Financial Crime World

Budget 2024: New Reforms to Combat Financial Crime in Canada

Osler, Hoskin & Harcourt LLP - April 2024

The Canadian government’s Budget 2024 proposes new reforms to strengthen the country’s financial system against financial crimes, with a focus on money laundering. This article highlights the proposed measures, as outlined in a recent blog post by Osler.

New Measures for Financial Institutions

Financial institutions will be required to implement the following measures to prevent financial crimes:

  1. Enhanced due diligence procedures: Institutions must strengthen their customer identification and risk assessment processes.
  2. Improved reporting obligations: Financial institutions will report certain transactions to the Financial Intelligence Unit (FIU).

Publicly Available Beneficial Ownership Information

The budget plans to make beneficial ownership information publicly available for certain corporations, trusts, and other entities. This change aims to help prevent anonymous transactions and improve financial transparency.

Expanded Powers for Regulatory Bodies

The government intends to expand the powers of regulatory bodies, such as:

  • Financial and Consumer Services Commission (FCNB)
  • Autorité des marchés financiers (AMF): Enhancing their ability to investigate and take enforcement action against financial crimes.

Beneficial Ownership Information Registry for Real Estate Properties

The budget proposes the implementation of a registry for the beneficial ownership information of real estate properties in Canada. This registry would be operated by the Canada Revenue Agency (CRA) and would be accessible to law enforcement and regulatory bodies.

Extension of Anti-Money Laundering/Anti-Terrorist Financing Regulations

The following entities and professions will be subject to existing anti-money laundering/anti-terrorist financing regulations:

  • Law firms
  • Real estate appraisers

Osler emphasizes that these measures represent a significant shift in Canada’s approach to combating financial crimes. Affected entities, including financial institutions and legal professionals, need to familiarize themselves with the new requirements as they are introduced.

For a more in-depth analysis, please refer to Osler’s full blog post on the topic; a link to the post can be added here.