Proposed regulatory amendments to strengthen AML/ATF/CFT measures updating customer due diligence requirements, regulating virtual currency (including cryptocurrency), updating regulation of foreign money service businesses and other clarifications and amendments. Excerpts from the Canada Gazette appears below:
The proposed amendments to the regulations would strengthen Canada’s Anti-Money Laundering / Anti-Terrorist Financing (AML/ATF) Regime by updating customer due diligence requirements and beneficial ownership reporting requirements; regulating businesses dealing in virtual currency; updating the schedules to the regulations; including foreign money service businesses (MSB) in Canada’s AML/ATF Regime; clarifying a number of existing requirements; and making minor technical amendments.
Relevant background which relates to the amendments include the following:
- Canada's AML/AATF Regime - Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) was amended through the Economic Action Plan 2014 Act, No. 1 and the Budget Implementation Act, 2017, No. 1
- FATF (Financial Action Task Force) and addressing deficiencies in Canada's last mutual evaluation in 2015-2016
- Moderniation of regulation to confirm with innovation in FinTech progress and also closing loopholes which may exist such as relating to prepaid cards, virtual currency (includes cryptocurrency), foreign money service businesses. These include issues dealing with annonymous loading of prepaid cards with cash, centralized and decentralized virtual currencies (such as bitcoin), foreign money transfer businesses and remittance services.
Listed objectives include the following (excerpts):
- strengthen Canada’s ability to combat money laundering and terrorist activity financing activities;
- operationalize changes to the Act and close gaps in Canada’s AML/ATF Regime;
- help improve reporting entities’ compliance with regulatory requirements;
- help improve the monitoring and enforcement efforts of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC);
- improve Canada’s compliance with international standards; and
- adopt minor technical changes.