AML Rules: Sanctions Reporting, MSBs, WLATMs

Summary#

These are the final Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (SOR/2024-266). They add new reporting and record-keeping rules for several sectors (banks, money services businesses, white‑label ATMs, title insurers, real estate agents, and casinos) to help detect sanctions evasion, money laundering and terrorist financing. The rules start on different dates — some take effect immediately on publication (January 1, 2025), some 60 days after publication, and several come into force on October 1, 2025.

What it does#

• Creates a new standardized sanctioned property report that reporting entities must send to FINTRAC when they hold property tied to listed (sanctioned) persons or entities. Reporting on sanctioned property under the United Nations Act is required after 60 days; reporting under other sanctions laws is delayed until October 1, 2025.
• Strengthens the registration rules for money services businesses (MSBs):
  • Domestic MSBs must submit criminal record checks for their chief executive officer, president, directors and anyone who directly or indirectly controls 20% or more of the business when they register or re-register (every two years).
  • MSBs must obtain and review criminal record checks for their agents and submit summary information to FINTRAC.
  • Criminal record documents must be issued within six months of review and kept for five years.
• Brings acquirers that connect white‑label ATMs (WLATMs) into the AML/ATF regime:
  • WLATM acquirers must register with FINTRAC, verify identities of relevant parties, keep records, maintain a compliance program, and report suspicious transactions.
• Makes title insurers reporting entities under the AML/ATF rules:
  • Title insurers must have a compliance program, verify identity for transactions they handle, keep certain records, and file reports to FINTRAC.
  • The rules were adjusted so title insurers are not required to collect beneficial ownership information or to make PEP/third‑party determinations that they could not reasonably obtain.
• Changes real estate agent obligations:
  • Real estate representatives must identify unrepresented parties and third parties in transactions (changing from a “reasonable measures” approach to a formal obligation).
• Updates casino reporting:
  • Casinos must record and report the ultimate beneficiary of disbursements over $10,000 (that is, who actually receives the money).
• Adds or clarifies administrative monetary penalties and classifications for breaches (examples in the regulatory statement: minor, serious, very serious) with maximum penalty levels up to $1,000 (minor), $100,000 (serious) and $500,000 (very serious) for entities in different cases.
• Sets the main implementation dates: parts come into force immediately on publication (January 1, 2025), parts in 60 days, and the bulk on October 1, 2025.

Who's affected#

• Financial institutions and other existing reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, estimated at 25,619 organizations overall.
• Money services businesses (MSBs) (domestic and foreign) — about 2,581 MSBs are identified in the impact analysis.
  • MSB agents and their corporate officers (who will need criminal record checks).
• Operators and acquirers of white‑label ATMs:
  • Estimated 5 WLATM acquirers and about 10,000 corporate WLATM owners noted in the analysis.
• Title insurers — the analysis lists 4 title insurers as newly captured reporting entities.
• Real estate sector:
  • About 7,676 real estate brokers, sales representatives and developers will have new obligations to identify unrepresented parties; the analysis estimates 44,351 unrepresented parties could be affected.
• Casinos — 18 casinos noted; about 15,000 disbursement reports expected to be affected each year.
• Individuals:
  • People who act as unrepresented parties in real‑estate deals and people who collect casino disbursements on behalf of others will need to provide identity information; the analysis estimates costs affecting roughly 15,000 individuals for casino disbursements.
• FINTRAC (the financial intelligence unit) will administer and supervise the new rules and will update guidance for affected sectors.

Why it matters#

• These rules aim to close gaps that let sanctioned property be hidden and to reduce known weak spots for laundering (MSBs, WLATMs, real estate and casinos). They are meant to help authorities detect sanctions evasion and financial crime more quickly.
• The regulations were made to bring Canada closer to international standards set by the Financial Action Task Force (FATF) and to prepare for Canada’s next FATF evaluation.
• There are costs and practical impacts:
  • The government’s impact analysis estimates total present‑value costs of about $15.74 million over 10 years (annualized about $2.24 million). Businesses bear most of the cost; FINTRAC also has estimated administrative costs.
  • MSBs and many private businesses will need to change processes, update IT and training, and collect criminal record checks (average fee used in the analysis: $64 per check).
  • Individuals may need to provide identity documents more often (for real estate and casino disbursements).
  • Penalties for non‑compliance can be significant (see maximums above).
• Practical timing: many sectors have time to prepare — key measures come into force on October 1, 2025 — but some sanctioned‑property reporting (for UN sanctions) begins shortly after publication (60 days), so affected firms should watch FINTRAC guidance and plan updates now.

If you want, I can pull out the exact coming‑into‑force schedule and the short list of reporting fields that were added to the sanctioned property and casino forms.