Mandatory change for FedGlobal® ACH Payments to Canada

As a FedACH® Services customer using FedGlobal ACH Payments to originate payments to Canada, you should be aware that, effective June 1, 2021, all International ACH Transaction (IAT) transfers destined for Canada must include full address details for the beneficiary. This requirement is contained within Canada’s regulatory amendment to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2019:SOR/219-240. According to the amendment, these details are defined to include the full address information, including Postal Codes and/or Zip Codes, as applicable. 

Please note existing Nacha guidelines permit partial completion of address fields. However, all address field elements will need to be present in FedGlobal Canada Service payments to meet the Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC’s) new requirement. The table below outlines the changes to the requirement:
NOTE: FINTRAC guidance clarifies that address is defined as the physical address where the client lives or where the physical location of the place of business is found. Addresses consisting of a post office box are not acceptable. Address is defined as Street Number, Street Name, City, Province/State, Country, and Postal Code/Zip Code. Postal Codes and Zips are applicable for jurisdictions where mandated.

Please be advised that this notification is only a high-level summary of the June 1, 2021 amendment. Each financial institution originating IAT transfers to Canada is encouraged to review the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2019: SOR/2019-240 as well as the February 2020 Regulatory Impact Analysis Statement.

We appreciate your continued support of the FedGlobal Canada Service and we encourage you to review the documentation surrounding the upcoming regulatory change.
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