Canada's Department of Finance has issued a new directive concerning financial transactions associated with the Islamic Republic of Iran. Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), regulated businesses must now treat any transaction to or from Iran, regardless of its value, as high‑risk and perform enhanced due diligence.
Identity verification of all parties involved in transactions
Source of funds and beneficial ownership examination
Detailed documentation and record maintenance
Mandatory reporting of all Iran-related transactions
Institutions with correspondent banking relationships must also assess the evasion risk and consider how well UN measures against Iran are implemented in the jurisdictions where their foreign counterparties operate.
Transactions Must Be Reported
Classification Required
Mandatory Reporting Body
