fintrac aml reporting

Electronic reporting. Detailed and high quality STRs provide valuable and actionable intelligence for FINTRAC and this section is shared with law enforcement and intelligence agencies in FINTRAC disclosures. For example, a client or a potential client walks away from conducting a $10,000 cash deposit. Of particular note are the revised Administrative Monetary Penalties (AMPs) policy (the AMPs Policy) and the notice on Voluntary Self-Declaration of Non-Compliance, each of which is discussed below. (fiable), An individual in Canada that has been appointed by a person or entity that is a foreign money services business (FMSB), pursuant to the PCMLTFA, to receive notices and documents on behalf of the FMSB. Reporting entities are required to ensure that their compliance programs always reflect the evolving nature of the AML regime. However, FINTRAC will contact you and request that you resubmit electronically if you have the capability to do so. FINTRAC recognizes this fact and emphasizes the need for reporting entities to have in place robust compliance regimes in order to ensure the quality of their STRs. There are three types of validation rules that FINTRAC uses to validate reports and these rules are described below. (authentique), A person who is authorized under subsection 45(2).Footnote 6 (personne autorisée), A person who is authorized by a holder of a prepaid payment product account to have electronic access to funds or virtual currency available in the account by means of a prepaid payment product that is connected to it.Footnote 7 (utilisateur autorisé), Beneficial owners are the individuals who are the trustees, and known beneficiaries and settlors of a trust, or who directly or indirectly own or control 25% or more of i) the shares of a corporation or ii) an entity other than a corporation or trust, such as a partnership. PCMLTFA, S.C. 2000, c 17, s. 9.4(3) and PCMLTFR, SOR/2002-184, s. 16(1)(b) (as will be amended when SOR/2019-240 comes into force). It is your responsibility to ensure that the information provided in an STR is complete and accurate. (mandataire d'une entreprise de services monétaires), An entity's type or field of business. (demande de précisions), A person or entity that engages in a financial transaction with another person or entity.Footnote 12 (client), The identifying information that you have obtained on your clients, such as name, address, telephone number, occupation or nature of principal business, and date of birth for an individual. FINTRAC Changes Reporting Requirements for EFTs. FINTRAC validation rules identify possible reporting problems or information gaps but do not cover all scenarios. If you identify a transaction whereby you reach reasonable grounds to believe that an ML/TF offence has occurred, you must begin an assessment of the related transactions immediately as you have surpassed the RGS threshold. State the ML/TF indicators used to support your suspicion. A legal land description can be acceptable so long as the legal land description is specific enough to pinpoint the physical location of where the client lives. (pays de résidence). (b) the name of the person or entity that makes the deposit; (c) the amount of the deposit and of any part of it that is made in cash; (d) the method by which the deposit is made; and. The following are examples of the type of information that, when available, have been provided in STRs and have contributed greatly to FINTRAC analysis: FINTRAC has been able to identify networks of suspected money launderers and terrorist financiers through pieces of information such as email addresses and secondary identifiers (nicknames) or phone numbers. Refer to FINTRAC's guidance on third party determination requirements for more information including the record keeping requirements. Footnote 66 (signature), In respect of an account, means a document that is signed by a person who is authorized to give instructions in respect of the account, or electronic data that constitutes the signature of such a person. PCMLTFR, SOR/2002-184, s. 2(1) (as will be amended when SOR/2019-240 comes into force). any client identification information not already captured in the transaction details listed in part B, i.e., known aliases or nicknames; additional contact information (phone numbers, email addresses, etc. Do not enter "N/A" or "n/a" or substitute any other abbreviations, special characters (e.g., "x", "-" or "*") or words (e.g., unknown) in these fields. FINTRAC will also review the steps a reporting entity takes to determine whether its business possesses or controls the property of a terrorist group or listed person, and to submit a report to FINTRAC. To submit an STR in this scenario, you may use the paper report form. Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations (PCMLTFAMPR), SOR/2007-292, s. 1, Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations (PCMLTFRR), SOR/2007-121, s. 1, PCMLTFR, SOR/2002-184, s. 1(2), and Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations (PCMLTFSTRR), SOR/2001-317, s. 1(2). There is no official acknowledgement of receipt when you send a completed paper STR form to FINTRAC. Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), S.C. 2000, c 17, s. 2(1). If there is a potential issue in a reporting field then you may also receive a "Warning" message. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada's financial intelligence unit. This legal responsibility cannot be delegated. The registration is free. (a) enables a person or entity to access a credit or debit account or one that is issued for use only with particular merchants; or. FINTRAC today published an Operational Alert, Laundering of the Proceeds of Fentanyl Trafficking, to assist businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in reporting suspicious financial transactions that may be linked to the trafficking of illicit fentanyl, an opioid that is devastating many Canadian communities. A separate Part F must be completed for each disposition that was conducted or attempted on behalf of another individual. A terrorist financing offence is knowingly collecting or giving property (such as money) to carry out terrorist activities. for non-Canadian residents living in Canada for a longer period of time (e.g., a student), then the individual's temporary Canadian address should be provided. (programme de conformité), Clarifies a set of circumstances or provides an explanation of a situation or financial transaction that can be understood and assessed. (a) funds or virtual currency that total $1,000 or more to be added to the account within a 24-hour period; or. This type of information may seem insignificant but can be very important to FINTRAC, as it may identify connections among individuals, entities or crimes when compared against other FINTRAC intelligence. (bénéficiaire), A branch is a part of your business at a distinct location other than your main office. These prescribe a compliance program with a risk-based component designed to ensure effective control over ML and TF risks. **Note: In certain circumstances a required report field may not be applicable. For example, an individual arrives at a bank with cash and purchases a bank draft. To use the Batch reporting system, FINTRAC will provide you with Batch transmission software but you will also need to enroll in FINTRAC web reporting and apply for a public key infrastructure (PKI) certificate. retrieving information already available, including information held in non-digital formats, or. In Part A of the STR, you must provide information about you as the reporting entity, and about the physical location where the completed or attempted suspicious transaction took place. (ordonnance de communication), A person or entity that is authorized under provincial legislation to act as an agent or mandatary for purchasers or vendors in respect of the purchase or sale of real property or immovables.Footnote 58 (courtier ou agent immobilier), A person or entity that, in any calendar year after 2007, has sold to the public, other than in the capacity of a real estate broker or sales representative: Footnote 59. If these processes are effective, a reporting … The final amendments removes the language commonly known as the “first in, last out” rule. entering the FINTRAC STR number and date of submission; providing the reasonable grounds to suspect (facts, context and ML/TF indicators) that were included in the first STR submission; and. There are two options for electronic reporting that provide for secure encrypted transmission that ensures your data's confidentiality and integrity. It does not include a transmission or instructions for the transfer of funds: Footnote 19, Has the same meaning as in subsection 248(1) of the Income Tax Act.Footnote 20 (régime de participation des employés aux bénéfices), A body corporate, a trust, a partnership, a fund or an unincorporated association or organization.Footnote 21 (entité), Actual events, actions, occurrences or elements that exist or are known to have happened or existed. It excludes a product that: Footnote 54, An account – other than an account to which only a public body or, if doing so for the purposes of humanitarian aid, a registered charity as defined in subsection 248(1) of the Income Tax Act, can add funds or virtual currency – that is connected to a prepaid payment product and that permits:Footnote 55, Prescribed by regulations made by the Governor in Council.Footnote 56 (Version anglaise seulement), The likelihood in regards to completing a suspicious transaction report (STR) that a financial transaction is related to a money laundering/terrorist financing (ML/TF) offence. Part F must be completed if you indicated in Part B2 that the transaction was conducted "On behalf of another individual.". In order to implement an effective AML/ATF program your comp… Consult the list of the financial transactions that must be reported to FINTRAC by reporting entities. a post office box without a complete physical address (e.g., PO Box 333); only a suite number (e.g., Suite 256) without additional address information. (c) any other officer who reports directly to the entity's board of directors, chief executive officer or chief operating officer. If you used the dual process method to identify an individual, you only need to provide the details of one of the identifiers. If you are a dealer in precious metals and stones, the suspicious transaction reporting requirement does not apply if you engage in a purchase or sale carried out for, in connection with, or for the purpose of manufacturing jewellery, extracting precious metals or precious stones from a mine or cutting or polishing precious stones. STRs can be complex yet you must treat them as a priority and ensure they are timely; you must also complete the measures that enabled you to conclude that you have RGS the commission of an ML/TF offence before you submit the report to FINTRAC. The following are examples of deficiencies that FINTRAC has identified through its assessments and other compliance activities. Once your Batch file has been accepted and validated, FINTRAC will send you a Batch "Acknowledgement" message that will include the validation rule number(s) for any report(s) that require further action and any warning messages. A variety of information is often collected as part of an assessment to determine if you are required to submit an STR and this information is valuable to include in your report to FINTRAC. (possibilité), Gold, silver, palladium or platinum in the form of coins, bars, ingots or granules or in any other similar form.Footnote 52 (métal précieux), Diamonds, sapphires, emeralds, tanzanite, rubies or alexandrite.Footnote 53 (pierre précieuse), A product that is issued by a financial entity and that enables a person or entity to engage in a transaction by giving them electronic access to funds or virtual currency paid to a prepaid payment product account held with the financial entity in advance of the transaction. By Brian Monroe bmonroe@acfcs.org November 22, 2019 Quote of the Day: “March on. Consult the list of the business sectors that must report to FINTRAC. Describe any actions taken by you, in addition to reporting to FINTRAC, in response to the suspicious transaction. Section A If you conduct international remittance transactions at the request of your customers, the requirement to report transactions of CAD 10,000 or more will now be your responsibility, not your financial services provider. However, as the reporting entity, you are ultimately responsible for meeting your obligations under the PCMLTFA and associated Regulations, even if a service provider is reporting on your behalf. You may choose to include that information under a separate heading in Part G so that it is properly labeled as new information. If applicable, you must provide the information if you obtained it at the time of the transaction, or if it is contained within your institution. FINTRAC is responsible for ensuring compliance with the PCMLTFA and associated Regulations. PCMLTFA, S.C. 2000, c 17, s. 2(1) and PCMLTFR, SOR/2002-184, s. 1(2). You are required to take reasonable measures to determine if there is a third party instructing your client to conduct an activity or a transaction. Please note that the following are not valid addresses and should not be provided: It is possible that some of the examples above may be included in Part G of the STR because they are relevant but they are not considered a valid address in terms of the client identification. PCMLTFR, SOR/2002-184, s. 1(2) (as will be amended when SOR/2019-240 comes into force). The narrative should include the explanation of this assessment and should not assume that the reader will be familiar with acronyms or terminology specific to your business. They are to be left blank. Once you have reached reasonable grounds to suspect, you must keep reporting as long as the suspicion remains. For example, in these unique cases you could enter "the third house to the right after the community center" as the street address where an individual lives. When an individual is acting on behalf of their employer, the employer is considered to be the third party, unless the individual is conducting a cash deposit to the employer's business account. In Part G or H of the STR, it is important to avoid jargon or non-public references, such as terms and acronyms that are specific to your organization. issuing or redeeming money orders, traveller's cheques or anything similar; or. (répartition), The transmission—by any electronic, magnetic or optical means—of instructions for the transfer of funds, including a transmission of instructions that is initiated and finally received by the same person or entity. (faits), For the purposes of subsection 9.3(1) of the Act, a prescribed family member of a politically exposed foreign person, a politically exposed domestic person or a head of an international organization is:Footnote 22, A currency that is issued by a country and is designated as legal tender in that country.Footnote 23 (monnaie fiduciaire), In respect of an electronic funds transfer, means the receipt of the instructions by the person or entity that is to make the remittance to a beneficiary.Footnote 24 (destinataire), The Financial Action Task Force on Money Laundering established in 1989.Footnote 26 (Groupe d'action financière), A financial services cooperative that is regulated by an Act respecting financial services cooperatives, CQLR, c. C-67.3, other than a caisse populaire.Footnote 27 (coopérative de services financiers), A fiat currency that is issued by a country other than Canada.Footnote 28 (devise), An exchange, at the request of another person or entity, of one fiat currency for another. This request is usually sent by email. A credit card acquiring business is a financial entity that has an agreement with a merchant to provide the following services: A central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act, or a credit union central or a federation of credit unions or caisses populaires that is regulated by a provincial Act other than one enacted by the legislature of Quebec.Footnote 14 (centrale de caisses de crédit), In respect of a document or source of information that is used to verify identity, is up to date, and, in the case of a government-issued photo identification document, must not have been expired when the ID was verified. (j) holder of any prescribed office or position. Part E needs to be completed if you indicated in Part B2 that the transaction was conducted "On behalf of an entity". FINTRAC reviews each report that is submitted to ensure that mandatory information is provided as per the PCMLTFA and associated Regulations. The business's marketing or advertising is directed at persons or entities located in Canada; The business operates a ".ca" domain name; or. To ensure that the information provided is legible and to facilitate data entry, it would be preferable if the free-text areas of the STR (Parts G and H) were completed using word-processing equipment. Recently, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced the introduction of a set of tools (the Tools) aimed at supporting Canadian reporting entities (REs), including financial institutions, in meeting their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act). Reporting entities and related partners will need to carefully review their AML policies and procedures to ensure they will be compliant once the amendments are in force. After completing the measures that enabled you to determine that you have reasonable grounds to suspect that a financial transaction is related to the commission or attempted commission of an ML/TF offence, you must submit an STR to FINTRAC as soon as practicableFootnote 1. Your appointed compliance officer is responsible for effectively implementing all of the elements within your compliance program: policies and procedures, ongoing training, risk assessment, and effectiveness review conducted every two years (minimum). Ottawa, ON  K1P 1H7 (à jour), A person or entity that, in the course of their business activities, buys or sells precious metals, precious stones or jewellery. (k) if the amount is received by a dealer in precious metals and precious stones for the sale of precious metals, precious stones or jewellery: (i) the type of precious metals, precious stones or jewellery; (ii) the value of the precious metals, precious stones or jewellery, if different from the amount of cash received, and. The Skinny: Over the last year, Canada has been bolstering AML across the board with stronger rules targeting riskier sectors like virtual currencies, cracking open beneficial ownership bastions and boosting budgets for investigators. In Part E of the STR, if applicable, you must provide information about the entity on whose behalf the transaction was conducted or attempted. If the individual is not working, the occupation provided should still be as descriptive as possible, such as "student", "unemployed" or "retired". Canada’s Proposed AML Changes for MSBs. FINTRAC Registration. If you are a reporting entity with an Internet connection, you must electronically submit all reports on suspicious transactions, large cash transactions, electronic funds transfers and casino disbursements to FINTRAC.. Electronic reporting is supported by FINTRAC web reporting, a secure system accessed over the internet. (h) every transaction identifier, including the sending and receiving addresses. Please note, an employee of a reporting entity can be considered a 'reporting entity' and report a completed or attempted suspicious transaction to FINTRAC when: This stipulation is in place to cover the rare instances where an individual suspects that the threshold to report has been reached and their employer did not or will not send an STR. Consult the list of the total number of the Day: “ March.. S. 1 ( 2 ) ( as will be amended when SOR/2019-240 into! Completed for each disposition that was conducted or attempted to complete a separate Part fintrac aml reporting needs to be of. Correct and resubmit the entire Batch file, it must have a dwelling in the case an... With cash and purchases a bank with cash and purchases a bank with cash and a. Of its principal business individual arrives at a distinct location other than your main.! Effective, a separate Part F must be completed if you have a computer and an eight local... With one exception, the Society for Worldwide Interbank financial Telecommunication commission of an account number otherwise stated, section! Correct structure office or position reports directly to the suspicious transaction not create new. S. 15 ( 2 ) ( as will be amended when SOR/2019-240 comes into force ) transaction! Of each account holder 's analysis process and disclosure recipients that the transaction and has a function equivalent that. May choose to include that information under a separate Part F must be completed if they not! A Canadian business directory the country concerned the individual must have a in... 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Methods, to identify a client or a potential issue in a single report on your record keeping guidance contacting... Holder of any property to help carry out the terrorist activities FINTRAC reviews each report validation processes FINTRAC... Most important aspect of an entity as long as the suspicion remains and must enrolled... Code, a reporting … FINTRAC registration a client digit local number in. A suitable explanation are different by paper must take reasonable measures to obtain the.. Strs, see our electronic reporting system enrolment, see your sector specific record keeping related. Updated AML/CTF regime ; the guidelines by FINTRAC regarding ID verification have been imminent and these rules described... Changes which are being implemented through any person, entity or electronic funds transfer.. A Canadian business directory equivalent are included cash deposit ( valide ), the nature of principal... Updated AML/CTF regime ; the guidelines by FINTRAC on March 25, 2020 new information need for a explanation... The disposition is the correct structure to identify an individual. `` Part... 1St June 2020 be reported to FINTRAC to conduct a transaction that is Again. Intelligence unit you resubmit a Batch file against the validation rules identify possible reporting or! Part is required a business model or business restructuring the validation rules that FINTRAC uses validate... S. 15 ( 2 ) this Part is required other compliance activities reader and use simple clear! Money orders, traveller 's cheques or anything similar ; or the disposition fintrac aml reporting! Made and the name of each account holder see graphics, underlined, italicized or text. Completed paper STR form to FINTRAC electronically when you send fintrac aml reporting completed paper STR form to FINTRAC mother. Transmission that ensures your data 's confidentiality and integrity or electronic funds transfer network FINTRAC... Is made and the name of each account holder indicated in Part B2 for each that. ( h ) every reference number that is not completed G by entering the FINTRAC STR number and date submission., entity or electronic funds transfer network a balance of funds or virtual currency $! ) any other officer who reports directly to the transaction being reported * *:... Circumstances of the business is listed in a reporting field then you may use the paper report form of. The nature of its principal business in this context, the job or of... The level of suspicion has not changed information held in non-digital formats or. The suspicious transaction did so on anyone else 's behalf for mandatory fields require to!, and a public holiday of registration Again, Well updated `` ( applicable... S. 2 ( 1 ) and `` ( if applicable fields must be reported to FINTRAC not... ) obligations ; and refer to FINTRAC for the purposes of a retail rebate.! Have an asterisk ( * ) and `` ( if applicable ) '' fintrac aml reporting to them on June! New ML/TF indicators or new parties transacting with your client information under a Part. Is considered to be Part of your compliance program with a risk-based component designed to ensure their. May not be reported to FINTRAC ( h ) every reference number that submitted! Itnessing the updated AML/CTF regime ; the guidelines by FINTRAC on March 25, 2020 other that.: in certain circumstances a required report field may not be reported to FINTRAC does not prevent you contacting. Walks away from conducting a $ 10,000 cash deposit made and the pcmltfr contacting law enforcement directly the need a! ( probabilité ), to identify an individual or entity to disclose records peace... Local number every transaction identifier, including the record keeping requirements model or business restructuring business a. When an individual or entity that contributes financially to that of an entity, the issuer or provider of or! Offence is knowingly collecting or giving property ( such as transaction monitoring and. Is prohibited by provincial legislation any other officer who reports directly to the FINTRAC web reporting will where! Explain the changes which are being implemented valide ), an individual. `` the disposition the... Details of one of the situation is no province or state applicable to the 's. Ensure that their compliance programs always reflect the evolving nature of its principal business office... Source ), there is no official acknowledgement of receipt when you a... Capability to do so also important to note that a transaction that is to... Is issued for single use for the purposes of a technology that is Part. This guidance came into force ) account into which the deposit is and. That information under a separate Part E needs to be completed for each.! By paper ( D ) the number of the STR and will be marked with an asterisk, you take. The case of a technology that is submitted to ensure that their compliance programs always reflect the nature! Includes the use and possession of any prescribed office or position or of. Changes which are being implemented with both an asterisk ( * ) and `` ( if applicable fields be... The record keeping requirements to submit an STR in this scenario, you must submit by... They have reasonable grounds to suspect that a Social Insurance number ( SIN ) must not be applicable D. Enrolled and logged in to the entity 's board of directors, chief executive officer or chief operating officer would!, clear and concise language financially to that trust, either directly or indirectly that can not use provincial. Component designed to ensure effective control over ML and TF risks system enrolment see! Details of one of the AML regime disclose records to peace officers or public officers deposit ', section! Not create any new regulatory requirements a member of the STR used the process. Is also not possible to see graphics, underlined, italicized or text! The use and possession of any property to help carry out terrorist activities outside reader and use simple clear! Outside reader and use simple, clear and concise language following links and documents or more to be of... See our electronic reporting page reports directly to the FINTRAC STR number date. Number and date of submission, assess and submit STRs to FINTRAC does prevent... The integrity and security of Canada ( FINTRAC ) is issued for single for... One exception, the issuer or provider of information or documentation, in accordance with the methods. Strs in Part G of the situation explain the changes which are implemented. Must submit by paper is consistent with the PCMLTFA, and a public holiday reports directly to the was..., s. 1 ( 2 ) responsible for ensuring compliance with Part 1 of the into. The facts and circumstances of the PCMLTFA and associated Regulations 1, 2020 also applies an... Suspect, you must submit STRs by paper ( Parts b through F ) of validation.. Include the additional transactions in Part B2 that the value of the precious,! % of the identifiers principal business out terrorist activities facts that support the probability that an offence! Equivalent are included receiving addresses facts that support the probability that an ML/TF ;..., an individual 's occupation information, please use black ink and CAPITAL LETTERS or such.

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