Financial Transactions and Reports Analysis Centre of Canada Assessment of Expenses Regulations
Enabling act: Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)
Enabling legislation, once in force, will require the Director of FINTRAC to determine, by December 31 of each year, the costs incurred in the preceding completed fiscal year with respect to the administration of the PCMLTFA (the “compliance” function), excluding costs incurred in connection to the production and dissemination of financial intelligence (the “intelligence” function). The proposed regulations will prescribe entities subject to cost recovery, the calculation of assessment fees and related provisions. FINTRAC will calculate the assessment fees payable by reporting entities on the basis of (1) a base assessment against all federally regulated banks, trust and loan companies, and life insurance companies, brokers, and agents; (2) an assessment against banks in accordance with their relative assets in Canada and threshold transaction reporting submitted to FINTRAC; and (3) an assessment of all other non-bank reporting entities based on their relative transaction reporting. These assessment regulations would come into force across all reporting entities for April 1, 2024, allowing FINTRAC to commence recovering costs from the 2024-25 fiscal year, going forward.
Regulatory cooperation efforts (domestic and international)
The Department of Finance worked closely with FINTRAC on the development of a formula to calculate assessment fees.
The Department of Finance and FINTRAC consulted with industry associations and their members on the scope of the proposed scheme and formula, industry engagement models, and the extent of FINTRAC’s overall budget that will be scoped into the scheme. The Department of Finance and FINTRAC also engaged reporting entity sectors through the Advisory Committee on Money Laundering and Terrorist Finance (ACMLTF), a public-private discussion forum to address emerging issues and provide general advice for Canada’s overall AML/ATF policy.
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
Director General, Financial Crimes and Security Division
Financial Sector Policy Branch
Department of Finance Canada
90 Elgin St.
Ottawa, Ontario K1A 0G5
Date the regulatory initiative was first included in the Forward Regulatory Plan
Consult Finance Canada’s acts and regulations web page for:
- a list of acts and regulations administered by Finance Canada
- further information on Finance Canada’s implementation of government-wide regulatory management initiatives
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