Canada AML/ATF Update: New Reporting and Verification Rules for MSBs, Title Insurers, Real Estate, and Private ABM Acquirers

Samantha Galeby Samantha Gale
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In News

Canada’s latest AML/ATF rules are now in force under the PCMLTFA. Here’s what changed and who’s affected.

Who’s impacted

  • Money Services Businesses (MSBs)
  • Title insurers (now reporting entities)
  • Real estate brokers and sales reps
  • Private ABM acquirers (treated as MSBs)
  • All reporting entities handling sanctioned property

Key changes

  • MSB agent checks
    • Verify agent/mandatary eligibility before engagement and every 2 years + 30 days
    • Criminal record checks: CEO, president, directors, and 20%+ owners/controllers (or the individual agent)
    • Records dated within 6 months; keep 5 years
    • Legacy agents verified by Oct 1, 2027
    • Non-compliance offence: up to $250k/2 years (summary) or $500k/5 years (indictment)
  • High-risk beneficial ownership (BO) discrepancy reports
    • For high-risk CBCA corporations, compare your BO data to Corporations Canada’s ISC database
    • If a “material discrepancy” exists, file within 30 days; keep acknowledgment 5 years
    • No filing if resolved within 30 days; voluntary filing allowed for non–high risk
    • If you can’t confirm ownership, take reasonable steps to verify and document
  • Identity verification via agents (all reporting entities)
    • Individuals: government photo ID, credit-file, or dual-process methods
    • Entities: confirmation-of-existence via official records/registries
    • Written agreement required; obtain and validate all verification data
    • You remain fully responsible; document agent oversight in your program
  • Real estate: unrepresented party KYC
    • Verify identity of unrepresented parties
    • Complete third-party determinations and keep records
  • Sanctioned property (LPEPR expansion)
    • File LPEPR to FINTRAC when disclosure is required under SEMA or the Magnitsky Act (in addition to UN Act/Criminal Code)
    • Broad deemed ownership rules capture entities controlled by sanctioned persons
    • If ML/TF/sanctions evasion is suspected, file LPEPR and STR
    • Keep reports 5 years and integrate into AML + sanctions workflows
  • Title insurers: now reporting entities
    • Register (if applicable), build AML program, KYC, recordkeeping, reporting
    • FINTRAC to focus on outreach in Year 1
  • Private ABM acquirers
    • Register as MSBs, implement AML program, KYC, records, reporting
    • Year 1 outreach to support readiness

Dates to note

  • In force: Apr 1, 2025 (early tranche), Oct 1, 2025 (additional measures)
  • Deadline: Oct 1, 2027 (MSB initial checks for pre–Oct 1, 2025 agents)

Do this now

  • Update policies, procedures, and training
  • Stand up an MSB agent due diligence tracker (pre-engagement, biennial +30 days, crim checks)
  • Add BO discrepancy checks and 30-day reporting workflows for high-risk CBCA clients
  • Document agent/mandatary KYC oversight and QA sampling
  • Real estate teams: add unrepresented-party KYC steps
  • Align AML and sanctions teams for LPEPR triggers, freezing, disclosure, and STR/LPEPR dual filings
  • Ensure 5-year retention for all new records and acknowledgments