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: 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
- Rolling compliance: Ongoing verification of business details every 2-3 years for all Wagepoint accounts
What do I need to do as an existing Wagepoint customer?
If you are a small business owner with an existing Wagepoint account, you'll need to update your information.
Click here for the steps for Wagepoint 2.0
FAQs: FINTRAC updates
What changes in the new 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
How do these FINTRAC updates benefit me?
- May help facilitate compliance with Canadian regulations
- Reduce risk of fraud and identity theft
- Keep payroll funds and employee pay more secure
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.
I’ve been a Wagepoint customer for years, why do I have to do this now?
Due to recent regulatory updates from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), payroll software is now included in the Money Services Business (MSB) category.
That means we’re now required to collect some additional information from our customers to stay compliant. We’ve designed this process to be as simple and seamless as possible, so you can complete it quickly and get back to running your business.
What is my FINTRAC status, it currently shows submitted?
If your status shows “submitted,” you’re all set for now.
You’ve completed the required steps, and our team will review your information. If we need anything else, we’ll reach out. In the meantime, you can continue running payroll as usual.
How is my information protected?
Keeping your information safe is a top priority for us. 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.
Additionally, we run regular penetration and vulnerability testing to keep our systems secure.
We also partner with Trulioo for identity verification. You can learn more about their approach to privacy and security here.