FINTRAC Compliance for Cheque Cashers

New FINTRAC obligations for cheque cashing businesses as of July 10, 2025. Comply+ automates your reporting and record-keeping requirements from day one.

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New FINTRAC Obligations for Cheque Cashers

As of July 10, 2025, cheque cashing businesses are reporting entities under the PCMLTFA. If you cash cheques for clients as a business activity, you now have the same core compliance obligations as banks, MSBs, and other regulated entities.

This is a significant regulatory change. Many cheque cashing businesses have never had formal AML compliance programs. If you are in this category, you need to act now to build your compliance infrastructure before FINTRAC begins examining your operations.

What You Must Do

Register with FINTRAC

If you are not already registered, you must register as a reporting entity with FINTRAC. Registration is a prerequisite for meeting your other obligations.

Report to FINTRAC

  • Large Cash Transaction Reports (LCTR): File an LCTR when you receive $10,000 or more in cash in a single transaction, or when multiple cash transactions from the same client total $10,000+ within 24 hours. Deadline: 15 calendar days.
  • Suspicious Transaction Reports (STR): File an STR when you have reasonable grounds to suspect that a transaction is related to money laundering or terrorist financing. No dollar threshold applies. Deadline: as soon as practicable.

Verify Client Identity

You must identify and verify the identity of clients using reliable, independent source documents. This applies to every transaction at or above prescribed thresholds.

Maintain Records

Keep records of transactions, client identification, and any reports filed for at least five years.

Build a Compliance Program

You need a written compliance program that includes policies and procedures, a designated compliance officer, a risk assessment, and an ongoing training plan for your staff.

Why Cheque Cashers Face Elevated Risk

Cheque cashing services handle significant volumes of cash and serve clients who may not use traditional banking. This profile carries inherent AML risk:

  • Cash-intensive operations: Every transaction involves converting a cheque into cash. The volume and regularity of cash disbursements means LCTR obligations will be frequent.
  • Walk-in clientele: Many clients are one-time or infrequent visitors. Identifying and verifying these clients adds operational overhead.
  • Structuring risk: Clients may present multiple cheques below the $10,000 threshold to avoid triggering reporting. Recognizing structuring patterns requires systematic tracking.
  • Limited compliance history: Most cheque cashing businesses have not previously operated under AML regulations. Building a compliance program from scratch takes time and expertise.

How Comply+ Gets You Compliant

Automated LCTR Detection and Filing

Upload your daily transaction data. Comply+ identifies every cash transaction at or above the reporting threshold, aggregates transactions by client within 24 hours, and generates pre-filled LCTRs for direct submission to FINTRAC.

STR Detection for Cash-Intensive Businesses

Our aiSTR technology monitors for structuring patterns, unusually large transactions, and other risk indicators that are common in cheque cashing operations.

Client Record Management

Comply+ maintains a searchable database of client identification records linked to their transaction history. This satisfies your record-keeping obligations and simplifies FINTRAC examinations.

Compliance Program Foundation

Start with a platform that organizes your reports, records, and audit trail from day one. Comply+ gives you the infrastructure your compliance program needs.

Your FINTRAC obligations are new, but they are not optional. Getting compliant now, before enforcement begins, is the most cost-effective approach. Comply+ helps you build that foundation quickly.

Enforcement & Penalties

The Cost of Non-Compliance

FINTRAC enforcement is intensifying. Recent penalties demonstrate that compliance failures result in significant financial consequences, with Bill C-2 increasing maximum penalties to $20 million for entities.

Recent FINTRAC Penalties

FINTRAC has imposed significant Administrative Monetary Penalties (AMPs) for compliance failures across multiple sectors.

Juba Express Inc. — $67,150

December 2025 — Toronto, Ontario

Multiple compliance failures including no effective compliance regime, no proper risk assessment, and failures to submit EFT and LCT reports.

Read case study

MP Technology Services Ltd. — $536,853.35

December 2025 — Foreign MSB (Seychelles)

Failed to submit STRs for transactions with exposure to darknet marketplaces, sanctioned entities, and child sexual abuse material.

Read case study

Xeltox Enterprises (Cryptomus) — $176,960,190

October 2025 — British Columbia

2,593 violations including 1,068 unreported STRs, 1,518 unreported LVCTRs, and failure to comply with Ministerial Directive on Iran.

Read case study

KuCoin (Peken Global) — $19,552,000

September 2025 — Foreign MSB (Seychelles)

Unregistered foreign MSB, 2,952 unreported LVCTRs, and 33 unreported STRs linked to darknet marketplaces and illicit chemical trade.

Read case study

Bill C-2: Increased Penalties

Under Bill C-2 (tabled June 2025), maximum Administrative Monetary Penalties would increase dramatically:

  • Entities: Up to $20 million (previously $500,000) — a 40x increase
  • Individuals: Up to $4 million (previously $100,000)
  • Criminal penalties: Certain compliance failures can result in criminal prosecution
Learn more about Bill C-2

Enforcement Trends

  • 23 Notices of Violation issued in 2024–25, the highest annual volume since 2008
  • More than $25 million in total penalties in 2024–25
  • Over 150 penalties imposed since 2008 across all regulated sectors
  • FINTRAC is moving to a supervisory model anchored in credible deterrence

Why Choose Comply+

Purpose-built for Canadian FINTRAC compliance. Automate reporting, reduce risk, and scale your operations.

Comprehensive Reporting

Handle all FINTRAC transaction types with automated LCTR, LVCTR, EFTR, and STR detection and submission. Our system identifies reportable transactions across cash, virtual currency, and electronic funds transfers.

AI-Powered Detection

Our proprietary aiSTR™ technology automatically flags suspicious transactions and drafts FINTRAC-compliant narratives. Reduce false positives and ensure nothing falls through the cracks.

Scalable Operations

Scale your operations without increasing compliance overhead. Automate reporting workflows to handle growth from hundreds to thousands of transactions per month.

Platform Features

Complete FINTRAC Compliance Solution

From batch uploads to direct FINTRAC submission — everything you need in one platform

Direct FINTRAC Submission

Submit reports directly to FINTRAC securely. No need to log in to the FINTRAC website — everything is handled within Comply+.

Autopilot Mode for Connected Databases

For fully connected databases, enable autopilot for automatic submission of LCTRs, LVCTRs, and EFTRs. Our proprietary aiSTR™ technology handles suspicious transaction detection, requiring manual review only for STRs.

Intelligent Batch Processing

For non-connected databases, upload a CSV of transactions. Automatically detect required reports and generate draft LCTRs, LVCTRs, EFTRs, and STRs with AI-powered analysis.

AI-Driven STR Detection

Our proprietary aiSTR™ technology automatically flags high-risk transactions and drafts narratives aligned with FINTRAC risk indicators. You retain full control with manual overrides.

Customer & Location Management

Maintain complete customer and location data with direct integrations to providers like SumSub. Reports auto-populate with existing records.

Draft & Save Reports

Create and save draft reports — including AI-generated STR narratives — for later completion. Work at your own pace with automatic data preservation.

STR Extensions Made Simple

Add STR extensions to existing reports (LCTR/LVCTR/EFTR/CDR) with one click. Fill only additional fields — no separate forms.

COMING SOON

AI Model Configuration

Risk Detection Settings

Risk Indicator A
Identified: 87%
Risk Indicator B
Identified: 94%
Risk Indicator C
Identified: 82%
Overall Risk Rating78%

Recommended STR filing

aiSTR 2.0

Advanced risk flagging via AI. Machine learning flags suspicious transaction patterns — reducing false positives and helping teams act faster on STRs.

Direct Slack integration for no login STR review/submissions

Maximize risk detection with custom set, and AI-driven risk indicators

Set your risk indicator weightings, or let aiSTR optimize detection

Generate higher accuracy through reinforced learning

30-Minute Demo

FINTRAC Compliance for Cheque Cashers

In 30 minutes, walk through how Comply+ helps you move from transaction data to draft reports, STR review with your team, and FINTRAC API submission without logging into the Web Reporting System (FWR) for each filing.

1. Draft report preparation

Upload a CSV or connect your system and see how Comply+ helps surface reportable activity for LCTR, LVCTR, EFTR, and CDR workflows.

2. STR review path

See how aiSTR™ supports narrative drafts and how your team reviews and decides what is filed.

3. Submit and confirm

Follow submission through FINTRAC's API and where confirmations and status live in Comply+.

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Disclaimer

This page is provided for general informational purposes only and reflects our interpretation and opinions based on publicly available information at the time of writing. It does not constitute legal advice, financial advice, regulatory guidance, or a substitute for professional counsel. Reporting entities and businesses subject to FINTRAC obligations should consult qualified legal and compliance advisors before making decisions relating to FINTRAC, AML obligations, or compliance requirements.