FINTRAC
Proceeds of Crime (Money Laundering) and Terrorist Financing Act — FINTRAC
Canada's AML/CFT compliance framework
FINTRAC administers the PCMLTFA — Canada's anti-money laundering and counter-terrorist financing legislation. Reporting entities must collect and verify client identity (KYC), monitor transactions, report suspicious activities, and maintain compliance programs. FINTRAC intersects with PIPEDA because the KYC data collected must also be handled according to privacy law.
Who must comply with FINTRAC?
Reporting entities include financial institutions, securities dealers, money services businesses, real estate brokers, accountants, casinos, dealers in precious metals, notaries in BC, and life insurance companies — among others.
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Key obligations under FINTRAC
Client Identification
Verify the identity of clients before providing services. Collect government-issued ID, business registration, and beneficial ownership data.
Suspicious Transaction Reports
File STRs with FINTRAC within 30 days of detecting a transaction that you reasonably suspect is related to money laundering or terrorist financing.
Large Cash Transaction Reports
Report to FINTRAC within 15 days any single cash transaction of $10,000 or more.
Compliance Program
Maintain a documented compliance program including policies, training, risk assessment, and a compliance officer — FINTRAC will audit this.
Record Keeping
Keep KYC and transaction records for 5 years. Records must be organized to support FINTRAC examination on demand.
Privacy Balance
KYC data collected under FINTRAC obligations must still be handled in accordance with PIPEDA or provincial privacy law.
Penalties & enforcement
TD Bank was fined $9.16M CAD by FINTRAC for AML compliance violations (2023)
Frameworks that often overlap with FINTRAC
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