Financial Entities
Streamline client verification, transaction monitoring, and reporting workflows—all while meeting your mandatory FINTRAC obligations. Compliance under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) is not optional—it is a legal requirement for financial service providers operating in Canada.
Avoid costly penalties, strengthen customer trust, and stay audit-ready with compliance tools built specifically for financial entities.
Who Is It For?
Industry Overview
The financial sector is one of the most heavily regulated under Canada's anti-money laundering (AML) regime. Entities must adhere to strict rules for verifying clients, monitoring transactions, and reporting suspicious or large cash activity.
FINTRAC enforces these obligations, requiring detailed documentation, timely submissions, and a structured compliance program. Non-compliance can lead to penalties, reputational harm, and even criminal liability.
New Compliance Landscape: Bill C-2
Canada’s Bill C-2, currently in Parliament, introduces sweeping changes to anti-money laundering laws. It proposes:
Stricter penalties:
Individuals could face fines of up to $4 million per violation, while entities such as payment processors, MSBs, or lenders may face up to $20 million.
Cumulative penalties:
For multiple infractions, fines may rise to the greater of $4M or 3% of global income (individuals), and $20M or 3% of global annual revenue (entities).
Mandatory FINTRAC enrolment:
All regulated businesses, including financial entities, must enrol with FINTRAC unless specifically exempted. This includes submitting detailed applications, renewing periodically, and updating business information as needed.
These changes make proactive compliance more important than ever. Our platform helps you adapt to legislative shifts while remaining fully compliant with today’s regulatory requirements.
Common Challenges
Our Solutions
Complex and changing AML regulations
Our platform is regularly updated with current FINTRAC rules.
Stay aligned with changes in thresholds, ID requirements, and filing formats.
Capture beneficial ownership, control structure, and third-party details.
Surface unusual patterns that may suggest hidden involvement.
Collect, validate, and store ID and corporate documents with minimal effort.
Assign low/medium/high profiles at onboarding with triggers for review.
Attach documents and track user actions with audit-ready timestamps.
Ensure five-year data compliance with auto-deletion control.
Flag suspicious or large cash transactions automatically.
Generate draft reports for compliance officer review and submission.
Services Relevant to This Industry
Client Identification & Verification
Automates verification for individuals and businesses in line with FINTRAC guidelines.
Third-Party Determination
Detect, document, and justify third-party involvement in financial transactions.
Suspicious Transaction Reporting (STR)
Identify high-risk behaviors and streamline submission workflows.
Large Cash Transaction Reporting (LCTR)
Automatically flag and process cash transactions over CAD 10,000.
AML Compliance Program Support
Includes templated policies, risk matrices, and training guidance.
Ongoing Monitoring & Recordkeeping
Continuous transaction tracking and secure long-term storage.
Real-World Use Cases
Use Case 1: Mortgage brokerage onboarding a small business client
System guides collection of business registration, ID documents, and beneficial owner declaration.
Use Case 2: Payment processor flags unusual account activity
Daily monitoring detects multiple transfers just under CAD 10,000. STR drafted and escalated.
Use Case 3: Crowdfunding platform processes third-party payout
Third-party determination triggered due to mismatch between account holder and campaign creator.
Frequently Asked Questions
Do we need to identify every customer?
Yes, you must identify individuals or entities depending on the type of service, transaction value, and formation of a business relationship.
What happens if a third party is involved in the transaction?
You are required to determine and document the third party’s identity and their relationship to the transaction.
Is STR filing mandatory even if the amount is small?
Yes. Suspicious transactions must be reported regardless of value, based on behavior, structure, or inconsistency.
How long must we keep client records?
Typically five years from the date of transaction or relationship termination, as per FINTRAC rules.
Can we use electronic IDs and signatures?
Yes. Digital verification is permitted if it meets FINTRAC’s prescribed methods.
Getting Started
Take control of your compliance responsibilities with ease and confidence. Whether you're launching a new financial product or scaling an established operation, our FINTRAC-aligned solutions are ready to support your growth.
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Our team is here to listen, answer your questions, and help you get compliant — fast.
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