Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations

SOR/2007-292

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT

Registration 2007-12-13

Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations

P.C. 2007-1921 2007-12-13

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 73.1(1)Footnote a of the Proceeds of Crime (Money Laundering) and Terrorist Financing ActFootnote b, hereby makes the annexed Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.

Interpretation

 In these Regulations, Act means the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

 The short-form descriptions that are set out in column 2 of Part 1 of the schedule, and column 3 of Parts 2, 3 and 4 of the schedule, form no part of these Regulations and are inserted for convenience of reference only.

  • SOR/2008-194, s. 1.

Violations

 The contravention of any of the following provisions is a violation that may be proceeded with under sections 73.11 to 73.5 of the Act:

  • SOR/2008-194, s. 2.

Classification

  •  (1) Each violation is classified as a minor, serious or very serious violation, as set out in column 3 of Part 1 of the schedule and column 4 of Parts 2 to 4 of the schedule.

  • (2) A series of minor violations identified on a notice of violation shall be considered to be a serious violation for the purpose of section 73.21 of the Act if the total of the penalties for the violations set out in the notice is equal to or greater than $10,000.

  • SOR/2008-194, s. 3.

Penalties

 Subject to subsection 73.1(2) of the Act, the range of penalties in respect of a violation is

  • (a) $1 to $1,000 in the case of a minor violation;

  • (b) $1 to $100,000 in the case of a serious violation; and

  • (c) $1 to $500,000 in the case of a very serious violation.

Additional Criteria

 For the purposes of section 73.11 of the Act, the history of compliance by the person or entity with the Act, other than Part 2 of the Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations are prescribed as criteria that are to be taken into account in determining the amount of a penalty.

  • SOR/2008-194, s. 4.

Service of Documents

  •  (1) Service of any document under Part 4.1 of the Act may be made

    • (a) in the case of a person, by

      • (i) personally serving the document on the person,

      • (ii) leaving the document with someone who appears to be an adult member of the same household at the last known address or usual place of residence of the person, or

      • (iii) sending the document by registered mail, courier, fax or other electronic means to the person’s last known address or usual place of residence; and

    • (b) in the case of an entity, by

      • (i) leaving the document at the entity’s head office or place of business, with an officer or other person who appears to be in control or management of the head office or place of business,

      • (ii) sending the document by registered mail, courier or fax to the head office or place of business of the entity, or

      • (iii) sending the document by electronic means other than by fax to any person referred to in subparagraph (i).

  • (2) If a document is sent by fax or other electronic means, a copy of it shall also be sent by registered mail to the person’s last known address or usual place of residence, or, in the case of an entity, to the entity’s head office or place of business.

 In the absence of proof to the contrary, a document — other than a document that is personally served — is deemed to be served

  • (a) in the case of a document that is left with an adult referred to in subparagraph 7(1)(a)(ii), on the day the document is left with the adult;

  • (b) in the case of a document that is sent by registered mail or courier, on the tenth day after the date indicated in the receipt issued by the postal or courier service; and

  • (c) in the case of a document sent by fax or other electronic means, on the day of transmission.

Interest Rate Determination

  •  (1) For the purposes of section 73.28 of the Act, the prescribed rate of interest at any time in a particular quarter is the total of:

    • (a) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter; and

    • (b) four per cent.

  • (2) The interest referred to in subsection (1) is calculated and compounded monthly.

  • (3) For the purposes of subsection (1) quarter means a period of three consecutive months ending on March 31, June 30, September 30 or December 31.

Coming into Force

 These Regulations come into force on December 30, 2008.

SCHEDULE(Sections 2, 3 and 4)

PART 1

Proceeds of Crime (Money Laundering) and Terrorist Financing Act

ItemColumn 1Column 2Column 3
Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing ActShort-form DescriptionClassification of Violation
19.4(2)Having a correspondent banking relationship with a shell bankserious
29.7(1)Failure to develop policies that establish requirements similar to those of sections 6, 6.1 and 9.6 of the Act and to ensure that foreign branches and foreign subsidiaries apply those policiesserious
39.7(2)Applying policies that establish requirements similar to those of sections 6, 6.1 and 9.6 of the Act before they are approved by a board of directorsserious
49.7(4)Failure to keep and retain a record of the fact that a foreign branch or foreign subsidiary cannot apply a policy and of the reasons why it cannot do so or to notify the Centre and the principal supervisory or regulating agency or body within a reasonable timeminor
4.19.8(1)Failure of an entity to develop and apply policies and procedures related to the exchange of information between it and affiliated entitiesserious
511.1Failure to be registered with the Centreserious
5.111.43Failure to comply with a ministerial directivevery serious
5.211.44(1)Failure to ensure that a foreign branch or foreign subsidiary complies with a ministerial directivevery serious
5.311.44(2)Failure to keep and retain a record of the fact that a foreign branch or foreign subsidiary cannot comply with a ministerial directive and of the reasons why it cannot do so or to notify the Centre and the principal supervisory or regulating agency or body within a reasonable timeserious
662(2)Failure to give reasonable assistance and information reasonably required to an authorized personserious
763.1(2)Failure to provide, in accordance with a notice, documents or other information reasonably required by an authorized personserious

PART 2

Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

ItemColumn 1Column 2Column 3Column 4
Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing ActProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing RegulationsShort-form DescriptionClassification of Violation
19(1)2Failure to convert foreign currency transactions into Canadian dollars using the prescribed rateminor
29(1)4(1)Failure to send a report electronically, if the sender has the technical capabilities, in accordance with the guidelines prepared by the Centreminor
39(1)4(2)Failure to send a report in paper format, if the sender does not have the technical capabilities to send electronically, in accordance with guidelines prepared by the Centreminor
49(1)5(1)Failure to report an electronic funds transfer no later than five working days after the transferminor
59(1)5(2)Failure to report a large casino disbursement or a transaction for which a large transaction record must be kept within 15 days after the disbursement or transactionminor
668(1)Failure to take reasonable measures to determine if an individual giving cash is acting on behalf of a third partyminor
768(2)Failure to keep a record of prescribed information respecting third partiesminor
868(3)Failure to keep a record of prescribed information respecting suspected third partiesminor
969(1)Failure to take reasonable measures when opening an account to determine if the account is to be used by or on behalf of a third partyminor
1069(2)Failure to keep a record of prescribed information respecting third partiesminor
1169(3)Failure to keep a record of prescribed information in respect of suspected third partiesminor
12610(1)Failure to take reasonable measures when client information record is created to determine whether the client is acting on behalf of a third party.minor
13610(2)Failure to keep a record of prescribed information when it is determined that the client is acting on behalf of a third partyminor
14610(3)Failure to keep a record of prescribed information when there are reasonable grounds to suspect that the client is acting on behalf of a third partyminor
15611Failure of a trust company to keep a record of prescribed information concerning inter vivos trustsminor
15.1611.1(1)Failure to obtain the prescribed informationminor
15.2611.1(2)Failure to take reasonable measures to confirm the accuracy of the prescribed informationminor
15.3611.1(3)Failure to keep a record of the prescribed information and the measures taken to confirm its accuracyminor
15.4611.1(4)(a)Failure to take reasonable measures to ascertain the identity of an entity’s most senior managing officerserious
15.5611.1(4)(b)Failure to treat activities in respect of the entity as high risk and to take the prescribed special measuresserious
15.6611.1(5) Failure to determine whether a not-for-profit organization is a prescribed entity and to keep a record of the determinationminor
169(1)12(1)(a)Failure of a financial entity to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
179(1)12(1)(b)Failure of a financial entity to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
189(1)12(1)(c)Failure of a financial entity to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
19613Failure of a financial entity to 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 transactionminor
20614Failure of a financial entity to keep prescribed recordsminor
20.1614.1Failure of a financial entity to keep a prescribed record in respect of every credit card account that it opensminor
21615Failure of a trust company to keep prescribed records in respect of a trust for which it is trusteeminor
21.19.4(1)(a)15.1(1) and (2)Failure of a specified entity entering into a correspondent banking relationship with a prescribed foreign entity to keep a prescribed recordminor
21.29.4(1)(c)15.1(1)Failure of a specified entity entering into a correspondent banking relationship with a prescribed foreign entity to obtain the approval of senior managementminor
21.39.4(1)(d)15.1(1)Failure of a specified entity entering into a correspondent banking relationship with a prescribed foreign entity to set out in writing their obligations and those of the foreign entity in respect of the correspondent banking servicesminor
21.49.4(1)(e)15.1(1) and (3)Failure of a specified entity to take reasonable measures to ascertain whether a prescribed foreign entity with whom it has entered into a correspondent banking relationship has in place prescribed policies and procedures and, if they are not in place, to take prescribed measuresminor
229(1)17Failure of a life insurance company or life insurance broker or agent who receives from a client an amount in cash of $10,000 or more in the course of a single transaction to report the transaction together with the prescribed informationminor
23618Failure of a life insurance company or life insurance broker or agent to 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 transactionminor
24619(1)Failure of a life insurance company or life insurance broker or agent to keep a client information record in respect of every annuity or policy for which $10,000 or more is paidminor
25620Failure of a life insurance company or life insurance broker or agent to keep prescribed records of a corporate clientminor
25.1620.1Failure of a life insurance company or life insurance broker or agent to keep a record of prescribed information when a transaction is reviewedminor
269(1)21Failure of a securities dealer who receives from a client an amount in cash of $10,000 or more in the course of a single transaction to report the transaction together with the prescribed informationminor
27622Failure of a securities dealer to 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 transactionminor
28623Failure of a securities dealer to keep prescribed recordsminor
299(1)28(1)(a)Failure of a money services business to report 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 prescribed informationminor
309(1)28(1)(b)Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
319(1)28(1)(c)Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
32629Failure of a money services business to 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 transactionminor
33630Failure of a money services business to keep prescribed recordsminor
33.1631Failure of a specified money services business to keep a record of prescribed information when a transaction is reviewedminor
33.2632Failure of a specified money services business to keep a record of prescribed informationminor
33.3933.1Failure of a British Columbia notary public or notary corporation to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
33.4633.2(1)Failure of a British Columbia notary public or notary corporation to keep prescribed recordsminor
33.5633.2(2)Failure of a British Columbia notary public or notary corporation to 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 transactionminor
33.6633.4Failure of a legal counsel or legal firm to keep prescribed recordsminor
33.7633.5(a)Failure of a legal counsel or legal firm to keep prescribed recordsminor
349(1)35Failure of an accountant or accounting firm to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
35636(1)Failure of an accountant or accounting firm to keep prescribed recordsminor
36636(2)Failure of an accountant or accounting firm to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transactionminor
379(1)38Failure of a real estate broker or sales representative to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
38639(1)Failure of a real estate broker or sales representative to keep prescribed recordsminor
39639(2)Failure of a real estate broker or sales representative to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transactionminor
39.19(1)39.2Failure of a dealer in precious metals and stones to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
39.2639.3Failure of a dealer in precious metals and stones to 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 transactionminor
39.39(1)39.6Failure of a real estate developer to report the receipt of an amount of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
39.4639.7(1)Failure of a real estate developer to keep prescribed records when engaging in a prescribed activityminor
39.5639.7(2)Failure of a real estate developer when engaging in a prescribed activity to keep a large cash transaction record in respect of every amount of $10,000 or more that they receive in the course of a single transactionminor
409(1)40(1)(a)Failure of a casino to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
419(1)40(1)(b)Failure of a casino to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
429(1)40(1)(c)Failure of a casino to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
43641(1)Failure of a casino to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transactionminor
449(1)42(1)Failure of a casino to report the disbursement of $10,000 or more in the course of prescribed transactions, together with the prescribed informationminor
45643Failure of a casino to keep prescribed recordsminor
45.1644(1)Failure of a casino to take reasonable measures to determine if a person who receives a prescribed disbursement is acting on behalf of a third partyminor
45.2644(2)Failure of a casino to keep a record of prescribed information when it is determined that the client is acting on behalf of a third partyminor
45.3644(3)Failure of a casino to keep a record of prescribed information when there are reasonable grounds to suspect that the client is acting on behalf of a third partyminor
469(1)47Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to report 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 prescribed informationminor
47648Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive from a client in the course of a single transactionminor
48649Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to keep prescribed recordsminor
499(1)50(3)Failure of a specified financial entity to report changes in prescribed information within 15 days of the changeminor
509(1)50(4)(a)Failure of a specified financial entity to verify at least once every 12 months that prescribed conditions are still met in respect of each clientminor
519(1)50(4)(b)Failure of a specified financial entity to report prescribed information at least once every 12 monthsminor
51.1652.1Failure to keep a record of the purpose and intended nature of a business relationshipminor
526.153, 64(1) and 64(2)(b)Failure of a specified person or entity to ascertain in the prescribed manner and within the prescribed period the identity of every individual with whom the person or entity conducts a transaction in respect of which a record must be keptminor
52.16.153.1, 64(1) and 64(2)(b.1)Failure to take reasonable measures to ascertain in the prescribed manner and within the prescribed period the identity of every person with whom a transaction that is required to be reported to the Centre is conducted or is attempted to be conductedminor
52.29.253.2, 64, 65 and 66Opening an account for a client by a specified person or entity in the prescribed circumstances when the identity of the client cannot be established in accordance with prescribed measuresserious
536.154(a), 64(1) and 64(2)(a)Failure of a financial entity to ascertain in the prescribed manner and within the prescribed period the identity of every person for whom a signature card is createdminor
546.154(b), 64(1) and 64(2)(b)Failure of a financial entity to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transaction or transferminor
556.154(d), 65(1) and 65(2)(a)Failure of a financial entity to confirm in the prescribed manner and within the prescribed period the existence of, and the prescribed information in respect of, corporations for which the financial entity opens an accountminor
566.154(e), 66(1) and 66(2)(a)Failure of a financial entity to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which the financial entity opens an account.minor
56.16.154.1(a), 64(1) and 64(2)(b.2)Failure of a financial entity to ascertain in the prescribed manner and within the prescribed period the identity of every person for whom the financial entity opens a credit card accountminor
56.26.154.1(b), 65(1) and 65(2)(a.1)Failure of a financial entity to ascertain in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, a corporation for which the financial entity opens a credit card accountminor
56.36.154.1(c), 66(1) and 66(2)(a.1)Failure of a financial entity to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which the financial entity opens a credit card accountminor
56.49.3(1)54.2(a) and 67.1(2)Failure of a financial entity to take reasonable measures within the prescribed period to determine whether a person for whom the financial entity opens an account is a politically exposed foreign personminor
56.59.3(1)54.2(b) and 67.1(3)Failure of a financial entity to take reasonable measures within the prescribed period to determine whether a person who is an existing account holder is a politically exposed foreign personminor
56.69.3(1)54.2(c) and 67.2(3)Failure of a financial entity to take reasonable measures within the prescribed period to determine whether a person who initiates an electronic funds transfer of $100,000 or more is a politically exposed foreign personminor
56.79.3(1)54.2(d) and 67.2(3)Failure of a financial entity to take reasonable measures within the prescribed period to determine whether a person who is the beneficiary of an electronic funds transfer of $100,000 or more is a politically exposed foreign personminor
56.8654.3, 56.3, 57.2, 59.01, 59.11, 59.21, 59.31, 59.51, 60.1 and 61.1Failure to conduct ongoing monitoring of a business relationship and to keep a record of the measures taken and information obtained minor
56.9654.4, 56.4, 57.3, 59.02, 59.12, 59.22, 59.32, 59.52, 60.2 and 61.2Failure to treat activities in respect of a person as high risk and to take the prescribed special measuresserious
576.155(a), 64(1) and 64(2)(c)Failure of a trust company to ascertain in the prescribed manner and within the prescribed period the identity of every person who is the settlor of an inter vivos trustminor
586.155(b), 65(1) and 65(2)(b)Failure of a trust company to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation that is the settlor of an institutional trustminor
596.155(c), 66(1) and 66(2)(b)Failure of a trust company to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, that is the settlor of an institutional trustminor
606.155(d)(i), 65(1), 65(2)(b) or 55(d)(i), 66(1) and 66(2)(b)Failure of a trust company to confirm in the prescribed manner and within the prescribed period the existence of — and, in the case of a corporation, the prescribed information in respect of — an entity that is authorized to act as a co-trustee of any trustminor
616.155(d)(ii), 64(1) and 64(2)(c)Failure of a trust company to ascertain in the prescribed manner and within the prescribed period the identity of persons who are authorized to give instructions with respect to an entity’s activities as co-trusteeminor
626.155(e), 64(1) and 64(2)(c)Failure of a trust company to ascertain in the prescribed manner and within the prescribed period the identity of each person who is authorized to act as co-trustee of any trustminor
62.19.4(1)(a)55.1(a)Failure of a financial entity that enters into a correspondent banking relationship with a foreign financial institution to ascertain, in the prescribed manner, prescribed information in respect of the foreign financial institutionminor
62.29.4(1)(a)55.1(b)Failure of a financial entity that enters into a correspondent banking relationship with a foreign financial institution to take reasonable measures to ascertain, in the prescribed manner, prescribed information in respect of the foreign financial institution and to conduct prescribed monitoringminor
62.39.4(1)(a)55.2(a)Failure of a financial entity that enters into a correspondent banking relationship with a foreign financial institution to take reasonable measures to ascertain whether the institution has met the prescribed requirementsminor
62.49.4(1)(a)55.2(b)Failure of a financial entity that enters into a correspondent banking relationship with a foreign financial institution to take reasonable measures to ascertain whether the institution has agreed to provide customer identification dataminor
636.156(1), 64(1) and 64(2)(d)Failure of a life insurance company or life insurance broker or agent to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for which a client information record is required to be keptminor
646.156(3), 65(1) and 65(2)(c)Failure of a life insurance company or life insurance broker or agent to confirm in the prescribed manner and within the prescribed period the existence of, and the prescribed information in respect of, every corporation in respect of which they are required to keep a client information recordminor
656.156(4), 66(1) and 66(2)(c)Failure of a life insurance company or life insurance broker or agent to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, in respect of which they are required to keep a client information recordminor
65.19.3(1)56.1 and 67.2(3)Failure of a life insurance company or life insurance broker or agent to take reasonable measures to determine within the prescribed period if a prescribed person is a politically exposed foreign personminor
666.157(1), 64(1) and 64(2)(a)Failure of a securities dealer to ascertain in the prescribed manner and within the prescribed period the identity of every person who is authorized to give instructions in respect of an account for which a record must be keptminor
676.157(3), 65(1) and 65(2)(d)Failure of a securities dealer to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation for which they open an accountminor
686.157(4), 66(1) and 66(2)(d)Failure of a securities dealer to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which they open an accountminor
68.19.3(1)57.1(1) and 67.1(2)Failure of a securities dealer to take reasonable measures within the prescribed period to determine whether a person for whom the dealer opens an account is a politically exposed foreign personminor
68.29.3(1)57.1(2) and 67.1(3)Failure of a securities dealer to take reasonable measures within the prescribed period to determine whether a person who is an existing account holder is a politically exposed foreign personminor
696.159(1)(a), 64(1) and 64(2)(b)Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction of $3,000 or more for the issuance or redemption of money orders, traveller’s cheques or other similar negotiable instrumentsminor
706.159(1)(b), 64(1) and 64(2)(b)Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for the remittance or transmission of $1,000 or moreminor
716.159(1)(c), 64(1) and 64(2)(b)Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a foreign currency exchange transaction of $3,000 or moreminor
726.159(2), 65(1) and 65(2)(c)Failure of a money services business to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation in respect of which a client information record is required to be keptminor
736.159(3), 66(1) and 66(2)(c)Failure of a money services business to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, in respect of which a client information record is required to be keptminor
73.19.3(1)59(5)(a) and 67.2(3)Failure of a money services business to take reasonable measures within the prescribed period to determine whether a person who initiates an electronic funds transfer of $100,000 or more is a politically exposed foreign personminor
73.119.3(1)59(5)(b) and 67.2(3)Failure of a money services business to take reasonable measures within the prescribed period to determine whether a person who is the beneficiary of an electronic funds transfer of $100,000 or more is a politically exposed foreign personminor
73.126.159.1(a), 64(1) and 64(2)(e)Failure of an accountant or accounting firm to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transactionminor
73.136.159.1(b), 65(1) and 65(2)(e)Failure of an accountant or accounting firm to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation on whose behalf a prescribed transaction is conductedminor
73.146.159.1(c), 66(1) and 66(2)(e)Failure of an accountant or accounting firm to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, on whose behalf a prescribed transaction is conductedminor
73.156.159.2(1)(a), 64(1) and 64(2)(e)Failure of a real estate broker or sales representative to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transactionminor
73.166.159.2(1)(b), 65(1) and 65(2)(e)Failure of a real estate broker or sales representative to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation on whose behalf a prescribed transaction is conductedminor
73.176.159.2(1)(c), 66(1) and 66(2)(e)Failure of a real estate broker or sales representative to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, on whose behalf a prescribed transaction is conductedminor
73.186.159.2(3)Failure of a real estate broker or sales representative that represents a party to a prescribed transaction to ascertain the identity or confirm the existence of parties that are not represented by a real estate broker or sales representativeminor
73.196.159.3(a), 64(1) and 64(2)(b)Failure of a British Columbia notary public or notary corporation to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transactionminor
73.26.159.3(b), 65(1) and 65(2)(e)Failure of a British Columbia notary public or notary corporation to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation on whose behalf a prescribed transaction is conductedminor
73.216.159.3(c), 66(1) and 66(2)(e)Failure of a British Columbia notary public or notary corporation to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, on whose behalf a prescribed transaction is conductedminor
73.226.159.4(1)(a), 64(1) and 64(2)(b)Failure of a legal counsel or a legal firm to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transactionminor
73.236.159.4(1)(b), 65(1) and 65(2)(e)Failure of a legal counsel or a legal firm to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation on whose behalf a prescribed transaction is conductedminor
73.246.159.4(1)(c), 66(1) and 66(2)(e)Failure of a legal counsel or a legal firm to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, on whose behalf a prescribed transaction is conductedminor
73.256.159.5(a), 64(1) and 64(2)(b)Failure of a real estate developer to ascertain in the prescribed manner and within the prescribed period the identity of a person who conducts a prescribed transactionminor
73.266.159.5(b), 65(1) and 65(2)(e)Failure of a real estate developer to confirm in the prescribed manner and within the prescribed period the existence of, and the prescribed information in respect of, corporations on whose behalf a prescribed transaction is conductedminor
73.276.159.5(c), 66(1) and 66(2)(e)Failure of a real estate developer to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, on whose behalf a prescribed transaction is conductedminor
746.160(a), 64(1) and 64(2)(e.1)Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person for whom a signature card is created in respect of an account that the casino opensminor
756.160(b)(i), 64(1) and 64(2)(b)Failure of a casino to confirm in the prescribed manner and within the prescribed time the identity of every person who receives a prescribed amount from the casinominor
766.160(b)(ii), 64(1) and 64(2)(b)Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction of $3,000 or more with the casino for which an extension of credit record is requiredminor
776.160(b)(iii), 64(1) and 64(2)(b)Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a foreign currency exchange transaction of $3,000 or more with the casino for which a transaction ticket is required to be keptminor
786.160(b)(iv), 64(1) and 64(2)(b)Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who requests that an amount of $1,000 or more be remitted or transmittedminor
796.160(e), 65(1) and 65(2)(a)Failure of a casino to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation for which the casino opens an accountminor
806.160(f), 66(1) and 66(2)(a)Failure of a casino to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which the casino opens an accountminor
816.161(a), 64(1) and 64(2)(d)Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to ascertain in the prescribed manner and within the prescribed period the identity of every person in respect of whom a client information record is required to be keptminor
826.161(b), 64(1) and 64(2)(b)Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to ascertain in the prescribed manner and within the prescribed period the identity of every person in respect of whom no client information record is required to be kept and who conducts a transaction that involves an amount of $3,000 or more for the issuance or redemption of money orders or other similar negotiable instrumentsminor
836.161(c), 65(1) and 65(2)(c)Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation in respect of which a client information record is keptminor
846.161(d), 66(1) and 66(2)(c)Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, in respect of which a client information record is keptminor
84.1664.1(3)Failure to have entered into a written agreement or arrangement with an agent or mandatary, to obtain from them the information that the agent or mandatary referred to in order to ascertain a person’s identity and the information that the agent or mandatary verified as being that of the person and to be satisfied that the information is valid and current and that the person’s identity was ascertained in the prescribed mannerminor
84.2664.2Failure of a person or entity that is required to ascertain a person’s identity to keep prescribed informationminor
85665(3)Failure of a person or entity who ascertains information in respect of a corporation by referring to an electronic version of a record to keep a prescribed recordminor
86665(4)Failure of a person or entity who ascertains information in respect of a corporation by referring to a paper copy of a record to retain the record or a copy of itminor
87666(3)Failure of a person or entity who ascertains information in respect of an entity by referring to an electronic version of a record to keep a prescribed recordminor
88666(4)Failure of a person or entity who ascertains information in respect of an entity by referring to a paper copy of a record to retain the record or a copy of itminor
88.19.5(a)66.1(1) and (2)Failure of a prescribed person or entity to include prescribed information in prescribed electronic funds transfersminor
88.29.5(b)66.1(1) and (2)Failure of a prescribed person or entity to take reasonable measures to ensure that any transfer that the person or entity receives includes prescribed informationminor
89[Repealed, SOR/2016-153, s. 118]
89.19.3(2)67.1(1)(a)Failure of a prescribed financial entity or securities dealer to take reasonable measures to establish the source of funds that have been, will be or are expected to be depositedminor
89.29.3(2)67.1(1)(b)Failure of a prescribed financial entity or securities dealer to obtain the approval of senior management to keep an account openminor
89.39.3(2)67.1(1)(c)Failure of a prescribed financial entity or securities dealer to conduct enhanced ongoing monitoring in respect of an accountminor
89.49.3(2)67.2(1)Failure of a financial entity, life insurance company, life insurance broker or agent or money services business to take reasonable measures to establish the source of funds for a prescribed transactionminor
89.59.3(2)67.2(2) and (3)Failure of a member of senior management of a financial entity, life insurance company, life insurance broker or agent or money services business to review a prescribed transaction within the prescribed periodminor
90669(1)Failure of a person or entity that is required to obtain, keep or create records to retain those records for a period of at least five yearsminor
91670Failure to retain records in such a way that they can be provided to an authorized person within 30 days after their requestminor
929.6(1)71(1)(a)Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance programserious
939.6(1)71(1)(b)Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officerserious
949.6(1)71(1)(c)Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factorsserious
959.6(1)71(1)(d)Failure of a person or entity that has employees, agents or mandataries or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or mandataries or personsserious
969.6(1)71(1)(e)Failure of a person or entity to institute and document the prescribed reviewserious
979.6(1)71(2)Failure of a person or entity to report prescribed information within 30 days after assessmentserious
989.6(3)71.1Failure of a person or entity to take the prescribed special measuresserious

PART 3

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

Column 1Column 2Column 3Column 4
ItemProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing ActProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting RegulationsShort-form DescriptionClassification of Violation
179(1)Failure of a person or entity to include prescribed information in a reportvery serious
279(2)Failure of a person or entity to send a report within the prescribed periodserious
37.110Failure of a person or entity to send a report containing the prescribed information without delayvery serious
4712(1)Failure to send report electronically, if the sender has the technical capabilities, in accordance with the guidelines prepared by the Centreserious
5712(2)Failure to send report in paper format, if the sender does not have the technical capabilities to send electronically, in accordance with the guidelines prepared by the Centreserious
6712(3)Failure to submit a report in paper format in accordance with the guidelines prepared by the Centreserious
7612.1Failure of a person or entity to keep a copy of a report submitted to the Centreminor
8612.3(1)Failure of a person or entity to keep a copy of a prescribed report for the prescribed periodminor

PART 4

Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations

Column 1Column 2Column 3Column 4
ItemProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing ActProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing Registration RegulationsShort-form DescriptionClassification of Violation
111.12(1)4(a) and 5Failure of an applicant or a registered person or entity to submit an application for registration in the prescribed manner and with the prescribed informationserious
211.134(b) and 5Failure of an applicant or a registered person or entity to submit a notification of a change to the information provided in a prescribed application in the prescribed manner and with the prescribed informationserious
311.134(c) and 5Failure of an applicant or a registered person or entity to submit a notification of newly obtained information in the prescribed manner and with the prescribed informationserious
411.14(1)4(d) and 5Failure of an applicant to submit a requested clarification within the prescribed time, in the prescribed manner and with the prescribed informationserious
511.17(1)4(d) and 5Failure of a registered person or entity to submit a requested clarification within the prescribed period, in the prescribed manner and with the prescribed informationserious
611.194(e), 5 and 6.1Failure of a registered person or entity to submit an application to renew their registration within the prescribed period, in the prescribed manner and with the prescribed informationserious
711.24(f) and 6Failure of a registered person or entity that ceases an activity for which they are registered to submit notification of the cessation within the prescribed period, in the prescribed manner and with the prescribed informationserious
  • SOR/2008-194, ss. 5 to 27;
  • SOR/2016-153, ss. 100, 101(E), 102, 103(E), 104 to 107, 110, 112(E), 116 to 118, 120 to 122(E), 123(F).

AMENDMENTS NOT IN FORCE

  • — SOR/2016-153, s. 108

    • 108 The portion of items 56.4 to 56.7 of Part 2 of the schedule to the Regulations in columns 2 and 3 is replaced by the following:

      ItemColumn 2Column 3
      Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing RegulationsShort-form Description
      56.454.2(1)(a) and 67.1(3)Failure of a financial entity to take reasonable measures within the prescribed period to determine whether a person for whom it opens an account is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person
      56.554.2(1)(b) and 67.2(5)Failure of a financial entity to take reasonable measures within the prescribed period to determine whether a person who requests that an electronic funds transfer of $100,000 or more be initiated or on whose behalf the request is made is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons
      56.654.2(1)(c) and 67.2(5)Failure of a financial entity to take reasonable measures within the prescribed period to determine whether the beneficiary of an electronic funds transfer of $100,000 or more is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons
      56.754.2(2)Failure of a financial entity to take reasonable measures on a periodic basis to determine whether an account holder is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person
  • — SOR/2016-153, s. 109

    • 109 Part 2 of the schedule to the Regulations is amended by adding the following after item 56.7:

      ItemColumn 1Column 2Column 3Column 4
      Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing ActProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing RegulationsShort-form DescriptionClassification of Violation
      56.71654.2(3) and 67.1(3)Failure of a financial entity that detects a fact that constitutes reasonable grounds to suspect that an account holder is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons to take reasonable measures within the prescribed period to determine whether they are such a personminor
  • — SOR/2016-153, s. 111

    • 111 The portion of item 65.1 of Part 2 of the schedule to the Regulations in columns 2 and 3 is replaced by the following:

      ItemColumn 2Column 3
      Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing RegulationsShort-form Description
      65.156.1 and 67.2(5)Failure of a life insurance company or life insurance broker or agent to take reasonable measures within the prescribed period to determine whether a person who makes a lump-sum payment of $100,000 or more in respect of an immediate or deferred annuity or life insurance policy on their own behalf or on behalf of a third party is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons
  • — SOR/2016-153, s. 113

    • 113 The portion of items 68.1 and 68.2 of Part 2 of the schedule to the Regulations in columns 2 and 3 is replaced by the following:

      ItemColumn 2Column 3
      Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing RegulationsShort-form Description
      68.157.1(1) and 67.1(3)Failure of a securities dealer to take reasonable measures within the prescribed period to determine whether a person for whom they open an account is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person
      68.257.1(2)Failure of a securities dealer to take reasonable measures on a periodic basis to determine whether an account holder is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person
  • — SOR/2016-153, s. 114

    • 114 Part 2 of the schedule to the Regulations is amended by adding the following after item 68.2:

      ItemColumn 1Column 2Column 3Column 4
      Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing ActProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing RegulationsShort-form DescriptionClassification of Violation
      68.39.3(1)57.1(3) and 67.1(3)Failure of a securities dealer that detects a fact that constitutes reasonable grounds to suspect that an account holder is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons to take reasonable measures within the prescribed period to determine whether they are such a personminor
  • — SOR/2016-153, s. 115

    • 115 The portion of items 73.1 and 73.11 of Part 2 of the schedule to the Regulations in columns 2 and 3 is replaced by the following:

      ItemColumn 2Column 3
      Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing RegulationsShort-form Description
      73.159(5)(a) and 67.2(5)Failure of a money services business to take reasonable measures within the prescribed period to determine whether a person who requests that an electronic funds transfer of $100,000 or more be initiated or on whose behalf the request is made is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons
      73.1159(5)(b) and 67.2(5)Failure of a money services business to take reasonable measures within the prescribed period to determine whether the beneficiary of an electronic funds transfer of $100,000 or more is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons
  • — SOR/2016-153, s. 119

    • 119 Items 89.1 to 89.5 of Part 2 of the schedule to the Regulations are replaced by the following:

      ItemColumn 1Column 2Column 3Column 4
      Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing ActProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing RegulationsShort-form DescriptionClassification of Violation
      89.19.3(2)67.1(1)(a), (2) and (3)Failure of a financial entity or securities dealer to take reasonable measures within the prescribed period to establish the source of funds that have been, will be or are expected to be deposited in an accountminor
      89.29.3(2)67.1(1)(b), (2) and (3)Failure of a financial entity or securities dealer to obtain within the prescribed period the approval of senior management to keep an account openminor
      89.39.3(2)67.1(1)(c) and (2)Failure of a financial entity or securities dealer to conduct enhanced ongoing monitoring of the activities in respect of an accountminor
      89.49.3(2)67.2(1)(a), (2) and (5)Failure of a financial entity, life insurance company, life insurance broker or agent or money services business to take reasonable measures within the prescribed period to establish the source of funds used for a prescribed transactionminor
      89.59.3(2)67.2(1)(b), (2), (3), (4) and (5)Failure of a financial entity, life insurance company, life insurance broker or agent or money services business to ensure that a member of senior management reviews a prescribed transaction within the prescribed periodminor
      89.69.3(2)67.3Failure to keep a record of reasonable measures taken, the date of each measure and the reasons why the measures were unsuccessfulminor
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