Expanded AML Reporting for Title Insurers, Private ATMs

Summary#

This is a proposed set of regulatory changes from the Department of Finance that would update rules under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The changes add new reporting fields and record-keeping for property linked to sanctioned or otherwise “listed” people, bring title insurers and private automated banking machines (private ATMs) more clearly into the reporting system, and expand information collected by casinos and real estate professionals. The notice was published on July 6, 2024, and officials invite comments within 30 days (by August 5, 2024).

What it does#

• Clarifies and expands who counts as a “listed person or entity” for property reporting. This now covers people or entities subject to Canadian sanctions and certain anti-corruption listings.
• Changes the property-reporting form (Schedule 2) to require more details when property is owned, held or controlled by a listed person or entity. New items include contact, ID, business and transaction details for the listed party and for anyone holding property on their behalf.
• Treats title insurers as reporting entities when they issue title insurance to a purchaser. Title insurers would have to keep purchaser records and details such as legal description, purchase price, source of funds, lender/mortgage details and related parties.
• Adds new reporting and registration requirements for private automated banking machines (private ATMs). Companies that provide acquirer services must collect and keep detailed information about the ATM owner/operator/lessor, the owner of the cash loaded into the machine, settlement accounts, terminal ID, machine model/serial number, cash capacity, location and how cash is transported.
• Strengthens identity-verification rules for real estate transactions so that real estate brokers or sales representatives must verify parties who are not represented. Also allows licensed entities to rely on agents under written arrangements to verify corporate identities.
• Expands casino reporting to require more information about the person or entity on whose behalf a casino disbursement is received.
• Expands the list of businesses that must take steps to check for politically exposed persons (PEPs) to include title insurers and others, and sets a reporting/verification trigger for cash or virtual currency receipts of $100,000 or more.
• Sets staggered coming-into-force dates. Some parts come into force on registration, others are tied to the start of provisions in the Budget Implementation Act, 2023, No. 1, some parts come into force on October 1, 2025, and other parts are tied to the Fall Economic Statement Implementation Act, 2023.

Who's affected#

• Title insurers, who would be newly listed as businesses with record-keeping and identity-verification duties tied to property purchases.
• Companies that operate, own, lease, or provide “acquirer services” for private automated banking machines (private ATMs), and the businesses that host those machines.
• Real estate professionals: real estate brokers, sales representatives and developers; and unrepresented buyers or sellers in property transactions.
• Casinos and their compliance units, because they must collect more information about disbursements and the parties on whose behalf money is received.
• Mortgage lenders, mortgage brokers and mortgage administrators (because mortgage and lender details are part of new records).
• Dealers in precious metals and stones, accountants, notaries and certain government agents (some are explicitly listed in the new PEP checks).
• People or entities who buy real property, receive casino disbursements, or provide cash to private ATMs — they may face more identity checks and requests for information.
• Anyone connected to persons or entities that are on Canadian sanctions lists or other “listed” designations: their transactions and property holdings are more likely to be reported.

If unclear: the notice is a proposal, so obligations are not yet law until the regulations are finalized.

Why it matters#

• The changes increase the amount and detail of information collected about high-risk property transactions, private ATMs and casino payouts. That aims to make it easier for authorities to spot money laundering, sanctions evasion and related crimes.
• For businesses (title insurers, ATM operators, casinos, real estate and mortgage professionals), the changes will likely mean extra record-keeping, identity checks and compliance work. That can raise costs and slow transaction steps that currently move quickly.
• For consumers and parties in property or casino transactions, expect more requests for personal, corporate and funding-source information when buying property, using some private ATMs, or receiving casino disbursements.
• Because this is a proposed regulation, stakeholders can comment — the government collected feedback for 30 days after publication (publication: July 6, 2024). Final rules and exact start dates will depend on the next steps in the regulatory process.