What is FINTRAC?
FINTRAC stands for the Financial Transactions and Reports Analysis Centre of Canada. It’s a federal agency that monitors financial activity to detect and prevent money laundering and terrorist financing.
Why does Wagepoint have to be FINTRAC compliant?
As a regulated money services business (MSB), Wagepoint must meet FINTRAC’s compliance requirements to continue processing payroll payments securely and legally. This is a new industry-wide compliance standard across the Canadian payroll industry.
While FINTRAC has existed since 2000, recent updates to Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) have extended these obligations to more areas, including payroll.
When are FINTRAC updates coming to Wagepoint?
A 3-phased implementation is planned for FINTRAC updates with clear communication and support every step of the way. Here’s a look at the rollout timeline:
- Phase 1 (Dec. 1, 2025): Additional business and identity verification requirements for all new Wagepoint accounts
- Phase 2 (Q2 2026): Additional business and identity verification requirements for all existing Wagepoint accounts (sign up before Dec. 1, 2025)
- Rolling compliance: Ongoing verification of business details every 2-3 years for all Wagepoint accounts
What changes in the new client onboarding process?
Starting Dec. 1, 2025, all new Wagepoint clients (1.0 and 2.0) will need to:
- Sign a short business attestation form (combined with the PAD agreement)
- Confirm their identity with a government-issued photo ID
- Provide additional business details including:
- Incorporation type, main business activity and industry subsector
- Beneficial owner (name, address, ownership percentage) and signing officer (SIN, date of birth, email address, address, ID) information
You can find the revised client onboarding flow for Wagepoint 2.0, including these changes, here.
What should I expect with the upcoming phase 2 of FINTRAC compliance?
We’ll soon ask you — and your clients — to confirm a few business details, such as beneficial ownership, director information, and ID verification. We’re currently working behind the scenes to make the process as simple and seamless as possible for everyone involved.
In the meantime, you may want to start gathering this information from your clients so you have it ready when the workflow becomes available.
How do these FINTRAC updates benefit partners and their clients?
- May help facilitate compliance with Canadian regulations
- Reduce risk of fraud and identity theft
- Keep payroll funds and employee pay more secure
Do Wagepoint’s FINTRAC updates ensure my accounting firm’s compliance?
These FINTRAC product updates keep Wagepoint compliant as an MSB. For accountants and accounting firms, these updates support their FINTRAC compliance — but don’t replace it. Accountants and accounting firms are still responsible for maintaining their own compliance. When in doubt, always refer directly to FINTRAC’s obligations and guidance for accountants.
Can partners give feedback on FINTRAC rollout?
Yes. We’ve gathered some partner feedback already, but would love more input on the FINTRAC updates we’re rolling out. If you’d like to share your thoughts, please contact us at partnerbeta@wagepoint.com.
How long will the new client onboarding process take?
The added verification steps for your clients should only take a few extra minutes to complete. However, it may feel longer if your clients don’t have FINTRAC verification details on hand such as certain business or identity documents.
Is the FINTRAC workflow the same for all industries, or are there exceptions for not-for-profits?
We’ve designed the workflow to accommodate the uniqueness of each business entity from corporations to partnerships and not-for-profits.
We’ll only ask for information that is relevant to the business type selected. For example, we’ll ask for a list of Directors instead of Beneficial owners for not-for-profit organizations.
Will you be contacting my existing clients directly about FINTRAC updates?
We are planning to notify all Wagepoint customers about the upcoming FINTRAC changes in 2026, but want to have partners hear from us first. This gives you time to review the updates and connect with your existing clients before we contact them directly.
What should I tell my client who’s concerned about privacy or security?
You can reassure them that all the information Wagepoint collects for FINTRAC is handled securely and used only for compliance purposes. Wagepoint meets strict data protection standards and does not share or sell this data for marketing or non-compliance reasons.
You can let your clients know that Wagepoint has multiple security measures in place to protect customer information, including:
- Independent audits (Type II SOC 1 & SOC 2): We go through regular, independent audits to ensure that Wagepoint meets rigorous standards for financial and data security.
- Dedicated risk department: We have a specialized team that monitors potential security threats and ensures compliance with risk prevention best practices.
- Internal cybersecurity training: All Wagepoint staff undergo regular security training to protect data and maintain privacy standards.
- Two-factor authentication (2FA): Adds an extra layer of security to Wagepoint accounts and helps prevent unauthorized access.