Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17)

Act current to 2017-03-20 and last amended on 2015-06-23. Previous Versions

AMENDMENTS NOT IN FORCE

  • — 2014, c. 20, ss. 256(2), (3)

    • 2006, c. 12, s. 3(1)
      • 256 (2) Paragraph 5(h) of the Act is replaced by the following:

        • (h) persons and entities that have a place of business in Canada and that are engaged in the business of providing at least one of the following services:

          • (i) foreign exchange dealing,

          • (ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,

          • (iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named person or entity,

          • (iv) dealing in virtual currencies, as defined in the regulations, or

          • (v) any service described in regulations made under paragraph 73(1)(a);

        • (h.1) persons and entities that do not have a place of business in Canada, that are engaged in the business of providing at least one of the following services that is directed at persons or entities in Canada, and that provide those services to their customers in Canada:

          • (i) foreign exchange dealing,

          • (ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,

          • (iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named person or entity,

          • (iv) dealing in virtual currencies, as defined in the regulations, or

          • (v) any service described in regulations made under paragraph 73(1)(a);

      • (3) Paragraph 5(k) of the Act is replaced by the following:

        • (k) the government of a province that, in accordance with paragraph 207(1)(a) of the Criminal Code,

          • (i) in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games, or

          • (ii) in any other permanent establishment, conducts and manages games that are operated on or through a slot machine, as defined in subsection 198(3) of the Criminal Code, or any other similar electronic gaming device, if there are more than 50 of those machines or other devices in the establishment;

        • (k.1) the government of a province that, in accordance with paragraph 207(1)(a) of the Criminal Code, conducts and manages a lottery scheme, other than bingo or the sale of lottery tickets, that is accessible to the public through the Internet or other digital network, except if the network is an internal network within an establishment described in subparagraph (k)(ii);

        • (k.2) an organization that, in accordance with paragraph 207(1)(b) of the Criminal Code, in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games, unless the organization is a registered charity, as defined in subsection 248(1) of the Income Tax Act, and the lottery scheme is conducted or managed for a period of not more than two consecutive days at a time;

        • (k.3) the board of a fair or of an exhibition, or the operator of a concession leased by such a board, that, in accordance with paragraph 207(1)(c) of the Criminal Code, in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games;

  • — 2014, c. 20, s. 257

    • 257 The Act is amended by adding the following after section 5:

      • Clarification

        5.1 For greater certainty, this Part does not apply to persons or entities referred to in paragraph 5(h.1) in respect of the services they provide to persons or entities outside Canada.

  • — 2014, c. 20, s. 258

    • 2006, c. 12, s. 8

      258 Section 9.3 of the Act is replaced by the following:

      • Politically exposed persons
        • 9.3 (1) Every person or entity that is referred to in section 5 and that is prescribed shall determine, in the prescribed circumstances and in accordance with the regulations, whether it is dealing with

          • (a) a politically exposed foreign person, a prescribed family member of a politically exposed foreign person, or a person who the person or entity knows or should reasonably know is closely associated, for personal or business reasons, with a politically exposed foreign person;

          • (b) a politically exposed domestic person, a prescribed family member of a politically exposed domestic person, or a person who the person or entity knows or should reasonably know is closely associated, for personal or business reasons, with a politically exposed domestic person; or

          • (c) the head of an international organization, a prescribed family member of the head of an international organization, or a person who the person or entity knows or should reasonably know is closely associated, for personal or business reasons, with the head of an international organization.

        • Measures — politically exposed foreign persons

          (2) If the person or entity determines that it is dealing with a person described in paragraph (1)(a), the person or entity shall obtain the approval of senior management in the prescribed circumstances and take the prescribed measures.

        • Measures — other persons

          (2.1) If the person or entity determines that it is dealing with a person described in paragraph (1)(b) or (c) and considers, based on an assessment referred to in subsection 9.6(2), that the person poses a high risk of committing a money laundering offence or a terrorist activity financing offence, the person or entity shall obtain the approval of senior management in the prescribed circumstances and take the prescribed measures.

        • Definitions

          (3) The following definitions apply in this section.

          head of an international organization

          head of an international organization means the head of an international organization that is established by the governments of states or the head of an institution of any such organization. (dirigeant d’une organisation internationale)

          politically exposed domestic person

          politically exposed domestic person means a person who, at a given time, holds — or has held within a prescribed period before that time — one of the offices or positions referred to in any of paragraphs (a) to (j) in or on behalf of the federal government or a provincial government or the office or position referred to in paragraph (k) in a municipal government:

          • (a) Governor General, lieutenant governor or head of government;

          • (b) member of the Senate or House of Commons or member of a legislature;

          • (c) deputy minister or equivalent rank;

          • (d) ambassador, or attaché or counsellor of an ambassador;

          • (e) military officer with a rank of general or above;

          • (f) president of a corporation that is wholly owned directly by Her Majesty in right of Canada or a province;

          • (g) head of a government agency;

          • (h) judge of an appellate court in a province, the Federal Court of Appeal or the Supreme Court of Canada;

          • (i) leader or president of a political party represented in a legislature;

          • (j) holder of any prescribed office or position; or

          • (k) mayor. (national politiquement vulnérable)

          politically exposed foreign person

          politically exposed foreign person means a person who holds or has held one of the following offices or positions in or on behalf of a foreign state:

          • (a) head of state or head of government;

          • (b) member of the executive council of government or member of a legislature;

          • (c) deputy minister or equivalent rank;

          • (d) ambassador, or attaché or counsellor of an ambassador;

          • (e) military officer with a rank of general or above;

          • (f) president of a state-owned company or a state-owned bank;

          • (g) head of a government agency;

          • (h) judge of a supreme court, constitutional court or other court of last resort;

          • (i) leader or president of a political party represented in a legislature; or

          • (j) holder of any prescribed office or position. (étranger politiquement vulnérable)

      • Prohibition if unregistered
        • 9.31 (1) No entity referred to in paragraph 5(a), (b), (d) or (e) and no other entity that is referred to in section 5 and that is prescribed shall open or maintain an account for, or have a correspondent banking relationship with, a person or entity referred to in paragraph 5(h.1) unless that person or entity is registered with the Centre under section 11.1.

        • Definition of correspondent banking relationship

          (2) For the purposes of this section, correspondent banking relationship means a relationship created by an agreement or arrangement under which an entity referred to in paragraph 5(a), (b), (d) or (e) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a person or entity referred to in paragraph 5(h.1) services such as international electronic funds transfers, cash management, cheque clearing and any prescribed services.

  • — 2014, c. 20, s. 261

    • 2006, c. 12, s. 10

      261 Section 11.1 of the Act is replaced by the following:

      • Registration requirement

        11.1 Except as otherwise provided in the regulations, every person or entity referred to in paragraph 5(h) or (h.1), those referred to in paragraph 5(l) that sell money orders to the public, and every other person or entity that is referred to in section 5 and that is prescribed must be registered with the Centre in accordance with this section and sections 11.11 to 11.2.

  • — 2014, c. 20, s. 262(3)

      • 262 (3) Subsection 11.11(1) of the Act is amended by adding the following after paragraph (e):

        • (e.1) a person or entity referred to in paragraph 5(h.1) that, having committed a violation, or a series of minor violations, under this Act that is classified as a serious violation or a very serious violation and being liable to a penalty for it, and 30 days having elapsed since the day on which all proceedings in respect of the violation are ended, has still not paid the penalty together with any interest imposed under section 73.28; or

  • — 2014, c. 20, s. 263

    • 2006, c. 12, s. 11

      263 Subsection 11.12(1) of the Act is replaced by the following:

      • Application for registration
        • 11.12 (1) An application for registration shall be submitted to the Centre in the prescribed form and manner and shall include

          • (a) a list of the applicant’s agents, mandataries or branches that are engaged, on behalf of the applicant, in the activities referred to in paragraph 5(h) or (h.1), in selling money orders to the public if the applicant is a person or entity referred to in paragraph 5(l), or in any prescribed activities;

          • (b) if the applicant is a person referred to in paragraph 5(h.1)

            • (i) the name and address for service of an individual who resides in Canada and who is authorized to accept, on behalf of the person, notices that are served or caused to be served by the Centre under this Act,

            • (ii) a document that sets out the person’s record of criminal convictions, or states that the person does not have one, that is issued by a competent authority of the foreign state in which the person resides, and, if the document is made in a language other than English or French, a translation of it into one of those languages attested to by a person who is recognized as a certified translator by a provincial organization or body that is competent under provincial law to issue such certifications;

          • (c) if the applicant is an entity referred to in paragraph 5(h.1)

            • (i) the name and address for service of an individual who resides in Canada and who is authorized to accept, on behalf of the entity, notices that are served or caused to be served by the Centre under this Act, and

            • (ii) for each of the chief executive officer, the president and the directors of the entity and for each person who owns or controls, directly or indirectly, 20% or more of the entity or the shares of the entity, a document that sets out the person’s record of criminal convictions, or states that the person does not have one, and that is issued by a competent authority of the foreign state in which the person resides, and, if the document is made in a language other than English or French, a translation of it into one of those languages attested to by a person who is recognized as a certified translator by a provincial organization or body that is competent under provincial law to issue such certifications; and

          • (d) any prescribed information.

  • — 2014, c. 20, s. 264

    • 2006, c. 12, s. 11

      264 Section 11.13 of the Act is renumbered as subsection 11.13(1) and is amended by adding the following:

      • Denial or revocation

        (2) If the name or address for service of a person referred to in subparagraph 11.12(1)(b)(i) or (c)(i) changes, and an applicant or registered person or entity who is or was required to provide the information described in paragraph 11.12(1)(b) or (c) does not, within the period provided in subsection (1), provide the Centre with the new name or address for service, the Centre shall without delay after becoming aware of that fact deny the application, or revoke the registration, as the case may be, and shall, without delay, inform the applicant or registered person or entity of the denial or revocation.

  • — 2014, c. 20, s. 265

    • 2006, c. 12, s. 11

      265 Subsection 11.14(1) of the Act is replaced by the following:

      • Clarifications — applicant
        • 11.14 (1) An applicant shall provide the Centre, in the prescribed form and manner, with any clarifications that the Centre may request in respect of the information described in subsection 11.12(1) within 30 days after the day on which the request is made.

  • — 2014, c. 20, s. 266

    • 2006, c. 12, s. 11

      266 Subsection 11.17(1) of the Act is replaced by the following:

      • Clarifications — registrant
        • 11.17 (1) A registered person or entity shall provide the Centre, in the prescribed form and manner, with any clarifications that the Centre may request in respect of the information described in subsection 11.12(1) within 30 days after the day on which the request is made.

  • — 2014, c. 20, s. 293

    • 293 The Act is amended by adding the following after section 72:

      Service of Notices

      • Authorized person

        72.1 The service of a notice by or on behalf of the Centre on a person or entity referred to in paragraph 5(h.1) is sufficient if it is served on the person who is indicated in the application for registration, or in accordance with subsection 11.13(1), as being authorized to accept, on behalf of the person or entity referred to in that paragraph, notices that are served or caused to be served by the Centre under this Act.

  • — 2014, c. 20, ss. 294(1) to (5)

      • 294 (1) Paragraph 73(1)(a) of the Act is replaced by the following:

        • (a) describing services for the purpose of subparagraph 5(h)(v) or (h.1)(v) and activities for the purpose of businesses, professions and activities for the purpose of paragraph 5(i);

      • 2001, c. 41, s. 73(1)

        (2) Paragraph 73(1)(g) of the Act is replaced by the following:

        • (g) defining courier and monetary instruments;

      • (3) Subsection 73(1) of the Act is amended by adding the following after paragraph (g):

        • (g.1) for the purposes of subparagraphs 5(h)(iv) and (h.1)(iv), defining deal in, in relation to virtual currencies, and virtual currencies;

      • 2006, c. 12, s. 39(2)

        (4) Paragraphs 73(1)(j) to (l) of the Act are replaced by the following:

        • (j) prescribing, for the purposes of subsection 9.3(1), the manner for determining whether a person is a person described in any of paragraphs 9.3(1)(a) to (c) and the circumstances in which it is necessary to make that determination;

        • (k) prescribing, for the purposes of subsections 9.3(2) and (2.1), the circumstances in which it is necessary to obtain the approval of senior management and the measures to be taken;

        • (l) prescribing offices and positions for the purposes of paragraph (j) of the definition politically exposed domestic person in subsection 9.3(3) or paragraph (j) of the definition politically exposed foreign person in that subsection;

        • (l.1) prescribing family members for the purposes of subsection 9.3(1);

        • (l.2) defining foreign state for the purposes of the definition politically exposed foreign person in subsection 9.3(3);

      • 2006, c. 12, s. 39(2)

        (5) Paragraph 73(1)(o) of the Act is replaced by the following:

        • (o) prescribing the services referred to in the definition correspondent banking relationship in subsections 9.31(2) and 9.4(3);

  • — 2014, c. 20, s. 296

    • 296 The portion of subsection 74(1) of the Act before paragraph (a) is replaced by the following:

      • General offences
        • 74 (1) Every person or entity that knowingly contravenes any of sections 6, 6.1 and 9.1 to 9.31, subsection 9.4(2), sections 9.5 to 9.7, 11.1, 11.43, 11.44 and 11.6, subsections 12(1) and (4) and 36(1), section 37, subsections 55(1) and (2), section 57 and subsections 62(2), 63.1(2) and 64(3) or the regulations is guilty of an offence and liable

  • — 2014, c. 39, s. 250

    • 2014, c. 20, s. 267

      250 The definition foreign entity in section 11.41 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:

      foreign entity

      foreign entity means

      • (a) an entity referred to in paragraph 5(h.1); or

      • (b) an entity, other than one referred to in section 5, that is incorporated or formed by or under the laws of a country other than Canada, including its subsidiaries, if any, and that does not carry on business in Canada, if it carries out activities similar to those of entities referred to in any of paragraphs 5(a) to (g) or provides services similar to those referred to in paragraph 5(h) or (h.1). (entité étrangère)

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