
PCMLTFA Update: FINTRAC Announces Flexible Compliance Approach

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On May 28, 2021, FINTRAC announced changes in Canada’s anti-money laundering regime under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The amendments made by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) have come into effect from June 1, 2021. The new guidance was published keeping in view the difficulties reporting entities may face in meeting the obligations due to the current global crisis. (View FINTRAC’s notice here).
FINTRAC has promised to practice a flexible and reasonable approach when assessing compliance with the June 1 amendments by reporting entities. Additionally, FINTRAC stated that between June 1, 2021, and March 31, 2022, compliance assessments will only be made based on the previous regulatory regime (pre-June 1, 2021) to provide relief to reporting entities. However, the regulatory body will assess transaction-related information as prescribed by the June 1 amendments prior to the April 1, 2022 date.
FINTRAC will also be publishing an updated “Assessment Manual” by March 2022, and an update “Harm Done Assessment Guide” by spring 2022.
Here’s a list of the updated regulatory requirements that all entities must comply with starting June 1, 2021:
For further details about the FINTRAC’s June 1 amendments, read Anti-money laundering in Canada: A guide to the June 1, 2021 changes.