On February 24, 2026, the UCDA and KPMG presented a unique FINTRAC webinar designed just for dealers.

With enforcement expected to ramp up by April 1st, the time was right to roll this out and introduce the resources we have created for UCDA members at https://www.ucda.org/fintrac/

There you will find guidance and links to useful information and templates.

If you missed the webinar referred to above, just log in to your member account and we have a recorded version there.

https://www.ucdasearches.com/fintrac

Financial crimes, including fraud and scams, are no longer just a banking sector problem – criminals are using new methods and creative ways to move money. Many industries – including car dealerships – are becoming increasingly targeted.

Financing and leasing arrangements are vulnerable to financial crime activities, given that they accept most payment methods (including cash, electronic funds transfers, money orders, cheques) which offers an avenue for criminals to launder money through this sector.

As of April 1, 2026, dealers (both new and used) are required to comply with the obligations under Canada’s Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA) and associated Regulations.

Both in-house and third-party vehicle financing and leasing arrangements are captured in the regulation whenever a car dealer provides, offers, or is party to financing or leasing as part of a vehicle sale.

For example, this includes dealer-provided financing or leasing, as well as indirect (third-party) arrangements where a bank or credit union finances or leases a vehicle sold by the dealer.

If your dealership finances or leases any non-passenger vehicle used for business, valued above $100,000, that also triggers the obligation to comply with the requirements.

Financial entities under the PCMLTFA (e.g., banks, credit unions) that provide similar financing and leasing services are also subject to the obligations that are monitored and enforced by FINTRAC.

Failure to Comply is Not an Option

Non-compliance with any of the regulatory obligations can lead to reputational damage, penalties for non-compliance including criminal charges, fines, and further investigations by law enforcement. These include, but are not limited to:

Failure to provide assistance or information during a compliance examination or respond to law enforcement inquiry:

• Fines up to $500,000 and/or imprisonment for up to 5 years

Failure to report suspicious transactions:

• Fines up to $2 million and/or imprisonment for up to 5 years

Failure to report large cash transactions or electronic funds transfers:

• Fines up to $500,000 for the first offense and up to $1 million for subsequent offenses

Failure to meet record-keeping requirements:

• Fines up to $500,000 and/or imprisonment for up to 5 years

“Tipping off” or disclosing the contents of a suspicious transaction report:

Can lead to imprisonment for up to 2 years, especially if done with the intent to undermine a criminal investigation or tip off the subject of the report

If you are interested in more one-on-one training for your dealership, which does cost some money, we have that option ready for you with KPMG as well. Just call us and ask about it.

As a member of the UCDA you are well positioned to be ready for FINTRAC, take advantage of another benefit of UCDA membership and don’t be caught unaware and unprepared.