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Canada set to implement new AML legislation

Photo credit: iStock

By Elizabeth Hearst

In an attempt to crack down on money laundering and financial crime, the Canadian Department of Finance in May released details of its amendments to the existing Money Laundering and Terrorist Financing Act. 

These regulations aim to “bring Canada’s anti-money laundering and anti-terrorist financing regime in line with international standards”, according to Mondaq.

The key elements of this legislation are to extend the “travel rule” to businesses dealing with virtual currencies by requiring them to obtain and hold originator and beneficiary information. 

Secondly, a key objective is to modify definitions of business relationships between real estate agents and clients, so that real estate developers, brokers and sales representatives are deemed to be in a “business relationship” with a client after a single transaction that triggers the client identification requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. 

The legislation will require the application of stronger customer due diligence requirements and beneficial ownership requirements to designated non-financial businesses and professions and finally the requirement for customer due diligence measures to be implemented in casinos in line with international standards. 

The legislation will have a phased implementation strategy and dates with all amendments set to come into force by July 1st 2021.

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