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

Act current to 2017-09-14 and last amended on 2017-06-22. Previous Versions

Marginal note:Prohibition if unregistered
  •  (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.

  • Marginal note: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. 258.
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 measures referred to in the regulations in respect of any correspondent banking relationship it enters into with a prescribed foreign entity and shall take the following measures before entering into such a correspondent banking relationship:

    • (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.

  • Marginal note: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;
  • 2017, c. 20, s. 415.
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.
Marginal note:Compliance program
  •  (1) Every person or entity referred to in section 5 shall establish and implement, in accordance with the regulations, a program intended to ensure their compliance with this Part and Part 1.1.

  • Marginal note:Risk assessment

    (2) The program shall include the development and application of policies and procedures for the person or entity to assess, in the course of their activities, the risk of a money laundering offence or a terrorist activity financing offence.

  • Marginal note:Special measures

    (3) If, at any time, the person or entity considers that the risk referred to in subsection (2) is high, or in the prescribed circumstances, the person or entity shall take the special measures referred to in the regulations.

  • 2006, c. 12, s. 8;
  • 2010, c. 12, s. 1865;
  • 2017, c. 20, s. 416.
Marginal note:Foreign branches and subsidiaries
  •  (1) Every entity referred to in any of paragraphs 5(a) to (g), except for authorized foreign banks within the meaning of section 2 of the Bank Act and for foreign companies within the meaning of subsection 2(1) of the Insurance Companies Act, shall, in respect of its foreign branches, and in respect of its foreign subsidiaries that carry out activities similar to those of entities referred to in those paragraphs and that are either wholly-owned by the entity or have financial statements that are consolidated with those of the entity, develop policies that establish requirements similar to the requirements of sections 6, 6.1 and 9.6 and ensure that those branches and subsidiaries apply those policies to the extent it is permitted by, and does not conflict with, the laws of the foreign state in which the branch or subsidiary is located.

  • Marginal note:Board approval of policies

    (2) Before the policies referred to in subsection (1) are applied, the entity’s board of directors, if there is one, shall approve them.

  • Marginal note:Exceptions

    (3) Subsection (1) does not apply to

    • (a) an entity that is a subsidiary of an entity to which that subsection applies; or

    • (b) an entity that is a subsidiary of a foreign entity that has developed policies that establish requirements for its subsidiaries that are similar to the requirements of sections 6, 6.1 and 9.6, if that subsidiary is applying those policies to the extent it is permitted by, and do not conflict with, the laws of Canada or a province.

  • Marginal note:Records and reporting

    (4) If the application by a foreign branch or a foreign subsidiary of a policy referred to in subsection (1) is not permitted by or would conflict with the laws of the foreign state in which the branch or subsidiary is located, the entity shall keep, in accordance with section 6, a record of that fact and of the reasons why it is not permitted or it would conflict and shall, within a reasonable time, notify the Centre, and the principal agency or body that supervises or regulates it under federal or provincial law, of that fact and those reasons.

  • 2006, c. 12, s. 8;
  • 2010, c. 12, s. 1866;
  • 2014, c. 20, s. 260;
  • 2017, c. 20, s. 418.
Marginal note:Information exchange between affiliated entities
  •  (1) Every entity referred to in any of paragraphs 5(a) to (g) that is affiliated with an entity referred to in those paragraphs or with a foreign entity that carries out activities similar to those of entities referred to in those paragraphs shall develop and apply policies and procedures related to the exchange of information between the entity and those affiliated entities for the purpose of detecting or deterring a money laundering offence or a terrorist activity financing offence or of assessing the risk of such an offence.

  • Marginal note:Affiliation

    (2) For the purposes of subsection (1), an entity is affiliated with another entity if one of them is wholly owned by the other, if both are wholly owned by the same entity or if their financial statements are consolidated.

  • 2006, c. 12, s. 8;
  • 2010, c. 12, s. 1866;
  • 2014, c. 20, s. 260.
Marginal note:Immunity

 No criminal or civil proceedings lie against a person or an entity for making a report in good faith under section 7, 7.1 or 9, or for providing the Centre with information about suspicions of money laundering or of the financing of terrorist activities.

  • 2000, c. 17, s. 10;
  • 2001, c. 41, s. 53.
Marginal note:Non-application to legal counsel

 Sections 7 and 9 do not apply to persons or entities referred to in paragraph 5(i) or (j) who are, as the case may be, legal counsel or legal firms, when they are providing legal services.

  • 2006, c. 12, s. 9;
  • 2010, c. 12, s. 1867(F).
Marginal note:Solicitor-client privilege or professional secrecy

 Nothing in this Act requires a legal counsel to disclose any communication that is subject to solicitor-client privilege or, in Quebec, the professional secrecy of legal counsel.

  • 2000, c. 17, s. 11;
  • 2010, c. 12, s. 1868(E);
  • 2013, c. 40, ss. 279, 281(E).

Registration

Application and Revocation

Marginal note:Registration requirement

 Except as otherwise prescribed by regulation, every person or entity referred to in paragraph 5(h), those referred to in paragraph 5(l) that issue or sell money orders to, or redeem them from, 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.

  • 2006, c. 12, s. 10;
  • 2017, c. 20, s. 419.
 
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