FINTRAC

Canada’s efforts to safeguard its financial system from money laundering and terrorist financing are led by a powerful organization: the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Since its establishment in 2000 under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), FINTRAC has played a central role in monitoring and curbing financial crime across the country. Over the years, its mandate has expanded in response to the rapidly evolving threat landscape, including digital finance and cross-border money laundering schemes.

What is FINTRAC?

FINTRAC is Canada’s national financial intelligence unit (FIU) operating independently under the Department of Finance. Headquartered in Ottawa, the organization is currently run by Director and CEO Sarah Paquet, who took office in November 2020. FINTRAC’s primary role is to detect, deter, and prevent money laundering and terrorist financing by collecting and analyzing financial data and collaborating with law enforcement agencies and international partners. 

As part of its mandate, FINTRAC acts as a central hub for financial transaction reporting, ensuring that suspicious or large-value transactions are properly documented and evaluated. It provides intelligence to Canadian authorities while maintaining a high standard of data protection and privacy compliance.

FINTRAC’s Core Purpose

At its core, FINTRAC serves to protect the integrity of Canada’s financial system. It supports public safety by identifying illicit financial activities and helping law enforcement trace the proceeds of crime. Its operations are crucial for national and global anti-money laundering (AML) and counter-terrorist financing (CFT) efforts.

FINTRAC also plays a vital educational role. By issuing guidance documents, typologies, and sector-specific advisories, it helps businesses better understand financial crime risks and implement effective compliance strategies.

Key Responsibilities of FINTRAC

To fulfill its mandate, FINTRAC performs a range of responsibilities under the PCMLTFA and its supporting regulations, including:

• Collecting and analyzing reports from businesses such as banks, casinos, moneys services businesses (MSBs), real estate brokers, and cryptocurrency exchanges to detect patterns of suspicious activities.
• Monitoring compliance among reporting entities (REs) through audits, examinations, and enforcement actions when necessary.
• Maintaining detailed records on business registrations and transaction histories in line with Canadian AML/CFT laws.
• Sharing financial intelligence with law enforcement, security agencies, and international counterparts to assist in criminal investigations.
• Protecting sensitive data, with oversight from the Office of the Privacy Commissioner of Canada through biennial audits.
• Issuing public reports and alerts to inform stakeholders of emerging threats and compliance expectations.

FINTRAC ensures that financial institutions and other REs fulfill their obligations, such as filing suspicious transaction reports (STRs), large cash transaction reports (LCTRs), and large virtual currency transaction records (LVCTRs).

FINTRAC’s Role in AML Compliance

FINTRAC is not an enforcement agency, but it does still play a pivotal role in Canada’s larger AML system. It identifies and analyzes suspicious financial activities and passes relevant intelligence to entities like the Royal Canadian Mounted Police (RCMP), the Canada Border Services Agency (CBSA), and the Canada Revenue Agency (CRA), all of which do enforce Canada’s AML regulations.

This collaborative model strengthens Canada’s response to financial crime. By acting as a central clearinghouse for financial intelligence, FINTRAC enhances coordination among public and private stakeholders, enabling timely action on threats that affect national security and financial integrity.

A Global Partner in Combating Financial Crime

FINTRAC contributes actively to international AML/CFT efforts. It is a member of the Egmont Group of Financial Intelligence Units, an alliance of over 160 FIUs committed to enhancing information sharing and cooperation. Through this network, FINTRAC assists partner nations in tackling cross-border financial crime.

The agency also participates in FATF evaluations and works alongside regional bodies such as the Asia-Pacific Group on Money Laundering (APGML). It contributes to developing global policy standards, offering technical input to help countries establish and improve their regulatory systems.

Canada’s commitment to FATF recommendations is reflected in FINTRAC’s constant policy evolution, particularly in sectors that present heightened risks, including digital assets and international remittances.

Recent Developments and Future Outlook

In 2024 and early 2025, FINTRAC has continued to strengthen its regulatory and oversight capabilities in response to shifting financial crime risks, especially those involving digital assets and opaque ownership structures.

Crypto Regulation and Virtual Asset Supervision

FINTRAC has intensified its focus on cryptocurrency exchanges, wallet providers, and decentralized finance (DeFi) platforms. Updated guidance underscores the importance of blockchain analytics, customer risk profiling, and compliance with the FATF Travel Rule for large-value transactions. These changes closely align with global standards and are designed to close regulatory gaps in the cryptoasset ecosystem.

Real Estate Transparency and Beneficial Ownership

To combat money laundering in real estate, FINTRAC has worked closely with provincial governments and federal policymakers to advance ultimate beneficial ownership (UBO) transparency. A new public registry for federally incorporated corporations is slated to launch in 2025. This registry will require entities to file and update information on who ultimately holds  controlling shares in a corporation, increasing accountability and compliance with FATF recommendations.

Expanded Compliance Obligations for Reporting Entities

Revised guidance issued in late 2024 introduced enhanced requirements for third-party determination, risk-based compliance programs, and business relationship monitoring. These changes are designed to help entities strengthen internal controls and respond effectively to evolving AML threats.

Sanctions Screening Integration

Although separate from the PCMLTFA, FINTRAC has emphasized the importance of integrating sanctions compliance into AML programs. Entities are now expected to synchronize transaction monitoring with real-time sanctions screening, reflecting joint efforts with Global Affairs Canada.

Ongoing Sector-Specific Enhancements

Additional measures introduced in 2024 include new obligations for title insurers and mortgage lenders, designed to close long-standing vulnerabilities in property transactions. These rules support broader AML objectives and reflect FINTRAC’s expanding supervisory reach.

Public-Private Partnerships and Intelligence Sharing

The expansion of initiatives like Project Athena, focused on targeting human trafficking through financial intelligence, demonstrates FINTRAC’s growing collaboration with private sector stakeholders. Its success has positioned it as a blueprint for addressing other predicate offenses, including fraud and corruption.

Looking ahead, FINTRAC is expected to release further guidance on managing third-party risks, refining beneficial ownership verification protocols, and leveraging AI for transaction monitoring and anomaly detection. These updates reflect a broader shift toward proactive, intelligence-led regulation in Canada’s fight against financial crime.

Final Thoughts

FINTRAC’s evolving framework reflects a broader shift in how governments approach financial crime prevention. By moving beyond traditional surveillance models and embracing more data-driven, collaborative strategies, Canada is laying the groundwork for a more resilient financial system that can adapt to the challenges of tomorrow.

As criminal tactics grow more sophisticated, so must the responses. FINTRAC’s ability to anticipate risk, foster public-private collaboration, and align with international best practices will continue to define its impact. Businesses that stay engaged with these developments will not just meet compliance standards but also help build a safer and more transparent financial ecosystem.