What is a Large Virtual Currency Transaction Report (LVCTR)?

Imagine you’re running a business that deals with virtual currencies like Bitcoin or Ethereum. One day, you receive a large sum—let’s say CAD $10,000 or more—in one or multiple transactions over a 24-hour period. What’s your next move? Well, if you’re in Canada, you’ve got some reporting to do, and this is where the LVCTR, or Large Virtual Currency Transaction Report, comes into play.

So, what exactly is an LVCTR? 

In a nutshell, it’s a mandatory report that reporting entities must submit to FINTRAC, Canada’s financial intelligence unit. The purpose of this report is to help keep an eye on large transactions in virtual currencies, which can sometimes be used for less-than-legitimate purposes, like money laundering or terrorist financing.

Here’s how it works:

When your business receives a large amount of virtual currency—equivalent to $10,000 CAD or more within a 24 hour period from the same conductor—you’re required to document this transaction in an LVCTR. This report needs to include specific details about the transaction, such as who was involved, the amount of virtual currency, and the addresses from which the currency was sent and received.
These reports are part of Canada's broader efforts to combat money laundering and terrorist financing by ensuring that large transactions in virtual currencies are monitored and reported to authorities​

See the following for more information: 

https://fintrac-canafe.canada.ca/guidance-directives/transaction-operation/lvctr/lvctr-eng
https://fintrac-canafe.canada.ca/notices-avis/2021-09-27-eng

Need assistance with your record keeping obligations? 

AML Incubator can help! 

We offer a long list of custom tailored compliance solutions for your business. Contact us today for a free consultation to see how we can help you with your compliance needs.