Money laundering and the financial sector

Actions taken by the B.C. government

The B.C. government is working to stop money laundering by addressing vulnerabilities in the financial sector.

 

On this page

• Vehicle exports
• Money services businesses
• Changes to the federal PCMLTFA

Vehicle exports

To address the risk of money laundering through trade and vehicles exported outside of B.C., the Provincial Sales Tax Act was amended to eliminate the ability to receive a Provincial Sales Tax (PST) refund on purchases of vehicles intended for export.

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Money services businesses

The B.C. government introduced a new regulatory regime for money services businesses, with the BC Financial Services Authority as the provincial regulator.

Money services businesses (MSB) are businesses that:

• Send money domestically or internationally on behalf of customers
• Provide currency exchange
• Issue or redeem traveler's cheques or money orders

The Money Services Businesses Act, which will come into force through regulation, will require these businesses to meet requirements for registration, broad background checks and reporting. The act will also enable investigations and penalties for money service businesses, ensuring that only legitimate individuals and businesses participate in the money services industry.

Changes to the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)

Institutions and professionals in the financial sector are expected to identify and prevent money laundering under the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).

In 2025, key amendments to the federal PCMLTFA obligations for the financial sector include:

Strengthening MSB registration - Effective October 1, 2025

• Domestic MSBs: Mandatory submission of criminal record checks for the CEO, President, directors, and any individual who owns or controls 20% or more of the MSB, both at registration and every two years thereafter. Criminal record checks will also be required for MSB agents
• Foreign MSBs: Already subject to mandatory submission of criminal record checks, foreign MSBs will now be required to provide a telephone number, and email address of a person who resides in Canada and can accept notices that are served by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
• Applicants must submit detailed documentation outlining ownership, control, and structure, and MSBs must retain registration-related documents for 5 years