Breaking Down FINTRAC Reporting Changes: Challenges, Solutions, and How We Can Help

Are you impacted by the latest FINTRAC reporting changes?

In this guide, we have covered those modifications alongside the new challenges they pose, the significance of RegTech, and how Azilen can offer assistance.

Reporting Forms Implementation Schedule (Updated in February 2024)

FINTRAC has been undertaking an initiative to update and modernize several of its reporting forms since 2022.

These changes are intended to strengthen Canada’s anti-money laundering and anti-terrorist financing regime and streamline the reporting process for reporting entities by making the forms more user-friendly and introducing new reporting options.

The following FINTRAC reporting changes that are in the process of being updated:

• FINTRAC is revamping reporting forms (LCTR, STR, EFTR, CDR) for greater clarity and efficiency.
• REST-API is now available for secure and streamlined submission of LCTR and LVCTR reports (as of Oct 2023).
• An STR is needed for suspected money laundering or terrorist financing must be submitted promptly after suspicion confirmation.
• An EFTR is required for transferring $10,000 CAD or more into or out of Canada in one transaction or multiple transactions within 24 hours by the same person or entity.
• Casinos must report disbursements of $10,000 CAD or more in one transaction or within 24 hours to the same person or entity. The report must be filed within 15 days.

FINTRAC cracking down on foreign cash flow into Canada. Direct wire transfers from countries on the sanctioned lists are no longer allowed. Huge step into curbing money launder in Canada.

Ie my Brokerage no longer accepts direct wires from Russia, China, Iran, and North Korea.

— Kaitlyn Lee, CPA, CA (@kaitlynleeRE) February 29, 2024

What are the Newly Emerged Challenges for Reporting Entities?

The upcoming changes to FINTRAC’s reporting forms are likely to have several impacts, including:

What’s the Role of RegTech Solutions in FINTRAC Reporting?

RegTech refers to technology-driven solutions designed to automate, streamline, and simplify the process of complying with regulations, including those set forth by FINTRAC.

Here is how it can help with FINTRAC reporting complexities.

Thought it was blockchain? FINTRAC to use AI for suspicious transactions, or additionally to even partner with financial institutions to lower risks. Canada’s move to AI-driven anti-money laundering. Once you know, $TAO and Bittensor potential can’t be undone. pic.twitter.com/Jrcl88d3tc

— Andy ττ (@bittingthembits) January 9, 2024

How Azilen can Simplify Your FINTRAC Compliance Journey?

We’re a software product engineering company.

We recognize the serious threat posed by money laundering and terrorist financing to the financial system and global safety.

Drawing from over a decade of experience, we can assist you in navigating the FINTRAC reporting challenges and achieving seamless compliance.

Here’s what we offer to help you adapt and stay on track.

We understand that every organization’s FINTRAC compliance needs are unique.

That’s why we offer custom-built RegTech solutions designed to seamlessly integrate with your existing systems and workflows.

We’ll work closely with you to understand your specific challenges and develop a solution that addresses them effectively.

If the challenges involve integrating new FINTRAC reporting requirements into existing systems, we can help you integrate software modules or interfaces to facilitate seamless data flow and reporting.

Our expertise in integration allows us to create smooth connections, ensuring your data flows effortlessly from your FinTech platforms to your reporting system, minimizing manual intervention and errors.

Streamline your compliance efforts with our automated FINTRAC reporting solutions.

We’ll automate the process of extracting relevant data from various sources, formatting it according to FINTRAC specifications, and ensuring timely and accurate submissions, reducing manual data entry and error-prone processes.

As FINTRAC transitions to API-based reporting, our team will handle the complexities for you.

We have the expertise to securely integrate your systems with FINTRAC’s API, ensuring secure and reliable communication between internal systems and FINTRAC’s platform.

We also provide ongoing maintenance and support for API connections.

We prioritize the security and privacy of your sensitive financial data.

We adhere to the highest compliance standards, including PIPEDA, to safeguard your information at all times.

You can rest assured that your data is in safe hands with us.