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

Regulations are current to 2016-06-06 and last amended on 2014-01-31. Previous Versions

  •  (1) Every person or entity that is required to keep a client information record under these Regulations in respect of a client shall, at the time that the client information record is created, take reasonable measures to determine whether the client is acting on behalf of a third party.

  • (2) Where the person or entity determines that the client is acting on behalf of a third party, the person or entity shall keep a record that sets out

    • (a) the third party’s name, address and date of birth and the nature of the principal business or occupation of the third party, if the third party is an individual;

    • (b) if the third party is a entity, the third party’s name and address and the nature of the principal business of the third party, and, if the entity is a corporation, the entity’s incorporation number and its place of issue; and

    • (c) the relationship between the third party and the client.

  • (3) Where the person or entity is not able to determine that the client in respect of whom the client information record is kept is acting on behalf of a third party but there are reasonable grounds to suspect that the client is so acting, the person or entity shall keep a record that

    • (a) indicates whether, according to the client, the transaction is being conducted on behalf of a third party; and

    • (b) describes the reasonable grounds to suspect that the client is acting on behalf of a third party.

  • SOR/2007-122, s. 76.

Information on Beneficiaries

[SOR/2007-122, s. 24]

 A trust company that is required to keep a record in respect of an inter vivos trust in accordance with these Regulations shall keep a record that sets out the name and address of each of the beneficiaries that are known at the time that the trust company becomes a trustee for the trust and

  • (a) if the beneficiary is a person, their date of birth and the nature of their principal business or their occupation, as applicable; and

  • (b) if the beneficiary is an entity, the nature of their principal business.

  • SOR/2007-293, s. 8.

Information on Directors or Partners or on Persons Who Own or Control 25 Per Cent or More of a Corporation or Other Entity

  •  (1) Every financial entity or securities dealer that is required to confirm the existence of an entity in accordance with these Regulations when it opens an account in respect of that entity, every life insurance company, life insurance broker or agent or legal counsel or legal firm that is required to confirm the existence of an entity in accordance with these Regulations and every money services business that is required to confirm the existence of an entity in accordance with these Regulations when it enters into an ongoing electronic funds transfer, fund remittance or foreign exchange service agreement with that entity, or a service agreement for the issuance or redemption of money orders, traveller’s cheques or other similar negotiable instruments, shall, at the time the existence of the entity is confirmed, obtain the following information:

    • (a) in the case of a corporation, the names of all directors of the corporation and the names and addresses of all persons who own or control, directly or indirectly, 25 per cent or more of the shares of the corporation;

    • (b) in the case of a trust, the names and addresses of all trustees and all known beneficiaries and settlors of the trust;

    • (c) in the case of an entity other than a corporation or trust, the names and addresses of all persons who own or control, directly or indirectly, 25 per cent or more of the entity; and

    • (d) in all cases, information establishing the ownership, control and structure of the entity.

  • (2) Every person or entity that is subject to subsection (1) shall take reasonable measures to confirm the accuracy of the information obtained under that subsection.

  • (3) The person or entity shall keep a record that sets out the information obtained and the measures taken to confirm the accuracy of that information.

  • (4) If the person or entity is not able to obtain the information referred to in subsection (1) or to confirm that information in accordance with subsection (2), the person or entity shall

    • (a) take reasonable measures to ascertain the identity of the most senior managing officer of the entity; and

    • (b) treat that entity as high risk for the purpose of subsection 9.6(3) of the Act and apply the prescribed special measures in accordance with section 71.1 of these Regulations.

  • (5) If the entity, the existence of which is being confirmed by a person or entity under subsection (1), is a not-for-profit organization, the person or entity shall determine, and keep a record that sets out, whether that entity is

    • (a) a charity registered with the Canada Revenue Agency under the Income Tax Act; or

    • (b) an organization, other than one referred to in paragraph (a), that solicits charitable donations from the public.

  • (6) This section does not apply in respect of a group plan account held within a dividend reinvestment plan or a distribution reinvestment plan, including a plan that permits purchases of additional shares or units by the member with contributions other than the dividends or distributions paid by the sponsor of the plan, if the sponsor of the plan is an entity whose shares or units are traded on a Canadian stock exchange, and that operates in a country that is a member of the Financial Action Task Force.

  • SOR/2007-122, s. 25;
  • SOR/2007-293, s. 9;
  • SOR/2013-15, s. 3.

Reporting of Financial Transactions and Record Keeping

 Financial Entities

  •  (1) Part 1 of the Act applies to financial services cooperatives.

  • (2) Every credit union central is subject to Part 1 of the Act when it offers financial services to a person or entity other than a financial entity that is a member of that credit union central.

  • SOR/2009-265, s. 4.
  •  (1) Subject to section 50 and subsection 52(1), every financial entity shall report the following transactions and information to the Centre:

    • (a) the receipt from a client of an amount in cash of $10,000 or more in the course of a single transaction, together with the information referred to in Schedule 1, unless the cash is received from another financial entity or a public body;

    • (b) the sending out of Canada, at the request of a client, of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the information referred to in Schedule 2 or 5, as the case may be; and

    • (c) the receipt from outside Canada of an electronic funds transfer, sent at the request of a client, of $10,000 or more in the course of a single transaction, together with the information referred to in Schedule 3 or 6, as the case may be.

  • (2) For greater certainty, paragraph (1)(b) does not apply when the financial entity sends an electronic funds transfer to a person or entity in Canada, even if the final recipient is outside Canada.

  • (3) Paragraph (1)(b) applies in respect of a financial entity that orders a person or entity, to which subsection (1), 28(1) or 40(1) applies, to send out of Canada an electronic funds transfer made at the request of a client, unless it provides that person or entity with the name and address of that client.

  • (4) Subject to subsection (5), for greater certainty, paragraph (1)(c) does not apply when the financial entity receives an electronic funds transfer from a person or entity in Canada, even if the initial sender is outside Canada.

  • (5) Paragraph (1)(c) applies in respect of a financial entity that receives an electronic funds transfer for a beneficiary in Canada from a person or entity to which subsection (1), 28(1) or 40(1) applies where the initial sender is outside Canada, unless the electronic funds transfer contains the name and address of that beneficiary.

  • SOR/2002-184, s. 73;
  • SOR/2003-358, s. 5;
  • SOR/2007-122, s. 26.

 Subject to subsection 52(2), every financial entity shall keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transaction, unless the cash is received from another financial entity or a public body.

 Subject to subsection 62(2), every financial entity shall keep the following records in respect of a transaction or the opening of an account other than a credit card account:

  • (a) where it opens an account, a signature card in respect of each account holder for that account;

  • (b) where it opens an account 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 the account;

  • (c) where it opens an account in the name of a client that is a person or an entity other than a corporation, a record of the name and address of the client and

    • (i) if the client is a person, their date of birth and the nature of their principal business or their occupation, as applicable, and

    • (ii) if the client is an entity other than a corporation, the nature of their principal business;

  • (c.1) in respect of every account that it opens, a record that sets out the intended use of the account;

  • (d) every account operating agreement that it creates in the normal course of business;

  • (e) a deposit slip in respect of every deposit that is made to an account;

  • (f) every debit and credit memo that it creates or receives in the normal course of business in respect of an account, except debit memos that relate to another account at the same branch of the financial entity that created the debit memo;

  • (g) a copy of every account statement that it sends to a client, if the information in the statement is not readily obtainable from other records that are kept and retained by it under these Regulations;

  • (h) every cleared cheque that is drawn on, and a copy of every cleared cheque that is deposited to, an account, unless

    • (i) the account on which the cheque is drawn and the account to which the cheque is deposited are at the same branch of the financial entity, or

    • (ii) the following conditions are met, namely,

      • (A) an image of the cheque has been recorded on microfilm or on an electronic medium,

      • (B) an image of the cheque can be readily reproduced from the microfilm or electronic medium,

      • (C) it is possible to readily ascertain where the image of any particular cheque is recorded, and

      • (D) the microfilm or electronic medium is retained for a period of at least five years;

  • (i) every client credit file that it creates in the normal course of business;

  • (j) a transaction ticket in respect of every foreign currency exchange transaction;

  • (k) where it receives an amount of $3,000 or more from a person or from an entity other than a financial entity in consideration of the issuance of traveller’s cheques, money orders or similar negotiable instruments, a record of the amount received, the date it was received, the name and address of the person who in fact gave the amount and whether the amount received was in cash, cheques, traveller’s cheques, money orders or other similar negotiable instruments;

  • (l) where, in a single transaction, it redeems one money order of $3,000 or more, or two or more money orders that, taken together, add up to a total of $3,000 or more, a record of the total amount of the money order or orders, the date on which the money order or orders were redeemed, the name and address of the person who made the request for the money order or orders to be redeemed and the name of the issuer of each money order;

  • (m) where, at the request of a client, it sends an electronic funds transfer, as prescribed by subsection 66.1(2), in an amount of $1,000 or more, a record of

    • (i) if the client is a person, their name, address, date of birth and telephone number and the nature of their principal business or their occupation, as applicable,

    • (ii) if the client is an entity, the name, address, date of birth and telephone number of the person initiating the transaction on behalf of the entity and the nature of that person’s principal business or their occupation, as applicable,

    • (iii) the relevant account number, if any, and the reference number, if any, of the transaction and the date of the transaction,

    • (iv) the name or account number of the person or entity to whom the electronic funds transfer is sent, and

    • (v) the amount and currency of the transaction;

  • (n) where it has obtained approval under paragraph 67.1(b) to keep the account of a person that has been determined to be a politically exposed foreign person open, a record of

    • (i) the office or position in respect of which the person was determined to be a politically exposed foreign person,

    • (ii) the source, if known, of the funds that are or are expected to be deposited in the account,

    • (iii) the date of the determination that the person was a politically exposed foreign person,

    • (iv) the name of the member of senior management who gave the approval to keep the account open, and

    • (v) the date of that approval; and

  • (o) where a transaction has been reviewed under subsection 67.2(2), a record of

    • (i) the office or position in respect of which the person initiating the transaction or the beneficiary of the transaction was determined to be a politically exposed foreign person,

    • (ii) the source, if known, of the funds that have been used for the transaction,

    • (iii) the date of the determination that the person referred to in subparagraph (i) was a politically exposed foreign person,

    • (iv) the name of the member of senior management who reviewed the transaction, and

    • (v) the date of that review.

  • SOR/2007-122, s. 27;
  • SOR/2007-293, s. 10;
  • SOR/2008-21, s. 5.
 
Date modified: