How has Canada’s anti-money laundering legislation changed and why does it matter?
Canada’s original legislation, commonly known as C-22, has recently been updated to address perceived weaknesses in scope and enforcement. Effective June 30, 2007, the first wave of regulations corresponding to the C-25 Amendment has expanded the number and type of institutions that are covered under the Act. The legislation formerly required financial institutions to provide information to authorities to safeguard financial information and prevent criminals from reaping the rewards of their crime. Now the definition of financial institution has been made more specific. In addition to banks, the law requires trust companies, credit unions, broker-dealers, capital market entities and reporting entities to be compliant. More notably, the new legislation extends beyond traditional financial services entities to include real estate organizations, insurance firms, the jewellery and precious metals and stones industry, some types of charitable organizations and money services such as cheque-