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Through international cooperation, Canada and its allies and partners can more effectively identify global money laundering and terrorist financing trends, share information to contribute to investigations with transnational elements, and develop international best practices to prevent, detect, and deter money laundering and terrorist financing.
In 2015, the Government of Canada developed an assessment model to identify and understand inherent money laundering and terrorist financing risks in Canada, and their relative importance, through a rigorous and systematic analysis of qualitative and quantitative data and expert opinion about money laundering and terrorist financing.
These authorities allow the Minister of Finance to take steps to protect the integrity of Canada's financial system from foreign jurisdictions and foreign entities that are deemed to pose high risks for facilitating money laundering and terrorist financing.
- Who Is A Domestic Pep?
- Who Is A Foreign Pep?
- Who Is A Hio?
- What Is An International Organization?
- Who Is A Family Member of A Pep Or Hio?
- Who Is Considered A Close Associate of A Pep Or A Hio?
- What Does It Mean to "Detect A Fact" About A Pep Or Hio?
- Who Can Review A Transaction Or Allow An Account to Stay Open?
- Should I Treat A Pep Or Hio as A High-Risk Client?
- For Assistance
A domestic PEP is a person who currently holds, or has held within the last 5 years, a specific office or position in or on behalf of the Canadian federal government, a Canadian provincial (or territorial) government, or a Canadian municipal government. Specifically, the person has held the office or position of:Footnote 2 1. Governor General, lieu...
A foreign PEP is a person who holds or has held one of the following offices or positions in or on behalf of a foreign state:Footnote 4 1. head of state or head of government; 2. member of the executive council of government or member of a legislature; 3. deputy minister or equivalent rank; 4. ambassador, or attaché or counsellor of an ambassador; ...
A HIO is a person who currently holds or has held within the last 5 years the specific office or position of head of an international organization and the international organization that they head or were head of is either:Footnote 6 1. an international organization established by the governments of states; 2. an institution of an organization refe...
To determine whether a person is a HIO, you must first determine whether you are dealing with an international organization. An international organization is set up by the governments of more than one member country, has activities in several countries, and is bound by a formal agreement among member countries. An international organization has its...
If a person is a PEP or HIO, some of their family members are considered family members of PEPs or HIOs under the PCMLTFA and associated Regulations. These family members are:Footnote 8 1. their spouse or common-law partner; 2. their biological or adoptive child(ren); 3. their mother(s) or father(s); 4. the mother(s) or father(s) of their spouse or...
A close associate can be a person who is connected to a PEP or HIO for personal or business reasons. Examples of relationships that could indicate that someone is a close associate (personal or business) could include, but are not limited to, persons who: 1. are the business partners of, or who beneficially own or control a business with, a PEP or ...
Detecting a fact about a PEP or HIO is to discover (proactively or not) information about a person that could lead you to make a PEP or HIO determination or to update information about a known PEP or HIO. You detect a fact when you discover PEP or HIO related information about a person that has an account-based business relationship or a non-accoun...
A member of senior management must review transactions and allow certain accounts to stay open. A member of senior management is a person who has: 1. the authority to make management decisions about transactions or accounts and is accountable for them; 2. awareness of the ML or TF risks to which you are exposed; and 3. awareness and understanding o...
You must treat all persons that you determine to be foreign PEPs or family members or close associates of foreign PEPsas posing a high risk. Persons that you determine to be domestic PEPs, HIOs, or family members or close associates of domestic PEPs or HIOs must, be treated as high-risk if you consider, based on your risk assessment, that there is ...
If you have questions about this guidance, please contact FINTRAC by email at guidelines-lignesdirectrices@fintrac-canafe.gc.ca.
Foreign direct investment review in Canada is regulated by the federal government under the Investment Canada Act (ICA). For the most part, the ICA provides that foreign investments fall under the jurisdiction of the Minister of Innovation, Science and Economic Development (Minister of Innovation, Science and Industry).
Jun 7, 2023 · Canada’s regulatory regime for anti-money laundering (“ AML ”) and anti-terrorist financing (“ ATF ”) is constantly under pressure to evolve as a result of emerging threats and changing global standards. Businesses operating within this regulatory framework must adapt to these new and evolving compliance obligations.
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The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada's financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor.
