Category: Financial Services Regulatory

FINTRAC’s Updated Guidance on Methods to Verify Identity: A New Spin On “Authentic”

November 20, 2019

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has updated its guidance on Methods to verify the identity of an individual and confirm the existence of a corporation or an entity other than a corporation (Guidance). The Guidance follows recent amendments to the regulations (Regulations) to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) in…

Changes to Financial Services Regulation in British Columbia

November 5, 2019

British Columbia’s new regulator, the BC Financial Services Authority (BCFSA), commenced operations on November 1, 2019, when the key sections of its empowering legislation came into force, at which time the Financial Institutions Commission of British Columbia (FICOM) ceased its operations. BCFSA is a new Crown corporation governed by the Financial Services Authority Act, 2019 (Bill 26), which received royal…

Mortgage Lenders and Brokers Take Note: Ontario Proposes Changes to Modernize Regulation of Provincial Mortgage Businesses

October 9, 2019

The Ministry of Finance recently released Protecting and Modernizing Ontario’s Mortgage Broker Industry, a report on the legislated five-year review of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) led by Attorney General of Ontario Doug Downey and Parliamentary Assistant to the Minister of Finance Stan Cho. The review first launched in November 2018 with a view to improve…

What the Dissolution of Parliament Means for Financial Institutions Legislation in Canada

October 2, 2019

On September 11, 2019, Governor General of Canada Julie Payette dissolved Parliament and called a federal general election to be held on October 21, 2019. As a result of the dissolution of Parliament, the following bills died on the Order Paper: Bill C-100, An Act to implement the Agreement between Canada, the United States of America and the United Mexican…

Revamping Canada’s Anti-Money Laundering Rules: What’s New, What’s Changed and What It Means for Business

September 12, 2019

The wait is now over – since the proposed amendments to the regulations to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act one year ago, regulated entities have been waiting for the final regulations to be released. After numerous rounds of consultations with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the regulations were released on…

FINTRAC Reveals Its Secret Formula for Determining “Harm Done”, Calculating AMP Amounts

September 10, 2019

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) recently released its interpretation of the term “harm done” in the context of violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its associated regulations (Regulations). The “harm done” guidance should be read together with the administrative monetary penalties policy (AMP Policy) issued by FINTRAC…

Is CBA’s New Voluntary Code of Conduct the Golden Rule for Banks Serving Canadians in Their Golden Years?

July 29, 2019

On July 25, 2019, the Canadian Bankers Association (CBA) released its voluntary Code of Conduct for the Delivery of Banking Services to Seniors (Seniors Code), which was adopted by its member banks. Such voluntary codes of conduct are non-legislated commitments that CBA member banks make to the public, and compliance with these codes is overseen by the Financial Consumer Agency…

Revamping Canada’s Anti-Money Laundering Rules: What’s New, What’s Changed and What It Means for Business

July 3, 2019

Since the proposed amendments to the regulations (Regulations) to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) were released in June 2018, regulated entities (REs) have been anxiously awaiting the final version of the Regulations, after numerous rounds of consultations with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The suspense has now ended. Although…

Blockchain Remittance Platform ZED Network Receives First Prospectus Exemption for Distributing Crypto Tokens

June 12, 2019

The Ontario Securities Commission (OSC), on behalf of the Canadian Securities Administrators (CSA), recently granted ZED Network Inc. (Company) discretionary exemptive relief from prospectus and dealer registration requirements under Canadian securities laws for the distribution of the ZED digital remittance and foreign exchange blockchain token. This prospectus exemption is the first granted under the CSA Regulatory Sandbox for a primary…

Changes to Monthly Sanctions Reporting Requirement

May 13, 2019

Recently, the federal government published amendments to the regulations made under the United Nations Act (UN Act) and the Special Economic Measures Act (SEMA), Canada’s key sanctions legislation. Among other changes, the amendments modify the monthly sanctions reporting obligation for Canadian-regulated financial institutions and securities dealers. On May 10, 2019, the Office of the Superintendent of Financial Institutions (OSFI) issued…