Updated Canadian Money Laundering Rules

The Canadian government is taking new measures to fight money laundering. If you’re interested in what the officials are planning and if you need a reliable and low cost Canadian merchant account, you’re at the right place.

Money Laundering in Canada: Canadian Merchant Account

According to a recent report by the U.S. State Department, Canada is a major money laundering jurisdiction. The country is mentioned in the same list with China, Iran, Paraguay, and other countries. Canada isn’t alone: there’re other jurisdictions facing major money laundering problems as well.

Apart from the State Department, there’re also other parties having noticed the same. Based on a recent report by Canada’s respect C.D. Howe policy institute, Canada is unable to catch money launderers 99.9% of the time. According to the government of British Columbia, dirty money alone has made the housing cost rise by 5% in the mentioned area in 2018.

Now, Canada introduced updated anti-money laundering rules. The changes applied will impact the way cryptocurrency is being in Canada. The proposed changes to the Regulations to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) were introduced in June 2018. Regulated entities (REs) have been looking forward to seeing the final version of the Regulations.

Finally, the suspense came to its end. Except for one of the changes that’s beneficial to REs, the amendments won’t come into effect until June 1, 2020, and, given some provisions, until June 1, 2021.

Are you trying to find the most secure payment processing services for your Canadian company? Well, this can’t be an issue at all if you work with a reputable processor that can easily get you the most reliable and cheapest Canadian merchant account in the space. Make sure the credit card processing company guarantees the latest fraud prevention and chargeback mitigation services in the industry.

Money Laundering Regulations in Canada

The reason why money laundering is so much “successful” in Canada is that if you have the legal right of ownership, the right will strongly be protected by the law. Quite naturally, laundered money in Canada has much greater value than dirty money in other corners of the world.

So, it’s no surprise that money launderers arepaying well over asking for expensive real estate, where millions of dollars’ worth blocks of cash can be cleansed in just one deal.

Henry Tso,a fraud investigator with MNP (a leading national accounting, tax and business consulting firm in Canada)notes that a decade ago, crime cartels moved step by step into fraud and were based on the same systemic weaknesses. These include lack ofpolice resources and the absence of strong prosecution and sentencing.

Now, due to the new anti-money laundering regulations,reporting entities must only report transfers exceeding CAD$10.000 (in dollars or cryptocurrency), unlike in the past when they’d to report every transaction.

To sum up, Canada is making changes to the way it’s been regulating money laundering issue. To enjoy secure payment transactions turn to a true payment exert in your field.

Author Bio:Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that can easily approve you for the most reliable and cheapestCanadian merchant account in the industry. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.

You May Also Like

More From Author