The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) updated its guidance on ministerial directives and transaction restrictions under Part 1.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, outlining how reporting entities must apply countermeasures when the Minister of Finance issues a directive covering transactions to or from designated foreign jurisdictions or entities. Directives are issued by the Minister of Finance and FINTRAC will notify reporting entities; the countermeasures are limited to activities for which reporting entities already have obligations and are intended to enhance or add to those obligations. Each directive specifies its effective date, remains in force until revoked, suspended or amended, and must be reviewed at least every three years. The guidance lists directives in force for Russia (February 24, 2024, updated on March 22, 2025), the Islamic Republic of Iran (July 25, 2020) and the Democratic People’s Republic of Korea (December 9, 2017, updated on March 22, 2025). For the most serious cases, the Minister of Finance may recommend regulations to restrict reporting entities from entering into certain transactions, after consulting the Minister of Foreign Affairs, with any such regulations to be published in the Canada Gazette. FINTRAC will monitor compliance, may assess adherence to directives during on-site or desk-based examinations, and can apply administrative monetary penalties or disclose extensive non-compliance to law enforcement; failure to comply may also constitute a criminal offence carrying fines of up to CAD 250,000 on summary conviction or CAD 500,000 on indictment, and imprisonment, with criminal and administrative penalties not both applicable to the same instance of non-compliance.
Financial Transactions and Reports Analysis Centre of Canada 2025-03-21
Financial Transactions and Reports Analysis Centre of Canada updates guidance on ministerial directives and transaction restrictions for high-risk foreign transactions
FINTRAC updated its guidance on ministerial directives and transaction restrictions under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. It outlines countermeasures for transactions involving designated foreign jurisdictions, with directives currently in force for Russia, Iran, and North Korea. FINTRAC will monitor compliance, with penalties for non-compliance including fines and potential imprisonment.