Canada’s Department of Finance announces bill to tighten financial crime controls and restrict cash transactions of CAD 10,000 or more

Canada’s Department of Finance has announced the introduction of Bill S-8, the Combatting Financial Crimes and Drug Trafficking Act, which would strengthen controls on money services businesses and restrict common money laundering channels. The legislation would also expand information sharing for anti-money laundering purposes and enable law enforcement to search and seize mail where it has lawful authority. For money services businesses, the bill would introduce new ministerial powers, strengthen registration requirements through increased criminal record checks, and expand the Financial Transactions and Reports Analysis Centre of Canada’s ability to refuse or revoke registrations. It would target unlawful cryptocurrency automated teller machines while preserving access to provincially licensed and regulated machines and cryptocurrency exchanges operating online or in person. Restrictions would also apply to cash transactions of CAD 10,000 or more and cash deposits by third parties. Regulated businesses would be allowed to receive and use information disclosed by law enforcement for anti-money laundering purposes, supporting the Integrated Money Laundering Intelligence Partnership between law enforcement and Canada’s big banks. Amendments to the Canada Post Corporation Act would permit searches and seizures of mail where law enforcement has lawful authority under the Criminal Code, the Controlled Drugs and Substances Act or the Cannabis Act. The amendments would not authorize postal inspectors to open letters.