Consultation on amendments to Canada’s AML regime closes December 30

The Department of Finance has announced new proposed amendments to regulations made under Canada’s Proceeds of Crime (Money Laundering) and Terrorism Financing Act (PCMLTFA). The consultation period for the proposed amendments closes on December 30, 2024. Interested parties should get their submissions in by the deadline.

This latest round of amendments to the regulations under the PCMLTFA will, if passed, implement and operationalize certain measures announced in recent federal budget bills (including the 2024 Budget). The proposed amendments can be grouped in four areas

• enhancing the Canada Border Services Agency’s powers under a new regime to tackle trade-based financial crime
• creating a voluntary process for information-sharing between reporting entities to detect and deter money laundering, terrorist financing, and sanctions evasion, with oversight by FINTRAC and the Office of the Privacy Commissioner
• requiring reporting entities to report on material discrepancies between their records and a company’s filings on the new federal beneficial ownership registry
• bringing factoring companies, cheque-cashing businesses, and financing and leasing entities into the ambit of the PCMLTFA, along with introducing new obligations specific to these sectors (also applicable to existing reporting entities providing these services)

These changes could result in significant hurdles and regulatory requirements, but also provide some welcome tools to assist in the fight against money laundering, terrorist financing, and sanctions evasion. Industry participants are strongly encouraged to submit comments before the consultations close on December 30.

For an analysis of the proposed amendments, read the full Update published on December 5, 2024.