What is the PCMLTFA?

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) is Canada’s cornerstone legislation to detect and deter money laundering and the financing of terrorist activities. It sets out mandatory requirements for client identification, record-keeping, and the reporting of specific financial transactions under Parts 1 and 1.1 of the Act.

Who is FINTRAC?

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is the federal agency established by the PCMLTFA. FINTRAC receives, analyzes, and discloses financial intelligence—such as large cash transactions, cross-border currency movements, and suspicious activity reports—to law enforcement and other authorities to safeguard Canada’s financial system.

Registration Requirements

Any business or professional engaged in prescribed activities—banks, credit unions, money services businesses, crypto-asset dealers, real estate brokers, accountants, life insurers, casinos, and others—must register with FINTRAC before providing services. Registration formally designates your enterprise as a Reporting Entity under the PCMLTFA and is non-negotiable.

Ongoing Compliance Obligations

Once registered, Reporting Entities must maintain a documented compliance program, verify client identities, keep detailed transaction records, and file reports on large cash dealings, electronic funds transfers, and any suspicious transactions. Entities are required to renew their FINTRAC registration every two years and promptly notify FINTRAC of any changes to their business information.

Why It Matters for You

Adhering to the PCMLTFA and maintaining valid FINTRAC registration protects you and the organization that you are dealing with from regulatory penalties and reputational harm, and demonstrates to clients and partners that you uphold the highest standards in anti-financial-crime controls.