Guideline 8A: Submitting non-SWIFT Electronic Funds Transfer Reports to FINTRAC … Lawyer Jacqueline Shinfield, an expert in FINTRAC regulations, says financial institutions need to be prepared for some sweeping changes in the ways Electronic Funds Transfers (EFTs) are done in Canada. reporting requirements. There is also a new requirement that requires reporting entities to verify the identity of beneficiaries of EFTs of $1,000 or more, which is a net new requirement, she said. These are instructions sent electronically for the transfer of $10,000 or more outside Canada at the request of a cli… Credit Cards There are also requirements relating to virtual currencies that apply to other types of reporting entities, including record-keeping, identification and reporting requirements for large virtual currency transactions (i.e., the receipt of $10,000 or more in a single transaction), subject to certain exceptions. 2.3 All Other Electronic Funds Transfers. A casino disbursement report must be submitted to FINTRAC by a casino when it makes a disbursement of $10,000 or more in the course of a single transaction, or upon making two or more disbursements totalling $10,000 or more within 24 consecutive hours on behalf of the same individual or entity. There is also a new requirement that requires reporting entities to verify the identity of beneficiaries of EFTs of $1,000 or more, which is a net new requirement, she said. You have to report the following transactions to FINTRAC: You send an outgoing SWIFT MT 103 message for $10,000 or more outside Canada at the request of a client in the following manner: You receive an incoming SWIFT MT 103 message for $10,000 or more sent from outside Canada at the request of a client in the following manner: These reports can only be made electronically using the batch file reporting mechanism (See Guideline 8B: Submitting SWIFT Electronic Funds Transfer Reports to FINTRAC). “It’s no longer optional because the traveler will require all that information to be contained. Alessa is a CaseWare RCM Product. For additional information about this as well as timeframes, means of reporting, EFTs in foreign currency and other requirements associated with EFTs, consult Guideline 8: Submitting Electronic Funds Transfer Reports to FINTRAC. If you are a financial entity, a money services business or a casino, you have to send a report to FINTRAC for the following transactions: There is an exception to the 24-hour rule explained above for an EFT with more than one beneficiary. The EFT reporting requirements for the CRA and FINTRAC are identical. / Insights Home According to FINTRAC’s 2015-2016 Annual Report, financial transaction reporting has increased by 63 percent over the past five years, with the Centre receiving nearly 24 million reports in the past fiscal year alone. The definition of an EFT has changed with the amended regulations and reads as such: An electronic funds transfer means the transmission by any electronic, magnetic or optical means of instructions for the transfer of funds, including a transmission of instructions that is initiated and finally received by the same person or entity. Shinfield said the way that it is structured today, you have two regulated entities involved in the transaction and the money is going across the border. The EFT Report and instructions and LCTR Form and instructions are available on the FINTRAC website at: www.fintrac.gc.ca Client and /or third party information, record keeping requirements mention above applied to EFT or LCTR transactions. FINTRAC web reporting (F2R) You are accessing a Government of Canada information system. / Blog / FINTRAC Changes Reporting Requirements for EFTs. The number followed by a slash, '/' must be followed by the ISO country code, a slash, '/', the issuer of the number, a slash, '/' and the Customer Identification Number. An international EFT is defined in the Regulations as "an electronic funds transfer other than for the transfer of funds within Canada." 3. The number followed by a slash, '/' must be followed by the ISO country code, a slash, '/' and the National Identity Number. When you send or receive instructions to transfer $10,000 CAD or more internationally, either in a single transaction or in multiple transactions, within a 24-hour period you must submit a report within 5 business days. CaseWare and the CaseWare logo, are registered trademarks of CaseWare International Inc. and are licensed for use to CaseWare RCM.© 2021. What this means:Previously, ML/TF regulations didn’t require intermediaries of a transaction to collect information. in two or more transfers of less than $10,000 (that total $10,000 or more) if your employee or senior officer knows they were made within 24 consecutive hours of each other by or on behalf of the same individual or entity (24-hour rule). Simplifying Compliance and Fraud Prevention, FINTRAC Changes Reporting Requirements for EFTs. If you are a financial entity, a money services business or a casino, you will have to report certain electronic funds transfers (EFTs) to FINTRAC. Financial Transactions and Reports Analysis Centre, Ministerial directives and transaction restrictions, Foreign branches, subsidiaries and affiliates, Register your money services business (MSB), Financial transactions that must be reported, Reporting EFTs under the Shared Reporting Process, Additional information about electronic funds transfers, https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/electronic-funds-transfer-reporting.html, Alternative to large cash transaction reports. As long as the first person to get the instruction gives the final sending person the name and the address of the originator it’s the final sending person that reports the transaction. FINTRAC first required the reporting of cross-border electronic funds transfers (“EFT” reporting) in June 2002. Shinfield said if you have a money service business that deals with the bank or foreign exchange company and they send the instruction to the bank and it includes the name and the address of the originator, it’s reportable by the bank. The number followed by a slash, '/' must be followed by the Date of Birth in the YYYYMMDD format. What are the "Travel" rule's requirements? For more information please contact us. This report must contain, among other things, the following information on the client ordering the payment of the EFT (i.e., tag :50:) referred to in Schedules 2 and 3 of the PCMLTF Regulations: Although the Society for Worldwide Interbank Financial Telecommunication (SWIFT) allows its members to choose between three options to fill out tag :50:, i.e., options A, F and K, only options F and K do provide the information that is mandatory for these reports. As a reporting entity, you have to be enrolled with FINTRAC's electronic reporting system to report electronically. OFAC Best Practices: AML Compliance and Sanction Screening, 6AMLD: EU’s 6th Anti-Money Laundering Directive, Latest FinCEN News, Guidance and Advisories, Creating an Effective Suspicious Activity Reporting Program, What’s New in Alessa – Core Functionality, How a Retailer and Money Service Business uses Alessa for AML Compliance, Energex: Using Alessa for Accounts Payables Monitoring, in a single transaction for $10,000 or more; or. Fintrac 's electronic reporting system to report electronically financial transactions and reports Analysis Centre of Canada ( FINTRAC ) Canada... The YYYYMMDD format to CaseWare RCM.© 2021 Inc. and are licensed for use to CaseWare RCM.©.. Eft ) the day the transfer of funds within Canada. have to report.. 'S financial intelligence unit of a transaction to collect information batch size can not exceed 30 megabytes,.. Efts no later than five working days after the day the transfer occurred electronic funds transfer reporting requirements for report... 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