AML Amendments: MSB Registration, WLATMs, Real Estate

Summary#

This is a proposed set of changes, published in the Canada Gazette on July 6, 2024, that would change rules under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The package would add new reporting for sanctioned property, tighten background checks for money services businesses, bring parts of the white‑label ATM and title insurance sectors into the anti‑money‑laundering system, and make casinos report the ultimate recipient of large payouts.

What it does#

• Creates a new “sanctioned property” report so banks and other reporting entities must tell FINTRAC when they hold assets that are subject to sanctions (includes United Nations lists and Canadian sanctions under the Special Economic Measures Act and other laws).
• Strengthens the money services business (MSB) registration rules so domestic MSBs must submit criminal record checks for their CEOs, presidents, directors, and significant shareholders — and obtain checks for their agents — when they register or reregister every two years. Records would be kept for five years.
• Brings acquirers that connect white‑label ATMs (WLATMs) to payments systems into the reporting regime. These acquirers would have to register with FINTRAC, verify owners and operators, keep records, run compliance programs and report suspicious activity.
• Makes title insurers reporting entities (so they must verify identities, keep records, report suspicious transactions and follow guidance). It also requires real estate representatives to identify unrepresented parties and any third parties in transactions.
• Changes casino reporting so casinos must record and report the ultimate beneficiary of disbursements of $10,000 or more (including when a payout is collected by someone on behalf of another person).

Note: these are proposed regulations (not yet law) and would be published in Canada Gazette, Part II for final steps.

Who's affected#

• Banks and other current reporting entities (about 25,604 existing reporting entities under the law).
• Money services businesses (MSBs) (about 2,566), and their agents.
• Operators and acquirers in the WLATM sector (about 5 acquirers and 10,000 WLATM owners counted in the analysis).
• Title insurers (the proposal counts 4 title insurers) and real estate professionals who will need to identify unrepresented parties. Corporate real‑estate purchasers were estimated at 44,351 in the analysis.
• Casinos (about 18 noted) and people who collect large casino payouts for someone else.
• FINTRAC, which would run the new reporting intake and supervision activities.

If the source is unclear about whether a particular small business or individual will be affected, that uncertainty is noted in the original regulatory analysis.

Why it matters#

• The changes are intended to reduce money laundering, stop sanctions evasion, and close gaps flagged by international reviewers such as the Financial Action Task Force (FATF). That could protect Canada’s financial reputation and make cross‑border business easier.
• There will be extra work and costs for businesses and some individuals to collect and submit more information. The government estimates compliance and administrative costs at roughly $16.6 million in present value over a 10‑year period (the original document gives a central estimate of about $17 million).
• For individuals, the rules could mean being asked for ID more often (for example in some real‑estate deals or when collecting large casino disbursements). For small businesses, the change could mean new record‑keeping, checks, or fees (for example fees for criminal record checks).
• These are proposed regulations. They are not law yet, and the government plans staged start dates for different parts (for example some measures are planned to come into force on October 1, 2025, while others would come into force sooner).