Language selection

Search

Determination of charges by type of reporting entity : Charging reporting entities for FINTRAC’s compliance program

From: Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

Learn about the different approaches that FINTRAC will use to determine the amounts it will charge to specific types of reporting entities for the annual cost of its compliance program.

On this page

Federally regulated banks

FINTRAC will calculate the charges for banks through the following formula:

A + [B × (C ÷ D) × (E ÷ F)] = G

Explanation of formula

A: Base amount
(To determine the base amount, refer to the table Base amounts in relation to the value of entity’s Canadian assets at the end of its financial year)

B: Remaining compliance cost
(Sum of all base amounts subtracted from the annual cost of FINTRAC’s compliance program)

C: Sum of threshold transaction reports submitted by banks during the fiscal year

D: Sum of threshold transaction reports submitted to FINTRAC during the fiscal year

E: Value of Canadian assets held by the bank at the end of its financial year

F: Total value of Canadian assets held by all banks at the end of the fiscal year

G: Bank’s final charge

Example: Charge for 123 Bank

For the purposes of the following example:

Calculation of amount charged to 123 Bank for the fiscal year
Value of Canadian assets at the end of its financial year (E) $650,000,000,000
Base amount (A) $200,000
Formula and calculation

A + [B × (C ÷ D) × (E ÷ F)] = G

$200,000
+
[
$33,110,000
x
(
31,500,000 ÷ 35,000,000)
x
(
$650,000,000,000 ÷ $10,000,000,000,000)]
=

$2,136,935

Amount charged for that fiscal year (G) $2,136,935
Note: This example is hypothetical and used for illustration purposes only.

Federally regulated trust and loan companies and life insurance companies

The determination of charges for federally regulated trust and loan companies and life insurance companies will depend on whether or not they submit 500 or more threshold transaction reports to FINTRAC in a fiscal year.

Fewer than 500 threshold transaction reports submitted

FINTRAC will charge only the base amount to trust and loan companies and life insurance companies that submit fewer than 500 threshold transaction reports in a fiscal year.

Example: Charge for 123 Trust and Loan Company

To determine the base amount, refer to the table Base amounts in relation to the value of entity’s Canadian assets at the end of its financial year.

Determination of amount charged to 123 Trust and Loan Company for the fiscal year
Value of Canadian assets at the end of its financial year $3,000,000
Base amount $5,000
Number of threshold transaction reports submitted during the fiscal year 0
Formula and calculation Not applicable
Amount charged for that fiscal year $5,000

Note: This example is hypothetical and used for illustration purposes only.

500 or more threshold transaction reports submitted

FINTRAC will calculate the charges for trust and loan companies and life insurance companies that submit 500 or more threshold transaction reports in a fiscal year through the following formula:

A + [B × (H ÷ D) × (I ÷ J)] = K

Explanation of formula

A: Base Amount
(To determine the base amount, refer to the table Base amounts in relation to the value of entity’s Canadian assets at the end of its financial year)

B: Remaining compliance cost
(Sum of all base amounts subtracted from the annual cost of FINTRAC’s compliance program)

H: Sum of threshold transaction reports submitted by reporting entities other than banks during the fiscal year

D: Sum of threshold transaction reports submitted to FINTRAC during the fiscal year

I: Number of threshold transaction reports submitted by the reporting entity during the fiscal year

J: Sum of threshold transaction reports submitted by reporting entities other than banks that submitted 500 or more reports during the fiscal year

K: Trust and loan company’s or life insurance company’s final charge

Example: Charge for 456 Trust and Loan Company

For the purposes of the following example:

  • the remaining compliance cost to be charged to reporting entities for the fiscal year is $33,110,000 (B)
  • the sum of threshold transaction reports submitted by reporting entities other than banks during the fiscal year is 3,500,000 (H)
  • the sum of threshold transaction reports submitted to FINTRAC during the fiscal year is 35,000,000 (D)
  • the sum of threshold transaction reports submitted by reporting entities other than banks that submitted 500 or more reports during the fiscal year is 3,425,000 (J)
Calculation of amount charged to 456 Trust and Loan Company for the fiscal year
Value of Canadian assets at the end of its financial year $100,000,000
Base amount (A) $25,000
Number of threshold transaction reports submitted during the fiscal year (I) 15,000
Formula and calculation

A + [B × (H ÷ D) × (I ÷ J)] = K

$25,000
+
[
$33,110,000
x
(
3,500,000 ÷ 35,000,000)
x
(
15,000 ÷ 3,425,000)]
=

$39,500

Amount charged for that fiscal year (K) $39,500

Note: This example is hypothetical and used for illustration purposes only.

Other reporting entities that submit 500 or more threshold transaction reports in a fiscal year

FINTRAC will calculate the charges for reporting entities – other than federally regulated banks, trust and loan companies, and life insurance companies – that submit 500 or more threshold transaction reports in a fiscal year through the following formula:

B × (H ÷ D) × (I ÷ J) = L

Explanation of formula

B: Remaining compliance cost
(Sum of all base amounts subtracted from the annual cost of FINTRAC’s compliance program)

H: Sum of threshold transaction reports submitted by reporting entities other than banks during the fiscal year

D: Sum of threshold transaction reports submitted to FINTRAC during the fiscal year

I: Number of threshold transaction reports submitted by the reporting entity during the fiscal year

J: Sum of threshold transaction reports submitted by reporting entities other than banks that submitted 500 or more reports during the fiscal year

L: Other reporting entity’s final charge

Example: Charge for 123 Reporting Entity

For the purposes of the following example:

Calculation of amount charged to 123 Reporting Entity for the fiscal year
Value of Canadian assets at the end of its financial year Not applicable
Base amount Not applicable
Number of threshold transaction reports submitted during the fiscal year (I) 300,000
Formula and calculation

B × (H ÷ D) × (I ÷ J) = L

$33,110,000
x
(
3,500,000 ÷ 35,000,000)
x
(
300,000 ÷ 3,425,000)
=

$290,015

Amount charged for that fiscal year (L) $290,015

Note: This example is hypothetical and used for illustration purposes only.

Related links

Date Modified: