FINTRAC Compliance for Money Service Businesses

Automated Reporting Workflows That Hold Up in an Audit

Prepare, review, and submit FINTRAC reports with structured workflows designed for Canadian MSBs.

Reduce manual errors, improve consistency, and meet filing deadlines without relying on spreadsheets or FWR.

Most MSBs do not fail compliance because they lack policies. They fail because reporting workflows break under real transaction volume.

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Why MSBs Choose Comply+

Most MSBs struggle with inconsistent reporting workflows, delayed escalation, and fragmented records.

Comply+ helps standardize how reports are prepared, reviewed, and submitted so teams can:

  • apply reporting rules consistently across transactions
  • reduce delays between detection and filing
  • maintain complete, audit-ready records
  • handle increasing transaction volume without adding headcount

Comprehensive MSB Reporting

Prepare and submit LCTR, LVCTR, EFTR, and STR reports using a structured workflow. Upload transaction data; Comply+ helps surface reportable activity so your team can generate draft reports for review before submission.

Customer Due Diligence Integration

Integrate with KYC providers (e.g. SumSub) to populate customer data and maintain consistent records across reporting and audit workflows.

Scalable Compliance Operations

Maintain consistent reporting quality as transaction volume grows. Structured workflows reduce reliance on manual tracking, inbox handoffs, and ad hoc review.

Reporting Requirements

MSB Reporting Requirements

Money Service Businesses must file four main report types to FINTRAC under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Understanding these requirements is critical for maintaining compliance and avoiding penalties.

Large Cash Transaction Reports (LCTR)

Required for cash transactions of $10,000 or more CAD in a single transaction or multiple transactions totaling $10,000+ within 24 hours from the same individual or entity.

Deadline: Within 15 calendar days of the transaction

Large Virtual Currency Transaction Reports (LVCTR)

Required for virtual currency transactions valued at $10,000 or more CAD (single transaction or multiple adding up over 24 hours). Introduced in 2021 as Canada expanded AML rules to cover virtual currency.

Deadline: Within 5 working days

Electronic Funds Transfer Reports (EFTR)

Required for international wire transfers of $10,000 or more (to or from foreign countries). Domestic EFTs within Canada are NOT reportable.

Deadline: Within 5 working days

Suspicious Transaction Reports (STR)

Required when there are reasonable grounds to suspect a transaction is related to money laundering or terrorist financing. No dollar threshold: suspicion-based, not amount-based reporting.

Deadline: As soon as practicable after reaching reasonable grounds to suspect

Each reporting obligation is independent. Filing an STR does not replace LCTR, LVCTR, or EFTR requirements.

Comply+ is built specifically for Canadian FINTRAC reporting workflows, not as a general-purpose AML monitoring system.

MSB transaction types: Money Service Businesses handle money transfers, currency exchange, remittances, and virtual currency exchanges. Each type can trigger different reporting rules, so clear workflows and ownership matter as much as detection logic when volume grows.

Enforcement & Penalties

The Cost of Non-Compliance: Administrative Monetary Penalties

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

Recent MSB Penalties

FINTRAC has imposed significant Administrative Monetary Penalties (AMPs) on MSBs for compliance failures. These cases highlight the critical importance of maintaining effective compliance programs and timely reporting.

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

Proposed Bill C-2: Increased Penalties and Criminal Liability

Under proposed 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 would result in criminal prosecution and imprisonment
Learn more about Bill C-2

Enforcement Trends

FINTRAC's enforcement activity has reached record levels:

  • 23 Notices of Violation issued in 2024–25, the highest annual volume since FINTRAC gained AMP powers in 2008
  • More than $25 million in total penalties in 2024–25
  • Over 150 penalties imposed since 2008 across casinos, financial entities, MSBs, real estate brokers, and other sectors
  • FINTRAC is moving from a primarily educational posture to a supervisory model anchored in credible deterrence
Industry Challenges

Common MSB Compliance Challenges

Money Service Businesses face unique compliance challenges that require specialized solutions and automated processes to manage effectively.

High Transaction Volumes

MSBs process hundreds or thousands of transactions daily, making manual detection of reportable transactions impractical. Automated systems are essential to identify LCTRs, LVCTRs, and EFTRs accurately and consistently.

Multiple Transaction Types

MSBs handle cash transactions, virtual currency exchanges, and electronic funds transfers—each with different reporting thresholds and deadlines. Managing these diverse requirements requires sophisticated detection and classification systems.

Cross-Border Remittances

International money transfers require EFTR reporting and involve complex compliance considerations including sanctions screening, enhanced due diligence, and multi-jurisdictional regulatory requirements.

Customer Due Diligence

MSBs serve diverse client bases including underbanked populations, requiring robust KYC processes while maintaining efficient operations. Balancing compliance with customer experience is a constant challenge.

STR Detection & Narrative Drafting

Identifying suspicious transactions requires understanding FINTRAC risk indicators and drafting detailed narratives. This time-intensive process benefits significantly from AI-powered detection and narrative generation tools.

Multi-Location Operations

MSBs operating across multiple locations must ensure consistent compliance practices, centralized reporting, and location-specific transaction tracking. Coordination and standardization are critical for maintaining compliance.

Platform Features

Complete FINTRAC Compliance Solution

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

Direct FINTRAC Submission

Submit via FINTRAC API from within Comply+ without logging into FWR for each filing.

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. Comply+ helps identify required reports and generate draft LCTRs, LVCTRs, EFTRs, and STRs with AI-powered analysis to support faster, more consistent prep.

AI-Driven STR Detection

Our proprietary aiSTR™ technology helps flag higher-risk transactions and drafts narratives aligned with FINTRAC risk indicators. You retain full control with manual overrides and flexible selection during batch processing.

Customer & Location Management

Maintain complete customer and location data with direct integrations to providers like SumSub, with more coming online soon. Reports auto-populate with existing records, while prompts ensure any missing information is captured.

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 Money Service Businesses

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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