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Canadian Anti-Money Laundering Rules Amended

11/12/2019


The Federal Ministry of Finance released significant amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) in July 2019, following recommendations made by the Financial Action Task Force (FATF) in 2015.

The changes affect reporting entities such as financial institutions, money service businesses, dealers in precious metals and stones, securities dealers, real estate brokers, agent of the Crown, accountants, casinos, life insurance companies and B.C. notaries.

The amendments include:

Know Your Client (KYC) Requirement Changes

  • New Method of Ascertaining a Client’s Identification
  • Identity Verification Conducted by Other Reporting Entities
  • Politically Exposed Persons
  • Beneficial Ownership

Transactions Reporting Requirement Changes

  • Electronic Funds Transfers (ETF)
  • 24-Hour Rule (EFTs and Large Cash Transactions)
  • Suspicious Transactions Reports

Services and Products Now Subject to PCMLTFA Requirements

  • Foreign Money Service Businesses (MSB)
  • Dealers in Precious Metals and Stones (DPMS)
  • Life Insurance Sector
  • Prepaid Payment Products and Accounts
  • Credit Cards and Record Keeping
  • Dealers in Virtual Currencies
  • Risk Assessments Approach Documentation

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