Regulatory Initiative: Amendments to Regulations under the Proceeds of Crime and (Money Laundering) and Terrorist Financing Act (Budget 2024) – Forward Regulatory Plan 2023-2025

Title or working title of the regulatory initiative:

Amending Regulations Under the Proceeds of Crime (Money Laundering) and Terrorism Financing Act

Enabling acts: 

Proceeds of Crime (Money Laundering) and Terrorism Financing Act 

Description of the objective:

 The regulatory package would:

• implement enhancements to the Canada Border Services Agency's authorities to combat trade-based financial crime announced in the 2023 Fall Economic Statement;
• implement measures to strengthen the information sharing abilities between and across private institutions to strengthen the supervision, enforcement, and information-sharing tools of Canada's anti-money laundering and anti-terrorist financing (AML/ATF) framework announced in Budget 2023;
• establish a framework for reporting discrepancies between information provided to reporting entities and the newly created beneficial ownership registry announced in Budget 2022; and
• extend AML/ATF obligations to factoring companies, financing and leasing companies, and cheque cashing businesses announced in Budget 2024.

Regulatory cooperation efforts (domestic and international):

The regulatory changes are part of the broader AML/ATF framework. The Department of Finance coordinates closely with partner departments and agencies (such as the Department of Justice, Public Safety Canada, the Financial Transactions and Reports Analysis Centre of Canada, and others) to ensure this framework is aligned with other statutes in Canada and the work of international organizations, such as Financial Action Task Force (FATF).

This proposal would improve Canada's adherence to international standards established by the FATF and better align with over 200 jurisdictions around the world that have also committed to the FATF Recommendations.  

Potential impacts on Canadians, including businesses:

The proposed measures are expected to create costs for affected businesses relating to their adherence to strengthened AML/ATF requirements. The small business lens is expected to apply and a cost-benefit analysis is envisaged.   

A strengthened AML/ATF Regime helps to combat money laundering and terrorist activity financing threats while protecting Canadians, the integrity of markets and the global financial system, and increases the investment attractiveness and competitiveness of Canada. The proposed amendments would support the security, stability, utility, and efficiency of the financial sector framework by strengthening the Regime and combating financial crime. All Canadians benefit from a stable, efficient, and competitive financial sector that services and drives economic growth.

Public consultation opportunities:

The proposed measures were informed by the recent public Consultation on Strengthening Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. The Department of Finance also held consultations on the proposed measures with current and prospective reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, including through the Advisory Committee on Money Laundering and Terrorist Financing. Further, interested stakeholders will have an opportunity to review and comment on the proposed regulations as part of the formal regulation-making process when the regulatory proposal is pre-published in the Canada Gazette, Part I.

Departmental contact information:

Erin Hunt
Director General
Financial Crimes and Security Division
Financial Sector Policy Branch
Department of Finance Canada
90 Elgin St.
Ottawa, Ontario K1A 0G5
Email: Erin.Hunt@fin.gc.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan: 

June 2024