As UCDA members may have seen in Dealer Alerts late last year, the Canadian Federal Government wants to extend reporting and record-keeping requirements to vehicle leasing and financing for business purposes, passenger vehicles and goods valued above $100,000.

The $100,000 threshold trigger does not even apply to vehicles, so a vehicle worth less than $100,000 would still require reporting!

Basically, they want to treat vehicle and finance dealers like banks, requiring various record keeping and reporting under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and requiring reporting through the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) system.

All this while there is no evidence this problem even exists in Ontario. We have never seen a massive prosecution or enforcement in the automotive industry involving money laundering or terrorist funding. This has all the earmarks of a solution in search of a problem and worse, an exercise in optics that will add costs, red tape and increase the price of vehicles for consumers.

The UCDA has submitted its comments on the proposed Regulatory changes and made points on the:

• lack of consultation
• short window for comments (Nov. 30 to Dec. 30, 2024)
• short window for implementation (by October 2025)
• act the $100,000 trigger should apply to passenger vehicles too
• negative effect this will have on many small businesses in Ontario that engage in vehicle leasing and financing

We urge you to make your voices heard by contacting your local MP: https://www.ourcommons.ca/members/en