Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17)
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Act current to 2020-05-17 and last amended on 2019-08-01. Previous Versions
AMENDMENTS NOT IN FORCE
— 2014, c. 20, s. 256(2), as amended by 2017, c. 20, s. 436
2006, c. 12, s. 3(1)
256 (2) Paragraph 5(h) of the Act is replaced by the following:
(h) persons and entities that have a place of business in Canada and that are engaged in the business of providing at least one of the following services:
(i) foreign exchange dealing,
(ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,
(iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named person or entity,
(iv) dealing in virtual currencies, or
(v) any prescribed service;
(h.1) persons and entities that do not have a place of business in Canada, that are engaged in the business of providing at least one of the following services that is directed at persons or entities in Canada, and that provide those services to their clients in Canada:
(i) foreign exchange dealing,
(ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,
(iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named person or entity,
(iv) dealing in virtual currencies, or
(v) any prescribed service;
— 2014, c. 20, s. 257
— 2014, c. 20, s. 261
2006, c. 12, s. 10
261 Section 11.1 of the Act is replaced by the following:
Registration requirement
11.1 Except as otherwise provided in the regulations, every person or entity referred to in paragraph 5(h) or (h.1), those referred to in paragraph 5(l) that sell money orders to 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.
— 2014, c. 20, s. 262(3)
262 (3) Subsection 11.11(1) of the Act is amended by adding the following after paragraph (e):
(e.1) a person or entity referred to in paragraph 5(h.1) that, having committed a violation, or a series of minor violations, under this Act that is classified as a serious violation or a very serious violation and being liable to a penalty for it, and 30 days having elapsed since the day on which all proceedings in respect of the violation are ended, has still not paid the penalty together with any interest imposed under section 73.28; or
— 2014, c. 20, s. 263
2006, c. 12, s. 11
263 Subsection 11.12(1) of the Act is replaced by the following:
Application for registration
11.12 (1) An application for registration shall be submitted to the Centre in the prescribed form and manner and shall include
(a) a list of the applicant’s agents, mandataries or branches that are engaged, on behalf of the applicant, in the activities referred to in paragraph 5(h) or (h.1), in selling money orders to the public if the applicant is a person or entity referred to in paragraph 5(l), or in any prescribed activities;
(b) if the applicant is a person referred to in paragraph 5(h.1)
(i) the name and address for service of an individual who resides in Canada and who is authorized to accept, on behalf of the person, notices that are served or caused to be served by the Centre under this Act,
(ii) a document that sets out the person’s record of criminal convictions, or states that the person does not have one, that is issued by a competent authority of the foreign state in which the person resides, and, if the document is made in a language other than English or French, a translation of it into one of those languages attested to by a person who is recognized as a certified translator by a provincial organization or body that is competent under provincial law to issue such certifications;
(c) if the applicant is an entity referred to in paragraph 5(h.1)
(i) the name and address for service of an individual 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, and
(ii) for each of the chief executive officer, the president and the directors of the entity and for each person who owns or controls, directly or indirectly, 20% or more of the entity or the shares of the entity, a document that sets out the person’s record of criminal convictions, or states that the person does not have one, and that is issued by a competent authority of the foreign state in which the person resides, and, if the document is made in a language other than English or French, a translation of it into one of those languages attested to by a person who is recognized as a certified translator by a provincial organization or body that is competent under provincial law to issue such certifications; and
(d) any prescribed information.
— 2014, c. 20, s. 264
2006, c. 12, s. 11
264 Section 11.13 of the Act is renumbered as subsection 11.13(1) and is amended by adding the following:
Denial or revocation
(2) If the name or address for service of a person referred to in subparagraph 11.12(1)(b)(i) or (c)(i) changes, and an applicant or registered person or entity who is or was required to provide the information described in paragraph 11.12(1)(b) or (c) does not, within the period provided in subsection (1), provide the Centre with the new name or address for service, the Centre shall without delay after becoming aware of that fact deny the application, or revoke the registration, as the case may be, and shall, without delay, inform the applicant or registered person or entity of the denial or revocation.
— 2014, c. 20, s. 265
2006, c. 12, s. 11
265 Subsection 11.14(1) of the Act is replaced by the following:
— 2014, c. 20, s. 266
2006, c. 12, s. 11
266 Subsection 11.17(1) of the Act is replaced by the following:
Clarifications — registrant
— 2014, c. 20, s. 293
293 The Act is amended by adding the following after section 72:
Service of Notices
Authorized person
72.1 The service of a notice by or on behalf of the Centre on a person or entity referred to in paragraph 5(h.1) is sufficient if it is served on the person who is indicated in the application for registration, or in accordance with subsection 11.13(1), as being authorized to accept, on behalf of the person or entity referred to in that paragraph, notices that are served or caused to be served by the Centre under this Act.
— 2014, c. 20, s. 296
296 The portion of subsection 74(1) of the Act before paragraph (a) is replaced by the following:
General offences
74 (1) Every person or entity that knowingly contravenes any of sections 6, 6.1 and 9.1 to 9.31, subsection 9.4(2), sections 9.5 to 9.7, 11.1, 11.43, 11.44 and 11.6, subsections 12(1) and (4) and 36(1), section 37, subsections 55(1) and (2), section 57 and subsections 62(2), 63.1(2) and 64(3) or the regulations is guilty of an offence and liable
— 2017, c. 20, s. 408(1)
— 2017, c. 20, ss. 415(2), (3)
415 (2) The portion of subsection 9.4(1) of the Act before paragraph (a) is replaced by the following:
Correspondent banking
9.4 (1) Every entity referred to in any of paragraphs 5(a), (b), (d), (e) and (e.1) and every other entity that is referred to in section 5 and that is prescribed shall take the measures referred to in the regulations in respect of any correspondent banking relationship it enters into with a prescribed foreign entity and shall take the following measures before entering into such a correspondent banking relationship:
(3) Subsection 9.4(3) of the Act is replaced by the following:
Definition of correspondent banking relationship
(3) For the purposes of this section, correspondent banking relationship means a relationship created by an agreement or arrangement under which an entity referred to in any of paragraphs 5(a), (b), (d), (e) and (e.1) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a prescribed foreign entity prescribed services or international electronic funds transfers, cash management or cheque clearing services.
— 2017, c. 20, s. 417
417 The Act is amended by adding the following after section 9.6:
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.
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.
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).
— 2017, c. 20, s. 423(1)
423 (1) Subsection 11.42(1) of the Act is replaced by the following:
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.
— 2017, c. 20, s. 423(3)
423 (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.
— 2017, c. 20, s. 425
425 (1) Paragraph 11.49(1)(a) of the Act is replaced by the following:
(a) imposing a limitation or a prohibition on any person or entity referred to in section 5, with respect to entering into, undertaking or facilitating, directly or indirectly, 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);
(2) Paragraphs 11.49(3)(a) and (b) of the Act are replaced by the following:
(a) if
(i) 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, and
(ii) there is a risk that money laundering activities or terrorist financing activities may be carried out in that foreign state or by means of that foreign entity or entity referred to in paragraph 5(e.1); or
(b) if 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, the risk of money laundering activities or terrorist financing activities being carried out in that foreign state or by means of that foreign entity or entity referred to in paragraph 5(e.1) is significant 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.
— 2017, c. 20, s. 438
438 Section 9.31 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, as enacted by section 258 of the Act, is replaced by the following:
Prohibition if unregistered
9.31 (1) No entity referred to in paragraph 5(a), (b), (d), (e) or (e.1) and no other entity that is referred to in section 5 and that is prescribed shall open or maintain an account for, or have a correspondent banking relationship with, a person or entity referred to in paragraph 5(h.1) unless that person or entity is registered with the Centre under section 11.1.
Definition of correspondent banking relationship
(2) For the purposes of this section, correspondent banking relationship means a relationship created by an agreement or arrangement under which an entity referred to in paragraph 5(a), (b), (d), (e) or (e.1) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a person or entity referred to in paragraph 5(h.1) prescribed services or international electronic funds transfers, cash management or cheque clearing services.
— 2017, c. 20, ss. 439(1), (6), (8)
2014, c. 20
439 (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 1.
(6) On the first day on which both section 261 of the other Act and section 419 of this Act are in force, section 11.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:
Registration requirement
11.1 Except as otherwise prescribed by regulation, every person or entity referred to in paragraph 5(h) or (h.1), 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.
(8) If section 421 of this Act comes into force before section 263 of the other Act, then, on the day on which that section 263 comes into force, paragraph 11.12(1)(a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:
(a) 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) or (h.1), 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;
— 2017, c. 20, s. 440(1), par. (3)(b)
2014, c. 39
440 (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 2.
(3) If section 422 of this Act comes into force before section 250 of the other Act, then
(b) on the day on which subsection 256(2) of the Economic Action Plan 2014 Act, No. 1 comes into force, section 11.41 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:
Definition of foreign entity
11.41 In this Part, foreign entity means
(a) an entity referred to in paragraph 5(h.1); or
(b) 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).
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