Canada Proceeds of Crime (Money Laundering) and Terrorist Financing Act

The Act is designed to detect and deter money laundering and terrorist financing, facilitate related investigations and prosecutions, and protect the integrity of Canada’s financial system. It establishes requirements concerning records, client identification, suspicious-transaction reporting, registration, and information analysis. The statutory framework also recognizes privacy safeguards for personal information collected and disclosed through the regime.

Section 5 applies Part 1 to a broad group of reporting entities, including banks, securities dealers, casinos, accountants, real-estate participants, and money services businesses. Its money-services-business provisions expressly cover persons and entities with a place of business in Canada that deal in virtual currencies, as well as qualifying foreign businesses that direct covered services to persons or entities in Canada. The regulations define virtual currency as a non-fiat digital representation of value usable for payment or investment and readily exchangeable for funds or another readily exchangeable virtual currency; the definition also includes certain cryptographic private keys that provide access to that value.

• FINTRAC registration: Domestic money services businesses and foreign money services businesses within the statutory scope generally must register with FINTRAC. Registration is an AML/CFT requirement and is not presented by FINTRAC as an endorsement of the business.
• Risk-based compliance program: Reporting entities must establish a reasonably designed, risk-based, and effective compliance program. The regulations describe core elements including a responsible compliance officer, written policies, a documented risk assessment, ongoing training, and effectiveness testing.
• Identity verification and records: The Act and regulations prescribe identity checks and records for specified activities. Virtual-currency records can include transaction identifiers and sending and receiving addresses, while additional requirements apply to covered transfers, exchanges, large receipts, and suspicious transactions.
• Transaction reports: Covered entities must report completed or attempted transactions where there are reasonable grounds to suspect a connection to money laundering, terrorist financing, or sanctions evasion. Reporting entities must also report a qualifying receipt of virtual currency equivalent to CAD 10,000 or more. FINTRAC states that the large-transaction report is generally due within five working days and that related receipts may be aggregated under the 24-hour rule.
• Virtual-currency travel rule: Financial entities, money services businesses, and foreign money services businesses must include prescribed originator and beneficiary information with covered virtual-currency transfers, take reasonable measures to obtain the information on receipt, and maintain risk-based procedures for transfers missing required information.

The original Act used several commencement orders: major institutional provisions began on July 5, 2000, transaction-reporting provisions followed in 2001 and 2002, cross-border provisions took effect in 2003, and the final original tranche commenced on March 31, 2004. Crypto-specific coverage arrived later. The Department of Finance states that AML/CFT requirements for virtual-currency dealers came into force in June 2020, followed by further measures in June 2021. FINTRAC identifies June 1, 2021 as the effective date for amendments covering large virtual-currency transaction reporting, associated know-your-client measures, and other modernized requirements.

The Justice Laws website records further amendments through March 26, 2026. Its consolidated text also warns that shaded provisions are not yet in force, so enactment of a later amendment should not automatically be read as its operative date. Detailed duties continue to be distributed across the Act, its regulations, commencement orders, and FINTRAC guidance.

The PCMLTFA is a federal AML/CFT framework rather than a complete code for every legal issue affecting crypto businesses in Canada. Its FINTRAC obligations may operate alongside other federal and provincial regimes, depending on the activity and entity. This profile summarizes the statute’s crypto relevance as of June 23, 2026 and is intended as a legal-reference overview, not legal advice.