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

Act current to 2016-12-31 and last amended on 2015-06-23. Previous Versions

Marginal note:Duty to comply

 The person or entity to which a directive under this Part applies shall comply with it within the time and in the manner specified in the directive.

  • 2010, c. 12, s. 1869.
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 section 2 of the Insurance Companies Act, shall ensure that its foreign branches, and that 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, comply with any directive issued under this Part, except with respect to any reporting measure as contemplated by paragraph 11.42(2)(e), to the extent it is permitted by, and does not conflict with, the laws of the country in which the branch or subsidiary is located.

  • Marginal note:Records and reporting

    (2) If compliance with a directive by a branch or a subsidiary is not permitted by or would conflict with the laws of the country in which the branch or subsidiary is located, the entity shall keep and retain, 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.

  • 2010, c. 12, s. 1869;
  • 2014, c. 20, s. 269.

 [Repealed, 2014, c. 20, s. 269]

Marginal note:Inconsistency

 In the event of any inconsistency or conflict between a directive issued under this Part and a regulation made under this Act, the directive prevails to the extent of the inconsistency or conflict.

  • 2010, c. 12, s. 1869.
Marginal note:Statutory Instruments Act

 A directive issued under this Part is not a statutory instrument within the meaning of the Statutory Instruments Act. However, it must be published in the Canada Gazette.

  • 2010, c. 12, s. 1869.
Marginal note:Review
  •  (1) The Minister shall, at least every three years after the issuance of a directive under this Part, review that directive to determine whether it is advisable, in the Minister’s opinion, to amend or revoke it.

  • Marginal note:Relevant circumstance

    (2) In reviewing a directive, the Minister may take into account any circumstance that the Minister considers relevant.

  • 2010, c. 12, s. 1869.

Limitation and Prohibition of Financial Transactions

Marginal note:Regulations — limitation and prohibition
  •  (1) The Governor in Council may, on the recommendation of the Minister, make regulations

    • (a) imposing a limitation or a prohibition on any person or entity referred to in section 5, with respect to entering into, undertaking or facilitating, directly or indirectly, any financial transaction, or any financial transaction within a class of financial transactions, originating from or bound for any foreign state or foreign entity;

    • (b) prescribing terms and conditions with respect to a limitation or prohibition referred to in paragraph (a); and

    • (c) excluding any transaction or any class of transactions from a limitation or prohibition imposed under paragraph (a).

  • Marginal note:Consultation with the Minister of Foreign Affairs

    (2) The Minister shall consult with the Minister of Foreign Affairs before making a recommendation.

  • Marginal note:Relevant circumstances

    (3) The Minister may, before making a recommendation, take into account any circumstance that the Minister considers relevant. However, the Minister may only make a recommendation

    • (a) if

      • (i) an international organization, body, association or coalition or a grouping of states (such as the Financial Action Task Force) of which Canada is a member has called on its members to take measures in relation to a foreign state or foreign entity on the ground that the state’s or entity’s anti-money laundering or anti-terrorist financing measures are ineffective or insufficient, and

      • (ii) there is a risk that money laundering activities or terrorist financing activities may be carried out in that foreign state or by means of that foreign entity; or

    • (b) if the anti-money laundering or anti-terrorist financing measures that a foreign state or a foreign entity has implemented are ineffective or insufficient, the risk of money laundering activities or terrorist financing activities being carried out in that foreign state or by means of that foreign entity is significant and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system.

  • 2010, c. 12, s. 1869.
Marginal note:Review
  •  (1) The Minister shall, at least every three years after the making of a regulation under this Part, review that regulation to determine whether it is advisable, in the Minister’s opinion, that it be amended or repealed.

  • Marginal note:Relevant circumstances

    (2) In reviewing a regulation, the Minister may take into account any circumstance that the Minister considers relevant.

  • 2010, c. 12, s. 1869.
Marginal note:Foreign branches

 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 section 2 of the Insurance Companies Act, shall ensure that its foreign branches comply with any regulation made under subsection 11.49(1) to the extent it is permitted by, and does not conflict with, the laws of the country in which the branch is located.

  • 2010, c. 12, s. 1869;
  • 2014, c. 20, s. 270.
Marginal note:Ministerial permit
  •  (1) The Governor in Council may, by order, authorize the Minister to issue to any person or entity referred to in section 5 a permit to enter into, undertake or facilitate a financial transaction or class of financial transactions, specified by the Minister, that is otherwise limited or prohibited by regulation.

  • Marginal note:Terms and conditions

    (2) A permit may be subject to any terms and conditions that the Minister considers appropriate.

  • Marginal note:Amendment, etc.

    (3) The Minister may amend, suspend, revoke or reinstate a permit.

  • 2010, c. 12, s. 1869.

PART 2Reporting of Currency and Monetary Instruments

Interpretation

Definition of officer

 In this Part, officer has the same meaning as in subsection 2(1) of the Customs Act.

  • 2014, c. 20, s. 271.

Reporting

Marginal note:Currency and monetary instruments
  •  (1) Every person or entity referred to in subsection (3) shall report to an officer, in accordance with the regulations, the importation or exportation of currency or monetary instruments of a value equal to or greater than the prescribed amount.

  • Marginal note:Limitation

    (2) A person or entity is not required to make a report under subsection (1) in respect of an activity if the prescribed conditions are met in respect of the person, entity or activity, and if the person or entity satisfies an officer that those conditions have been met.

  • Marginal note:Who must report

    (3) Currency or monetary instruments shall be reported under subsection (1)

    • (a) in the case of currency or monetary instruments in the actual possession of a person arriving in or departing from Canada, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, by that person or, in prescribed circumstances, by the person in charge of the conveyance;

    • (b) in the case of currency or monetary instruments imported into Canada by courier or as mail, by the exporter of the currency or monetary instruments or, on receiving notice under subsection 14(2), by the importer;

    • (c) in the case of currency or monetary instruments exported from Canada by courier or as mail, by the exporter of the currency or monetary instruments;

    • (d) in the case of currency or monetary instruments, other than those referred to in paragraph (a) or imported or exported as mail, that are on board a conveyance arriving in or departing from Canada, by the person in charge of the conveyance; and

    • (e) in any other case, by the person on whose behalf the currency or monetary instruments are imported or exported.

  • Marginal note:Duty to answer and comply

    (4) Every person arriving in or departing from Canada shall

    • (a) answer truthfully any questions asked by the officer in the performance of the officer’s duties and functions under this Part; and

    • (b) if the person is arriving in or departing from Canada with any currency or monetary instruments in respect of which a report is made, on request of an officer, present the currency or monetary instruments that they are carrying or transporting, unload any conveyance or part of a conveyance or baggage and open or unpack any package or container that the officer wishes to examine.

  • Marginal note:Sending reports to Centre

    (5) The Canada Border Services Agency shall send the reports they receive under subsection (1) to the Centre. It shall also create an electronic version of the information contained in each report, in the format specified by the Centre, and send it to the Centre by the electronic means specified by the Centre.

  • 2000, c. 17, s. 12;
  • 2001, c. 41, s. 54;
  • 2006, c. 12, s. 12(F);
  • 2014, c. 20, s. 272.
 
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