A timeline of select developments in AML/ATF over the past 30+ years
Anti-money laundering efforts have gained strength over the last 30 years, and CPAs continue to play a key oversight role
While money laundering and terrorist financing have come under increasing scrutiny over the past few years, it’s important to realize that many of the AML/ATF developments that are taking place today have their roots in efforts that were launched at both the national and international levels more than 30 years ago.
Here is an overview of select dates in the short-term history of Canadian AML/ATF—including recent developments that anyone affected by the latest amendments needs to keep in mind.
1989
July: The Financial Action Task Force (FATF) is formed at a Group of Seven summit in Paris.
2000
Canada’s Proceeds of Crime (Money Laundering) Act is introduced.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is created under the legislation as Canada’s financial intelligence unit and is responsible for identifying money-laundering activities.
2001
In the aftermath of the 9/11 terrorist attacks, the FATF expands its mission to include combatting terrorist financing.
The scope of the Proceeds of Crime (Money Laundering) Act is expanded to include terrorist financing. As a result, the former Proceeds of Crime (Money Laundering) Act becomes the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
At the same time, FINTRAC’s mandate expands.
2002 - 2003
Other requirements under the PCMLTFA and related regulations (record keeping, client identification, third party determination and other reporting obligations) are phased in.
2006-2008
Amendments are introduced to the PCMLTFA, including the establishment of a money services businesses registry, the authority to levy administrative monetary penalties and the addition of new reporting sectors, among others. The FATF issues its third mutual evaluation report on anti-money laundering and combatting the financing of terrorism in Canada.
2015
Canada’s Department of Finance publishes its first report on the assessment of inherent risks of money laundering and terrorist financing in Canada.
2016
A FATF mutual evaluation report on Canada identifies regime deficiencies and shortcomings with CPAs’ levels of awareness of AML requirements and their compliance obligations.
2018
Parliament’s Standing Committee on Finance makes 32 recommendations from its review of Canada’s AMLTF legislation, some of which are applicable to the accounting profession.
Federal and provincial finance ministers begin to act upon their commitment to increase beneficial ownership transparency.
2019
May: The province of British Columbia launches the Commission of Inquiry into Money Laundering in British Columbia (known as the Cullen commission).
June: The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is required to make all administrative monetary penalties (AMPs) imposed on violators public.
An amendment to section 462.31 of the Criminal Code came into force. The amendment adds a “recklessness” provision to the offence of money laundering and criminalizes the activity of moving money on behalf of another person or organization while being aware that there is a risk that the money was derived from proceeds of crime.
Under legislative changes to the Canada Business Corporations Act that become effective June 13, 2019, privately held, federally incorporated corporations are required to maintain a Register of Individuals with Significant Control.
November: Cullen commission submits an interim report to the B.C. government.
2021
January: CPA Canada and CPABC appear as witnesses during Cullen commission hearings.
February: The Organisation for Economic Co-operation and Development (OECD) and the United Nations release two reports in which accountants are identified as “professional enablers of financial crimes.”
April: Canada’s federal budget announces an investment of $2.1 million over two years to support the implementation of a publicly accessible corporate beneficial ownership registry by 2025. This follows several previous budgets in which investments were announced regarding AML/ATF.
June 1: New AML regulatory requirements came into effect.
Changes require more reporting entities under the Canadian AML regime, including CPAs, to verify the identity of beneficial owners, and to keep records when dealing with politically exposed persons, heads of international organizations, their families and close associates, in certain circumstances. All reporting entities must now report large virtual currency transactions.
October 15-19: Cullen commission expected to hold closing oral hearings.
Dec. 15: Cullen commission expected to deliver final report to B.C. government, including findings of fact and recommendations.
MORE ON AML
CPA Canada has a wealth of resources on anti-money laundering rules and developments, including the Cullen commission, the new “know your client” requirements and requirements associated with record-keeping and reporting to FINTRAC.
Plus, advance your knowledge with our on-demand course, Anti-money laundering and ethics: A Canadian and global perspective, to get a high-level view of of the relevant information, tools and strategies you need to know to better understand the stakes and ethical challenges involved in addressing money laundering and terrorism financing risk.