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FINTRAC updates a slew of guidance documents

Updates to guidance on FINTRAC’s website

We wish to inform all reporting entities subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations of recent updates to the following guidance on FINTRAC’s website:

Reporting large virtual currency transactions (LVCTRs) to FINTRAC

In September 2021, we updated our guidance on Reporting LVCTRs to FINTRAC that included the following: 

  • New information on using the FINTRAC web reporting system(FWR) to submit LVCTRs in Section 3, ‘How do I submit LVCTRs?’
  • A title change to section 4, which now reads ‘What are the main considerations for completing an LVCTR?’ and new information on the LVCTR structure.
  • Reorganized information within the guidance to consolidate various topics.
  • New information on an exception to reporting the receipt of virtual currency if it is for the reporting entity’s own operational purposes in Section 6, ‘What are the exceptions to reporting large virtual currency transactions?’
  • A new section on ‘Creating subjects’ and additional information for some of the field instructions in Annex 1.

FINTRAC guidance related to the Ministerial Directive on Financial Transactions Associated with the Islamic Republic of Iran issued on July 25, 2020

In September 2021, we updated the FINTRAC guidance related to the Ministerial Directive on Financial Transactions Associated with the Islamic Republic of Iran issued on July 25, 2020 that included the following:

  • New information in Section 5, ‘How do you report the transactions captured under this MD?’ to explain that LVCTRs should be used to report any transaction involving the receipt of virtual currency for exchange to the Iranian rial when the transaction amount is under the reporting threshold of $10,000 CAD.
  • Other minor changes for clarity.

Compliance program requirements

In November 2021, we updated our guidance on Compliance program requirements that included the following:

  • Clarification on the independent oversight of the appointed compliance officer and their ability to communicate directly with decision makers in the business such as senior management or the board of directors in Section 2, ‘Who can be a compliance officer and what are the responsibilities of a compliance officer?’
  • Clarification on the reporting entity’s responsibility for ensuring a review is conducted (at a minimum) every two years and that it tests the effectiveness of its compliance program, regardless of who carries out the review in Section 7, ‘What are the requirements related to my two-year effectiveness review and plan?’
  • New examples in Section 7, ‘What are the requirements related to my two-year effectiveness review and plan?’ of what can be included in a review.

Reporting terrorist property to FINTRAC

In November 2021, we updated our guidance on Reporting terrorist property to FINTRAC that included the following:

  • The addition of RCMP and CSIS website references in Section 2, ‘When must I submit a TPR to FINTRAC?’
  • Other minor changes for clarity.

Methods to verify the identity of persons and entities

In November 2021, we updated our guidance on Methods to verify the identity of persons and entities that included the following:

  • A note in Section 3, ‘Can I use an agent or a mandatary to verify the identity of a person on my behalf?’ that the reporting entity has the responsibility to meet its client identification requirements, even when using an agent.
  • Other minor changes for clarity.

Suspicious Transaction Reporting (STR) Guidance – Money Laundering (ML) and Terrorist Financing (TF) indicators

In November 2021, we updated our STR guidance on the ML and TF indicators. This update included the addition of links to FINTRAC’s operational alerts and briefs as these publications also contain ML/TF indicators.

Guidance Glossary

In November 2021, we updated our guidance glossary. This update included minor changes to the following terms:

  • Correspondent banking relationship
  • Head of an international organization
  • Politically exposed domestic person

At FINTRAC, we are committed to working with businesses to increase their awareness, understanding and compliance with their obligations under the PCMLTFA and associated Regulations. For questions, please contact us by telephone at 1-866-346-8722(toll free) or by email at guidelines-lignesdirectrices@fintrac-canafe.gc.ca

Categories: Anti-Money Laundering FINTRAC Updates Guidance Virtual Currencies

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