FINTRAC Compliance for Securities Dealers

Automated FINTRAC reporting for securities dealers. Comply+ detects reportable transactions across your trading operations and submits directly to FINTRAC.

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FINTRAC Obligations for Securities Dealers

Securities dealers are reporting entities under the PCMLTFA. If you buy, sell, or deal in securities on behalf of clients, you have obligations to identify your clients, monitor transactions, report to FINTRAC, and maintain a compliance program.

The capital markets environment creates specific compliance dynamics. Client accounts can hold significant value. Transactions move quickly across markets and counterparties. Funds flow in and out of accounts through multiple channels. Each of these creates potential reporting triggers.

What You Must Report

Large Cash Transaction Reports (LCTR)

If a client deposits $10,000 or more in cash to their trading account, or if multiple cash deposits from the same client total $10,000+ within 24 hours, file an LCTR within 15 calendar days. While most securities transactions are electronic, cash deposits to brokerage accounts do occur and must be tracked.

Electronic Funds Transfer Reports (EFTR)

International wire transfers of $10,000 or more into or out of client accounts require an EFTR within 5 working days. For dealers with clients who fund accounts from foreign jurisdictions or request transfers to overseas accounts, this is a significant reporting obligation.

Suspicious Transaction Reports (STR)

File an STR when there are reasonable grounds to suspect a transaction is related to money laundering or terrorist financing. In securities, suspicious patterns include:

  • Accounts funded from high-risk jurisdictions with no clear investment rationale
  • Rapid deposits followed by withdrawal requests with minimal trading activity
  • Transactions that appear designed to layer funds through securities purchases and sales
  • Nominees or third parties controlling trading accounts without a transparent business reason
  • Clients who resist providing identification or beneficial ownership information

Deadline: As soon as practicable.

Compliance Challenges for Securities Dealers

  • KYC for sophisticated account structures: Securities clients may hold accounts through corporations, trusts, partnerships, or nominee structures. Determining beneficial ownership and verifying identity through these layers is more complex than individual client KYC.
  • Cross-border fund flows: Clients regularly move funds between domestic and international accounts. Tracking which transfers cross the EFTR reporting threshold, and capturing complete originator and beneficiary information, requires structured data capture at the point of transfer.
  • Detecting layering in trading activity: Money laundering through securities often involves purchasing and quickly selling assets to create a legitimate-looking transaction history. Distinguishing this from normal trading behaviour requires pattern analysis beyond manual review.
  • Dual regulatory oversight: Securities dealers are already regulated by provincial securities commissions and IIROC (now CIRO). Adding FINTRAC compliance on top creates overlapping obligations. Your compliance function must satisfy both sets of requirements without duplication or gaps.
  • Account-level monitoring: Unlike industries where individual transactions are the unit of analysis, securities compliance often requires monitoring activity at the account level over time. Detecting suspicious patterns means looking at funding sources, trading behaviour, and withdrawal patterns together.

How Comply+ Works for Securities Dealers

Automated LCTR and EFTR Detection

Upload client account activity as a CSV. Comply+ identifies all cash deposits and international wire transfers that meet reporting thresholds, generates pre-filled reports, and submits directly to FINTRAC.

STR Detection with Capital Markets Context

Our aiSTR technology flags account activity that matches FINTRAC risk indicators for securities. This includes rapid in-and-out fund movements, accounts with unusual funding sources, and trading patterns that suggest layering. Each flag includes a draft narrative for your compliance review.

Client and Account Management

Comply+ maintains client identification records and links them to account-level transaction data. When FINTRAC examines your compliance program, your KYC documentation and reporting history are organized in one place.

Direct Submission and Audit Trail

All reports are submitted directly to FINTRAC from within the platform. Confirmation receipts, timestamps, and review decisions are logged automatically, giving you a complete audit trail for examinations.

Securities compliance requires monitoring at both the transaction and account level. Comply+ handles both, so your compliance team can focus on the judgement calls that require human expertise.

Record Keeping Requirements

FINTRAC publishes official guidance on record keeping for securities dealers. For full details and current requirements, see: Record keeping requirements for securities dealers (FINTRAC).

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 Securities Dealers

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.