22 forms are changing - here's how to get ready for the new 2017 tax and AML regulatory requirements

What you need to know

New regulatory requirements for Anti-Money Laundering (AML) and the newly introduced tax data collection and reporting requirements in the Income Tax Act related to the Common Reporting Standard (CRS) are coming soon. They'll affect how you do business and the amount of information clients will need to provide. You'll need to be aware of these legislative changes, so that you can gather the correct information from clients and stay compliant.

22 forms are changing to reflect the new regulatory requirements. Here's the full list

Key dates

Mark your calendar for details about implementation dates and when to start using the new forms:

Implementation dates
Anti-Money Laundering

The Financial Transaction and Reports Analysis Centre of Canada (FINTRAC) has published new guidelines related to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) that's resulted in:

  • changes to the methods used to verify client identity, and
  • new obligations for collecting additional personal relationship information about politically exposed persons, as well as heads of international organizations (HIOs).

We're currently required to collect information about politically exposed foreign persons (PEFPs) but starting June 17, 2017, you'll have to start collecting information for politically exposed domestic persons (PEDPs), HIOs and close associates.

The methods for verifying identity are also expanding. Photo identification is preferred but in rare circumstances where a client doesn't have photo ID available, you'll be able to confirm a client's identity by collecting information from two original, valid, and current sources such as a utility bill, bank statement or birth certificate.

Where to go for more information about AML:

Contact for AML

If you have further questions, see the product areas listed in the chart below to find the contact information you need.

Product Contact information
Insurance - existing in-force policies INSIPT@sunlife.com
Insurance - new business SST@sunlife.com
Accumulation annuities / GICs Communications - Savings and Retirement - inquire (log-in required)
Payout annuities Communications - Payout - inquire (log-in required)
Sun Life Guaranteed Investment Funds gifs@sunlife.com
Common Reporting Standard

The Organization for Economic Cooperation and Development (OECD) developed the Common Reporting Standard in response to a G20 request. CRS sets a standard for the automatic exchange of information between governments. The purpose is to prevent off-shore tax evasion and maintain the integrity of tax systems.

To support the OECD system, Canada added new sections of the Income Tax Act. These new sections require that starting July 1, 2017:

  • all financial institutions in Canada, including Sun Life Financial, be subject to new client information gathering and reporting requirements,
  • financial institutions must request additional tax and residency information when clients open an account or change their circumstances, and
  • financial institutions will need to report client account information to the Canada Revenue Agency (CRA), and the CRA will in turn share this information with the tax authority(ies) in the country where the client is a resident.

For example, a new address or telephone number can be an indicator of a change in tax status. You'd need to ask the client if they're a resident of a country other than Canada and the United States. If they answer yes, they must provide a taxpayer identification number (TIN) for the applicable jurisdiction(s).

Where to go for more information about CRS:

Contact for CRS

FATCA/CRS - general - inquire (log-in required)

What to keep in mind

Incomplete paperwork lengthens the time it takes to complete a sale, especially when you have to re-approach clients to correct paperwork. For AML in particular, advisors have specific regulatory obligations and their records are subject to examination by Sun Life Financial, FINTRAC and other regulators. Failure to comply with the required changes and recording of information can lead to fines and imprisonment.