Financing or Leasing Entities
Streamline client onboarding, risk identification, and regulatory reporting—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 all financing and leasing professionals in Canada.
Avoid costly penalties, ensure operational transparency, and stay audit-ready with purpose-built tools for vehicle and equipment finance providers.
Who Is It For?
This solution is designed for businesses that extend credit or lease vehicles and equipment, helping them meet identity verification, third-party determination, and record-keeping requirements under Canada's PCMLTFA.
Industry Overview
In the leasing industry, credit is often extended over long periods, involving significant sums of money and multiple parties. Under FINTRAC regulations, businesses involved in leasing are considered reporting entities and must identify clients, monitor transactions, and detect suspicious behavior. Compliance lapses can result in audits, penalties, and reputational harm.
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 leasing firms and finance entities 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 financing and leasing providers, 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 enables you to stay ahead of both existing and future regulatory requirements—without slowing down your operations.
Common Challenges
Our Solutions
Identity Verification
Automate the collection of government-issued ID at contract initiation.
Support flexible verification methods suitable for high-volume operations.
Identify when the individual signing the lease differs from the funding source or user.
Document third-party involvement clearly for audits.
Retain lease contracts, IDs, and declarations for the required five-year period.
Show evidence of due diligence and decision trails.
Detect patterns such as early lease termination or unusual payment sources.
Prepare and export FINTRAC-ready suspicious transaction reports.
Get alerts when lease amounts or behavior exceed FINTRAC thresholds.
Always know what documentation is required based on transaction type.
Services Relevant to This Industry
ID Verification for Lease Clients
Ensure proper verification before contract finalization.
Third-Party Declaration Capture
Document when a third party is involved in the lease or payment process.
Beneficial Ownership Checks
Required when leases are taken in the name of corporations or trusts.
Compliance Record-Keeping
Automatically store all relevant documents securely for audits.
STR and Threshold Monitoring
Identify unusual activity and streamline suspicious transaction reporting.
Real-World Use Cases
Use Case 1: Individual leasing a high-value commercial vehicle
The system triggers ID verification, beneficial ownership checks, and flags a third-party payment source.
Use Case 2: Corporate lease with unknown beneficial ownership
Prompts the user to collect control structure and documentation, stored securely for audit.
Use Case 3: Suspicious early termination and payoff by third party
STR alert triggered with context notes, pre-filled draft available for compliance officer review.
Frequently Asked Questions
Are leasing companies subject to FINTRAC obligations?
Yes. Leasing companies that extend credit are considered reporting entities and must comply with KYC and reporting requirements.
Do I need to verify ID for every lease?
Yes, in most cases—especially for high-value or long-term leases. Our solution automates the process.
What qualifies as third-party involvement?
Any situation where someone other than the lessee is funding or benefiting from the lease requires documentation.
How long do I have to keep leasing records?
You must retain relevant documents for at least five years after the lease ends.
What are examples of suspicious leasing activity?
Unusual early payoffs, inconsistent use of the leased item, or complex ownership structures may all require further scrutiny.
Getting Started
Make FINTRAC compliance seamless and stress-free. Our leasing industry solution gives you the tools to identify, document, and report risk—without disrupting operations.
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Our team is here to listen, answer your questions, and help you get compliant — fast.
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