On October 11, 2023, the federal government published the:

• Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act; and the
• Financial Transactions and Reports Analysis Centre of Canada Assessment of Expenses Regulations.

These regulations amend Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act and affect:

• the mortgage sector;
• correspondent banking; and
• armoured car currency transport.       

As of October 2024, mortgage brokers, lenders, and administrators have new obligations and will be required to implement a compliance program. They’ll need to verify their client’s identity, perform client due diligence, keep records, report transactions, and follow ministerial directives and transaction restrictions.

FINTRAC has issued guidance for mortgage administrators, brokers and lenders.

REALTORS®, let your clients know that when they apply for a mortgage or renew their mortgage, they’ll be required to show identification and answer questions about finances. 

If your clients are receiving funds from another country, they should be aware of new, additional rules for correspondent banking.

Correspondent banking is an arrangement where a financial institution (correspondent) provides services to another financial institution, typically in another country, acting as an intermediary or agent. Services can include accepting and holding deposits, conducting transactions, and providing wire transfers.

There’s an ongoing risk that correspondent banking relationships can be used for money laundering and terrorist financing.

As of October 2024, financial entities with correspondent banking relationships will have additional requirements in addition to existing obligations. These include:

• documenting a risk assessment of each correspondent banking relationship;
• conducting due diligence;
• keeping records; and
• monitoring banking relationships.

As of July 2024, businesses transporting currency and negotiable instruments have obligations set out in new regulations.

Armoured car companies provide two main categories of services:

• Cash logistics: services include the secure armoured transportation of cash; electronic funds transfer (EFT) services; secure storage and inventory management; automated teller machine (ATM) services; and cold storage for virtual currency.
• Cash management: services include deposit processing and consolidation; foreign exchange dealing; vaulting; counting/sorting; as well as cash shipment consolidation. The armoured car sector has a cash intensive clientele and poses a high inherent risk of money laundering and terrorist financing.

As of July 2024, armoured car businesses must:

• develop a compliance program;
• conduct due diligence;
• keep records; and
• report certain transactions to FINTRAC.

As of April 1, 2024, FINTRAC plans to bring in a new funding model.

FINTRAC will charge these reporting entities for the annual cost of its compliance program:

• Federally regulated banks and authorized foreign banks, trust and loan companies; life insurance companies.
• Reporting entities submitting 500 or more transaction reports each year.

FINTRAC has issued guidelines on these new charges for reporting entities as well as guidance details. 

FINTRAC is modernizing reporting forms, including the:

• Large Virtual Currency Transaction Report (LVCTR);
• Large Cash Transaction Report (LCTR);
• Suspicious Transaction Report (STR);
• Electronic Funds Transfer Report (EFTR); and
• Casino Disbursement Report (CDR).

Here is the schedule of updates for these forms.  

If you have questions about the new regulations or FINTRAC forms, contact FINTRAC.