Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (SOR/2002-184)

Regulations are current to 2014-12-08 and last amended on 2014-01-31. Previous Versions

Departments and Agents of Her Majesty in Right of Canada or of a Province

Acceptance of Deposit Liabilities

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

Sale or Redemption of Money Orders

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

 Subject to subsection 52(1), every department and agent of Her Majesty in right of Canada or of a province that, while engaging in an activity referred to in section 46, receives from a client an amount in cash of $10,000 or more in the course of a single transaction shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or a public body.

 Subject to subsection 52(2), every department and agent of Her Majesty in right of Canada or of a province, while engaging in an activity referred to in section 46, shall keep a large cash transaction record in respect of every amount in cash of $10,000 or more that it receives from a client in the course of a single transaction, unless the amount is received from a financial entity or a public body.

 Subject to subsection 62(2), every department and agent of Her Majesty in right of Canada or of a province that engages in an activity referred to in section 46 shall keep the following records in respect of that activity:

  • (a) every client information record that is created for the purpose of an ongoing business relationship between the department or agent and a client;

  • (b) where the client information record is in respect of a corporation, a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation in respect of transactions with the department or agent;

  • (c) where the department or agent receives $3,000 or more in consideration of the issuance of money orders or other similar negotiable instruments, a record of the date, the amount received, the name, address and date of birth of the person who in fact gives the amount and whether the amount is in cash, cheques, traveller’s cheques, money orders or other similar negotiable instruments; and

  • (d) where money orders of $3,000 or more are cashed, a record of the name, address and date of birth of the person cashing the money orders and the name of the issuer of the money orders.

  • SOR/2007-122, s. 76;
  • SOR/2007-293, s. 19.

Exceptions

  •  (1) A financial entity is not required to report transactions under paragraph 12(1)(a) in respect of a business of a client, if the following conditions are met:

    • (a) subject to subsection (2), the client is a corporation that carries on that business as an establishment described in sector 22, 44 (excluding codes 4411, 4412 and 44831) or 45 (excluding code 45392), or code 481, 482, 485 (excluding code 4853), 51322, 51331, 61121 or 61131 of the North American Industry Classification System as that sector or code read on January 31, 2003;

    • (b) the client has had

      • (i) for the entire preceding 24-month period, an account in respect of that business with that financial entity, or

      • (ii) an account in respect of that business with a financial entity other than the one referred to in subparagraph (i), for a continuous period of 24 months ending immediately before the client opened an account with that financial entity;

    • (c) the financial entity has records that indicate that the client has deposited $10,000 or more in cash into that account on an average of at least twice in every week for the preceding 12 months;

    • (d) the cash deposits made by the client are consistent with its usual practice in respect of the business;

    • (e) the financial entity has taken reasonable measures to determine the source of the cash for those deposits; and

    • (f) subject to subsection 52(1), the financial entity has provided to the Centre the information set out in Schedule 4.

  • (2) Paragraph (1)(a) does not apply to a corporation that carries on a business related to pawnbroking or a corporation whose principal business is the sale of vehicles, vessels, farm machinery, aircraft, mobile homes, jewellery, precious gems or metals, antiquities or art.

  • (3) A financial entity that, in accordance with subsection (1), chooses not to report transactions of more than $10,000 shall report to the Centre any change in the following information, within 15 days after the change is made:

    • (a) the name and address of the client;

    • (b) the nature of the client’s business; and

    • (c) the client’s incorporation number.

  • (4) A financial entity that, in accordance with subsection (1), chooses not to report transactions of more than $10,000 shall, at least once every 12 months,

    • (a) verify that the conditions referred to in subsection (1) are still met in respect of each client; and

    • (b) send a report to the Centre setting out the name and address of each client, together with the name of a senior officer of the financial entity who has confirmed that the conditions referred to in subsection (1) are still being met in respect of each client.

  • SOR/2003-358, s. 10.