As of October 2024, various persons involved in the mortgage industry, including mortgage administrators, brokers and mortgage lenders, will be subject to various provisions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act).

As a result, all private mortgage lenders, brokers and administrators will have to comply with FINTRAC rules and regulations applicable to the industry, which include the following:

1. Implement a written compliance program that includes and defines:

Appointment of a compliance officer and definition of their duties and responsibilities

Written Know Your Client policy (KYC)

Written Anti-Money Laundering Policy (AML)

Written risk assessment policy

Written reporting policy

Record keeping policy

Additional policies and procedures are required under FINTRAC programs.

2. Report the following transactions under FINTRAC rules:

Suspicious transactions and Terrorist Property transaction reports

Large cash transactions

Large Virtual Currency transaction report

3. Implement and apply Ministerial Directive policy

It is important to remember that FINTRAC has the authority to conduct compliance examinations to assess your business’ compliance with its rules and regulations (and most probably will frequently do so). When reviewed alongside the FINTRAC legislative authority to impose severe monetary penalties for non-compliance, the importance of understanding and due implementation of the rules and regulations is difficult to overestimate.

We at Approved MSB Services have extensive experience working with FINTRAC and providing licensing and compliance support to hundreds of clients. All our documents have been prepared or reviewed by lawyers and comply with the most up-to-date requirements and regulations of FINTRAC.

We will gladly assist you with FINTRAC registration and draft a thorough compliance program specifically adapted to your business—all at a fraction of the cost of comparable legal services.