At a glance
- Who is covered
- Money services businesses, including many remittance providers, must comply with FINTRAC identification rules. Source: FINTRAC
- When ID is required
- Identification is required for certain transactions, including some cash transfers and large transfers. Source: FINTRAC
- Accepted ID methods
- FINTRAC sets out methods such as government photo ID, credit file, and dual-process. Source: FINTRAC
- Record keeping
- Businesses must keep records of identification and report certain transactions to FINTRAC. Source: FINTRAC
- Your rights
- You can ask a provider which identification method it uses and why your ID is requested. Source: FCAC
What FINTRAC identification requirements are
FINTRAC identification requirements are the legal rules that require certain Canadian businesses to verify the identity of their clients. They are part of Canada's anti-money-laundering and anti-terrorist-financing framework. The rules are set out in the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations.
FINTRAC is the federal agency that administers and enforces these rules. It publishes public guidance explaining who must identify clients, when identification is required, and which methods are acceptable. The guidance is written for businesses, but it helps consumers understand why identification is requested.
The requirements apply to a range of reporting entities. For someone sending money abroad from Canada, the most relevant parts concern money services businesses and banks.
Who must comply
FINTRAC's identification requirements apply to reporting entities listed in the legislation. These include money services businesses, federally regulated financial institutions, life insurance companies, and securities dealers. A money services business offers services such as foreign exchange dealing, money transferring, or cashing cheques.
Many remittance providers operate as money services businesses. If you use a licensed money services business to send money internationally, it must follow FINTRAC's identification, record-keeping, and reporting obligations. The same applies if you use your bank for an international transfer.
Businesses that fail to comply can face penalties. FINTRAC publishes enforcement information on its website.
When identification is triggered
Identification is not required for every transaction. The Act and regulations set out specific triggers. For money services businesses, identification is generally required when a client conducts certain transactions, such as sending or receiving a large cash amount, or when there is a suspicion of money laundering or terrorist financing.
The precise thresholds and conditions are set out in the legislation and explained in FINTRAC's guidance. Because thresholds can be updated by regulation or interpretation, this page does not state them as fixed numbers. Check FINTRAC's current guidance for the exact triggers.
Identification may also be required when a business must determine whether a client is a politically exposed person or a beneficial owner. These terms are defined in the Act.
Accepted identification methods
FINTRAC does not require one single type of document. Instead, it sets out methods that businesses can use to verify identity. Common methods include verifying identity using a government-issued photo identification document, using a credit file, or using a dual-process method that combines two different types of information.
For each method, the regulations specify what information must be recorded and how it must be verified. For example, a government-issued photo ID method requires the business to record the document type, number, and issuing jurisdiction, among other details.
A business may use an agent or a third party to verify identity, but it remains responsible for compliance. The specific requirements for each method are detailed on FINTRAC's website.
Record keeping and reporting
Identification is only one part of the framework. Reporting entities must keep records of the identification they perform and retain them for the period required by law. They must also report certain transactions to FINTRAC, such as large cash transactions and suspicious transactions.
For international transfers, there may be additional requirements. An electronic funds transfer that meets certain conditions must include specific information about the sender and recipient. This is sometimes called the travel rule. FINTRAC publishes guidance on these obligations.
These records and reports help FINTRAC and law enforcement detect and deter money laundering and terrorist financing. They also create an audit trail for legitimate transfers.
What this means for everyday international transfers
If you send money abroad from Canada, you may be asked to provide identification. This is a normal part of using a regulated service. The provider is not singling you out; it is meeting a legal obligation. The request may happen when you open an account, when you send a transfer above a certain amount, or when the provider has concerns about the transaction.
The identification process can add time to a transfer, especially if documents need to be reviewed. Fees and exchange rates are separate from identification requirements. To compare costs, use the Bank of Canada's daily exchange rates and a provider's disclosed fees.
To verify the current requirements, go directly to FINTRAC's website. The FCAC also publishes consumer information about sending money, and the Canadian Anti-Fraud Centre explains how to protect yourself from fraud. When in doubt, ask your provider for a written explanation of its identification requirements.
Frequently asked questions
Do all international money transfers from Canada require identification?
No. Identification is required only when a transaction meets the triggers set out in the law. Many small transfers may not require it, but a provider may still ask for identification for other reasons, such as opening an account.
What identification documents can I use?
FINTRAC sets out methods rather than a single list of documents. Common options include a government-issued photo ID, a credit file, or a combination of two documents. The provider will tell you which method it uses.
Why does a money services business need my ID?
Canadian law requires money services businesses to identify clients for certain transactions to help prevent money laundering and terrorist financing. The requirement comes from the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Can I refuse to provide identification?
You can refuse, but the provider may then decline to process the transaction. Reporting entities must comply with the law, so they cannot waive identification requirements at their discretion.
How long must a business keep my identification record?
The retention period is set by law and explained in FINTRAC's guidance. Businesses must keep records for the required period and may keep them longer for their own purposes.
Where can I check the current thresholds?
Check FINTRAC's official website for the most current guidance. This page does not state fixed thresholds because they are set in legislation and can change.
Sources
Every figure or rule on this page should be verified at the official source before you rely on it.
- FINTRAC guidance on money services businesses and anti-money-laundering obligationsFINTRAC
- Consumer information on sending money from CanadaFinancial Consumer Agency of Canada
- Fraud prevention and reportingCanadian Anti-Fraud Centre
- Daily exchange rates for comparing transfer costsBank of Canada