The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has published new anti-money laundering and anti-terrorism requirements (the new requirements) for the mortgage industry in Canada as stated under the Proceeds of Crime (Money Laundering) and Terrorist Finance Act (PCMLTFA) (the Act) and its associated Regulations.
The new requirements became effective October 11, 2024, and apply to Canadian mortgage administrators, brokers and lenders (the participants). Mortgage industry participants must:
- Implement a compliance program that will include both the establishment of compliance policies and the appointment of a Compliance Officer;
- Complete and submit an appropriate report to FINTRAC, if there are reasonable grounds to suspect a transaction is related to the commission or attempted commission of money laundering or terrorist activity financing offences;
- Keep certain records, including records related to transactions and client identification Mortgage industry participants must verify the identity of persons and entities for certain activities and transactions, carry out other customer due diligence activities as described under the Act; and,
- Apply all ministerial directives.
To ensure compliance with the Act and its associated regulations, FINTRAC is authorized to conduct compliance examinations of mortgage industry participants. Some areas of review can include:
- implementation of a compliance program;
- reporting of all required transactions;
- implementation of client identification;
- record-keeping requirements; and,
- third-party determination.
It is important to note that FINTRAC has the legislative authority to issue administrative monetary penalties to mortgage industry participants found to be non-compliant.
FINTRAC’s requirements Mortgage administrators, brokers and lenders are available for download from the website of the Financial Transactions and Reports Analysis Centre of Canada.
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.
