IFA Canada: A Pillar of Advocacy in the Factoring Industry
April 2, 2025 - In 2006, the Canadian chapter of the International Factoring Association (“IFA Canada”) was established to provide Canadian factoring companies with a singular voice to, in part, navigate the complexities of the industries, including government regulations. Since its inception, the association has thrived thanks to the unwavering commitment of its members, who have consistently driven its success over the years.
In 2024, the Government of Canada proposed amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) to include factoring companies as reporting entities. These changes aim to strengthen anti-money laundering (AML) and anti-terrorist financing (ATF) measures within the factoring industry. Among other things presented in the proposed amendments, factoring companies would be required to maintain detailed records of transactions, verify identities, and comply with reporting obligations to mitigate risks associated with financial crimes. IFA Canada engaged with representatives of the Government of Canada over the course of a year and made a significant impact by presenting a comprehensive and detailed overview of the factoring industry to the government and advocated against over-regulation. The consultations underscored the IFA's dedication to advocating for the factoring industry's interests and ensuring its growth and sustainability. The legal guidance and expertise provided by Cassels Brock & Blackwell LLP and Dickinson Wright LLP was instrumental in guiding IFA Canada through these consultations and in shaping the IFA's coordination and responses throughout the consultation process.
The final amendments (some of which have already become effective) confirm that IFA Canada has proven to be an active and influential chapter, continuously advocating the best interests of the factoring industry and all of its members. Through its efforts, the association has established itself as a key player in promoting the industry's development and addressing its regulatory needs.