A Flexible But Rigorous Approach: Changes To Canada's Anti-Money Laundering Regulations

Canada's draft regulations to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act have been enacted in final form. The amendments provide for more flexible client identification measures and recognize digital authentication, two changes that will facilitate digital commerce, and impose new substantial risk assessment requirements.

What You Need To Know

The most significant changes include:

• a more flexible client identification regime; the recognition of digital authentication;
• the implementation of the domestic politically exposed persons regime that was introduced in Bill C-31; and
• In light of the Financial Transactions and Reports Analysis Centre of Canada's (FINTRAC) recent propensity to levy administrative monetary penalties, reporting entities should consider the implications these new regulations may have for their operations and ensure that they implement new policies, procedures and training necessary to facilitate compliance with