Voluntary self-declaration of non-compliance

Reporting entities must comply fully with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act), as this ensures that FINTRAC 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 Act. 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 previous submission to FINTRAC, and when this declaration has not been made after you have been notified of an upcoming assessment activity, FINTRAC will work with you to resolve the issue. FINTRAC will carefully consider the specific circumstances of each case when deciding the appropriate course of action to address the non-compliance.

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 Act. 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.