Money laundering poses major threats to Canada's security and financial system. Money laundering is a complex and confidential structure.
Canada aims to prevent financial crimes with anti-money laundering regimes from past to present.
Anti-Money Laundering Laws and Regulations in Canada
Canada has two main laws for preventing money laundering and terrorist financing. The Criminal Code and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) play an active role in Canada's AML regime. The Criminal Code's obligations cover all individuals and businesses. The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) include the institutions under obligation. In Canada, financial institutions, credit companies, insurance companies, casinos, and real estate brokers must comply with these AML laws.
Some obligations of these organizations in accordance with PCMLTA are as follows.
- Organizing a compliance program.
- Customer identification and verification of customer information
- Storage of customer records
- Reporting suspicious transactions
In Canada, people who do not comply with AML laws are subject to heavy fines and prison sentences under the Criminal Code and Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
Canada's AML regulations changed in 2019 due to the development of technologies in the financial services area and the proliferation of financial crime types. With the new regulations, Canada took more modern measures against money laundering and became compliant with FATF recommendations. With new regulations, regulated entities will need to make some changes to the AML programs. With the new regulations, organizations' measures for
PEPs
must increase. Politically exposed persons are high-risk customers for financial institutions. Therefore, Canada organizations are expected to combat financial crime actively by applying a risk-based approach.
Canada AML Regulators
There are several organizations established in Canada within the scope of the fight against money laundering. FINTRAC is central to these organizations. Canada has established The Financial Transactions and Reports Analysis Center of Canada (FINTRAC) to combat financial crimes effectively. Businesses with AML obligations in Canada have reported suspicious transactions to FINTRAC. FINTRAC analyzes these reports and takes measures. FINTRAC reports to the Canadian Ministry of Finance as an independent organization. FINTRAC has the mandate to regulate and supervise agencies responsible for strengthening AML regimes. FINTRAC represents Canada in the field of international AML and collaborates with other regulators.
Anti-Money Laundering Solutions for Canada
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