities to ensure reporting entities are aware of the new obligations. FINTRAC will be responsible for monitoring compliance with the obligations and will scope the changes into their compliance examinations and processes. Should non-compliance be identified, FINTRAC could impose administrative monetary penalties (AMPs) AMPs or take other enforcement actions.
The new regulations include changes to bring virtual currency businesses, foreign money services businesses and prepaid card access within the scope of the regulations, as well as amendments to know-your-client (KYC) requirements, suspicious transaction reporting, beneficial ownership and reporting under the 24-hour rule of transactions that are $10,000 or more.