The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has issued new Anti-Money Laundering Requirements (AML) for Mortgage Administrators, Brokers, and Lenders. The new AML requirements will become effective on October 11, 2024.
As of October 11, 2024, the mortgage industry in Canada will become subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act). Under the Act, all Mortgage Administrators, Brokers, and Lenders, will be required to:
- Implement compliance programs
- Report transactions
- Keep records
- Verify the identity of clients (know your client)
- Apply ministerial directives
To assure compliance, FINTRAC is authorized to conduct compliance examinations to assess whether reporting entities are meeting the requirements under the Act. It also has legislative authority to issue monetary penalties to those parties it finds to be non-compliant with the Act and its associated regulations.
Full details can be viewed on FINTRAC’s website.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
