Voluntary self-declaration of non-compliance

November 2020

FINTRAC strongly encourages reporting entities to comply fully with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), as this ensures that it receives complete, accurate, and timely reports. However, we recognize that when reporting entities periodically review their program, conduct ongoing risk assessment or quality control activities, they may come across instances where they have not met all the requirements of the PCMLTFA. These shortfalls may be in relation to reporting, client identification, record keeping, or effectively implementing an area of their compliance program.

Unreported transactions still have intelligence value to FINTRAC and need to be reported; while other shortfalls need to be addressed without delay. The ultimate goal of the regulatory regime is to enhance compliance, not to impose penalties. Therefore, we strongly encourage reporting entities to voluntarily declare their non-compliance in order to resolve the issues they identify.

When a voluntary self-declaration of non-compliance is made to FINTRAC in writing, it should include:

• Name of reporting entity and contact details of individual submitting the voluntary self-declaration of non-compliance;
• For reporting issues:  the number of reports impacted, type, and the time period during which the issues occurred, as well as the reason why the reports were not submitted, were late, or incorrect and other related details;
• For other issues: the period of time during which the issues occurred, the reason for their occurrence; and
• A plan to resolve the issues and submit all outstanding (or incorrect/incomplete) reports, including measures and timelines for corrective action.

We ask that you provide us with the requested information only and not provide any personal or protected information related to your employees or clients. Should you need to provide such information in context of a self-declaration, please indicate that fact in your email and FINTRAC will advise you how to send that information separately and securely.

When the voluntarily declared non-compliance issue is not a repeated instance of a previously voluntarily disclosed issue, and when this declaration has not been made after a reporting entity has been notified of an upcoming examination, we will work with the entity to resolve the issue and will not propose enforcement actions, such as an administrative monetary penalty related to the submission.

Voluntary self-declarations of non-compliance should be sent to: VSDONC.ADVNC@fintrac-canafe.gc.ca.

Having an effective compliance program in place is the best way for reporting entities to ensure that they meet their requirements under the PCMLTFA. Reporting entities contribute to the fight against money laundering and terrorist financing by identifying their clients, keeping appropriate records and submitting high-quality financial transaction reports to FINTRAC.