Canada FATF compliance is coming hard

Canada FATF compliance is the next big thing that is about to stir the cryptocurrency sphere in the country. Financial Action Task Force (FATF) is going hard on cryptocurrency, digital currencies, and even big technology companies to ensure all anti-money laundering (AML) measures.

Per the latest official circulars, Canada’s watchdog for financial crimes is getting ready for implementing its new digital currency oversight powers before the deadline of June by the Financial Action Task Force (FATF).

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) would initiate regulating the companies dealing with digital currency following June 1.

Last June, the amendment was passed for the criminal finance framework of Canada; these far-reaching powers would likely be establishing an enhanced AML/ATF Regime in Canada.

Canada FATF compliance readiness

Some areas of focus areas are that firms with CAD $10,000 in crypto activities are required to get register as a money service business. Companies are also required to document the name, birth date, address, phone number, and type of crypto transactions over $1,000 CAD. More details would be required in case of dealing with $10,000 and above.

Canada responded to the FATF’s 2015-2016 assessment of its digital currency AML and CFT framework as ‘deficient’ with these digital currency amendments. As one of the members of the prestigious FATF, it is expected from Canada to meet a specific threshold; therefore, the new measures for Canada FATF compliance.

FINTRAC referred to these expectations in the report published in early March 2020, stating that the policy and legislative framework are to serve the interest of Canada along with keeping up with the international expectations.