GI-2024-48-reg2: Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations

If you run a factoring company, cheque-cashing business, or financing and leasing operation, you are now being pulled into Canada's AML/ATF regulatory regime — meaning you'll need to build a compliance program, verify client identities, keep detailed transaction records, and file suspicious transaction reports with FINTRAC, with penalties ranging up to $500,000 for serious violations. About 865 businesses in these three new sectors face one-time setup costs (averaging around $2,500–$10,000 for IT and storage) plus roughly 48 hours per year in ongoing compliance work, costing new entrants an estimated $2,818 per small business annually. The roughly 272,000 importers, exporters, carriers, and customs brokers must now also attest on customs forms that their goods are not proceeds of crime and be prepared to answer CBSA questions or provide records on request. All 25,497 existing regulated entities — banks, accountants, real estate agents, money services businesses, and others — must also update their compliance programs to flag beneficial ownership discrepancies to Corporations Canada when they identify high-risk clients, at an estimated cost of $172 per business per year. Total compliance costs across all affected businesses are estimated at $74.3 million over 10 years.