KYC / AML / ATF Policy
AML & ATF Basics
Money laundering involves taking funds obtained through criminal activity and disguising their origin so they appear legitimate. Under the Criminal Code of Canada, it is illegal to launder money or knowingly assist in laundering money.
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its Regulations require all Money Services Businesses (MSBs) and Payment Service Providers (PSPs) to implement effective controls to detect, deter, and report suspicious activities. As a regulated MSB and PSP, Switch Hub must identify customers, monitor transactions, and report all suspicious funds or activities to FINTRAC.
Terrorist financing involves the movement of funds used to support terrorist activities. While the origin of the funds may be legitimate, their final use is not. It is illegal to knowingly assist in the financing of terrorism or to possess terrorist property. Any known or suspected terrorist property must be reported to FINTRAC immediately.
Switch Hub operates exclusively within Canada and does not facilitate transactions to or from jurisdictions listed by FINTRAC as high-risk or sanctioned for terrorist activity.
Switch Hub’s Commitment
Switch Hub reports to, and follows the regulatory guidelines of, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Bank of Canada under the RPAA.
We are fully committed to preventing, detecting, and deterring money laundering, terrorist financing, fraud, sanctions evasion, and all forms of illicit financial activity.
Switch Hub has implemented a comprehensive AML/CTF Program that includes:
- Clearly defined reporting obligations to FINTRAC
- Strong record-keeping standards
- Robust customer identification procedures (KYC/KYB)
- Ongoing transaction monitoring
- Staff training and certification
- Independent reviews of compliance program effectiveness
- Monitoring of employee responsibilities and internal controls
Our employees are required to comply with this program and all relevant legislation. FINTRAC has the authority to review our documentation and impose significant penalties for non-compliance. Individuals who intentionally attempt to circumvent AML laws may also face criminal charges.
KYC Policy
Switch Hub must verify the identity of all customers involved in specific financial activities, in accordance with the PCMLTFA Regulations
Customer identification may be verified using government-issued identification that is valid and authentic. Information collected during onboarding is reviewed by our compliance team, and any suspicious activity is reported to FINTRAC.
Acceptable Identification Documents Must:
- Be issued by a federal, provincial, territorial, or equivalent foreign government
- Be valid (not expired)
- Contain a unique identifying number
- Contain the customer’s full legal name
- Include a photo of the individual being identified
Information Switch Hub Must Collect & Record:
- Customer’s full legal name (no initials or abbreviations)
- Customer’s occupation (clear and detailed)
- Purpose of the business relationship
- Date of birth
- Full address (no P.O. boxes )
- Type of identification used
- Unique identification number
- Expiry date
- Date the document was verified
If a customer has been identified previously and the information on file remains valid and unexpired, new identification may not be required.
Anti-Fraud Initiative
In addition to KYC and AML controls, Switch Hub actively monitors for fraudulent activity.
If suspicious or fraudulent behavior is detected:
- The customer may be contacted for clarification
- Additional verification is conducted
- Transactions may be declined
- Reports are filed with FINTRAC where appropriate
We are committed to maintaining the integrity of our platform and protecting our customers from fraud.
Commitment to Regulatory Compliance
Switch Hub is fully committed to upholding the integrity of the Canadian financial system and maintaining a strong, transparent, and compliant operating environment. We continuously review and enhance our AML/ATF program to ensure alignment with evolving regulatory expectations and industry best practices.