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

Act current to 2016-11-21 and last amended on 2015-06-23. Previous Versions

Record Keeping and Verifying Identity

Marginal note:Record keeping

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

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

 Every person or entity referred to in section 5 shall verify, in the prescribed circumstances and in accordance with the regulations, the identity of any person or entity.

  • 2006, c. 12, s. 4.

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 report to the Centre, in the prescribed form and manner, 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.
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 also make a report on it to the Centre, in the prescribed form and manner.

  • 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.
Marginal note:No disclosure of reports

 No person or entity shall disclose that they have made 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.

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 the prescribed form and manner,

    • (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.
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 an Act of Parliament or any regulations under it shall make it in the form and manner prescribed under this Act for a report under that Act.

  • 2001, c. 41, s. 53.
Marginal note:Inability to establish identity

 No person or entity referred to in section 5 shall open an account for a client, in the prescribed circumstances, if it cannot establish the identity of the client in accordance with the prescribed measures.

  • 2006, c. 12, s. 8.
Marginal note:Politically exposed foreign 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 politically exposed foreign person.

  • Marginal note:Measures

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

  • Definition of politically exposed foreign person

    (3) For the purposes of this section, 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;

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

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

    It includes any prescribed family member of such a person.

  • 2006, c. 12, s. 8.
Marginal note:Correspondent banking
  •  (1) Every entity referred to in any of paragraphs 5(a), (b), (d) and (e) and every other entity that is referred to in section 5 and that is prescribed shall take the following measures before entering into a correspondent banking relationship with a prescribed foreign entity:

    • (a) obtain prescribed information about the foreign entity and its activities;

    • (b) ensure that the foreign entity is not a shell bank as defined in the regulations;

    • (c) obtain the approval of senior management;

    • (d) set out in writing their obligations and those of the foreign entity in respect of the correspondent banking services; and

    • (e) any prescribed measures.

  • Marginal note:Prohibition — shell bank

    (2) No person or entity shall have a correspondent banking relationship with a shell bank as defined in the regulations.

  • Definition of correspondent banking relationship

    (3) 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 any of paragraphs 5(a), (b), (d) and (e) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a prescribed foreign entity services such as international electronic funds transfers, cash management, cheque clearing and any prescribed services.

  • 2006, c. 12, s. 8;
  • 2014, c. 20, s. 259.
Marginal note:Electronic funds transfer

 Every person or entity that is referred to in section 5 and that is prescribed shall, in respect of a prescribed electronic funds transfer that occurs in the course of their financial activities,

  • (a) include with the transfer the name, address, and account number or other reference number, if any, of the client who requested it, and any prescribed information;

  • (b) take reasonable measures to ensure that any transfer that the person or entity receives includes that information; and

  • (c) take any prescribed measures.

  • 2006, c. 12, s. 8.
 
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