Starting October 1, 2025, title insurers and acquirer services related to private automated banking machines (“ABMs”) must comply with and fulfil new obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (“PCMLTFA”) and its regulations. To support compliance, FINTRAC has published new guidance for these sectors./p>
New guidance from FINTRAC
Guidance for title insurers
Who: A “title insurer” is a person or entity that is engaged in the business of providing title insurance, as defined in the schedule to the Insurance Companies Act. A title insurer is engaged in the business or profession of providing title insurance when they provide a title insurance policy to the purchaser of real property or an immovable.
Summary of requirements:
- implement a compliance program, including conducting a risk assessment;
- by verifying the identity of persons and entities using prescribed methods. Establish a business relationship when identity is first verified and conduct ongoing monitoring of that relationship;
- report certain transactionsto FINTRAC, including, Suspicious Transaction Reports (“STR”), reports related to suspected sanctions evasion and Listed Person or Entity Property Reports (“LPEPR”);
- keep records related to transactions and client identification; and
- apply ministerial directives, which are mandatory across all reporting entities.
Guidance for acquirer services in relation to private ABMs
Who: Entities that provide acquirer services in relation to private ABMs. An “acquirer” connects a private ABM to a payment card network to facilitate transactions. A “private AMB” is any machine not owned or operated by a bank, credit union, or similar regulated financial institution.
Summary of requirements:
- register with FINTRAC as a Money Services Business or Foreign Money Services Business;
- implement a compliance program, including conducting a risk assessment;
- know your client by verifying the identity of persons and entities using prescribed methods, including monitoring of clients in a business relationship, verifying beneficial ownership information for entities, and determining if a client is a politically exposed person or head of an international organization, which comes with additional requirements;
- report certain transactions to FINTRAC, including, STRs, reports related to suspected sanctions evasion and LPEPR;
- keep records related to transactions and client identification; and
- apply ministerial directives, which are mandatory across all reporting entities.
Key takeaways
To ensure adherence to legal obligations, FINTRAC may conduct compliance examinations to assess whether entities are fulfilling their duties under the PCMLTFA. These reviews may cover key areas such as compliance program implementation, transaction reporting, client identification, and record keeping. For acquirer services, this can also include third party determination as well as registration. Maintaining strong practices in these areas is essential to meet regulatory requirements and avoid potential penalties.
If you are concerned that your business may be impacted, contact a member of our Financial Services or Compliance team for assistance.