Anti-money Laundering Legislation

The objective of the Canadian legislation called The Proceeds of Crime (Money Laundering) and Terrorist Financing Act is to help detect and deter money laundering and the financing of terrorist activities. It is also to facilitate investigations and prosecutions of money laundering and terrorist activity financing offences. This includes the implementation of reporting and other requirements for financial service providers and those that engage in businesses, professions, or activities susceptible to being used for money laundering or terrorist financing. The Act also established the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as the agency responsible for the collection, analysis, and disclosure of information to assist in the detection, prevention, and deterrence of money laundering and terrorist financing in Canada and abroad.

This legislation requires various entities to report suspicious transactions to FINTRAC. These entities include financial entities such as banks and credit unions, Life Insurance Companies, brokers and agents and securities dealers amongst others. The FINTRAC website at www.FINTRAC.gc.ca contains a number of guidelines that assist in describing the requirements of the legislation. The legislation also requires various client identity and record keeping procedures and large cash transaction reporting requirements.