Dealers in Digital Currency to be considered as MSBs in Canada
North York, ON -- (SBWIRE) -- 11/19/2014 -- Although Digital Currencies such as bitcoins and litecoins have widespread acceptance in the virtual currency world, they are not recognized as currency in Canada, but will soon be subject to Canadian anti money laundering (AML) Regulations. Outlier, a company that provides AML consulting services and strategies recommends that dealers in digital currency understand the standards that apply to Money Services Businesses (MSBs) in Canada as per the Canadian while awaiting the draft regulations, which are expected later this year.
Outlier also notes that digital currency dealers and exchanges may be considered as MSBs currently if they carry out certain types of activities (such as foreign exchange or international remittance involving fiat currency). These companies should already have AML compliance programs in place, and have completed a registration with the Financial Transactions and Reports Analysis Center of Canada (FINTRAC). There is no cost for FINTRAC MSB registration. Companies serving customers in the province of Quebec are also required to register with the Authorite des Marches Financiers (AMF), which does have associates registration costs.
Dealers in digital currency who do not currently conduct regulated MSB activities will be considered MSBs once amendments to Canadian regulations approved under Bill C-31 are finalized those dealers who have customers in Canada or are operating in Canada will have to register as MSBs with FINTRAC as well as maintain up to date AML compliance programs.
All businesses that are considered digital currency dealers (a term which has not yet been fully defined) will have an opportunity to comment on consultation papers and draft regulation before final regulation is published. Outlier expects that drafts will be released for comment in Q4 of 2014 or Q1 of 2015, and that there will be a period of at least six months between the release of the final regulation and the point at which companies are expected to be in compliance.
To know more visit https://www.outliercanada.com/canadian-digital-currency-regulation/
Outlier Solutions Inc., https://www.outliercanada.com/ based at Ontario, Canada is a consulting firm that offers Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF) solutions for reporting entities such as real estate, money services businesses, casinos, accountancy firms, financial services, digital currency, life insurance companies, and securities dealers Canada.
Outlier Solutions Inc.
Address: 163 Viewmount Avenue, North York, Ontario M6B1T5