FINTRAC Advisory regarding Money Services Businesses dealing in virtual currency
OTTAWA, July 30, 2014 - On February 11, 2014, Economic Action Plan 2014 announced the Government's intention to introduce legislative changes and new regulations to strengthen Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. Among other things, these changes will address virtual currencies.
On June 19, 2014, the Economic Action Plan 2014 Act, No. 1, received Royal Assent. The Act contained changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) that will entail new requirements for money services businesses (MSBs) dealing in virtual currencies.
The changes will come into force once regulations are published in the Canada Gazette.
The regulations will aim to cover entities such as virtual currency exchanges, not individuals or businesses that use virtual currencies for buying and selling goods and services.
Until the new regulations are drafted and in force, MSBs that need to register with FINTRAC are those that are engaged in the business of any of the following services:
- Foreign exchange dealing (conducting transactions where you exchange one type of fiat currency for another fiat currency);
- Remitting or transmitting funds by any means or through any person, entity or electronic funds transfer network; or
- Issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments (except for cheques payable to a named person or entity).
We encourage you to check the FINTRAC website regularly for information on the status of regulations and the need for virtual currency businesses to register as MSBs in Canada. You may also join our mailing list to receive notices of updates to our website.
- Date Modified: