Canada tightens control over financial transactions with russia
Kyiv • UNN
Canada has issued a directive requiring enhanced due diligence, monitoring and record-keeping of all financial transactions related to russia, regardless of their size, as part of sanctions against russia's aggression against Ukraine.
As part of sanctions against russia, Canada is tightening control over financial transactions originating from or destined for russia. This is reported with reference to the government of Canada, UNN writes.
Details
It is noted that Canada has issued a Directive on Financial Transactions Related to russia for Entities Regulated by the Anti-Money Laundering and Counter-Terrorist Financing Act, which entered into force on February 24, 2024.
The Directive requires that every financial transaction involving russia, regardless of its size, be treated as a high-risk transaction and establishes corresponding enhanced obligations for due diligence, monitoring and record-keeping of such financial transactions. It applies to all transactions originating from or destined for russia and covers transfers using national and virtual currency.
The agency added that the Financial Action Task Force on Money Laundering (FATF) has called on world powers to be vigilant about the risks arising from the circumvention of measures taken to protect the international financial system as a result of russia's aggression against Ukraine.
Addendum
The Financial Intelligence Unit in Canada (FINTRAC) has issued relevant Guidelines explaining the requirements of the Directive. Thus, financial transactions originating in or destined for russia may include, but are not limited to, the following:
- by electronic funds transfers, money orders or other transfers that include a russian address of origin or destination;
- activities of representatives of the russian government (for example, transactions on the bank account of the russian Embassy in Canada);
- receiving russian rubles as a deposit to an account or for a virtual currency transaction;
- conducting a foreign currency or virtual currency exchange transaction that includes russian rubles.
We welcome Canada's strengthening of controls over financial transactions related to russia. As of today, the directives of the Minister of Finance of Canada under the Anti-Money Laundering and Counter-Terrorist Financing Act apply to transactions with three countries - North Korea, Iran and, starting from February 24 this year, russia. That is, Canada, without waiting for the completion of the search for consensus within the FATF on the issue of sanctioning russia, has actually equated russia with the countries on the FATF blacklist
Recall
Switzerland is stepping up its efforts to combat companies and individuals who use a neutral country to circumvent sanctions on russia.
