Your Obligations

The following is a summary of the legislative requirements under the PCMLTFA applicable to those engaged in the business of remitting or transmitting funds by any means, through any person, entity or electronic funds transfer network. It also applies to those parties who are in the business of issuing or redeeming money orders, travellers' cheques or other similar negotiable instruments. Money services businesses include alternative money remittance systems (such as Hawala, Hundi or Chitti), as well as financial entities involved in the remittance or transfer of funds, the issuance or redemption of money orders, travellers' cheques or other similar negotiable instruments, for anyone who is not an account holder.

• Obligation to report
  • Suspicious transactions
  • Terrorist property
  • Electronic Funds Transfer
  • Large cash transactions
• Record keeping
• Ascertaining identification
• Third-party determination
• Compliance regime
• Compliance Questionnaire
   

FINTRAC Interpretation Notices

FINTRAC issues FINTRAC interpretation notices (FINs) to provide technical interpretations and positions regarding certain provisions contained in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

• Criteria for “Engaged in the Business of Money Services Business or Foreign Exchange Dealer”
• Large Cash Transaction and Electronic Funds Transfer Reporting Requirements: Two or More Transactions in a 24-Hour Period (The '24-Hour Rule')

Obligation to Report

• Suspicious transactions
  You must report where there are reasonable grounds to suspect that a transaction is related to the commission of a money laundering offence or to the financing of a terrorist activity.
  
  See Guideline 2: Suspicious Transactions and Guideline 3: Submitting Suspicious Transaction Reports to FINTRAC
  
  
• Terrorist property
  You must report where you know that there is property in your possession or control that is owned or controlled by or on behalf of a terrorist or a terrorist group.
  
  See Guideline 5: Submitting Terrorist Property Reports to FINTRAC
  
  
• Electronic Funds Transfer
  An international electronic funds transfer must be reported (i.e. the transmission of instructions at the request of a client for a transfer of $10,000 or more through any electronic, magnetic or optical device, telephone instrument or computer).
  
  See Guideline 8: Submitting Electronic Funds Transfer Reports to FINTRAC
  
  
• Large cash transactions
  Large cash transactions involving amounts of $10,000 or more received in cash, must be reported.
  
  See Guideline7: Submitting Large Cash Transaction Reports to FINTRAC

Record Keeping

The following records must be kept:

• Large cash transaction records
• Client information records
• Records for the sale of traveller's cheques, money orders or other similar instruments in the amount of $3,000 or more
• Records for money orders cashed in the amount of $3,000 or more
• Records for transmission or remittance of $3,000 or more by any means, through any person, entity or electronic funds transfer network
• Copies of official corporate records (binding provisions)

See Guideline 6: Record Keeping and Client Identification

Ascertaining Identification

Specific measures must be taken to identify the following individuals or entities:

• Any individual who conducts a large cash transaction
• Any individual or entity with which you have an ongoing business relationship
• Any individual for whom an amount of $3,000 or more is issued, redeemed, remitted or transmitted

See Guideline 6: Record Keeping and Client Identification

Third-Party Determination

Where a large cash transaction record is required, or when you create a client information record, you must take reasonable measures to determine whether the individual is acting on behalf of a third party.

In cases where a third party is involved, specific information about the third party and the relationship with the individual providing the cash or account holder must be obtained.

See Guideline 6: Record Keeping and Client Identification

Compliance Regime

The following four elements must be included in a compliance regime:

• The appointment of a compliance officer
• The development and application of compliance policies and procedures
• Periodic review of the effectiveness of policies and procedures
• Implementation of an ongoing compliance training program

See Guideline 4: Implementation of a Compliance Regime

Compliance Questionnaire

Part of FINTRAC's mandate is to ensure compliance by financial intermediaries and other reporting entities with their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and regulations. To do this, we can inquire into your business and examine records, including those relating to your compliance regime.

We have developed a Money Services Business / Foreign Exchange Dealer questionnaire for you to provide information concerning you or your organization’s compliance regime. A copy is posted here for you to consult and to provide you with examples of questions FINTRAC may ask in relation to your compliance regime. If you have been selected to complete this questionnaire you will be advised in writing by FINTRAC.