post-title Canada’s Financial Crimes Watchdog Gets Ready for FATF Compliance

Canada’s Financial Crimes Watchdog Gets Ready for FATF Compliance

Canada’s Financial Crimes Watchdog Gets Ready for FATF Compliance
Cryptocurrencies News ,

Canada’s financial crimes watchdog is preparing to implement its broad new virtual currency oversight powers ahead of the Financial Action Task Force’s June 2020 deadline.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) will begin more strictly regulating virtual currency companies, transactions and activities following after new rules take effect on June 1, according to a departmental report released in early March.

“A major priority in the near term will be the implementation of new regulations arising from recent legislative change” that gave FINTRAC new oversight of the virtual currency space, the agency said in the report. 

Passed as an amendment to Canada’s criminal finance framework last June, the sweeping powers are “expected” to produce an “enhanced AML/ATF Regime,” in Canada, FINTRAC said in the report. FINTRAC is the Canadian counterpart to the Financial Crimes Enforcement Network (FinCEN) in the U.S.

Some of the highlights include a requirement that companies with $10,000 CAD in crypto activity register as a money services business, which comes with new regulations. Companies must also document sender and receivers’ name, address, birth date, phone number and crypto type for crypto transactions over $1,000 CAD in some instances. More extensive documentation requirements apply to transactions of $10,000 CAD and above.

Violations are largely classified as “minor” infractions under the amendments. 

The virtual currency amendments were Canada’s response to FATF’s blistering 2015-2016 assessment of its virtual currency AML and CFT frameworks as “deficient.” As a member of FATF, Canada is expected to meet certain thresholds. 

FINTRAC alluded to this “expectation” in its March report, saying “the overall legislative and policy framework must serve Canada’s interests while staying attuned to international expectations.”

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About Juan Rodulfo

Defined by Nature: Planet Earth Habitant, Human, Son of Eladio Rodulfo & Briceida Moya, Brother of Gabriela, Gustavo & Katiuska, Father of Gabriel & Sofia; Defined by the Society: Venezuelan Citizen (Human Rights Limited by default), Friend of many, Enemy of few, Neighbor, Student/Teacher/Student, Worker/Supervisor/Manager/Leader/Worker, Husband of Katty/ Ex-Husband of K/Husband of Yohana; Defined by the US Immigration System: Legal Alien; Defined by the Gig Economy: Independent Contractor Form 1099; Studies in classroom: Master Degree in Human Resources Management, English, Chinese Mandarin; Studies at the real world: Human Behavior; Studies at home: Webmaster SEO, Graphic Web Apps Design, Internet & Social Media Marketing, Video Production, You Tube Branding, Trading, Import-Exports, Affiliate Marketing, Cooking, Laundry, Home Cleaning; Work experience: Public-Private-Entrepreneur Sectors; Other Definitions: Bitcoin Evangelist, Human Rights Peace and Love Advocate. Author of: Why Maslow: How to use his theory to stay in Power Forever (EN/SP); Asylum Seekers (EN/SP); Manual for Gorillas: 9 Rules to be the “Fer-pect” Dictator (EN/SP); Why you must Play the Lottery (EN/SP); Para Español Oprima #2: Speaking Spanish in Times of Xenophobia (EN/SP). Social Media profiles: Twitter/FB/Instagram/VK/Linkedin/Sina Weibo: @rodulfox
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