Modernization and upcoming changes impacting reporting entities

Description of initiative

On March 26, 2026, the Strengthening Canada's Immigration System and Borders Act received Royal Assent, which introduces amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.

Various coming into force dates will apply, and FINTRAC will provide information to assist businesses subject to the Act in complying with obligations relating to these amendments as they come into force.

Components of initiative

New administrative monetary penalties framework

Coming into force: March 26, 2026, and in accordance with the transitional provisions

Increase the maximum amount of administrative monetary penalties that may be imposed for prescribed violations
Introduce ability to pay as part of the criteria for determining an administrative monetary penalty amount
Introduce the use of compliance agreements in all cases where an administrative monetary penalty is imposed
Introduce compliance orders as a new enforcement tool
Designate the contravention of a compliance order as a new violation under the Act
Elevate certain compliance program violations from serious to very serious

FINTRAC is currently updating its administrative monetary penalties policy and developing accompanying guidance that will outline the principles, processes, and criteria used to administer penalties.

Compliance program and knowing your client requirements

Coming into force: March 26, 2026

Require compliance programs to be reasonably designed, risk-based and effective
Clarify requirements related to the prohibition of anonymous accounts
Introduce a definition of anonymous client

FINTRAC will update its guidance to outline the expectations for these requirements.

Universal enrolment

Coming into force: In line with Regulations to be developed and published in the Canada Gazette, Part II

Require businesses subject to the Act (other than those already required to register) to enroll with FINTRAC

Commissioner of Canada Elections as a new disclosure recipient

Coming into force: March 26, 2026

Enable FINTRAC to provide financial intelligence disclosures to the Commissioner of Canada Elections

Financial Institutions Supervisory Committee membership

Coming into force: March 26, 2026

The Director and CEO of FINTRAC becomes a member of the Financial Institutions Supervisory Committee
Enable FINTRAC to exchange supervisory information on federally regulated financial institutions with other members of the Financial Institutions Supervisory Committee

Initiative status

FINTRAC will update its existing guidance to integrate information relating to these amendments.

Information on universal enrolment will be provided as it becomes available.

Further reading:

Description of initiative

On March 26, 2026, the Budget 2025 Implementation Act received Royal Assent, which introduces amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Various coming into force dates will apply, and FINTRAC will provide information to assist businesses subject to the Act in complying with obligations relating to these amendments as they come into force.

Components of initiative

Stablecoin Act

The Stablecoin Act establishes regulatory requirements for stablecoin issuers, that create stablecoins and make them available for purchase, directly or indirectly, by persons in Canada. Stablecoin issuers will be required to register with FINTRAC as money services businesses dealing in virtual currency. In addition, the Bank of Canada will maintain a public registry of stablecoin issuers.

Coming into force: In line with Regulations to be developed and published in the Canada Gazette, Part II

Require stablecoin issuers to register with FINTRAC

Initiative status

FINTRAC will update its existing guidance for money services businesses.

Further reading:

Description of initiative

On March 26, 2025, the Government of Canada published new Regulations in the Canada Gazette, Part II, that create obligations for businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations. These measures were initially proposed in the Budget 2024 to strengthen Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime.

FINTRAC will provide information and adapt reporting tools to assist businesses subject to the Act in complying with obligations relating to these amendments as they come into force.

Components of initiative

Private-to-private information sharing

Private-to-private information sharing between reporting entities is now in force.

Allows reporting entities to share information with each other to more effectively detect and deter money laundering, terrorist financing and sanctions evasion, while maintaining privacy protections for personal information
Information sharing between reporting entities has been recognized by the Financial Action Task Force (FATF) as an important tool for disrupting money laundering and terrorist financing
Engaging in private-to-private information sharing with other reporting entities is voluntary.
To engage, a code of practice must be submitted to FINTRAC for possible review and comment, as well as the Office of the Privacy Commissioner of Canada for approval.

Factors, cheque cashing businesses and financing or leasing entities

On April 1, 2025, obligations came into force for:

factors
cheque-cashing businesses
financing or leasing entities

Beneficial ownership discrepancy reporting

On October 1, 2025, new obligations came into force to strengthen corporate beneficial ownership transparency by implementing a requirement for reporting entities to report material discrepancies between their records and a company's registry filings to the federal beneficial ownership registry administered by Corporations Canada, in circumstances where they assess there is a high risk of a money laundering or terrorist financing offence.

Initiative status

FINTRAC has published guidance for:

Factors
Cheque cashers
Financing or leasing entities
Beneficial ownership requirements
Private-to-private information sharing
- Guidance: Private-to-private information sharing
- Model code of practice for private-to-private information sharing
- Submit a code of practice under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (Office of the Privacy Commissioner of Canada)

In the first year following the coming into force dates, FINTRAC is putting emphasis on engagement, outreach and guidance activities related to new regulatory obligations in order to foster greater awareness and understanding amongst new reporting entities.

Further reading:

Description of initiative

On January 1, 2025, the Government of Canada published new Regulations in the Canada Gazette, Part II, that modify obligations for businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act). These measures were initially proposed in the Budget 2023 and Fall Economic Statement 2023 to strengthen Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime.

FINTRAC will provide information and adapt reporting tools to assist businesses subject to the Act in complying with obligations relating to these amendments as they come into force.

Components of initiative

On March 1, 2025, the reporting of sanctioned property related information under the United Nations Act came into force.

On October 1, 2025, the remaining Regulations came into force and will:

strengthen the registration framework for money services businesses
allow agents or mandataries to be used when verifying the identity of corporations and other entities
create an obligation for real estate sales representatives and brokers to verify the identity of unrepresented parties, keep an information record and make the associated third party determination for these parties in real estate transactions
create obligations for acquirers of private automated banking machines and title insurers
require the reporting of sanctioned property related information under the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act

Initiative status