More than 10,000 Canadians received a medically-assisted death in 2021: report
Quebec Superior Court suspends Bill 96’s translation requirement until constitutionality determined
The Ontario government has given Maggie an ultimatum: the disabled teen can lose her funding or her independence
FBI took 11 sets of classified material from Trump’s Mar-a-Lago home while investigating possible Espionage Act violations (US)
Ontario class action settlement reclassifies volunteers as employees, setting new precedent
Availability of Judicial Review in SABS Disputes
Are masking policies still valid?
Justice Canada releases commission report on impact of lack of legal aid in family law disputes
Harmonized sales tax part of maximum amount of attendant care benefits owed by insurer: court
New rules coming next month to help Canadians with cancelled and delayed flights
Stephen King set to testify for govt in books merger trial (US)
New law program in Quebec to begin next fall, a first in 50 years
The Impact of the Lack of Legal Aid in Family Law Cases
SCC rules that when someone is required by their partner to wear a condom but do not, they could be guilty of sexual assault.
Big Plastic suing feds over single-use ban — again
Tim Hortons offers coffee and doughnut as proposed settlement in class action lawsuit
The SCC has refused to hear the appeal to declare the renewal of the state of health emergency by the Quebec government invalid
Federal privacy commissioner investigating controversial ArriveCAN app
Kraken, a U.S. Crypto Exchange, Is Suspected of Violating Sanctions (US)
Ontario court certifies class action on former patients’ anxiety from notice of risk of infection
The stakes couldn’t be higher as Canada’s top court decides whether to hear climate class action lawsuit
Professor Barnali Choudhury selected by EU as trade and sustainable development expert
The Supreme Court decision on the ‘Ghomeshi’ amendments will help sexual assault victims access justice
AFN Reaches $20 B Final Settlement Agreement to Compensate First Nations Children and Families

Coming changes to Canada’s anti-money laundering laws

Putting payment service providers, fintechs and crowdfunding platforms on notice.

PHOTO: Stock
The 2022 federal budget, tabled on April 7, (Budget) announced that new regulations will be enacted to extend AML/ATF obligations to payment service providers (PSPs) and crowdfunding platforms, as well as legislative changes to strengthen the main federal AML/ATF and related laws, which includes the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Act) and the Criminal Code. Further, the government will conduct a comprehensive review of the AML/ATF regime to bring forth legislative proposals to address any identified gaps in the regime.
The state of emergency declared by the Government of Canada in February 2022 was revoked as soon as the measures were adopted 1 . However, given the wording used by the government in the Emergency Economic Measures Order (the Order) and its Emergency Measures Regulations (the Regulations) under the  Emergencies and remarks made at the time by the Deputy Prime Minister and Minister of Finance, interested observers wondered whether significant changes were to be made to key federal anti-money laundering and terrorist financing laws. Given the evolution of the situation, it is likely that some of these measures will be incorporated into Canadian law on a permanent basis despite the lifting of the state of emergency. In the 2022 Federal Budget (the Budget) tabled on April 7, the Government announced new regulations to expand the obligations of Canada’s Anti-Money Laundering Regime and the funding terrorist activities (AML/ATF regime) to payment service providers and crowdfunding platforms, as well as legislative changes to strengthen key federal anti-money laundering and anti-money laundering laws and related laws, including the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) and the Criminal Code. In addition, the government will conduct a comprehensive review of the AML/ATF regime, and additional legislative proposals will be introduced to address identified gaps. The Government of Canada is also proposing to provide $89.9M over five years to support its main anti-money laundering and anti-terrorist financing agency, the Financial Transactions and Reports Analysis Center of Canada. (FINTRAC), in addition to advancing its commitment to establish a public register of beneficial ownership for federal legal persons. We will not know the full effects of these changes on financial technology (fintech) companies and crowdfunding platforms, nor the fallout from the federal government’s decision to comprehensively review and strengthen the AML/ATF regime, until that draft laws or regulations are published for public scrutiny. In the meantime, we can rely on the temporary state of emergency measures imposed in February. The executive order, prior to its revocation, required certain payment service providers (which invariably include fintech companies) and certain crowdfunding platforms to register with FINTRAC if they possessed property belonging to a designated person. or owned or controlled by it or on its behalf or at its direction under the Regulations. Although it is not usually onerous for businesses to register with FINTRAC, reporting entities must meet a wide range of compliance requirements under the Act and related regulations. Regulatory Burden includes developing and monitoring a compliance program that is subject to biennial audits and reviews by FINTRAC and covers all relevant regulatory requirements, including, but not limited to, procedures related to customer identity verification, transaction reporting and record keeping. In addition, as the Order directly replicated payment functions provided for in the upcoming Retail Payments Oversight Framework (CSPD) under the new Retail Payments Activities Act , it is entirely possible that CSPD payment service providers are automatically subject to FINTRAC’s obligations. For more information on this topic, Canada’s Anti-Money Laundering and Anti-Terrorist Financing laws, or other regulatory issues related to financial services, please contact any of the authors. below.
1 On February 14, 2022, the Government of Canada declared a state of emergency and passed the  Emergency Economic Measures Order (the Order) and its Emergency Measures Regulations (the Regulations) 1 pursuant to the Emergencies Act . These measures affected all of Canada and related to the financing of convoys and blockades of truckers. The measures were repealed by proclamation on February 23, 2022. The order and regulation are no longer in effect.


Want direct access to the latest LITN content?

Stay in the loop ➞ Subscribe to LITN instant notifications.
Receive the latest content delivered directly to your device.
Unsubscribe at anytime.

Latest News


Join the LITN Newsletter ➞ the latest news delivered to your inbox. Unsubscribe at any time.


Instagram Feed