OTTAWA, June 18, 2008 – All money services businesses will be required to register with FINTRAC by June 23, 2008. This registration requirement follows recent changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
This new requirement is part of a larger package of regulatory changes announced in December 2007 by Finance Minister Jim Flaherty to strengthen Canada's anti-money laundering and anti-terrorist financing regime (http://www.fin.gc.ca/news07/07-105e.html). The new regulations bring Canada's anti-money laundering and anti-terrorist financing regime in line with the international standards set by the Financial Action Task Force, a G-8 created body. The amendments also follow recommendations made in the 2004 Auditor General's Report and in a 2004 Treasury Board–mandated evaluation of the regime.
Registering with FINTRAC will be necessary to operate such a business in Canada.
A money services business is an individual or an entity that is engaged in the business of any of the following activities:
- foreign exchange dealing;
- remitting or transmitting funds by any means or through any individual, entity or electronic funds transfer network; or
- issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments. This does not include redeeming cheques payable to a named individual or entity. In other words, cashing cheques made out to a particular individual or entity is not included.
Customers of money services businesses should be aware that certain transactions will require them to provide information such as identification.
More information regarding the legal requirements for money services businesses can be found at http://www.fintrac-canafe.gc.ca/re-ed/msb-eng.asp
FINTRAC is an independent federal government agency with a mandate to detect, deter and prevent, money laundering, terrorist financing, and threats to the security of Canada. FINTRAC analyzes financial transaction reports and discloses financial intelligence to investigative agencies where it has reasonable grounds to suspect the information would be relevant to an investigation of money laundering, terrorist activity financing or threats to the security of Canada.
FINTRAC is part of Canada's Anti-Money Laundering and Anti-Terrorist Activity Financing Initiative. The initiative is led by the Department of Finance and includes the RCMP, CSIS, Public Safety Canada, Canada Revenue Agency, Canada Border Services Agency, the Communications Security Establishment and the Department of Justice.
Further information:
Financial Transactions and Reports Analysis Centre of Canada,
1-866-346-8722 (toll free)
