On July 4, 2015, the federal government released amended regulations (Regulations) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
While there are some additional regulatory burdens imposed on regulated entities in respect of domestic politically exposed persons (PEPs), and additional components to be considered in risk assessments, many of the proposed changes will be welcomed by regulated entities as they provide more principle-based regulation and less prescriptive requirements, especially in the context of verification of identity and electronic signatures. These amendments should allow regulated entities more flexibility in offering retail financial services online without the regulatory constraints that currently exist.
In addition to the amendments made to the general regulations, the Administrative and Monetary Penalties (AMPs) Regulations have also been revised to include compliance obligations that were previously unaddressed by these regulations. There have also been some amendments made to the Suspicious Transactions Reporting Regulations (STR Regulations).