Canadian Credit Union Association

Changes to Money Laundering Regulations Now Published

The long-expected amendments to regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) have been published in the July 10, 2019 edition of the Canada Gazette, Part II.

Released in draft form in mid-2018, the proposals were subject to several rounds of consultations involving all reporting entity (RE) sectors, including credit unions. The final version of the new regulations are outlined in SOR/2019-240, and cover changes to a wide range of issues, including Suspicious Transaction Reporting (STR), Electronic Funds Transfers (EFT), and Beneficial Ownership. The revisions also modify and/or now expressly regulate, Money Services Businesses, Virtual Currency and Prepaid Payment Products.

While these amendments will no doubt require substantive changes to current credit union policies and procedures, most will come into effect June 1, 2020 or June 1, 2021. The one notable—and favourable—exception to this are changes to the methods that can be used to identify an individual, which came into effect June 22, 2019.

To assist credit union understanding of the amendments, CCUA is hosting a free webinar with Jackie Shinfield, AML regulation expert and Partner in the Financial Services Group at Blake, Cassels & Graydon LLP, to be held on Wednesday, July 24 from 1:00 – 3:00 p.m. ET. Click here to register.

As well, written explanatory materials are under development. Detailed consultations with FINTRAC are expected to take place in November-December 2019. Further information will be communicated as soon as it is available.