Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17)

Marginal note:Due diligence available

• 73.24 (1) Due diligence is a defence in a proceeding in relation to a violation.

• Marginal note:Common law principles

  (2) Every rule and principle of the common law that renders any circumstance a justification or an excuse in relation to a charge for an offence applies in respect of a violation to the extent that it is not inconsistent with this Act.

Collection of Penalties

Marginal note:Debts to Her Majesty

• 73.25 (1) A penalty and any interest due in respect of the penalty constitute a debt due to Her Majesty in right of Canada and may be recovered in the Federal Court.

• Marginal note:Time limit

  (2) No proceedings to recover a debt referred to in subsection (1) may be commenced after the period of five years that begins on the day on which the debt became payable.

• Marginal note:Proceeds payable to Receiver General

  (3) A penalty paid or recovered under this Part is payable to and shall be remitted to the Receiver General.

Marginal note:Certificate

• 73.26 (1) The unpaid amount of any debt referred to in subsection 73.25(1) may be certified by the Director.

• Marginal note:Registration in Federal Court

  (2) Registration in the Federal Court of a certificate made under subsection (1) has the same effect as a judgment of that Court for a debt of the amount specified in the certificate and all related registration costs.

Marginal note:Collecting penalties

• 73.27 (1) The Centre may, for the purpose of collecting penalties proposed in a notice of violation issued under subsection 73.13(2) or imposed under this Part, enter into a contract, memorandum of understanding or other agreement with a department or an agency of the Government of Canada or the government of a province and with any other person or organization, inside Canada, in its own name or in the name of Her Majesty in right of Canada.

• Marginal note:Disclosure of information

  (2) The Centre may disclose to the other party of the contract, memorandum or agreement any information required to collect the penalties.

• Marginal note:Use of information

  (3) The other party shall not use the information referred to in subsection (2) for any purpose other than collecting the penalties.

Marginal note:Interest

73.28 If a person or entity fails to remit a penalty payable under this Part to the Receiver General, the person or entity shall pay to the Receiver General interest on the amount of the penalty. The interest shall be calculated at the prescribed rate for the period beginning on the first day after the day on which the amount was required to be paid and ending on the day on which the amount is paid.

Marginal note:Garnishment

• 73.29 (1) If the Director is of the opinion that a person or entity is or is about to become liable to make a payment to a person or entity liable to pay a penalty or interest under this Part, the Director may, by written notice, require the first person or entity to pay without delay to the Receiver General, on account of the second person’s or entity’s liability, all or part of the money otherwise payable to the second person or entity.

• Marginal note:Applicability to future payments

  (2) If the Director requires an employer to pay to the Receiver General money otherwise payable to an employee as remuneration,

  • (a) the requirement is applicable to all future payments of remuneration until the liability is satisfied; and

  • (b) the employer shall pay to the Receiver General out of each payment of remuneration the amount that the Director stipulates in the notice.

• Marginal note:Discharge of liability

  (3) The receipt of the Director is a good and sufficient discharge of the original liability to the extent of the payment.

Marginal note:Write-off

• 73.3 (1) The Director may write off in whole or in part a penalty or interest payable by a person or entity under this Part.

• Marginal note:Effect of write-off

  (2) The writing off of a penalty or interest under this section does not affect any right of Her Majesty to collect or recover the penalty or interest.

General Provisions

Marginal note:Evidence

73.4 In a proceeding in respect of a violation or a prosecution for an offence, a notice of violation purporting to be issued under subsection 73.13(2), a notice of decision purporting to be issued under subsection 73.15(4) or 73.19(4), a notice of default purporting to be issued under subsection 73.18(1) or a certificate purporting to be made under subsection 73.26(1) is admissible in evidence without proof of the signature or official character of the person appearing to have signed it.

Marginal note:Time limit

• 73.5 (1) No proceedings in respect of a violation may be commenced later than two years after the subject-matter of the proceedings became known to the Centre.

• Marginal note:Certificate of Centre

  (2) A document appearing to have been issued by the Centre, certifying the day on which the subject-matter of any proceedings became known to the Centre, is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and is, in the absence of evidence to the contrary, proof of the matter asserted in it.

PART 5Offences and Punishment

Marginal note: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

  • (a) on summary conviction, to a fine of not more than $250,000 or to imprisonment for a term of not more than two years less a day, or to both; or

  • (b) on conviction on indictment, to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both.

• Marginal note:Offence — contravention of a directive

  (2) Every person or entity that knowingly contravenes section 11.43, except insofar as it relates to any required reporting measure as contemplated by paragraph 11.42(2)(e) and specified in a directive issued under subsection 11.42(1), is guilty of an offence and liable

  • (a) on summary conviction, to a fine of not more than $250,000 or to imprisonment for a term of not more than two years less a day, or to both; or

  • (b) on conviction on indictment, to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both.

Marginal note:Reporting and regulations — sections 7 and 7.1 and subsection 11.49(1)

• 75 (1) Every person or entity that contravenes section 7 or 7.1 or any regulation made under subsection 11.49(1) is guilty of an offence and liable

  • (a) on summary conviction, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than two years less a day, or to both; or

  • (b) on conviction on indictment, to a fine of not more than $2,000,000 or to imprisonment for a term of not more than five years, or to both.

• Marginal note:Defence for employees

  (2) No employee of a person or an entity shall be convicted of an offence under subsection (1) in respect of a transaction or proposed transaction that they reported to their superior or in respect of property whose existence they reported to their superior.

Marginal note:Disclosure

76 Every person or entity that contravenes section 8

• (a) is guilty of an offence punishable on summary conviction; or

• (b) is guilty of an indictable offence and liable to imprisonment for a term of not more than two years.

Marginal note:Reporting — section 9

• 77 (1) Every person or entity that contravenes subsection 9(1) or (3) is guilty of an offence and liable on summary conviction to a fine of not more than $1,000,000.

• Marginal note:Reporting — section 11.43

  (2) Every person or entity that contravenes section 11.43, only insofar as it relates to any required reporting measure as contemplated by paragraph 11.42(2)(e) and specified in a directive issued under subsection 11.42(1), is guilty of an offence and liable on summary conviction to a fine of not more than $1,000,000.

Marginal note:Registry

77.1 Every person or entity that provides information to the Centre under section 11.12, 11.13, 11.14 or 11.3 and that knowingly makes any false or misleading statement or knowingly provides false or misleading information to a person responsible for carrying out functions under this Act is guilty of an offence and liable

• (a) on summary conviction, to a fine of not more than $250,000 or to imprisonment for a term of not more than two years less a day, or to both; or

• (b) on conviction on indictment, to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both.

Marginal note:Threats and retaliation against employees

• 77.2 (1) Every person or entity that is an employer, that acts on behalf of an employer or that is in a position of authority in respect of an employee commits an offence if the person or entity takes a disciplinary measure against, demotes, terminates or otherwise adversely affects the employment of an employee, or threatens to do so,

  • (a) with the intent to compel the employee to abstain from fulfilling an obligation under this Act; or

  • (b) with the intent to retaliate against the employee because the employee has fulfilled or taken steps to fulfill any such obligation.

• Marginal note:Punishment

  (2) Every person or entity that commits an offence under subsection (1)

  • (a) is guilty of an offence punishable on summary conviction; or

  • (b) is guilty of an indictable offence and liable to imprisonment for a term of not more than five years.

Marginal note:Offence — structured financial transactions

• 77.3 (1) Every person or entity commits an offence that directly or indirectly undertakes, or attempts to undertake, a structured financial transaction.

• Marginal note:Structured financial transactions

  (2) For the purpose of subsection (1), a structured financial transaction is a series of financial transactions that

  • (a) cause a person or entity referred to in section 5 to be in receipt of cash or virtual currency or involve the initiation of an international electronic funds transfer or the making of a disbursement, in any of the following transactions:

    • (i) the redemption of chips, tokens or plaques,

    • (ii) a front cash withdrawal,

    • (iii) a safekeeping withdrawal,

    • (iv) an advance on any form of credit, including an advance by a marker or a counter cheque,

    • (v) a payment on a bet, including a slot jackpot,

    • (vi) a payment to a client of funds received for credit to that client or another client,

    • (vii) the cashing of a cheque or the redemption of another negotiable instrument,

    • (viii) a reimbursement to a client of travel or entertainment expenses;

  • (b) would, if they occurred as a single financial transaction, require a person or entity referred to in section 5 to report it to the Centre; and

  • (c) are undertaken with the intent that a person or entity referred to in section 5 will not report a financial transaction to the Centre.

• Marginal note:Punishment

  (3) Every person or entity that is guilty of an offence under subsection (1) is liable

  • (a) on summary conviction, to a fine or imprisonment for a term of not more than two years less a day, or to both; or

  • (b) on conviction on indictment, to a fine or imprisonment for a term of not more than five years, or to both.