Equifax Canada announced its new capabilities designed to assist Canadian financial institutions with the recently amended Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) regulations.
Among other changes, the regulations set out new methods aimed at providing regulated entities with greater flexibility in how they carry out identity verification. The accompanying guidelines issued by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) expressly state that a Canadian credit file from, or identification product issued by, your Canadian credit bureau are methods that can be used.
The consequences for non-compliance include criminal and monetary penalties and reputational risk. FINTRAC has imposed fines totaling more than$3.5 million on 79 persons or entities subject to the PCMLTFA since December 30, 2008.