AML Compliance (FINTRAC)

AML (Anti-Money Laundering) compliance refers to the steps a dealership must take to detect and prevent money laundering and terrorist financing. In Canada, dealerships are categorized as reporting entities under FINTRAC (the Financial Transactions and Reports Analysis Centre of Canada), which imposes certain obligations. Key among these is reporting any cash transaction of $10,000 or more (or multiple smaller payments that total $10,000 in 24 hours) to FINTRAC [oai_citation:11‡fintrac-canafe.canada.ca](https://fintrac-canafe.canada.ca/guidance-directives/transaction-operation/lctr-doie/lctr-doie-eng#:~:text=3,Large%20Cash%20Transaction%20Report). Dealerships must also identify customers for large transactions, keep records (like large cash transaction records and receipt of funds records), and report any suspicions of money laundering or terrorist financing, regardless of amount. To comply, dealerships develop an AML compliance program: training staff, appointing a compliance officer, and having policies for areas like verifying IDs, recognizing red flags (like someone trying to buy an expensive car in cash with no logical reason), and properly handling and reporting any unusual transactions.