Version of document from 2008-12-30 to 2009-02-19:

Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations

SOR/2001-317

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT

Registration 2001-08-28

Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations

P.C. 2001-1500  2001-08-28

Whereas, pursuant to subsection 73(2) of the Proceeds of Crime (Money Laundering) ActFootnote a, a copy of the proposed Proceeds of Crime (Money Laundering) Suspicious Transaction Reporting Regulations was published, substantially in the form set out in the annexed Regulations, as part of the Proceeds of Crime (Money Laundering) Regulations, 2000 in the Canada Gazette, Part I, on February 17, 2001 and a reasonable opportunity was thereby given to interested persons to make representations to the Minister of Finance with respect to the proposed Regulations;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 73 of the Proceeds of Crime (Money Laundering) ActFootnote a, hereby makes the annexed Proceeds of Crime (Money Laundering) Suspicious Transaction Reporting Regulations.

INTERPRETATION

  •  (1) For the purposes of the Act and in these Regulations, “casino” means a person or entity that is licensed, registered, permitted or otherwise authorized to do business under any of paragraphs 207(1)(a) to (g) of the Criminal Code and that conducts its business activities in a permanent establishment

    • (a) that the person or entity holds out to be a casino and in which roulette or card games are carried on; or

    • (b) where there is a slot machine, which, for the purposes of this definition, does not include a video lottery terminal.

    It does not include a person or entity that is a registered charity as defined in subsection 248(1) of the Income Tax Act and is licensed, registered, permitted or otherwise authorized to carry on business temporarily for charitable purposes, if the business is carried out in the establishment of the casino for not more than two consecutive days at a time under the supervision of the casino.

  • (2) The definitions in this subsection apply in these Regulations.

    “accountant”

    “accountant” means a chartered accountant, a certified general accountant or a certified management accountant. (comptable)

    “accounting firm”

    “accounting firm” means an entity that is engaged in the business of providing accounting services to the public and has at least one partner, employee or administrator that is an accountant. (cabinet d’expertise comptable)

    “Act”

    “Act” means the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. (Loi)

    “British Columbia notary corporation”

    “British Columbia notary corporation” means an entity that carries on the business of providing notary services to the public in the province of British Columbia in accordance with the Notaries Act, R.S.B.C. 1996, c. 334. (société de notaires de la Colombie-Britannique)

    “British Columbia notary public”

    “British Columbia notary public” means a person who is a member of the Society of Notaries Public of British Columbia. (notaire public de la Colombie-Britannique)

    “cash”

    “cash” means coins referred to in section 7 of the Currency Act, notes issued by the Bank of Canada pursuant to the Bank of Canada Act that are intended for circulation in Canada and coins or bank notes of countries other than Canada. (espèces)

    “cash”

    “cash” or “currency” [Repealed, SOR/2002-185, s. 2]

    “CICA Handbook”

    “CICA Handbook” means the handbook prepared and published by the Canadian Institute of Chartered Accountants, as amended from time to time. (Manuel de l’ICCA)

    “dealer in precious metals and stones”

    “dealer in precious metals and stones” means a person or an entity that, in the course of its business activities, buys or sells precious metals, precious stones or jewellery. It includes a department or agent of Her Majesty in right of Canada or of a province when the department or agent is carrying out the activity, referred to in section 5, of selling precious metals to the public. (négociant en métaux précieux et pierres précieuses)

    “electronic funds transfer”

    “electronic funds transfer” means the transmission — through any electronic, magnetic or optical device, telephone instrument or computer — of instructions for the transfer of funds, other than the transfer of funds within Canada. In the case of SWIFT messages, only SWIFT MT 103 messages are included. (télévirement)

    “financial entity”

    “financial entity” means an authorized foreign bank as defined in section 2 of the Bank Act in respect of its business in Canada or a bank to which that Act applies, a cooperative credit society, savings and credit union or caisse populaire that is regulated by a provincial Act, an association that is regulated by the Cooperative Credit Associations Act, a company to which the Trust and Loan Companies Act applies and a trust company or loan company regulated by a provincial Act. It includes a department or agent of Her Majesty in right of Canada or of a province when the department or agent is carrying out an activity referred to in paragraph 8(a). (entité financière)

    “funds”

    “funds” means cash, currency or securities, or negotiable instruments or other financial instruments, in any form, that indicate a person’s or an entity’s title or interest in them. (fonds)

    “jewellery”

    “jewellery” means objects that are made of gold, silver, palladium, platinum, pearls or precious stones and that are intended to be worn as a personal adornment. (bijou)

    “legal firm”

    “legal firm” [Repealed, SOR/2003-102, s. 1]

    “life insurance broker or agent”

    “life insurance broker or agent” means a person or entity that is registered or licensed under provincial legislation to carry on the business of arranging contracts of life insurance. (représentant d’assurance-vie)

    “listed person”

    “listed person” has the same meaning as in section 1 of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism. (personne inscrite)

    “money services business”

    “money services business” means a person or entity referred to in paragraph 5(h) of the Act. (entreprise de transfert de fonds ou de vente de titres négociables)

    “precious metal”

    “precious metal” means gold, silver, palladium or platinum in the form of coins, bars, ingots or granules or in any other similar form. (métal précieux)

    “precious stones”

    “precious stones” means diamonds, sapphires, emeralds, tanzanite, rubies or alexandrite. (pierre précieuse)

    “real estate broker or sales representative”

    “real estate broker or sales representative” means a person or entity that is registered or licensed under provincial legislation in respect of the sale or purchase of real estate. (courtier ou agent immobilier)

    “SWIFT”

    “SWIFT” means the Society for Worldwide Interbank Financial Telecommunication. (SWIFT)

    “trust company”

    “trust company” means a company to which the Trust and Loan Companies Act applies or a trust company regulated by a provincial Act. (société de fiducie)

  • SOR/2002-185, s. 2;
  • SOR/2003-102, s. 1;
  • SOR/2003-358, s. 1;
  • SOR/2007-122, s. 1;
  • SOR/2007-293, s. 1.

 For the purposes of paragraph 5(i) of the Act, any business, temporarily conducted for charitable purposes in the establishment of a casino by a registered charity carried on for not more than two consecutive days at a time under the supervision of the casino, is considered to be an activity conducted by the supervising casino.

  • SOR/2003-358, s. 2.

 The prescribed precious metals for the purpose of paragraph 5(l) of the Act are precious metals as defined in subsection 1(2).

  • SOR/2007-293, s. 2.

 For the purposes of these Regulations, a person acting on behalf of their employer is considered to be acting on behalf of a third party except when the person is depositing cash into the employer’s business account.

  • SOR/2002-185, s. 3;
  • SOR/2007-122, s. 2.

APPLICATION OF PART 1 OF THE ACT

 Part 1 of the Act applies to life insurance brokers or agents.

  • SOR/2002-185, s. 3.
  •  (1) Subject to subsection (2), every British Columbia notary public and every British Columbia notary corporation is subject to Part 1 of the Act when they engage in any of the following activities on behalf of any person or entity, including the giving of instructions on behalf of any person or entity in respect of those activities:

    • (a) receiving or paying funds, other than those received or paid in respect of professional fees, disbursements, expenses or bail;

    • (b) purchasing or selling securities, real estate or business assets or entities; or

    • (c) transferring funds or securities by any means.

  • (2) Subsection (1) does not apply in respect of a British Columbia notary public when they engage in any of the activities referred to in that subsection on behalf of their employer.

  • SOR/2007-293, s. 3.

 Every dealer in precious metals and stones that engages in the purchase or sale of precious metals, precious stones or jewellery in an amount of $10,000 or more in a single transaction, other than such a purchase or sale that is carried out in the course of, in connection with or for the purpose of manufacturing jewellery, extracting precious metals or precious stones from a mine or polishing or cutting precious stones, is subject to Part 1 of the Act.

  • SOR/2007-293, s. 3.
  •  (1) Subject to subsections (2) and (3), every accountant and every accounting firm is subject to Part 1 of the Act when they

    • (a) engage in any of the following activities on behalf of any person or entity, namely,

      • (i) receiving or paying funds,

      • (ii) purchasing or selling securities, real property or business assets or entities, or

      • (iii) transferring funds or securities by any means; or

    • (b) give instructions on behalf of any person or entity in respect of any activity referred to in paragraph (a).

    • (c[Repealed, SOR/2007-122, s. 4]

  • (2) Subsection (1) does not apply in respect of an accountant when they engage in any of the activities referred to in paragraph (1)(a) or (b) on behalf of their employer.

  • (3) For greater certainty, subsection (1) does not apply in respect of audit, review or compilation engagements carried out in accordance with the recommendations set out in the CICA Handbook.

  • SOR/2002-185, s. 3;
  • SOR/2007-122, s. 4.

 Every real estate broker or sales representative is subject to Part 1 of the Act when they act as an agent in respect of the purchase or sale of real estate.

  • SOR/2007-122, s. 5.

 Every department and agent of Her Majesty in right of Canada or of a province is subject to Part 1 of the Act when, in the course of providing financial services to the public, it

  • (a) accepts deposit liabilities; or

  • (b) sells or redeems money orders.

  • SOR/2002-185, s. 4.
  •  (1) Subject to section 11, a report under section 7 of the Act concerning a financial transaction or an attempted financial transaction in respect of which there are reasonable grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence or a terrorist activity financing offence shall contain the information set out in Schedule 1.

  • (2) The report shall be sent to the Centre within 30 days after the person or entity or any of its employees or officers first detects a fact respecting a financial transaction or an attempted financial transaction that constitutes reasonable grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence or a terrorist activity financing offence.

  • SOR/2002-185, s. 4;
  • SOR/2007-122, s. 6.

REPORT MADE 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

[SOR/2007-122, s. 7]

 Subject to section 11, a report made under section 7.1 of the Act shall be sent without delay to the Centre and shall contain the information set out in Schedule 2.

  • SOR/2002-185, s. 4.

EXEMPTION

  •  (1) Where a transaction is required to be reported under section 7 or 7.1 of the Act, the requirement to report information set out in Schedule 1 or 2 does not apply to a person or entity in respect of information set out in an item of that Schedule that is not marked with an asterisk if, after taking reasonable measures to do so, the person or entity is unable to obtain the information.

  • (2) Despite subsection (1), in the case of an attempted transaction, the requirement to report information set out in Schedule 1 does not apply to a person or entity in respect of information set out in an item of that Schedule that is marked with an asterisk if, after taking reasonable measures to do so, the person or entity is unable to obtain the information.

  • SOR/2002-185, s. 4;
  • SOR/2007-122, s. 8.

SENDING

  •  (1) The report referred to in section 9 shall be sent electronically in accordance with guidelines for report submissions that are prepared by the Centre if the sender has the technical capabilities to do so.

  • (2) The report referred to in section 9 shall be sent in paper format in accordance with guidelines for report submissions that are prepared by the Centre if the sender does not have the technical capabilities to send the report electronically.

  • (3) The report referred to in section 10 shall be sent in paper format in accordance with guidelines for report submissions that are prepared by the Centre.

  • SOR/2002-185, s. 4.

SUSPICIOUS TRANSACTION OR ATTEMPTED TRANSACTION REPORT

 Every person or entity who submits to the Centre a Suspicious Transaction or Attempted Transaction Report set out in Schedule 1 shall keep a copy of the report.

  • SOR/2007-122, s. 9.

 The copy referred to in section 12.1 may be kept in a machine-readable form or in an electronic form, if a paper copy can be readily produced from it.

  • SOR/2007-293, s. 4.
  •  (1) Subject to subsection (2), every person or entity that is required by section 12.1 to keep a copy of the report referred to in that section shall retain that copy for a period of at least five years following the day on which the report was made.

  • (2) Where the copy that is required by section 12.1 to be kept by a person is the property of their employer or a person or entity with which they are in a contractual relationship, they are not required to retain the copy after their employment or that contractual relationship ends.

  • SOR/2007-293, s. 4.

PRESCRIBED INFORMATION

 The prescribed information for the purposes of paragraphs 55(7)(f), 55.1(3)(f) and 56.1(5)(f) of the Act is

  • (a) the following information concerning the client, importer or exporter, or any person acting on their behalf, namely,

    • (i) their alias, if any,

    • (ii) their date of birth,

    • (iii) their address and electronic mail address,

    • (iii.1) their telephone number,

    • (iv) their citizenship,

    • (v) their Record of Landing number, passport number or permanent resident card number, or all three numbers if applicable,

    • (vi) if the client, importer or exporter is a corporation, the date and jurisdiction of its incorporation and its incorporation number,

    • (vii) the name and address of any person or entity on whose behalf the financial transaction or attempted financial transaction is conducted or on whose behalf the importation or exportation is carried out,

    • (viii) the telephone number of the place of business where the financial transaction or attempted financial transaction occurred; and

    • (ix) if the client, importer or exporter is an entity, the entity’s type of business;

  • (b) in the case of a financial transaction or an attempted financial transaction, the following information, namely,

    • (i) the transit and account numbers,

    • (ii) the full name of every account holder,

    • (iii) the transaction number, if any,

    • (iv) the time of the transaction,

    • (v) the type of transaction,

    • (vi) the names of the parties to the transaction,

    • (vii) the type of account,

    • (viii) the name and address of all persons authorized to act in respect of the account, if any, and

    • (ix) the type of report, as listed in paragraph 54(a) of the Act, from which the information disclosed is compiled; and

  • (c) in the case of an importation or exportation of currency or monetary instruments, the country from which they are being imported or the country to which they are being exported.

  • SOR/2002-185, s. 4;
  • SOR/2003-358, s. 3;
  • SOR/2007-122, s. 10;
  • SOR/2008-195, s. 1.

SCHEDULE 1(Subsection 9(1) and sections 11 and 12.1)SUSPICIOUS TRANSACTION OR ATTEMPTED TRANSACTION REPORT

PART A — Information on Place of Business where Transaction or Attempted Transaction Occurred
  • 1.* 
    Type of reporting person or entity, as described in paragraphs 5(a) to (h) and (k) to (m) of the Act, and, if reporting person or entity is referred to in paragraph (5)(i) or (j) of the Act, type of business, profession or activity of reporting person or entity, as described in sections 3 to 8 of these Regulations
  • 2.* 
    Identification number of place of business where transaction or attempted transaction occurred (e.g., institution’s identification number, licence number or registration number), if applicable
  • 3.* 
    Full name of reporting person or entity
  • 4.* 
    Full address of place of business where transaction or attempted transaction occurred
  • 5.* 
    Name and telephone number of contact person
PART B — Information on Transaction or Attempted Transaction
  • 1.* 
    Date of transaction or attempted transaction or night deposit indicator
  • 2. 
    Time of transaction or attempted transaction
  • 3. 
    Posting date (if different from above)
  • 4.* 
    Purpose and details of the transaction or attempted transaction, including type of funds, amount of transaction or attempted transaction, currency of transaction or attempted transaction, and, if applicable, name and number of each other institution and name and account number of each other person or entity
  • 5.* 
    Disposition of funds, amount of disposition, currency of disposition, and, if applicable, name and number of each other institution and name, account number and policy number of each other person or entity
  • 6.* 
    Method by which the transaction was conducted or attempted (in branch or office, ABM, armoured car, mail deposit, courier, telephone or other)
  • 7. 
    Identification number of person who first detected a fact respecting a suspicious transaction or attempted transaction
  • 8.* 
    Whether the transaction has been completed or not
  • 9.* 
    If transaction not completed, the reason why it was not completed
PART C — Account Information (if applicable)
  • 1.* 
    Account number
  • 2.* 
    Branch number or transit number
  • 3.* 
    Type of account (personal, business, trust or other)
  • 4.* 
    Full name of each account holder
  • 5.* 
    Type of currency of the account
  • 6. 
    Date account opened
  • 7. 
    Date account closed, if applicable
  • 8.* 
    Status of account (active, inactive or dormant)
PART D — Information on Person Conducting or Attempting to Conduct Transaction
  • 1. 
    Person’s full name
  • 2.* 
    Client number provided by reporting person or entity, if applicable
  • 3. 
    Person’s full address
  • 4. 
    Person’s country of residence
  • 5. 
    Person’s personal telephone number
  • 6. 
    Person’s citizenship
  • 7. 
    Person’s type of identifier (e.g., driver’s licence, birth certificate, provincial health insurance card — if such use of the card is not prohibited by the applicable provincial law —, passport, Record of Landing or permanent resident card) and identifier number
  • 8. 
    Place of issue of person’s identifier (province or state, country)
  • 9. 
    Person’s date of birth
  • 10. 
    Person’s occupation
  • 11. 
    Person’s business telephone number
  • 12. 
    Person’s employer
  • 13. 
    Employer’s full business address
  • 14. 
    Employer’s business telephone number
PART E — Information on Entity on Whose Behalf Transaction is Conducted or Attempted (if applicable)
  • 1. 
    Entity’s full name
  • 2. 
    Full name of each person — up to three — who is authorized to bind the entity or act with respect to the account
  • 3. 
    Entity’s type of business
  • 4. 
    Entity’s full address
  • 5. 
    Entity’s telephone number
  • 6. 
    Entity’s incorporation number and place of issue, if applicable
PART F — Information on Person on Whose Behalf Transaction is Conducted or Attempted (if applicable)
  • 1. 
    Person’s full name
  • 2. 
    Person’s full address
  • 3. 
    Person’s personal telephone number
  • 4. 
    Person’s business telephone number
  • 5. 
    Person’s citizenship
  • 6. 
    Person’s type of identifier (e.g., driver’s licence, birth certificate, provincial health insurance card — if such use of the card is not prohibited by the applicable provincial law —, passport, Record of Landing or permanent resident card) and identifier number
  • 7. 
    Place of issue of person’s identifier (province or state, country)
  • 8. 
    Person’s date of birth
  • 9. 
    Person’s country of residence
  • 10. 
    Person’s occupation
  • 11. 
    Person’s employer
  • 12. 
    Employer’s full business address
  • 13. 
    Employer’s business telephone number
  • 14. 
    Relationship of person conducting the transaction or attempted transaction to the person on whose behalf the transaction or attempted transaction is conducted
PART G — Description of Suspicious Activity
  • 1.* 
    Detailed description of the grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence or terrorist activity financing offence
PART H — Action Taken (if applicable)
  • 1.* 
    Any other action taken as a result of suspicion
  •  SOR/2002-185, s. 5;
  • SOR/2007-122, ss. 11, 12, 13(F), 14 to 16, 18(F).

SCHEDULE 2(Sections 10 and 11)TERRORIST GROUP OR LISTED PERSON PROPERTY REPORT

PART A — Information on the Person or Entity Filing this Report
  • 1.* 
    Type of reporting person or entity
  • 2.* 
    Reporting person or entity’s identifier number (if applicable)
  • 3.* 
    Full name of reporting person or entity
  • 4.* 
    Full address of reporting person or entity
  • 5.* 
    Name and telephone number of contact person
PART B — Reason for Filing this Report
  • 1.* 
    Reason for filing the report
  • 2. 
    How the reporting person or entity came to know that the property in question is owned or controlled by or on behalf of a terrorist group or listed person
  • 3. 
    Full name of terrorist group or listed person that owns or controls the property or that the property is owned or controlled on behalf of
  • 4. 
    Full address of terrorist group or listed person referred to in item 3
  • 5. 
    Phone number of terrorist group or listed person referred to in item 3
  • 6. 
    Full name of person or entity that owns or controls the property on behalf of the terrorist group or listed person (if applicable)
  • 7. 
    Full address of person or entity referred to in item 6
  • 8. 
    Phone number of person or entity referred to in item 6
PART C — Information on the property
  • 1.* 
    Type of property
  • 2. 
    Type of property identifier
  • 3. 
    Property identifier number
  • 4.* 
    Approximate or actual value of property
  • 5. 
    Description of property
PART D — Account Information (if applicable)
  • 1.* 
    Account number
  • 2.* 
    Branch or transit number
  • 3.* 
    Type of account (personal, business, trust or other)
  • 4.* 
    Type of currency of the account
  • 5.* 
    Full name of each account holder
  • 6. 
    Date account opened
  • 7. 
    Date account closed, if applicable
  • 8.* 
    Status of account (active, inactive or dormant)
PART E — Information on the Transaction or Proposed Transaction (if applicable)
  • 1.* 
    Date of transaction or night deposit indicator
  • 2. 
    Time of transaction
  • 3. 
    Posting date (if different from above)
  • 4.* 
    Purpose and details of the transaction, including type of funds or assets involved, amount of transaction, currency of transaction, and, if applicable, name and number of each other institution and name and account number of each other person or entity
  • 5.* 
    Disposition of funds, amount of disposition, currency of disposition, and, if applicable, name and number of each other institution and name, account number and policy number of each other person or entity
  • 6.* 
    Method by which the transaction is conducted or proposed to be conducted (in branch or office, ABM, armoured car, mail deposit, courier, telephone or other)
  • 7. 
    Identification number of person who first detected a transaction with respect to property owned or controlled by or on behalf of a terrorist group or listed person
PART F — Information on Person Conducting or Proposing to Conduct the Transaction (if applicable)
  • 1. 
    Person’s full name
  • 2. 
    Person’s alias, if any
  • 3. 
    Client number provided by reporting person or entity, if applicable
  • 4. 
    Person’s full address
  • 5. 
    Person’s country of residence
  • 6. 
    Person’s citizenship
  • 7. 
    Person’s personal telephone number
  • 8. 
    Person’s type of identifier (e.g., driver’s licence, birth certificate, provincial health insurance card — if such use of the card is not prohibited by the applicable provincial law —, passport, Record of Landing or permanent resident card) and identifier number
  • 9. 
    Place of issue of person’s identifier (province or state, country)
  • 10. 
    Person’s date of birth
  • 11. 
    Person’s occupation
  • 12. 
    Person’s business telephone number
  • 13. 
    Person’s employer
  • 14. 
    Employer’s full business address
  • 15. 
    Employer’s business phone number
PART G — Information on Entity on whose Behalf the Transaction is Conducted or Proposed to be Conducted (if applicable)
  • 1. 
    Full name of entity
  • 2. 
    Full name of each person — up to three — who is authorized to bind the entity or act with respect to the account
  • 3. 
    Full address of entity
  • 4. 
    Telephone number of entity
  • 5. 
    Incorporation number and place of issue, if applicable
  • 6. 
    Entity’s type of business
PART H — Information on Person on whose Behalf Transaction is Conducted or Proposed to be Conducted (if applicable)
  • 1. 
    Person’s full name
  • 2. 
    Person’s alias, if any
  • 3. 
    Person’s full address
  • 4. 
    Person’s personal telephone number
  • 5. 
    Person’s business telephone number
  • 6. 
    Person’s type of identifier (e.g., driver’s licence, birth certificate, provincial health insurance card — if such use of the card is not prohibited by the applicable provincial law —, passport, Record of Landing or permanent resident card) and identifier number
  • 7. 
    Place of issue of person’s identifier (province or state, country)
  • 8. 
    Person’s date of birth
  • 9. 
    Person’s country of residence
  • 10. 
    Person’s citizenship
  • 11. 
    Person’s occupation
  • 12. 
    Person’s employer
  • 13. 
    Employer’s full business address
  • 14. 
    Employer’s business telephone number
  • 15. 
    Relationship of person conducting or proposing to conduct the transaction to the person on whose behalf the transaction is conducted
  •  SOR/2002-185, s. 5;
  • SOR/2007-122, s. 17.