Canada Issues Anti-Money Laundering Regulations

On September 12, 2001, the Canadian Department of Finance issued final regulations under the Proceeds of Crime (Money Laundering) Act, emphasizing the requirement to identify and report suspicious transactions, but not implementing the client identification, record-keeping, reporting and compliance provisions. The regulations were issued pursuant to the Proceeds of Crime (Money Laundering) Act, which received Royal Assent on June 29, 2000. The Act establishes a mandatory reporting system for suspicious and prescribed transactions and the cross-border movement of large amounts of currency and monetary instruments. The Act also provides for the creation of a new independent anti-money laundering agency, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which was formed on July 5, 2000. Additionally, the Act provides a regulation making authority for implementing the purposes and provisions of the Act, including the implementation of the reporting, record-keeping and client identification requirements.