Two sets of
regulations aimed at fighting money laundering and terrorist financing were published recently in the
Canada Gazette, Part II. They expand on Canada's existing regulatory framework and reflect the input
received from financial institutions and intermediaries.
The first set of regulations, which amend the existing Proceeds of
Crime Suspicious Transaction Reporting Regulations, require that financial institutions and other financial
intermediaries report financial transactions to the Financial Transactions and Reports Analysis Centre of
Canada (FINTRAC), in cases where there are reasonable grounds to suspect the transaction is related to money
laundering. The second set -- the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations --
requires financial institutions and intermediaries to report large cash transactions and international
electronic fund transfers. It also outlines requirements for enhanced record-keeping, client identification
and internal compliance.
Most of the provisions will come into effect on June 12, 2002, while the rest will be implemented on November
30, 2002.
The published regulations can be obtained from the Canada Gazette website http://canada.gc.ca/gazette/hompar2-2_e.html and the Department of Finance
www.fin.gc.ca
site. (For background on money laundering, see the Special report on the
international money laundering conference.)
