Publication of new Regulations
On March 26, 2025, the Government of Canada published new Regulations in the Canada Gazette, Part II that create new obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) and associated Regulations for factors, cheque cashers and financing or leasing entities.
The Regulations will also allow businesses subject to the Act to disclose information between each other to facilitate the detection and deterrence of money laundering, terrorist financing and sanctions evasion and strengthen corporate beneficial ownership transparency.
Obligations for factors, cheque cashers and financing or leasing entities
Starting April 1, 2025, factors, cheque cashers and financing or leasing entities must fulfill obligations under the Act and associated Regulations. To assist these sectors in understanding and complying with their obligations under the Act, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) published new guidance:
• Factors
• Cheque cashers
• Financing or leasing entities
Private-to-private information sharing
Businesses subject to the Act can now disclose information between each other to more effectively detect and deter money laundering, terrorist financing and sanctions evasion, while maintaining privacy protections for personal information. Businesses must first develop and submit for review by FINTRAC and approval to the Office of the Privacy Commissioner of Canada a code of practice outlining conditions under which they may disclose personal information.
For more information:
• Modernization and upcoming changes impacting reporting entities
• Submit a code of practice under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (Office of the Privacy Commissioner website)
Corporate beneficial ownership
Starting October 1, 2025, the Regulations will require businesses subject to the Act to report material discrepancies between their records and a company’s registry filings to the federal beneficial ownership registry maintained by Corporations Canada in circumstances where they assess there is a high risk of a money laundering or terrorist financing offence. FINTRAC will communicate more information and guidance on these changes in advance of the coming-into-force date.
Consult the Regulations:
SOR/2025-68 – Canada Gazette, Part II, Volume 159, Number 7: Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations
SOR/2025-67 – Canada Gazette, Part II, Volume 159, Number 7: Proceeds of Crime (Money Laundering) and Terrorist Financing Reporting of Goods Regulations
For questions, please contact FINTRAC by telephone at 1-866-346-8722 (toll-free) or by email at guidelines-lignesdirectrices@
