Canada: Changes to payments destined to Canada
Clearstream Banking1 would like to inform customers of the new mandatory information requirements for cash instructions via MT103 or MX equivalent (MX messages are the XML-based replacement for MT messages) following amendments to Canadian Anti-Money Laundering Regulations effective
1 June 2021
The Canadian Department of Finance has released its final amendments to certain regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, (collectively, the “Regulations”). The primary goal of the amended Regulations is to improve the effectiveness of Canada’s anti-money laundering and counter-terrorism financing regime, close gaps in the regime and improve alignment with international standards.
As of 1 June 2021, all incoming domestic and international SWIFT MT103 or MX equivalent and international non-SWIFT Electronic Funds Transfers (EFTs) destined to Canada must be updated to include additional information related to the beneficiary, as well as the existing requirement for information related to the ordering customer:
SWIFT MT103 (or equivalent): It is mandatory to include additional information related to the beneficiary as well as the existing requirement for information related to the ordering customer:
Mandatory information in customer payment instructions
Information related to the ordering customer - currently in place
(Tag 50 in SWIFT MT103)
Information related to the beneficiary – revised
(Tag 59 in SWIFT MT103)
Impact on customers
Customers are required to include accurate and complete mandatory beneficiary information in all incoming EFTs, including SWIFT MT103 or MX equivalent.
From the effective date, the message may be subject to rejection and return to remitter in case of non-compliance.
Please note that these requirements are already applicable today and customers can already fulfil this obligation.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.