Last week, the Government of Canada published new regulations in the Canada Gazette, Part II, that will shift the funding of FINTRAC's compliance program from taxpayers to businesses and individuals subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations.

Starting on April 1, 2024, FINTRAC will charge the following businesses and individuals for the annual cost of its compliance program as part of its assessment of expenses funding model:

• Banks (to which the Bank Act applies and includes federal credit unions) and authorized foreign banks (as defined in section 2 of the Bank Act)
• Trust and loan companies (to which the Trust and Loan Companies Act applies)
• Life insurance companies (to which the Insurance Companies Act applies)
• Other businesses (including credit unions and credit union Centrals) and individuals that submit 500 or more threshold transaction reports (such as casino disbursement reports, electronic funds transfer reports, large cash transaction reports, and large virtual currency transaction reports) to FINTRAC during a given fiscal year.

To follow up on our previous discussions, the formulas used to assess a reporting entity (RE) have also been slightly modified from what was previously provided by FINTRAC. Please review the updated Cost Assessment Memo and Example Formula Workbook, which have the new formulas and can be used to estimate an expected invoice for your organization based on the example data that the Department of Finance and FINTRAC has provided.

Please note: although the example data provided is based on historical data and can give a reasonably accurate estimate, the actual data used to estimate an invoice is subject to change.