As new technology introduces new means of transferring funds and generates unprecedented volumes of transactions globally, regulators are watching closely as opportunities for illicit transactions also emerge.
To address these and other related developments, a number of amendments to the regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) were published in the Canada Gazette in 2019 and 2020, the bulk of which will come into force on June 1, 2021. Taken together, these amendments effect a sizeable overhaul of the anti-money laundering and anti-terrorist financing (AML/ATF) regulatory landscape in Canada.
Osler's Financial Services Regulatory Group has developed a client guide with a focus on the changes coming into force on June 1 that will be of most interest to entities with obligations under the PCMLTFA. The guide is divided into two parts: Part 1 sets out changes of general application while Part 2 sets out sector-specific changes.
At a high level, the changes coming into force on June 1 touch on the following areas:
- new virtual currency obligations for all reporting entities
- new definitions under the PCMLTFA
- identification and reporting obligations regarding politically exposed persons and heads of international organizations
- obligations for foreign money services businesses
- prepaid card obligations for financial entities
- beneficial ownership reporting obligations for all reporting entities
- recordkeeping and reporting changes for all reporting entities
- large cash or virtual currency transaction reporting
- business relationship screening requirements
- ongoing monitoring requirements
Download the guide: Anti-money laundering in Canada: A guide to the June 1, 2021 changes
Structure of this guide
Part 1 sets out changes of general application that will apply to all Reporting Entity sectors as of June 1, 2021. Part 2 sets out sector-specific changes that apply to certain Reporting Entity sectors as of June 1, 2021. Please note that we have not identified every change; the focus of this guide is rather on those changes that will be most important to entities with obligations under the PCMLTFA.
Part 1: Changes affecting all reporting entities
- Beneficial ownership requirements and proof of corporate existence
- Screening for politically exposed persons and heads of international organizations
- Ongoing monitoring requirements
- Virtual currency transaction records and reports
- Large cash and virtual currency transaction reporting
- Recordkeeping: Unsuccessful reasonable measures
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.