New Regulations Aim to Combat Money Laundering and Terrorist Financing
The Canadian government has introduced new regulations aimed at combating money laundering and terrorist financing. These regulations will come into effect on April 1, 2024, and will require financial institutions and other reporting entities to report suspicious transactions and provide additional information about their clients.
Suspicious Transaction Reporting Regulations
The Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations will require reporting entities to report any transactions that are suspected to be related to money laundering or terrorist financing. The reports must include detailed information about the transaction, including:
- Date
- Time
- Amount
- Parties involved
Client Information Registration Regulations
In addition to the suspicious transaction reporting regulations, the government has also introduced new regulations requiring financial institutions to provide additional information about their clients. The Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations will require financial institutions to:
- Register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
- Provide detailed information about their clients, including:
- Name
- Address
- Identification
Penalties for Non-Compliance
The Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations set out specific violations and penalties for those who fail to comply with the regulations.
“We are taking a strong stance against money laundering and terrorist financing,” said Finance Minister, [Name]. “These new regulations will help us to better track and prevent these illegal activities and keep our country safe.”
Public Consultation
The government has also launched a public consultation on proposed regulations related to anti-money laundering and anti-terrorist financing. The consultation is open until [Date] and the government is seeking feedback from stakeholders on the proposed regulations.
For more information on the new regulations, please visit the Canada Gazette website.
Related Links
- General information on Part 1.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act: Guidance
- Comment on proposed regulations: Canada Gazette
- Ministerial directives and transaction restrictions
- FINTRAC’s Interpretation policy
- Policy interpretations database
- FINTRAC interpretation notices