Reported by Finech Team

(Below are key takeaways from the original article located at: https://www.rennoco.com/blog/new-aml-regulations-canada)

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is rolling out landmark anti-money-laundering reforms slated for late 2025 under Bill C‑2 — reforms driven by evolving fintech models, cross-border flows and heat from global standards. For businesses operating in Canada (especially fintechs, payment firms, foreign players) this is a compliance moment.  

Key Takeaways

1. FINTRAC cites the increased sophistication of financial crime as a primary driver—digital currencies, e-wallets and cross-border transactions are major vulnerabilities.  

2. Canada is intensifying efforts to align with the Financial Action Task Force (FATF) standards—including enhancements in beneficial-ownership transparency, oversight of virtual-asset-service providers (VASPs) and stronger reporting obligations.  

3. The rules aim to close regulatory gaps created by emerging business models—crowdfunding platforms, PSPs, fintech “rails” previously outside or weakly regulated.  

4. Major changes expected in 2025 include: mandatory enrolment of most reporting entities, a new offence prohibiting cash transactions above CA $10,000, legally-enforceable risk-based compliance programmes and steep administrative monetary penalties (AMPs) potentially reaching CA $20 million or 3% of global revenue for serious breaches.  

5. These reforms are especially relevant if you operate as an MSB, PSP, fintech start-up, crypto exchange or payment-processing firm under FINTRAC’s jurisdiction.  

What You Should Do Now

1. Review whether your Canadian business unit (or partner) falls under FINTRAC’s obligations and confirm enrolment status.

2. Audit whether you accept cash transactions of CA $10,000 or more and adjust your policy if needed to prepare for the upcoming prohibition.

3. Ensure your AML programme is documented, auditable and risk-based — regulatory expectations are shifting from “good faith” to verifiable compliance.

4. Strengthen your vendor and fintech‐partner due diligence, especially if you’re involved in cross-border payment flows, VASPs or rapid-on-ramp services.

5. Update your internal governance and compliance monitoring: high AMPs mean enforcement risk is rising, and early preparation will help mitigate exposure.