2023 was a year of significant alterations in the Canadian regulation of businesses. The aim of all implemented changes are strengthening local AML and CTF structure, expanding reporting obligations, increasing oversight for MSBs, putting forward stronger enforcement and clarity, etc.
This article will introduce the changes for enhancement of a country’s ability to put a stop to monetary crimes and safeguard the integrity of the fiscal system.
Nowadays organizations are obliged to inform authorities about the doubtful fiscal operations. It is related to multinational sanctions and corruption. They need to improve their internal rules in order to stay compliant.
Organizations that move money must carefully check the background of anyone they work with. It includes checking for crimes or sanctions. They also have to collect criminal records and information about possession for agents and their leaders. If they don’t comply with these rules or refuse to cooperate with the regulator, they can lose their permit. The public can be informed about it. Significant fines and jail are the results of unlicensed functioning.
Now the law allows authorities to prevent or limit money transfers to or from other states. It regards those countries which pose hazards, mainly if they have bad oversight against illicit fiscal operations. Earlier these orders were applicable only for a few nations. But nowadays, the governmental body is able to resist in case the monetary operations of foreign countries threaten Canada’s fiscal reputation. This gives authorities more tools to prevent risks.
Workers who are part of the companies that perform operations with money are now legally protected when they report doubtful fiscal operations. If a company tries to stop them or punish them (e.g., by firing them or reducing their pay), that’s now a criminal offence. The employer can be sentenced to 5 years in prison. This change encourages workers to speak up without fear of losing their job.
Now it is illicit to divide one big transaction of money into smaller parts to avoid being flagged. It is considered a crime only if it is done with the intention to get around the rules related to reporting (normally to transactions over C$10000). This means that person cannot try to hide a big cash or digital currency payment by making smaller parts. If they are caught, they could face fiscal punishments or go to jail for 5 years. Nevertheless, it does not apply to organizations with small limits, because the aim of the rule is avert detection.
Other significant changes are related to bigger scope for research and sharing of more information.
Government departments are able to share more fiscal crime-related data with each other. This helps them better detect and put a stop to illicit operations.
Also, authorities can now investigate how money can be used to broaden threats to national security. This can cause new regulations down the road.
Canada’s recent changes to AML rules caused a significant move towards stronger enforcement, better control and enlarged clarity. The aim of these alterations are closing of loopholes, making participants accountable, and guarantee that all fiscal transactions are licit and criminals do not exploit the system.