Anti-Money Laundering and ADP Canada
ADP Canada, as a regulated entity, is committed to preventing its operations from being used for money laundering and terrorist financing activities. Money laundering and terrorist financing are serious threats to the safety and security of Canadians, as well as the integrity of Canada’s financial system.
How ADP Canada meets AML compliance requirements
We follow the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to ensure the safety of our clients and the integrity of the financial system. Our focus is on making the Know Your Client (KYC) process straightforward while meeting regulatory requirements.
At ADP Canada, we are proud of the compliance-centric culture we have created. You can be assured that our dedicated and bilingual client-facing KYC team will be there to assist you when you need it. If you have any questions about your KYC process, our KYC team is readily available to assist.
FAQs
What is Know Your Client (KYC)?
Know Your Client (KYC) is a core requirement under Canada’s anti-money laundering (AML) and counterterrorist financing framework. At the outset of a client relationship, and at defined points throughout the client life cycle, Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) requires regulated entities, including ADP Canada, to identify and verify the businesses they propose to serve when providing payment processing or other money movement services.
The legislation that requires KYC to be carried out is the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its Regulations (commonly referred to as the “PCMLTFA and its Regulations”). These requirements help ensure that client relationships meet Canadian regulatory expectations and support the detection and prevention of financial crime.
Who is FINTRAC?
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit and the national authority responsible for overseeing anti-money laundering and counterterrorist financing requirements. FINTRAC’s mandate is to support the detection, prevention and deterrence of money laundering and terrorist financing by regulating and supervising reporting entities, issuing compliance guidance and analyzing financial transaction reports to protect the integrity of Canada’s financial system.
What are the AML obligations for payroll providers in Canada?
All payroll providers that offer money movement services are required to register with FINTRAC and maintain a formal AML compliance program. This includes implementing processes to identify and verify the businesses they serve before entering into a payment processing service contract.
For ADP Canada, this requirement means knowing the clients with whom it proposes to provide money movement services.