Our legal compliance team will prepare internal procedures and documentation to ensure your company meets the Anti-Money Laundering (AML), Know Your Customer (KYC), and regulatory requirements under FINTRAC and the Bank of Canada’s RPAA framework. Selected key components include:

• Description of the financial services and activities the company intends to provide, including crypto exchange, money remittance, and payment processing.
• Operational procedures for client onboarding, transaction processing, and compliance with FINTRAC reporting requirements.
• Risk management systems to mitigate money laundering, terrorist financing, and financial crime risks, particularly for crypto transactions and cross-border payments.

• Assessment and management of risks associated with money laundering, terrorist financing, and fraud prevention in financial transactions.
• Implementation of secure data collection, retention, and storage processes for customer and transaction records, following PCMLTFA and RPAA standards.
• Reporting procedures for submitting Large Cash Transaction Reports (LCTRs), Suspicious Transaction Reports (STRs), and Virtual Currency Transaction Reports (VCTRs) to FINTRAC.
• Internal compliance controls to ensure adherence to AML obligations, customer due diligence (CDD), and risk-based assessment protocols.

• Clear transaction monitoring protocols, defining low-risk vs. high-risk transactions, with special focus on crypto-related risks and money movement trends.
• Procedures for customer due diligence (CDD), ongoing KYC checks, and enhanced due diligence (EDD) for high-risk customers, as mandated by FINTRAC.
• Record-keeping requirements for customer information, transaction logs, and compliance reports, ensuring alignment with PCMLTFA and RPAA guidelines.
• Detailed procedures for applying the FATF Travel Rule in virtual asset transactions to track the origin and destination of funds.

Instructions and Guidelines
Practical steps to identify and manage:

• Politically Exposed Persons (PEPs) and their transactions.
• Entities from high-risk jurisdictions or those flagged for AML deficiencies.
• Persons suspected of involvement in financial crimes (money laundering, fraud, terrorist financing).
• Individuals or entities subject to economic sanctions or regulatory restrictions.
• Remote transactions, digital payments, and crypto-related financial activities.

We provide substance solutions to meet FINTRAC and Bank of Canada (RPAA) compliance requirements, including assistance with setting up a local office and (out)sourcing a part time qualified Compliance Officer (CO). Our services cover ongoing training, operational support, and compliance management to ensure adherence to regulatory obligations.

Compliance Officer (CO) Responsibilities:

• Implementing and overseeing AML programs as required by PCMLTFA and RPAA.
• Transaction monitoring, reporting obligations, and risk-based compliance controls.
• Filing Suspicious Transaction Reports (STRs), Large Cash Transaction Reports (LCTRs), and Virtual Currency Transaction Reports (VCTRs) with FINTRAC.
• Conducting Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), and Ongoing Due Diligence (ODD) for crypto and financial transactions.
• Ensuring record-keeping compliance and adherence to FATF Travel Rule requirements.

The specific compliance staffing and operational requirements depend on your business model, risk profile, and transaction volumes. We provide customized recommendations following a preliminary analysis of your regulatory needs.

Regulatory authorities can revoke or suspend an MSB’s FINTRAC registration or an RPAA-regulated entity’s status for serious non-compliance. In most cases, businesses receive a warning or remedial action plan, but failure to correct deficiencies can lead to formal deregistration. Below are the most common causes:

1. Regulatory Non-Compliance – Failure to maintain AML/KYC programs, transaction reporting, or FATF Travel Rule.
2. False or Misleading Information – Providing incorrect details during registration or in compliance reports.
3. Operational Inactivity – Failing to commence operations or ceasing business for an extended period.
4. Governance Failures – Lack of a qualified AML officer (CAMLO) or failure to follow risk management protocols.
5. Sanctions & Criminal Activity – Involvement in money laundering, fraud, or terrorist financing.
6. Regulatory Non-Cooperation – Ignoring requests, failing audits, or obstructing inspections.
7. Financial Instability – Inability to meet obligations or demonstrate solvency.

Penalties for violations can include fines of up to CAD 2 million for businesses and up to CAD 500,000 for individuals, depending on the severity of the breach. Our team ensures full compliance with FINTRAC and RPAA to help businesses avoid penalties and maintain their registration.