Anti-Money Laundering and ADP Canada

Did you know?

At the outset of a client relationship (and at periodic points during the client lifecycle), Canada’s anti-money laundering and counter-terrorist financing supervisor FINTRAC requires ADP Canada, as a regulated entity, to know the clients with whom it is proposing to enter into a service contract to provide payment processing services (i.e., money movement services). This process is commonly referred to as “Know Your Client” or “KYC”.

The legislation which requires KYC to be carried out is known as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its Regulations (commonly referred together as the “PCMLTFA and its Regulations”).

Who is FINTRAC?

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit and anti-money laundering and counter-terrorist financing supervisor. Its mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities. Read more.

Who else is doing this in the industry?

All payroll providers who provide a money movement service must register with FINTRAC and put in place a compliance program. FINTRAC requires ADP Canada to know the clients with whom it is proposing to enter into a service contract to provide payment processing services (i.e., money movement services). This process is commonly referred to as “Know Your Client” or “KYC.”