AML/CFT guide · Canada
Canada AML/CFT Regulation
A reference guide to Canada's anti-money-laundering and counter-terrorist-financing framework: FINTRAC as combined FIU and supervisor, the PCMLTFA, the autonomous sanctions administered by Global Affairs Canada, and recent reforms.
Last updated 2026-06-20
Canada AML/CFT Regulation
Canada runs a federal AML/CFT regime, layered with provincial supervision. The core preventive statute is the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), administered by FINTRAC, which acts as both the Financial Intelligence Unit and the federal supervisor. Autonomous sanctions are administered separately by Global Affairs Canada.
General information, not legal advice. This material is provided for general informational purposes and reflects publicly available sources as of 20 June 2026. It is not legal advice and may not reflect the most recent changes. Confirm any obligation against the relevant primary authority before relying on it.
1. Canadian AML/CFT bodies and roles
| Body | Role |
|---|---|
| FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) | Canada's FIU and the federal AML/CFT supervisor. Receives reports, registers money-services businesses, audits reporting entities, levies administrative monetary penalties, and discloses financial intelligence. |
| Department of Finance Canada | Policy owner of the AML/CFT regime; drafts the PCMLTFA and its regulations; runs the statutory parliamentary review. |
| Global Affairs Canada (GAC) | Administers autonomous economic sanctions (SEMA, the Magnitsky-style JVCFOA) and UN-mandated sanctions; publishes the Consolidated Autonomous Sanctions List. |
| RCMP | Lead federal law-enforcement investigator for money-laundering and terrorist-financing offences. |
| Canada Financial Crimes Agency (CFCA) | Announced as an intended lead enforcement agency against financial crime; standing up. |
| Provincial regulators | Sectoral supervision (for example, in British Columbia following the Cullen Commission). |
The obligations are split: FINTRAC administers the reporting and record-keeping regime, while GAC maintains the sanctions lists used for screening. These are two separate obligations.
2. History timeline
| Year | Law / event | What it changed |
|---|---|---|
| 1992 | Special Economic Measures Act (SEMA) | Enables autonomous economic sanctions against foreign states and persons (for peace and security, gross human-rights violations, significant foreign corruption, or to honour an international call). The sanctions backbone. |
| 2000 | PCMLTFA enacted (S.C. 2000, c. 17) | Created a mandatory reporting system (suspicious transactions, large cross-border currency, prescribed transactions) and established FINTRAC. |
| 2001 (Dec) | Renamed to add "and Terrorist Financing" | A post-9/11 amendment added terrorist-financing measures, formally creating Canada's combined AML/ATF regime. |
| 2006 | Major PCMLTFA amendments (Bill C-25) | Strengthened CDD; brought more sectors into scope; introduced administrative monetary penalties and the risk-based approach. |
| 2014 | Economic Action Plan 2014 Act amendments | Brought persons dealing in virtual currencies and certain foreign money-services businesses conceptually into scope. |
| 2017 | Justice for Victims of Corrupt Foreign Officials Act (JVCFOA / "Magnitsky Law") | A new autonomous-sanctions tool targeting foreign nationals for gross human-rights violations or significant corruption. |
| 2019–2021 | Regulatory amendments (phased) | Codified virtual-currency obligations: dealers in virtual currency must register as money-services businesses; introduced Large Virtual Currency Transaction Reports and travel-rule-style requirements. |
| 2022 (Jun 15) | Cullen Commission Final Report (British Columbia) | A major report (101 recommendations) finding that significant sums were laundered annually in the province and that Canada lacked a comprehensive money-laundering strategy. |
| 2023 | Budget 2023 and Bill C-42 | Bill C-42 amended the Canada Business Corporations Act (CBCA) to create a public, searchable beneficial-ownership registry. |
| 2024 (Jan 22) | CBCA beneficial-ownership registry goes live | Federal corporations must file individuals-with-significant-control data; portions are publicly searchable. |
| 2024–2026 | Further reforms | Expanded information-sharing and new sectors (e.g. mortgage lending, factoring/leasing/financing); further PCMLTFA amendments received Royal Assent on 26 Mar 2026. |
3. Current framework — core obligations
Reporting entities under the PCMLTFA include banks, credit unions, life insurers, securities dealers, money-services businesses (including virtual-currency dealers), casinos, real-estate brokers and developers, accountants, dealers in precious metals and stones, and (phased in) mortgage lenders. Core duties:
| Obligation | Substance |
|---|---|
| CDD / KYC | Identify and verify clients; identify beneficial owners of entities; conduct ongoing monitoring; apply enhanced due diligence for high-risk situations and PEPs (domestic and foreign). |
| Suspicious Transaction Reports (STRs) | File when there are reasonable grounds to suspect money laundering or terrorist financing. No dollar threshold. Filed to FINTRAC within 30 days of detecting a fact establishing the suspicion. |
| Large Cash Transaction Reports (LCTRs) | Cash of CAD $10,000 or more received in a 24-hour period must be reported within 15 days. |
| Electronic Funds Transfer Reports (EFTRs) | International transfers of CAD $10,000 or more must be reported. |
| Large Virtual Currency Transaction Reports (LVCTRs) | Virtual-currency receipts of CAD $10,000 or more (24-hour period) must be reported, with crypto-specific fields. |
| Beneficial ownership | Obtain and confirm beneficial-ownership information for entity clients; CBCA corporations file individuals-with-significant-control data to the federal registry. |
| MSB / VASP registration | Money-services businesses (including virtual-currency dealers) must register with FINTRAC before operating and renew every two years; foreign businesses serving Canadian clients also register. |
| Record-keeping | Retain identification, transaction, and account records (generally five years); maintain a documented compliance program with biennial effectiveness review. |
| Penalties | FINTRAC administrative monetary penalties for non-compliance; criminal penalties under the PCMLTFA and Criminal Code for offences and for failure to report. |
4. Sanctions screening
Canada's autonomous-sanctions stack sits outside the PCMLTFA but creates direct screening obligations:
- SEMA (1992) — autonomous country and person sanctions; prohibits dealing in the property of designated persons.
- JVCFOA / Magnitsky (2017) — sanctions on foreign nationals for gross human-rights abuses or significant corruption.
- United Nations Act — domesticates UN Security Council sanctions.
- Consolidated Autonomous Sanctions List — published by GAC, covering persons and entities listed under SEMA and JVCFOA.
A continuing duty. Persons in Canada must not deal in the property of listed persons and must determine on a continuing basis whether they are in possession or control of such property, and report it. Global Affairs Canada has issued guidance addressing how reporting obligations apply to property owned, held, or controlled by or on behalf of a listed person; the current scope of these obligations should be confirmed against GAC's published guidance. Because the determination is required on a continuing basis, a single point-in-time check is not sufficient.
5. Recent and upcoming developments (2023–2026)
| Item | Status / date |
|---|---|
| CBCA public beneficial-ownership registry | Live 22 Jan 2024; provinces encouraged to align toward a pan-Canadian registry. |
| Canada Financial Crimes Agency (CFCA) | Announced 2022 and reaffirmed since; standing up. |
| PCMLTFA scope expansion | 2023–2026 regulatory waves adding sectors (mortgage lending, white-label ATM operators, factoring/financing/leasing) and enhanced information-sharing; stablecoin issuers to register as money-services businesses once regulations are in force. |
| Supervisory/enforcement reform | Strengthened FINTRAC powers and higher penalties; post-Cullen federal-provincial coordination. |
| Latest amendments | Royal Assent 26 Mar 2026, expanding compliance obligations, information-sharing, and enforcement. |
The overall reform direction has been toward more sectors in scope, greater ownership transparency, and stronger enforcement.
6. Sources and primary authorities
Primary sources preferred; accessed 2026-06-20 unless noted.
- Justice Laws — Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17): https://laws-lois.justice.gc.ca/eng/acts/p-24.501/
- FINTRAC — Reporting suspicious transactions: https://fintrac-canafe.canada.ca/guidance-directives/transaction-operation/str-dod/str-dod-eng
- Global Affairs Canada — Canadian sanctions, essential information: https://www.international.gc.ca/world-monde/international_relations-relations_internationales/sanctions/essential-informations-essentielles.aspx?lang=eng
- Cullen Commission — Final Report (2022): https://cullencommission.ca/files/reports/CullenCommission-FinalReport-Full.pdf
- ISED Canada — beneficial-ownership registry legislation (Bill C-42 / CBCA): https://www.canada.ca/en/innovation-science-economic-development/news/2023/03/government-of-canada-tables-new-legislation-to-create-a-beneficial-ownership-registry.html
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