Canada's Proceeds of Crime (Money Laundering) and Terrorist
Financing Act (the Act) obligates certain businesses with money
laundering vulnerabilities to identify clients, keep records, and
report prescribed transactions, among other things. We're often
asked by payment processors and transaction intermediaries whether
they have those responsibilities. We helpfully respond –
sometimes. Determining whether the obligations apply depends on
facts of the situation.
Is your institution subject to Canada's AML rules?
Some institutions are subject to the Act because of what they
are (e.g. a bank) while others are obligated because of what they
do (e.g. selling diamonds for cash). Since payment processors
aren't specifically mentioned as being obligated because of
their business type, the sections relating to activity based
obligations, particularly those related to money services business
(MSB) activity, become the most relevant. Specified MSB activities
include:
