Final regulations (Regulatory Amendments) were published on March 26, 2025, amending certain regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) in the Canada Gazette, Part 2, Volume 159, Number 7: Proceeds of Crime (Money Laundering) and Terrorist Financing Reporting of Goods Regulations and Canada Gazette, Part 2, Volume 159, Number 7: Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.
The Regulatory Amendments address several measures we previously reported on in our insight titled Regulatory Developments Affecting Financial Services in Canada: What (really) matters for 2025. They include the changes relating to (1) trade-based financial crime, (2) expansion of PCMLTFA obligations to include new requirements for factoring companies, financing and leasing companies, and cheque cashing businesses, (3) new reporting obligations with respect to discrepancies in beneficial ownership information managed by Corporations Canada, and (4) measures to enhance information sharing among reporting entities. According to the Regulatory Impact Analysis Statement (RIAS) accompanying the Regulatory Amendments, the changes will affect a broad range of businesses and stakeholders ranging from 25,497 existing reporting entities (including financial entities (e.g., banks), money services businesses, casinos, accountants, life insurers, real estate brokers or sales representatives and developers, securities dealers, and notaries in British Columbia), 865 new reporting entities (including members of the factoring, financing and leasing, and cheque cashing sectors), and 272,060 importers and exporters, customs service providers and carriers.
Although the Regulatory Amendments remain largely unchanged following pre-publication, the compliance deadline for certain changes has been significantly accelerated in response to the Directive on Transnational Crime and Border Security (Directive) issued by the Prime Minister on February 4, 2025. The Directive calls for urgent action for Canada to combat increasing threats posed by transnational organized crime groups and the fentanyl crisis, and the Regulatory Amendments are being implemented as part of these efforts. The Regulatory Amendments to support voluntary information sharing among reporting entities have been made effective immediately. Most notably, the Regulatory Amendments relating to trade-based financial crime and those applicable to factoring companies, financing and leasing companies, and cheque cashing businesses will now come into effect on April 1, 2025 – six months sooner than previously scheduled. Businesses impacted by these changes will now have to act quickly to comply with the new requirements by the approaching deadline. As some comfort, the RIAS indicates regulators will work with regulated entities now caught by these fast-moving changes to support the implementation process. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) plans to focus on engagement, guidance, and outreach to factoring companies, financing and leasing companies, and cheque cashing businesses in particular over the coming year to promote awareness and understanding of the new requirements.
About Dentons
Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com
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. Specific Questions relating to this article should be addressed directly to the author.
