Department of Finance Publishes Amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations | Blake, Cassels & Graydon LLP

Further to our Blakes Bulletin: Changes to Regulations Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act – Part 1, on April 27, 2022, the Department of Finance published the amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (Regulations) in the Canada Gazette. As noted in the bulletin, the changes to the Regulations are now effective. While there is usually a 90-day consultation period, the regulatory impact analysis statement (Statement) that accompanies the Regulations justifies the immediate effectiveness of the Regulations, noting that the lack of oversight of crowdfunding platforms and payment service providers presents a “serious and immediate risk to the security of Canadians and to the Canadian economy” and that, effectively, the industry was previously advised of this eventuality in recent government news conferences. 
 
As a result of these amendments, crowdfunding platforms and payment service providers are now subject to the money services business requirements of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). In that regard, the Statement noted that due to this policy change, FINTRAC will revise its previous policy interpretations so that businesses that provide merchant services (i.e., the provision of settlements directly to merchants on behalf of the merchant’s customers for the purchase of goods and services), as well as payment processing for…