AML rules: title insurers and private ATMs

Summary#

These are final rules published as SOR/2024-267 that change several anti‑money‑laundering and counter‑terrorist‑financing regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. They add new reporting fields and record‑keeping requirements, bring title insurers and certain private ATM businesses into parts of the regime, and set different coming‑into‑force dates. The Canada Gazette published them on January 1, 2025.

What it does#

• Expands who counts as a “listed person or entity” for reporting. The changes explicitly include terrorist groups, people or entities subject to orders under the United Nations Act and the Special Economic Measures Act, and people listed under the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law).

• Changes suspicious‑transaction reporting rules (amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations):

  • Renames Schedule 2 to “Listed Person or Entity Property Report.”
  • Adds many new data fields to reports, such as how a reporting party identified the listed person or entity, details about third parties who hold property on their behalf, recent related transactions, and actions taken with the property.

• Adds a new Part C.1 to Schedule 2 with detailed identity and contact fields for listed persons or entities and for people/entities that control property for them.

• Defines title insurer in the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and:

  • Makes title insurers subject to identity‑verification rules when they provide a title insurance policy.
  • Requires title insurers to keep records for each policy, including purchaser name and birth date, property legal description, purchase price, closing date, mortgage amount and lender, vendor name (if known), and land‑registry title information.

• Brings private automated banking machines (PABMs) and their acquirer‑service arrangements into the rules:

  • Requires acquirer service providers to keep detailed records about the PABM owner/lessor/operator, owner of the cash loaded into machines, settlement account holders, terminal IDs, machine brand/model/serial, number of bills, location, business relationships, source of cash and how it’s transported.
  • Adds registration fields for applicants that provide acquirer services for PABMs (in the Registration Regulations).

• Clarifies when and how a person or entity can rely on an agent or mandatary to verify the identity of a corporation or other entity (new sections 109.1 and 112.1). Reliance is allowed if there is a written agreement and the relying party obtains and checks the verifying information.

• Changes some real estate verification rules so that if some buyers/sellers are represented and others are not, the brokers must verify the identity of the unrepresented parties.

• Adds or adjusts administrative penalty listings so certain failures (for example, record keeping by title insurers and some verification requirements) are classified as a Minor violation in the Administrative Monetary Penalties Regulations.

• Staggers when parts take effect:

  • Many provisions come into force on registration.
  • Some come into force on the day section 181 of the Budget Implementation Act, 2023 comes into force.
  • Several provisions take effect on October 1, 2025.
  • A final set comes into force when section 279 of the Fall Economic Statement Implementation Act, 2023 comes into force.

Who's affected#

• Title insurers — newly included in record‑keeping and identity‑verification obligations when issuing title insurance for property purchases.
• Real estate brokers and sales representatives, real estate developers, and parties involved in property transactions — because of added verification and record duties and the need to verify unrepresented parties.
• Businesses that provide acquirer services for private automated banking machines and the owners, lessors, operators, and cash owners of those machines — they must keep much more information.
• Casinos and related reporting entities — the rules add more fields for disbursement records and the identity of beneficiaries.
• Financial institutions, registrants, and any regulated entities that file suspicious‑transaction or listed‑person property reports — they will see new mandatory fields to collect and submit.
• People or entities who are designated under UN measures, the Special Economic Measures Act, or the Sergei Magnitsky Law — they are explicitly captured as “listed” for reporting purposes.
• Small businesses that operate PABMs or provide related services may face new administrative tasks; the source does not estimate costs in this notice itself.

Why it matters#

• The changes increase the amount of identity and transaction data that regulated businesses must collect and keep. That aims to make it easier for authorities to detect and trace illicit funds, especially in property transactions and cash‑heavy private ATM networks.
• Bringing title insurers into the regime targets a known route for moving money through real estate purchases. Buyers and sellers may face more verification steps when closing deals.
• For businesses running or servicing private ATMs, the new record requirements could add operational work and compliance costs. They will also make cash movement through these machines more traceable.
• Expanding the definition of “listed” clarifies that people and entities sanctioned under several Canadian laws must be reported, which affects anyone who has dealings with them.
• The rules come into force at different times. Organizations that need to comply should check the specific dates (including October 1, 2025) and the linked sections of other federal Acts so they can prepare.