On July 4, 2015, Canada’s Department of Finance issued proposed amendments to its Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR) guidelines that will allow regulated entities to be more flexible in their approach to the legislation. The proposed PCMLTFR regulation (Proposed PCMLTFR) includes changes in the requirements for non-face to face customer verification and signature cards, politically exposed persons (PEP), risk assessment and suspicious transaction reporting threshold. Proposed changes to the existing PCMLTFR (Current PCMLTFR) will loosen the rigidity of Canada’s current requirements and accommodate for the digital trends of the industry.
Changes in Canada’s Anti-Money Laundering regulations may pose a challenge to financial institutions with business in both the United States and Canada. In Guidehouse’s article, our experts discuss the proposed changes to Canada's AML and terrorist financing legislation and provide a comparison of its salient provisions to similar provisions in the United States.