Notice on forthcoming regulatory amendments and flexibility

[TaylorWarden]

https://www.fintrac-canafe.gc.ca/covid19/flexible-measures-eng

Edited November 17, 2020 by TaylorWarden

[Crypt0fin]

 

[TaylorWarden]

Please don't post off-topic posts and try to keep the discussion on point.

I was quite ill yesterday so I just posted this link from my smartphone without any commentary.  The pertinent information from this update are these three sections:

Quote

3.  Aggregating transactions of $10,000 or more with transactions of less than $10,000 for LCTRs, EFTRs and CDRs (under the 24-hour rule):

• FINTRAC's current LCTR, EFTR and CDR forms do not allow REs to submit a report that combine aggregated transactions of less than $10,000 made within 24 consecutive hours that total $10,000 or more with a transaction of $10,000 or more. Until the updated reporting forms are implemented, REs are expected to continue aggregating according to the guidance published on the website.
• More specifically, FINTRAC expects REs to continue submitting a report for each  transaction of $10,000 or more (no 24-hour rule), and to submit a report of two or more transactions of less than $10,000 made within 24 consecutive hours that total $10,000 or more (applying the 24-hour rule).
• REs may continue to aggregate transactions on either a rolling or static basis until the updated reporting forms are implemented by FINTRAC.

4.  Application of reasonable measures to obtain reporting information for non-mandatory information for LCTRs, EFTRs, and CDRs:

• FINTRAC will be flexible when assessing whether an RE took reasonable measures to obtain non-mandatory information. FINTRAC will continue to expect REs to have processes in place to obtain non-mandatory information, which should be explained within their policies and procedures.
• For further clarity, FINTRAC expects REs to take steps to collect information related to fields that are not marked with an asterisk ("*") in the amended Schedules. These steps may include asking clients for this information, or retrieving information that is already available to them, including information held in non-digital formats.
• FINTRAC encourages REs to continue providing this information in STRs when it is relevant to the determination of reasonable grounds to suspect money laundering and/or terrorist activity financing, as it relates to the facts, context, and indicators of the suspicion in Part G of the report.
• FINTRAC also encourages REs to continue providing this information in Part B of the Terrorist Property Report (TPR).

5.  Reporting and record keeping of non-mandatory information for existing reports:FINTRAC will be flexible when assessing whether non-mandatory information related to certain fields in the amended Schedules were reported and kept in a record. Examples include, but are not limited to, the following fields:

• Type of device used by person who makes request online

1. Number that identifies device
2. User name
3. Internet Protocol address used by device
4. Date and time of online session in which request is made

• FINTRAC encourages REs to continue providing this information in STRs when it is relevant to the determination of reasonable grounds to suspect money laundering and/or terrorist activity financing, as it relates to the facts, context, and indicators of the suspicion in Part G of the report.
• FINTRAC also encourages REs to continue providing this information in Part B of the TPR.

FINTRAC will consider these measures when assessing REs' compliance with the amended Regulations after June 1, 2021 and until the updated reporting forms are implemented.