The Department of Finance Canada has proposed changes to strengthen Canada’s anti-money laundering (AML) regime by updating customer due diligence and beneficial ownership reporting requirements, and regulating businesses that deal in virtual currency, among other things.
The proposed regulations were published last week in the Canada Gazette.
The proposed changes are designed to address deficiencies in Canada’s existing AML regime, which were identified by the Financial Action Task Force (FATF), along with enhancements sought by the government.
The proposed amendments would “strengthen Canada’s ability to combat money laundering and terrorist activity financing activities,” Finance Canada stated, while also improving compliance with regulatory requirements, and improving the monitoring and enforcement efforts of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
A cost-benefit analysis estimates that the proposals would impose $61.1 million in added costs, and produce an estimated $1.9 million in direct benefits.
There are “substantial qualitative benefits associated with the amendments that cannot be monetized”, Finance Canada stated, such as bringing the Canadian AML regime in compliance with the FATF’s international standards.
“Meeting these standards improves the integrity of the global AML/ATF framework. Furthermore, the amendments positively impact Canada’s international reputation, and would lead to regulatory efficiencies with other countries’ anti-money laundering and anti-terrorist financing regimes, making it easier for Canadian businesses to operate internationally,” Finance Canada stated.