British Columbians are encouraged to participate in a public consultation to potentially develop a new regulatory framework for money services businesses and protect the people who depend on them.

The consultation is another step forward in government’s efforts to combat money laundering in B.C.’s economy. Feedback will help guide the development of a potential regulatory framework for money services businesses in the province.

Money services businesses are separate from traditional financial institutions, like banks and credit unions. These businesses provide a range of financial services to British Columbians, such as foreign-exchange dealing and money transfers.

Although all money services businesses must be registered with the Financial Transactions and Reporting Analysis Centre of Canada (FINTRAC), there is no current provincial regulatory framework for money services businesses in British Columbia, which puts them at risk of being used to launder dirty money.

Submissions to the money services businesses consultation will be accepted until 4 p.m. (Pacific time) on Friday, April 30, 2020. To participate in this public consultation, go to:
https://engage.gov.bc.ca/govtogetherbc/consultation/regulatory-framework-for-money-services-businesses-in-b-c

This public engagement builds on earlier consultations that asked British Columbians for input on the creation of a potential central registry of beneficial ownership and on modernizing mortgage-broker legislation. All three consultations are recommendations from the Expert Panel on Money Laundering in B.C. Real Estate’s report, which estimated that $7.4 billion was laundered in B.C. in 2018, inflating the cost of a home by 5%.

The consultation on the creation of a central registry of company beneficial ownership will be accepted until 4 p.m. (Pacific time) on April 30, 2020. To participate in the public consultation on the beneficial ownership registry, go to:
https://engage.gov.bc.ca/govtogetherbc/consultation/corporate-beneficial-ownership-registry-consultation

Feedback on modernizing mortgage-broker legislation will be accepted until 4 p.m. (Pacific time) on April 30, 2020. To participate in the public consultation on mortgage-broker regulation, go to: https://www2.gov.bc.ca/gov/content?id=ACF4488B55894B8F9DDE09EB74456BBF

Quick Facts:

• The Expert Panel on Money Laundering in B.C. Real Estate released its Combatting Money Laundering report in May 2019.
• As of May 1, 2020, all B.C. private companies will be required to keep transparency registers of beneficial owners within their records offices.
• The Land Owner Transparency Act, when brought into force, will create Canada’s first beneficial land ownership registry for real estate.

Learn More:

Read the discussion paper on the proposal for a regulatory regime for money services businesses:
https://engage.gov.bc.ca/app/uploads/sites/121/2020/03/MSB-Consultation-Paper-with-20200430.pdf

Read more about the report Combatting Money Laundering in BC Real Estate:
https://news.gov.bc.ca/releases/2019FIN0051-000914