NOTES & NEWS
Money Laundering and Terrorist Financing: New Legislation
Requirements to Identify Clients
T
his past June, the federal cabinet
approved amendments made to the
Proceeds of Crime (Money Laundering)
and Terrorist Financing Act (PCMLTFA) by the
Financial Transactions and Reports Analysis
Centre of Canada (FINTRAC). The amendments and associated regulations change the
methods reporting entities can apply to
ascertain the identity of clients. There is a
transitional period from June 30, 2016, to
June 17, 2017, during which reporting entities can either use the methods described in
the new Guideline: Methods to Ascertain the
Identity of Individual Clients,1 or use the
methods listed in the current Guideline 6 (a)
to (j).2 As of June 17, 2017, this transitional
period will end, and the methods set out in
the new guideline will have to be applied.
Note that Guideline 6D: Record Keeping
and Client Identification for Accountants has
not changed and still applies solely to accountants.3 Accountants and accounting firms are
subject to the obligations listed in Guideline
6D only when they engage in or give instructions with respect to any of the following
activities on behalf of an individual or entity
(other than their employer):
• Receiving or paying funds;
• Purchasing or selling securities, real
property, or business assets, or entities;
or
• Transferring funds or securities by any
means.
For more information on anti-money laundering regulatory requirements, check out CPA
Canada’s Guide to Comply with Canada’s Anti-Money Laundering (AML) Legislation. This 160page document covers changes made to Canada’s AML legislation in 2014 and provides practical
guidance for AML compliance. To download the guide, visit cpacanada.ca under Business and
Accounting Resources> Strategy, risk and governance> Corporate governance.
fintrac-canafe.gc.ca/publications/guide/
1
Guide11/11-eng.asp.
fintrac-canafe.gc.ca/publications/guide/
2
guide-eng.asp.
fintrac-canafe.gc.ca/publications/guide/
3
guide6/6D-eng.asp.
TRUSTED LEGAL ADVISORS FOR PROFESSIONALS
For information on our Professional Services Practice, contact:
Patrick Cleary at [email protected]
Ryan Howe at [email protected]
Michael Nadeau at [email protected]
2700 - 700 West Georgia St. | Vancouver, B.C. | Canada V7Y 1B8 | 604.484.1700 | ahbl.ca
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CPABC in Focus • Sept/Oct 2016 11