FINTRAC Canada Proceeds of Crime Regulations Comment Deadline Set

• The Government of Canada published proposed regulations related to the Proceeds of Crime (Money Laundering and Terrorist Financing) Act in the Canada Gazette in February 2023.
• The public consultation period for these proposed rules concluded on March 20, 2023, and the regulations have since been finalized and published.
• The regulations aim to clarify requirements for reporting suspicious transactions and other aspects of anti-money laundering compliance.
• Failure to comply with the rules could result in significant penalties, including fines and reputational damage.

This development provided an opportunity for interested parties to shape the final version of the regulations.

The Government of Canada published proposed regulations related to the Proceeds of Crime (Money Laundering and Terrorist Financing) Act in the Canada Gazette in February 2023. A public consultation period followed, with a deadline for submitting comments of March 20, 2023. These regulations have since been finalized and published in the Canada Gazette, Part 2, on October 11, 2023, and January 1, 2025, with further amendments published on March 26, 2025. This development provided an opportunity for interested parties to shape the final version of the regulations.

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act is a key piece of legislation aimed at preventing money laundering and terrorist financing in Canada, and it remains in force, with its latest amendment on March 26, 2026. The Act requires financial institutions, among others, to report suspicious transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which continues to operate as Canada's financial intelligence unit. The regulations, which were initially proposed, provide further clarity on the requirements for reporting suspicious transactions and other aspects of anti-money laundering compliance.

The finalized regulations have important implications for businesses operating in the financial sector. Failure to comply with the rules could result in significant penalties, including fines and reputational damage. As such, it is essential that businesses are aware of and adhere to the current regulations to avoid potential non-compliance issues.

Lawyers should ensure their clients are aware of the opportunity to provide comments on the proposed regulations by March 20, 2023, to avoid potential non-compliance issues.

Source: Original reporting via Government of Canada