Compliance & Regulatory Information

TX Financial is committed to maintaining the highest standards of compliance with Canadian financial regulations and international best practices.

Money Services Business (MSB) Registration

Current Registration Status

Application Pending

TX Financial has submitted its application for registration as a Money Services Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

We are currently awaiting approval from FINTRAC and will update our registration status immediately upon completion of the registration process. During this period, we continue to operate under strict compliance guidelines and maintain all required policies and procedures.

What MSB Registration Means

  • Compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)
  • Implementation of comprehensive anti-money laundering (AML) and counter-terrorist financing (CTF) programs
  • Adherence to customer identification and verification requirements
  • Maintenance of proper record-keeping and reporting obligations
  • Regular compliance monitoring and assessment procedures

Anti-Money Laundering (AML) Policy

TX Financial is committed to preventing money laundering and terrorist financing activities. Our comprehensive AML program is designed to detect, prevent, and report suspicious transactions while ensuring compliance with all applicable laws and regulations.

Key Components of Our AML Program

🔍 Customer Due Diligence (CDD)

  • Identity verification for all customers
  • Enhanced due diligence for high-risk customers
  • Ongoing monitoring of customer relationships
  • Risk assessment procedures

📊 Transaction Monitoring

  • Real-time transaction screening
  • Pattern analysis and anomaly detection
  • Threshold monitoring for large transactions
  • Suspicious activity identification

📝 Record Keeping

  • Comprehensive transaction records
  • Customer identification documents
  • Compliance documentation
  • Audit trail maintenance

📋 Reporting Obligations

  • Suspicious transaction reports (STRs)
  • Large cash transaction reports
  • Electronic funds transfer reports
  • Terrorist property reports

Customer Obligations

To comply with AML regulations, we require all customers to:

  • Provide valid government-issued photo identification
  • Verify their identity through our verification process
  • Provide accurate and complete information about transactions
  • Disclose the source of funds for large transactions
  • Report any changes to their personal information
  • Cooperate with additional verification requests when necessary

Prohibited Activities

TX Financial strictly prohibits and will report any of the following activities:

  • Money laundering or structuring transactions to avoid reporting requirements
  • Financing of terrorist activities or organizations
  • Transactions involving proceeds of crime
  • Circumventing customer identification requirements
  • Providing false or misleading information
  • Using our services for illegal purposes

Privacy Policy

TX Financial is committed to protecting the privacy and confidentiality of our customers' personal information. This privacy policy outlines how we collect, use, disclose, and protect your personal information in accordance with applicable Canadian privacy laws.

Information We Collect

We collect personal information that is necessary to provide our services and comply with legal requirements:

  • Identification Information: Name, date of birth, address, phone number, email address
  • Identity Verification: Government-issued ID, Social Insurance Number (when required)
  • Transaction Information: Transfer details, recipient information, purpose of transfer
  • Financial Information: Source of funds, banking details (when applicable)
  • Communication Records: Customer service interactions, correspondence

How We Use Your Information

Your personal information is used for the following purposes:

  • Processing and completing money transfer transactions
  • Verifying your identity and complying with legal requirements
  • Detecting and preventing fraudulent activities
  • Maintaining customer records and transaction history
  • Providing customer service and support
  • Complying with reporting obligations to regulatory authorities

Information Disclosure

We may disclose your personal information in the following circumstances:

  • To third-party service providers who assist in processing transactions
  • To regulatory authorities as required by law (FINTRAC, CRA, law enforcement)
  • To prevent fraud or investigate suspicious activities
  • With your explicit consent for specific purposes
  • To legal or professional advisors when necessary

Data Protection & Security

We implement robust security measures to protect your personal information:

  • Encryption of sensitive data in transit and at rest
  • Secure data storage with restricted access controls
  • Regular security assessments and updates
  • Employee training on privacy and security practices
  • Incident response procedures for data breaches

Your Privacy Rights

You have the following rights regarding your personal information:

  • Access to your personal information in our records
  • Correction of inaccurate or incomplete information
  • Understanding of how your information is used and disclosed
  • Withdrawal of consent where legally permissible
  • Filing complaints with privacy authorities if necessary

Retention Policy

We retain personal information only as long as necessary for business and legal purposes:

  • Transaction records: Minimum 5 years as required by FINTRAC
  • Customer identification: As long as the business relationship exists plus 5 years
  • Compliance records: As required by applicable regulations
  • Communication records: 7 years for business purposes

Customer Identity Verification

TX Financial is required by law to verify the identity of all customers before providing money services. This verification process is mandatory under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and helps protect both our customers and the financial system from illegal activities.

Required Documentation

📄 Primary Identification

One of the following government-issued photo ID documents:

  • Valid Canadian driver's license
  • Canadian passport
  • Provincial or territorial identity card
  • Canadian citizenship card with photo
  • Permanent resident card

🏠 Proof of Address

Recent document showing your current address (dated within 90 days):

  • Utility bill (electricity, gas, water)
  • Bank or credit card statement
  • Government correspondence
  • Insurance policy statement
  • Property tax assessment

Verification Process

1

Document Collection

Provide clear copies or originals of required identification documents.

2

Information Verification

Our team verifies the authenticity of documents and cross-checks information.

3

Risk Assessment

We conduct a risk assessment based on customer profile and transaction patterns.

4

Account Approval

Upon successful verification, your account is approved for money service transactions.

Enhanced Due Diligence

In certain circumstances, we may require additional verification measures:

  • Large transaction amounts (typically over $10,000)
  • Politically Exposed Persons (PEPs) and their family members
  • High-risk countries or jurisdictions
  • Unusual transaction patterns or activities
  • Business accounts and corporate customers

Additional documentation may include source of funds verification, business registration documents, or enhanced background checks.

Regulatory Compliance Framework

🏛️ FINTRAC Compliance

Full compliance with Financial Transactions and Reports Analysis Centre of Canada requirements:

  • MSB registration and licensing
  • Suspicious transaction reporting
  • Large cash transaction reporting
  • Customer identification procedures
  • Record keeping obligations

📋 PCMLTFA Adherence

Strict adherence to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act:

  • Customer due diligence requirements
  • Beneficial ownership identification
  • Third-party determination
  • Ongoing monitoring obligations
  • Training and compliance programs

🔒 Privacy Legislation

Compliance with Canadian privacy laws and regulations:

  • Personal Information Protection and Electronic Documents Act (PIPEDA)
  • Provincial privacy legislation where applicable
  • Data protection and security requirements
  • Customer consent and notification procedures
  • Privacy breach response protocols

🌍 International Standards

Alignment with international anti-money laundering standards:

  • Financial Action Task Force (FATF) recommendations
  • Wolfsberg Group principles
  • International correspondent banking standards
  • Sanctions screening and compliance
  • Cross-border reporting requirements

Compliance Questions & Concerns

If you have questions about our compliance procedures, privacy practices, or wish to file a complaint, please contact us:

📞 Phone

(416) 555-0123

📧 Email

compliance@txfinancial.ca

📮 Mail

TX Financial - Compliance Department
123 Financial District
Toronto, ON M5H 2N2

Note: We are committed to addressing all compliance-related inquiries promptly and thoroughly. Response times may vary depending on the complexity of the inquiry.