FINTRAC Regulates Financial Transactions to Combat Money Laundering and Terrorist Financing

Introduction

Ottawa, October 12, 2023 - The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has introduced a set of regulations aimed at preventing the misuse of financial systems for money laundering and terrorist financing.

Suspicious Transaction Reporting Regulations

The Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations require reporting entities to submit suspicious transaction reports and terrorist property reports, providing FINTRAC with critical information to identify and disrupt illegal activities. The regulations outline the format and timeframe for submitting these reports.

Cross-Border Currency and Monetary Instruments Reporting Regulations

The Cross-Border Currency and Monetary Instruments Reporting Regulations have been consolidated to reflect changes made since their initial publication. These regulations govern the reporting of cross-border currency transactions and monetary instruments exceeding $10,000.

Registration Regulations

The Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations, which came into force in 2008, prescribe applications, notifications, and other requirements for reporting entities to register with FINTRAC. The regulations have been updated to reflect changes made since their initial publication.

Administrative Monetary Penalties Regulations

FINTRAC has also introduced the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations, which set out specific violations and penalties for non-compliance. These regulations came into force in 2008 and have been updated to reflect changes made since then.

Assessment of Expenses Regulations

The Financial Transactions and Reports Analysis Centre of Canada Assessment of Expenses Regulations will come into force on April 1, 2024, outlining the method FINTRAC will use to charge reporting entities for the annual cost of its compliance program.

Quotes

“These regulations are crucial in preventing the misuse of financial systems for illegal activities,” said a spokesperson for FINTRAC. “We will continue to work with our partners to ensure that Canada’s financial system remains secure and resilient.”

General information on Part 1.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act: Guidance (Department of Finance Canada)
Comment on proposed regulations (Canada Gazette)
Ministerial directives and transaction restrictions
FINTRAC’s Interpretation policy
Policy interpretations database
FINTRAC interpretation notices