Any financial institution originating payments to Canada, whether using FedGlobal Canada Services or another mechanism, should be aware that effective June 1, 2021, all International ACH Transaction (IAT) transfers destined for Canada must include full address details for the beneficiary. This requirement is contained within Canada’s regulatory amendment to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2019:SOR/219-240. According to the amendment, the following beneficiary address information, which is currently optional, will become mandatory:
- Address
- City
- State/Province
- Zip/Postal
- Country
NOTE: The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) guidance clarifies that address is defined as the physical address where the client lives or where the physical location of the place of business is found. Addresses consisting of a post office box are not acceptable. Address is defined as Street Number, Street Name, City, Province/State, Country and Postal Code/Zip Code. Postal Codes and Zip Codes are applicable for jurisdictions where mandated.
Please be advised that this notification is only a high-level summary of the June 1, 2021, amendment. Each financial institution originating IAT transfers to Canada is encouraged to review the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2019: SOR/2019-240 (Off-site) as well as the February 2020 Regulatory Impact Analysis Statement (Off-site).
