Regulatory Initiative: Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act – Forward Regulatory Plan 2019-2021

Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Enabling Act: Proceeds of Crime (Money Laundering) and Terrorist Financing Act

The proposed amendments to the regulations would update and enhance Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime and ensure the legislative framework continues to achieve its mandate of deterring and detecting money laundering and terrorist financing activities. They would also improve compliance with revised international standards set out by the Financial Action Task Force (FATF).

The proposed amendments to the regulations would strengthen Canada's AML/ATF Regime by updating customer due diligence requirements and beneficial ownership reporting requirements; regulating businesses dealing in virtual currency; including foreign money service businesses (MSBs) in Canada's AML/ATF Regime; updating the schedules to the regulations; clarifying a number of existing requirements; and making minor technical amendments.

The proposed amendments would result in an increase in administrative and compliance costs for businesses. The proposed amendments are exempt from the requirement to offset under the "One-for-One" Rule as they implement non-discretionary obligations.

Following the second Parliamentary Review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), the Act was amended through the Economic Action Plan 2014 Act, No.1 and the Budget Implementation Act, 2017, No.1 to strengthen the Regime. The legislative changes were followed by two tranches of regulatory amendments.

The first tranche of regulatory amendments received final publication in Part II of the Canada Gazette in June 2016.

The second tranche of regulatory amendments was pre-published to Part I of the Canada Gazette on June 9, 2018 for a 90-day public consultation period. Interested parties were invited to provide comments by September 7, 2018.