Canadian Officials Expect More Details on Suspicious Transfers, More Scrutiny of PEPs

By Daniel Bethencourt

Financial institutions in Canada will have to report more details on individuals and businesses associated with suspicious transactions and more thoroughly vet politically exposed persons under sweeping reforms to the country's compliance rules. The reforms, which Canada's Finance Department finalized last month and will begin enforcing in June 2020, will also require cryptocurrency firms to register as money services businesses, prepaid-card issuers to vet their clients, and financial institutions in general to verify the accuracy of beneficial-ownership information submitted by legal-entity customers. Banks, MSBs and other firms will also have to "take reasonable measures" to identify how PEPs acquire income. "The...