Financial Transactions and Reports Analysis Centre of Canada publishes training video clarifying beneficial ownership due diligence and discrepancy reporting obligations

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) released a learning resource video and transcript explaining how reporting entities should meet beneficial ownership requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its Regulations, including when to submit a Beneficial Ownership Discrepancy Report to Corporations Canada. The resource applies to all reporting entity sectors except title insurers and sets out the information to obtain and verify for corporations, trusts and other entities, using a 25% ownership or control threshold for identifying beneficial owners (who must be individuals). It describes “reasonable measures” to confirm accuracy (such as reviewing official documents, using open-source or commercial sources, or obtaining client attestation) and record-keeping expectations, including retaining beneficial ownership records for at least five years from the last business transaction. For corporations incorporated under the Canada Business Corporations Act that are assessed as high risk, reporting entities must consult Corporations Canada’s database of individuals with significant control and report “material discrepancies” within 30 days of identification unless resolved within that period, retaining the acknowledgement notice for five years; the video also distinguishes non-material inconsistencies (for example minor spelling or address variations, use of service versus residential addresses, or information withheld under clearly indicated exceptions). It further outlines steps where beneficial ownership information cannot be obtained or confirmed (including verifying the identity of the chief executive officer or equivalent and applying special measures for high-risk clients) and notes specific circumstances where beneficial ownership requirements do not apply.