The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) published guidance setting out how its anti-money laundering and anti-terrorist financing regime applies to persons and entities providing cheque cashing services, with the obligations taking effect on April 1, 2025. The guidance clarifies that cheque cashers fall under the requirements of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related regulations applicable to money services businesses and, where relevant, foreign money services businesses. The guidance defines cheque cashing services as offering to cash cheques for clients in exchange for funds and lists the core compliance requirements, including registration as a money services business, implementing a compliance program, meeting know-your-client obligations, reporting required transactions, keeping records, and applying ministerial directives. It also describes FINTRAC’s compliance examination approach, noting reviews may cover compliance program implementation, transaction reporting, client identification, record keeping, and third-party determination, and reiterates FINTRAC’s authority to issue administrative monetary penalties for non-compliance. For the first year after the new obligations come into force, FINTRAC will emphasize engagement, outreach, and guidance activities, including industry consultation to develop further guidance to support new reporting entities in implementing and maturing their compliance programs.

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