Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Budget Implementation Act, 2017, No. 1 (S.C. 2017, c. 20)

Assented to 2017-06-22

 Subsection 9.6(3) of the Act is replaced by the following:

  • Marginal note:Special measures

    (3) If, at any time, the person or entity considers that the risk referred to in subsection (2) is high, or in the prescribed circumstances, the person or entity shall take the special measures referred to in the regulations.

 The Act is amended by adding the following after section 9.6:

Marginal note:Measures and information: paragraph 5(e.1)
  • 9.61 (1) Every entity referred to in paragraph 5(e.1) shall take the prescribed measures related to the program referred to in subsection 9.6(1) and shall provide the prescribed information to the Centre in the prescribed circumstances.

  • Marginal note:Service

    (2) An entity referred to in paragraph 5(e.1) must provide to the Centre the name and address for service of a person who resides in Canada and who is authorized to accept, on behalf of the entity, notices that are served or caused to be served by the Centre under this Act.

  • Marginal note:Authorized person

    (3) The service of a notice by or on behalf of the Centre on an entity referred to in paragraph 5(e.1) is sufficient if it is served on the person whose name is provided under subsection (2).

  •  (1) Subsection 9.7(1) of the Act is replaced by the following:

    Marginal note:Foreign branches and subsidiaries
    • 9.7 (1) Every entity referred to in any of paragraphs 5(a) to (g), except for authorized foreign banks within the meaning of section 2 of the Bank Act and for foreign companies within the meaning of subsection 2(1) of the Insurance Companies Act, shall, in respect of its foreign branches, and in respect of its foreign subsidiaries that carry out activities similar to those of entities referred to in those paragraphs and that are either wholly-owned by the entity or have financial statements that are consolidated with those of the entity, develop policies that establish requirements similar to the requirements of sections 6, 6.1 and 9.6 and ensure that those branches and subsidiaries apply those policies to the extent it is permitted by, and does not conflict with, the laws of the foreign state in which the branch or subsidiary is located.

  • (2) Subsection 9.7(4) of the Act is replaced by the following:

    • Marginal note:Records and reporting

      (4) If the application by a foreign branch or a foreign subsidiary of a policy referred to in subsection (1) is not permitted by or would conflict with the laws of the foreign state in which the branch or subsidiary is located, the entity shall keep, in accordance with section 6, a record of that fact and of the reasons why it is not permitted or it would conflict and shall, within a reasonable time, notify the Centre, and the principal agency or body that supervises or regulates it under federal or provincial law, of that fact and those reasons.

 Section 11.1 of the Act is replaced by the following:

Marginal note:Registration requirement

11.1 Except as otherwise prescribed by regulation, every person or entity referred to in paragraph 5(h), those referred to in paragraph 5(l) that issue or sell money orders to, or redeem them from, the public, and every other person or entity that is referred to in section 5 and that is prescribed must be registered with the Centre in accordance with this section and sections 11.11 to 11.2.

  •  (1) Paragraph 11.11(1)(a) of the Act is replaced by the following:

    • (a) a person or entity that is subject to sanctions associated with terrorist activity or a prohibition relating to financial services under the United Nations Act;

  • (2) Subsection 11.11(1) of the Act is amended by adding the following after paragraph (b):

  • (3) The portion of paragraph 11.11(1)(c) of the French version of the Act before subparagraph (i) is replaced by the following:

    • c) la personne ou entité condamnée pour l’une ou l’autre des infractions ci-après ou qui a été condamnée pour une infraction essentiellement similaire prévue par les lois d’un État étranger :

  • (4) Subparagraphs 11.11(1)(c)(i) to (iv) of the English version of the Act are replaced by the following:

    • (i) a money laundering offence, or an offence under the laws of a foreign state that is substantially similar to a money laundering offence,

    • (ii) a terrorist activity financing offence, or an offence under the laws of a foreign state that is substantially similar to a terrorist activity financing offence,

    • (iii) an offence under this Act or the Proceeds of Crime (money laundering) Act, chapter 26 of the Statutes of Canada, 1991 when convicted on indictment, or an offence under the laws of a foreign state that is substantially similar to an offence under either Act,

    • (iv) an offence under any of sections 83.18 to 83.231, 354 or 467.11 to 467.13 of the Criminal Code, or an offence under the laws of a foreign state that is substantially similar to such an offence, or

  • (5) The portion of paragraph 11.11(1)(d) of the Act before subparagraph (i) is replaced by the following:

    • (d) a person or entity that has been convicted on indictment or convicted more than once of an offence under any of the following, or that has been convicted of an offence under the laws of a foreign state that is substantially similar to an offence under any of the following:

  • (6) Paragraph 11.11(1)(e) of the Act is replaced by the following:

    • (e) an entity that is a corporation in respect of which a director, the chief executive officer, the president or a person who owns or controls, directly or indirectly, 20% or more of the shares has been convicted on indictment of an offence under this Act or the Proceeds of Crime (money laundering) Act, chapter 26 of the Statutes of Canada, 1991 or has been convicted of an offence under the laws of a foreign state that is substantially similar to an offence under either Act;

 Subsection 11.12(1) of the Act is replaced by the following:

Marginal note:Application for registration
  • 11.12 (1) An application for registration shall be submitted to the Centre in the prescribed form and manner, shall include a list of the applicant’s agents or mandataries or branches that are engaged, on behalf of the applicant, in the activities referred to in paragraph 5(h), in issuing or selling money orders to, or redeeming them from, the public if the applicant is a person or entity referred to in paragraph 5(l), or in any prescribed activities, and shall include any prescribed information.

 Section 11.41 of the Act is replaced by the following:

Marginal note:Definition of foreign entity

11.41 In this Part, foreign entity means an entity, other than an entity referred to in section 5, that is incorporated or formed by or under the laws of a foreign state, including its subsidiaries, if any, and that does not carry on business in Canada, if it carries out activities similar to those of entities referred to in any of paragraphs 5(a) to (g) or activities referred to in paragraph 5(h) or (h.1).

  •  (1) Subsection 11.42(1) of the Act is replaced by the following:

    Marginal note:Minister’s written directive
    • 11.42 (1) In addition to any other measure required by this Act, the Minister may, by written directive, require any person or entity referred to in section 5 to take, in order to safeguard the integrity of Canada’s financial system, any measure specified in the directive with respect to any financial transaction, or any financial transaction within a class of financial transactions, originating from or bound for any foreign state, foreign entity or entity referred to in paragraph 5(e.1), that occurs or is attempted in the course of their activities, or with respect to any activity that is related to any such financial transaction or class of financial transactions.

  • (2) Paragraph 11.42(2)(d) of the Act is replaced by the following:

    • (d) the keeping of any records;

  • (3) Paragraphs 11.42(4)(a) and (b) of the Act are replaced by the following:

    • (a) an international organization, body, association or coalition or a grouping of states (such as the Financial Action Task Force) of which Canada is a member has called on its members to take measures in relation to a foreign state, foreign entity or entity referred to in paragraph 5(e.1) on the ground that the state’s or entity’s anti-money laundering or anti-terrorist financing measures are ineffective or insufficient; or

    • (b) the anti-money laundering or anti-terrorist financing measures that a foreign state, a foreign entity or an entity referred to in paragraph 5(e.1) has implemented are ineffective or insufficient and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system.

 
Date modified: