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FINTRAC Warns Pay Firms To Register Under Updated AML Rules
Canada’s financial intelligence unit has warned payment service providers and crowdfunding platforms that amendments to the country’s anti-money laundering (AML) regulations require them to register and set up a compliance programme.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has cautioned that amendments to the country’s electronic funds transfer definition came into force in early April.
This may affect firms that remit or transmit funds.
Specifically, payment firms that carry out transactions by means of a credit card, debit card or prepaid payment product must comply with electronic funds transfer obligations.
Payments firms must now register as money services businesses (MSBs) or foreign money services businesses (FMSBs) with FINTRAC, set up a compliance programme, carry out know your client (KYC) checks, keep records and report suspicious activities.
MSBs and FMSBs that are already registered with FINTRAC will now have obligations relating to these services, including updating their compliance programmes to reflect this additional service.
These obligations now also apply to crowdfunding platforms that provide services to raise funds or virtual currency.
FINTRAC noted that its “understand[s] that there will be challenges in meeting certain obligations”, and the agency will be “reasonable in its assessment and enforcement approach”.
