Recent regulatory changes in Canada require businesses using accounting and bookkeeping software—including payroll and payment services—to provide additional business information. These changes, introduced as part of the 2024 Federal Budget, aim to strengthen anti-money laundering (AML) and anti-terrorist financing compliance.
Accounting and bookkeeping software providers, such as QuickBooks, have updated their compliance protocols to meet these new standards. As a result, business owners may need to submit specific documentation to maintain access to these services. Businesses should be prepared to provide the necessary documentation by March 20, 2025. Failure to comply could result in service disruptions.
What Information May Be Required?
Businesses may need to provide additional documentation depending on their legal structure. The required documents may include:
- Corporations: Names and addresses of all directors, along with a valid municipal, provincial, or federal government-issued document containing business name, address, and director details (e.g., Articles of Incorporation, Business License, or Corporate Profile Report).
- Sole Proprietors: Owner’s title, government-issued ID, and a utility bill.
- Co-Owned Businesses: Names and addresses of all individuals with 25% or more ownership, along with a government-issued document confirming business details.
What Has Changed?
The recent amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and the Criminal Code have strengthened compliance requirements for financial service providers and businesses handling financial transactions. As a result, accounting and bookkeeping software providers must verify user business details to maintain compliance.
Final Thoughts
By staying informed and proactive, businesses can ensure continued access to essential financial services while meeting federal obligations. If you have questions about this update or any other accounting or tax issues, contact a Bateman MacKay Business Advisor. Subscribe to our blog and follow us on LinkedIn for additional updates on tax, accounting and business advisory matters.
