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

Act current to 2017-11-20 and last amended on 2017-10-06. Previous Versions

Record Keeping and Verifying Identity

Marginal note:Record keeping

 Every person or entity referred to in section 5 shall keep records in accordance with the regulations.

  • 2000, c. 17, s. 6;
  • 2006, c. 12, s. 4;
  • 2017, c. 20, s. 409.
Marginal note:Verifying identity

 Every person or entity referred to in section 5 shall verify the identity of a person or entity in accordance with the regulations.

  • 2006, c. 12, s. 4;
  • 2017, c. 20, s. 409.

Reporting and Other Requirements

Marginal note:Transactions if reasonable grounds to suspect

 Subject to section 10.1, every person or entity referred to in section 5 shall, in accordance with the regulations, report to the Centre every financial transaction that occurs or that is attempted in the course of their activities and in respect of which there are reasonable grounds to suspect that

  • (a) the transaction is related to the commission or the attempted commission of a money laundering offence; or

  • (b) the transaction is related to the commission or the attempted commission of a terrorist activity financing offence.

  • 2000, c. 17, s. 7;
  • 2001, c. 41, s. 52;
  • 2006, c. 12, s. 5;
  • 2017, c. 20, s. 410.
Marginal note:Disclosure
  •  (1) Every person or entity referred to in section 5 that is required to make a disclosure under section 83.1 of the Criminal Code or under section 8 of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism shall report to the Centre in accordance with the regulations.

  • Marginal note:Limitation

    (2) Subsection (1) does not apply to prescribed persons or entities, or prescribed classes of persons or entities, in respect of prescribed transactions or property, or classes of transactions or property, if the prescribed conditions are met.

  • 2001, c. 41, s. 52;
  • 2006, c. 12, s. 6;
  • 2017, c. 20, s. 411.
Marginal note:No disclosure of reports

 No person or entity shall disclose that they have made, are making or will make a report under section 7, or disclose the contents of such a report, with the intent to prejudice a criminal investigation, whether or not a criminal investigation has begun.

  • 2000, c. 17, s. 8;
  • 2017, c. 20, s. 412.
Marginal note:Financial transactions to be reported
  •  (1) Subject to section 10.1, every person or entity referred to in section 5 shall report to the Centre, in accordance with the regulations,

    • (a) any financial transaction, or any financial transaction within a class of financial transactions, specified in a directive issued under Part 1.1 that occurs or that is attempted in the course of their activities; and

    • (b) any prescribed financial transaction that occurs in the course of their activities.

  • Marginal note:Limitation

    (2) Subsection (1) does not apply to prescribed persons or entities, or prescribed classes of persons or entities, in respect of prescribed transactions, classes of transactions, clients or classes of clients, if the prescribed conditions are met.

  • Marginal note:List of persons

    (3) Every person or entity referred to in section 5 shall establish and maintain a list, in the prescribed form and manner, of their clients in respect of whom a report would have been required under subsection (1) were it not for subsection (2). However, a person or an entity may choose to report a client’s transactions under subsection (1) instead of maintaining the list in respect of that client.

  • 2000, c. 17, s. 9;
  • 2006, c. 12, s. 7;
  • 2010, c. 12, s. 1864;
  • 2017, c. 20, s. 413.
Marginal note:Reports under other Acts

 Subject to section 9, every person or entity that is required to make a report to the Centre under another Act of Parliament or any regulations under it shall make the report in the form and manner and within the period prescribed under this Act for a report under that Act.

  • 2001, c. 41, s. 53;
  • 2017, c. 20, s. 414.
Marginal note:Inability to verify identity

 No person or entity that is referred to in section 5 shall open an account for a client if the person or entity cannot verify the identity of the client in accordance with the regulations.

  • 2006, c. 12, s. 8;
  • 2017, c. 20, s. 414.
Marginal note:Politically exposed persons
  •  (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.

  • Marginal note: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 take the measures referred to in the regulations.

  • Marginal note: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 take the measures referred to in the regulations.

  • Marginal note:Definitions

    (3) The following definitions apply in this section.

    head of an international organization

    head of an international organization means a person who, at a given time, holds — or has held within a prescribed period before that time — the office or position of 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)

  • 2006, c. 12, s. 8;
  • 2014, c. 20, s. 258;
  • 2017, c. 20, s. 439.
 
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