ESG and sustainability
Law for a sustainable future
Recently, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) published certain changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) requiring FINTRAC to make public all administrative monetary penalties (AMPs) imposed. These changes are reflected in FINTRAC’s AMP policy (AMP Policy), and the mandatory publication will apply to all AMPs imposed as of June 21, 2019.
Other key changes made by FINTRAC to the AMP Policy include:
This update echoes the significance of the Budget Implementation Act, 2019, or Bill C-97, which was enacted to, amongst other things, amend the naming provisions of the PCMLTFA and received royal assent on June 21, 2019. As a result of this, any financial institution, securities dealer, money service business or any other reporting entity that is issued a notice of violation for not complying with provisions of the PCMLTFA or its regulations must be publicly named by FINTRAC via a notice on its website.
Until now, FINTRAC had the discretion to decide whether to publicly name a reporting entity that received a notice of violation under the PCMLTFA. Presently, unless a reporting entity makes a voluntary disclosure to FINTRAC regarding any potential violations of the PCMLTFA before it initiates its compliance review, FINTRAC must now publicly name the reporting entity, the nature of its violation of the PCMLTFA, and the amount of the penalty imposed in the following instances:
The penalty amount is due 30 days after the notice of violation or notice of decision is received, and interest would begin to accrue on the day after the penalty was due.
Thanks to Nazish Mirza, articling student, for her contribution to this article.
On March 9, 2023, the European Commission (EC) adopted changes to its State aid framework to support its “Green Deal Industrial Plan for the Net-Zero Age” (the Net Zero Plan) presented in February 2023. The Net Zero Plan is part of the European Green Deal, which aims to make Europe the world’s first climate-neutral continent by 2050.
© Norton Rose Fulbright LLP 2023