Today, the government of Canada published final regulations in the Canada Gazette to support its efforts to strengthen Canada’s anti-money laundering and anti-terrorist financing (AML/ATF) regime.

In our previous article, Strengthening Canada's Response to Financial Crime, we discussed the government's ongoing efforts to enhance Canada’s AML/ATF regime in response to the evolving risk environment and Canada’s upcoming mutual evaluation by the Financial Action Task Force (the FATF).

The latest changes build on these efforts by introducing amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) regime, regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). These regulations aim to address emerging threats and ensure the integrity of Canada's financial system. These changes will now take effect on April 1, 2025.

The key points of these amendments are summarized as follows:

  • Trade-based financial crime: These amendments will enable the Canada Border Services Agency (CBSA) to collect data from traders on goods and share instances of suspected criminality with law enforcement. This aims to safeguard Canada's economy and trade system by detecting, deterring and disrupting trade-based financial crime.
  • Information sharing: Enhanced private-to-private information sharing will help FINTRAC reporting entities more accurately assess customer risks and identify potential suspicious activity. Under the amendments, reporting entities may voluntarily share information with each other to detect and deter money laundering, terrorist financing and sanctions evasion, while maintaining privacy protections for personal information. Under this mechanism, the Office of the Privacy Commissioner of Canada will have an oversight role.
  • Discrepancy reporting: Reporting entities will be required to report discrepancies in beneficial ownership information to the federal registry in high-risk situations. This will ensure the accuracy of the beneficial ownership registry and support law enforcement and other competent authorities.
  • Factoring companies, cheque cashing businesses and financing and leasing companies: The amendments will expand the federal AML/ATF regulatory regime to include these sectors, mitigate known money laundering risks and create a more level regulatory playing field across businesses in Canada that provide financial services. These changes will bring Canada in line with international standards set by FATF for financial entities.

Accelerated timeline

These changes were originally set to take effect on October 1, 2025, but were recently moved up by six months to take effect on April 1, 2025. The Government of Canada announced on March 7, 2025 that regulated entities would have just over three weeks to adjust to the new requirements.

In its Regulatory Impact Analysis Statement accompanying the final amendments, the government explained that the expedited timeline is meant to provide those implementing the regulations with the information they need to more immediately contribute to Canada’s transnational crime and border security priorities.

The amended regulations will now come into force on the following dates:

  • April 1, 2025: Regulations related to trade-based financial crime, factoring companies, cheque cashing businesses and financing and leasing companies. This expedited timeline is said to assist Canada in its response to the urgent threat posed by transnational organized crime groups who have become major enablers of the fentanyl crisis.
  • October 1, 2025: Regulations related to discrepancy reporting. This timeline allows businesses to adjust to new requirements and update their systems and processes.
  • Immediately upon publication: Regulations related to information sharing. These amendments create a voluntary framework that reporting entities can use at their discretion. Unlike the other amendments, the amendments related to information sharing do not create new obligations.

Approach to implementation and enforcement

Given the accelerated timeline for these amendments, the regulators and government agencies engaged in oversight are taking a gradual approach to enforcement to the extent that the amendments create new obligations. The Regulatory Impact Analysis Statement accompanying the final amendments contains the following information about the approach to implementation and enforcement for these amendments:

  • Canada Border Services Agency (CBSA): The CBSA will “ease the implementation process” for the new trade-based financial crime regulations at ports of entry. The agency will update its guidelines and raise awareness among importers and exporters. Enforcement tools include administrative monetary penalties for non-compliance. The CBSA will also have the authority to seize and forfeit goods when there are reasonable grounds to believe they are proceeds of crime or related to money laundering, terrorist financing, or sanctions evasion.
  • Office of the Privacy Commissioner (OPC): The OPC will review and approve Codes of Practice developed by reporting entities for the voluntary information sharing framework. If privacy protections are deemed insufficient, the OPC will provide written deficiencies for modification. The OPC will have a prescribed period of 120 calendar days to approve a Code of Practice, with the possibility of extending the deadline by 15 days.
  • Corporations Canada: Prior to October 1, 2025, Corporations Canada will build the reporting systems needed to implement the beneficial ownership information discrepancy reporting framework, and FINTRAC will develop complementary guidance in consultation with industry. After October 1, 2025, reporting entities will submit discrepancy reports directly on Corporations Canada's website, which will provide electronic receipts for submitted reports. Corporations Canada will have the authority to ensure the accuracy of the beneficial ownership registry information.
  • Financial Transactions and Reports Analysis Centre of Canada (FINTRAC): FINTRAC will oversee the implementation of the new regulations related to information sharing, discrepancy reporting, factoring companies, cheque cashing businesses, and financing and leasing companies. Prior to April 1, 2026, FINTRAC will put emphasis on engagement, outreach and guidance activities related to new regulatory obligations for factoring companies, cheque cashing businesses, and financing and leasing companies in order to foster greater awareness and understanding among these new reporting entities.

    This will include industry consultation to develop guidance such that new reporting entities will be well positioned to implement and mature their compliance programs following the coming into force. FINTRAC will undertake these activities consistent with its risk-based approach. After this initial one-year period, FINTRAC will conduct ongoing supervisory activities, including assessments to ensure compliance.

For any questions you may have about this topic, please contact the authors or a member of our Financial Services Regulation or White Collar Defence & Investigations groups.