FINTRAC: What QuickBooks Online Payroll and Payment Users Need to Know

For Canadian businesses, staying in line with federal regulations is vital—not just to avoid penalties, but to protect your reputation, build trust, and ensure the financial integrity of your operations. One of the key regulatory bodies overseeing financial compliance in Canada is the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). FINTRAC plays a critical role in preventing money laundering and terrorist financing by setting regulations that businesses must follow to ensure transparency and accountability. As a result of these regulatory guidelines, Intuit is making key updates to QuickBooks Online to help its Canadian users stay compliant with these rules. In this blog, we’ll explore what QuickBooks users need to know about the upcoming changes to meet FINTRAC’s requirements.

What is FINTRAC?

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence agency. Its mission is to detect and prevent crimes like money laundering and terrorist financing through the monitoring and analysis of financial transactions. Many industries—including banks, real estate agents, accountants, and casinos—are required to comply with FINTRAC regulations, especially those businesses dealing with large transactions or managing client funds. These businesses must register with FINTRAC and adhere to strict record-keeping and reporting guidelines. FINTRAC’s rules also apply to Canadian users of Intuit’s payments and payroll services, and as such, QuickBooks Online is making changes to help ensure compliance with these regulations.

Key Components of FINTRAC Compliance

To align with the new FINTRAC guidelines, QuickBooks Online now requires additional information from Canadian customers using payments and payroll services. Here’s what you need to know:

1. Verifying Business Information

QuickBooks Online will now ask businesses that utilize QBO Payroll and Payments to submit more detailed information. This includes business ownership details, the names of directors, and other relevant business data. It’s essential to ensure that the information you provide is up-to-date and accurate to meet compliance requirements.

Best Practices for Verifying Business Information:

• Submit Information Early: Ensure that you provide the requested details as soon as possible to prevent any delays in your services.
• Accuracy Matters: Double-check the details to avoid any disruptions in your QuickBooks Online services.

2. Record-Keeping Requirements

It’s important to keep accurate records of all transactions, including payroll, payments, and any supporting documents like invoices. By storing these in QuickBooks Online, you can maintain a streamlined record-keeping process that will be essential for both your business and during compliance checks.

3. Reporting for Compliance

Under the new regulations, businesses are required to report certain transactions within QuickBooks Online. This includes:

• Suspicious Transaction Reports (STRs): Filed if a transaction seems unusual, has unclear sources of funds, or follows a suspicious pattern.
• Large Cash Transaction Reports (LCTRs): Filed for any cash transactions over $10,000, whether made in a single payment or over multiple transactions within 24 hours.

QuickBooks Online doesn’t file reports directly with FINTRAC but provides the necessary tools to track and document transactions that may need to be reported.

Why FINTRAC Compliance Matters for Your Business

Complying with FINTRAC regulations is not just about avoiding penalties. It also demonstrates that your business is committed to ethical operations and protecting the Canadian financial system. Failure to meet these requirements can result in hefty fines, reputational damage, and even legal consequences. Additionally, staying compliant builds trust with your clients and stakeholders, proving that your business operates transparently and responsibly.

What Information Does Intuit Need From Customers?

To meet the updated FINTRAC compliance requirements, QuickBooks Online users in Canada will need to submit specific business information. Depending on the type of business, this could include:

Sole Proprietors

• Owner title (if none of the listed options apply, use “Chief Executive Officer” as the owner title)
• Government-issued ID: A copy of a valid government-issued identification
• Utility bill: A recent utility bill with the business address to verify your location

Co-Owners

• Name and address of all individuals who own 25 percent or more of the business
• A current, valid government-issued document that includes:
  • Business name and address, or
  • Business name and director names, or
  • Business name, address, and directors.
    • These documents can include:
      • Articles of incorporation
      • Certificate of incorporation
      • Unexpired business license

Corporations

• Name and address of all directors
• A current, valid government-issued document that includes:
  • Business name and address, or
  • Business name and director names, or
  • Business name, address, and directors.
    • These documents can include:
      • Company/corporate profile report
      • Articles of incorporation
      • Certificate of incorporation
      • Unexpired business license

Not-for-Profits (NPO)

• Owner title (this should be the title of the person completing this process, such as the CEO)
• Name and address of all individuals who own 25 percent or more of the NPO
• Name and address of all directors (if the business is a corporation)
• A current, valid government-issued document that includes:
  • Business name and address, or
  • Business name and director names, or
  • Business name, address, and directors
    • These documents can include:
      • Company/corporate profile report
      • Articles of incorporation
      • Certificate of incorporation
      • Unexpired business license

This information will be used by Intuit to verify your business’s identity, ensuring compliance with Canadian regulations.

Where Can You Find Your Company/Corporate Profile Report?

A key document required by QuickBooks is the Company/Corporate Profile Report. This report contains essential details about a business, such as:

• Business ownership structure
• Names of directors
• Business address
• Corporate activities

To obtain a corporate profile report, visit the provincial database where your business is registered. If your business is federally incorporated, you can access this information from the federal corporation registry.

Verifying FINTRAC Registration as a Business Owner

If your business is subject to FINTRAC regulations, you must ensure that your registration is complete. You can verify your registration by visiting the FINTRAC portal and checking your business number. Ensuring that your corporate profile matches your actual business activities is crucial for compliance.

Submitting Your Documents

Intuit will send you an email with a link to an application where you can upload your documents. Once you select the document to upload, you’ll see the progress at the bottom of the “Select to Upload” screen. After the upload is complete, the document will appear below the “Add” button for the corresponding document type. Once all the requested documents have been uploaded, click “Review and Finish”. A green check mark will appear on the “Add Info” screen next to the document menu. You may continue to see prompts to upload documents for 2-3 business days after completing the upload process. If you’ve already uploaded everything successfully, you can ignore these reminders. The review process usually takes 7-10 days. The documents will be used to verify your business identity and meet Canadian regulatory requirements, including:

• Verifying business name and address
• Verifying the names of directors
• Validating non-profit corporation registration status

If any information is incorrect, your application will be denied, and you won’t be able to use bank payments or direct deposit. In that case, you’ll need to submit a new application. You can also complete the application and provide the required documents on behalf of your clients. Please note that this may impact the approval time for direct deposits or payments. On average, once Intuit receives the documents, they’ll make a decision within 2 business days. In the meantime, they’ll send you an email with a case number and a link to track the progress of your application.

What Happens if You Miss the Deadline?

To comply with updated regulations from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), you must submit additional business information through QuickBooks by June 09th, 2025 in order to continue processing payments and payroll. If you miss this deadline, your ability to use these money movement services will be suspended. If you have multiple QuickBooks Online accounts, make sure to log into the account with the exact company name as listed in the email you received before submitting any documents. This will help ensure everything is processed correctly.

Need Help? Let DDL & Co. Guide You

FINTRAC compliance is crucial for Canadian business owners. In response to new regulatory requirements, QuickBooks Online is making updates to stay compliant. To meet these guidelines, QuickBooks now requires specific information from all Canadian customers using payments and payroll services. If you use QuickBooks Online for cloud bookkeeping, make sure to submit this information by June 09th, 2025 to avoid any disruptions. At DDL & Co., our QuickBooks Online certified professionals keep you updated on the latest features and help with everything from gathering required documents to providing general support. Contact us today to ensure your business remains compliant and your financial processes are streamlined.