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

Act current to 2019-08-28 and last amended on 2019-08-01. Previous Versions

PART 4.1Notices of Violation, Compliance Agreements and Penalties (continued)

Compliance Agreements

Marginal note:Contents of compliance agreement

  •  (1) When the Centre offers to enter into a compliance agreement under paragraph 73.13(2)(b), the agreement shall

    • (a) identify the violation and provide that the person or entity will comply with the provision to which the violation relates within the period, and be subject to the terms and conditions, specified in the agreement; and

    • (b) set out the amount that the person or entity will have to pay as the reduced penalty for the violation if the compliance agreement is entered into.

  • Marginal note:Refusal to enter into agreement

    (2) The person or entity shall enter into the compliance agreement and pay the reduced penalty within 10 days after receiving the notice of violation and, if it does not do so, the person or entity is deemed to have refused to enter into the agreement, and the full penalty proposed in the notice of violation and section 73.15 apply.

  • Marginal note:Extension of period

    (3) The Centre may extend the period referred to in paragraph (1)(a) if the Centre is satisfied that the person or entity with which the compliance agreement was entered into is unable to comply with it within that period for reasons beyond their control.

  • 2006, c. 12, s. 40

Marginal note:Compliance agreement complied with

 If the Centre considers that a compliance agreement has been complied with, the Centre shall serve a notice to that effect on the person or entity and, on the service of the notice, no further proceedings may be taken against the person or entity with respect to the violation.

  • 2006, c. 12, s. 40

Marginal note:Compliance agreement not complied with

  •  (1) If the Centre considers that a compliance agreement has not been complied with, the Centre may issue and serve a notice of default on the person or entity to the effect that the person or entity is liable to pay the remainder of the penalty set out in the notice of violation and a prescribed additional penalty.

  • Marginal note:Contents of notice

    (2) A notice of default shall include the date, which shall be 30 days after the day on which the notice is served, on or before which an application for review may be filed and particulars of how the application may be filed.

  • Marginal note:No set-off or compensation

    (3) On the service of a notice of default, the person or entity served has no right of set-off or compensation against any amount that they spent under the compliance agreement.

  • 2006, c. 12, s. 40

Marginal note:Application for review

  •  (1) A person or entity served with a notice of default under subsection 73.18(1) may, on or before the date specified in the notice or within any further time that the Centre allows, file an application for review by the Director.

  • Marginal note:Review

    (2) The Director may confirm the Centre’s decision or decide that the person or entity has complied with the compliance agreement.

  • Marginal note:Failure to pay or apply for review

    (3) A person or entity that neither pays the amounts set out in the notice of default nor files an application for review in accordance with the notice is deemed to have not complied with the compliance agreement and shall pay the amounts without delay.

  • Marginal note:Notice of decision and right of appeal

    (4) The Director shall cause notice of the decision to be issued and served on the person or entity together with, in the case of a serious violation or very serious violation, notice of the right of appeal under subsection 73.21(1).

  • 2006, c. 12, s. 40

Marginal note:Deemed violation

 A person or entity that enters into a compliance agreement is deemed to have committed the violation in respect of which the agreement was entered into.

  • 2006, c. 12, s. 40

Appeal to Federal Court

Marginal note:Right of appeal

  •  (1) A person or entity on which a notice of a decision made under subsection 73.15(2) or 73.19(2) is served, in respect of a serious violation or very serious violation, may, within 30 days after the day on which the notice is served, or within any longer period that the Court allows, appeal the decision to the Federal Court.

  • Marginal note:Appeal — no notice of decision

    (2) If the Director does not cause notice of a decision to be issued and served under subsection 73.15(4) within 90 days after the completion of representations made under subsection 73.15(2), the person or entity that made the representations may appeal the penalty proposed in the notice of violation to the Federal Court, within 30 days after the day on which the 90-day period expires.

  • Marginal note:Appeal — no notice of decision

    (3) If the Director does not cause notice of a decision to be issued and served under subsection 73.19(4) within 90 days after the day on which the Director received the application for review under subsection 73.19(1), the person or entity that filed the application may appeal to the Federal Court the amounts set out in the notice of default referred to in subsection 73.18(1), within 30 days after the day on which the 90-day period expires.

  • Marginal note:Precautions against disclosure

    (4) In an appeal, the Court shall take every reasonable precaution, including, when appropriate, conducting hearings in private, to avoid the disclosure by the Court or any person or entity of information referred to in subsection 55(1).

  • Marginal note:Exception

    (4.1) Subsection (4) does not apply to the following information:

    • (a) the name of the person or entity that was served with the notice of violation;

    • (b) the nature of the violation; and

    • (c) the amount of the penalty imposed.

  • Marginal note:Powers of Court

    (5) On an appeal, the Court may confirm, set aside or, subject to any regulations made under paragraph 73.1(1)(c), vary the decision of the Director.

  • 2006, c. 12, s. 40
  • 2019, c. 29, s. 110

Publication

Marginal note:Publication

 In the following cases, the Centre shall make public, as soon as feasible, the nature of the violation or the default, as the case may be, the name of the person or entity and the amount of the applicable penalty:

  • (a) a person or entity is deemed to have committed a violation under subsection 73.15(1) or (3);

  • (b) a person or entity is served with a notice of a decision made under subsection 73.15(2) indicating that they have committed a violation;

  • (c) a person or entity enters into a compliance agreement with the Centre;

  • (d) a person or entity is issued a notice of default in respect of a compliance agreement they have entered into with the Centre and they

    • (i) pay the amount they are liable to pay under subsection 73.18(1),

    • (ii) are served with a notice of a decision made under subsection 73.19(2) confirming the Centre’s decision that the compliance agreement has not been complied with, or

    • (iii) are deemed under subsection 73.19(3) to have not complied with the compliance agreement.

  • 2006, c. 12, s. 40
  • 2019, c. 29, s. 111

Rules about Violations

Marginal note:Violations not offences

  •  (1) For greater certainty, a violation is not an offence.

  • Marginal note:Non-application of section 126 of the Criminal Code

    (2) Section 126 of the Criminal Code does not apply in respect of any obligation or prohibition under this Act whose contravention is a violation under this Act.

  • 2006, c. 12, s. 40

Marginal note:Due diligence available

  •  (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.

  • 2006, c. 12, s. 40
 
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