• First Reference
  • About us
  • Contact us
  • Blog Signup 📨

First Reference Talks

Discussions on Human Resources, Employment Law, Payroll and Internal Controls

  • Home
  • About
  • Archives
  • Resources
  • Buy Policies
You are here: Home / Business / Do you report your EFTs to FINTRAC?

By Adam Gorley | 2 Minutes Read June 20, 2011

Do you report your EFTs to FINTRAC?

Image: www.fintrac-canafe.gc.ca
Image: www.fintrac-canafe.gc.ca

Chances are you’re no stranger to electronic funds transfers. Broadly speaking, an EFT can mean any type of standard non-paper payment, including debit and credit card payments, email or wire money transfers (both domestic and international) and direct payroll deposits. Most organizations handle at least some of these transactions every day. The key question for businesses is: How do you keep track of these electronic transfers and, if necessary, register them with the Financial Transactions and Reports Analysis Centre of Canada?
What’s that you ask? Yes, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). It’s watching, and if your organization falls into any of the following categories, you’d better understand your EFT reporting obligations:

  • Financial entities — banks (i.e., those listed in Schedule I or II of the Bank Act) or authorized foreign banks with respect to their operations in Canada, credit unions, caisses populaires, trust companies, loan companies and agents of the Crown that accept deposit liabilities
  • Money service businesses — organizations engaged in foreign exchange dealing; remitting or transmitting funds by any means or through any individual, entity or electronic funds transfer network; or issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments
  • Casinos

In addition:

Registered charities may be authorized to carry on business temporarily as a casino for charitable purposes. If this type of business is carried out in the establishment of a casino for no more than two consecutive days at a time under the supervision of the casino, the activities are considered to be the supervising casino’s. In this case, the supervising casino is responsible for the  requirements explained in this guideline related to the charity casino.

FINTRAC, in case you don’t know, is an independent agency of the federal government that “gathers, analyzes, assesses, and discloses financial intelligence” in order to “facilitate the detection, prevention and deterrence of money laundering, terrorist activity financing and other threats to the security of Canada”. The agency has the power to assess penalties on organizations that don’t comply, including stiff fines and imprisonment. For example, failing to report a large cash transaction or an electronic funds transfer can result in a fine of up to $500,000 for the first offence and $1 million for subsequent offences; and failing to meet record-keeping requirements could mean a fine of up to $500,000 and/or five years in prison.
See the latest release of Finance & Accounting PolicyPro for more details on EFTs and what they mean for your business.
Adam Gorley
First Reference Internal Controls, Human Resources and Compliance Editor

  • About
  • Latest Posts
Follow me
Adam Gorley
Editor at First Reference Inc.
Adam Gorley is a copywriter, editor and researcher at First Reference. He contributes regularly to First Reference Talks, Inside Internal Controls and other First Reference publications. He writes about general HR issues, accessibility, privacy, technology in the workplace, accommodation, violence and harassment, internal controls and more.
Follow me
Latest posts by Adam Gorley (see all)
  • Can you implement a mandatory vaccine policy or ask employees if they have been vaccinated? - June 10, 2021
  • Do you know the latest on terminations? Find out at the Ontario Virtual Employment Law Conference - May 11, 2021
  • Announcing the 2021 Virtual Ontario Employment Law Conference - April 15, 2021

Article by Adam Gorley / Business, Finance and Accounting, Not for Profit, Privacy / compliance, credit card, debit card, direct deposit, EFT, electronic funds transfers, FAPP, Finance and Accounting PolicyPro, Financial Transactions and Reports Analysis Centre of Canada, FINTRAC, money laundering, money transfers, Reporting, security threats, terrorist activity financing

Share with a friend or colleague

Get the Latest Posts in your Inbox for Free!

Electronic monitoring

About Adam Gorley

Adam Gorley is a copywriter, editor and researcher at First Reference. He contributes regularly to First Reference Talks, Inside Internal Controls and other First Reference publications. He writes about general HR issues, accessibility, privacy, technology in the workplace, accommodation, violence and harassment, internal controls and more.

Footer

About us

Established in 1995, First Reference is the leading publisher of up to date, practical and authoritative HR compliance and policy databases that are essential to ensure organizations meet their due diligence and duty of care requirements.

First Reference Talks

  • Home
  • About
  • Archives
  • Resources
  • Buy Policies

Main Menu

  • About First Reference
  • Resources
  • Contact us
  • 1 800 750 8175

Stay Connected

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

We welcome your comments on our blog articles. However, we do not respond to specific legal questions in this space.
We do not provide any form of legal advice or legal opinion. Please consult a lawyer in your jurisdiction or try one of our products.


Copyright © 2009 - 2023 · First Reference Inc. · All Rights Reserved
Legal and Copyright Notices · Publisher's Disclaimer · Privacy Policy · Accessibility Policy