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

Marginal note:Revocation — contravention

11.171 The Centre may revoke the registration of a person or entity that contravenes subsection 62(2) or a notice served under section 63.1 and shall, without delay, inform the person or entity of the revocation.

Marginal note:Written reasons

11.18 Any decision to deny an application or revoke a registration must be in writing with reasons.

Marginal note:Renewal of registration

11.19 A registered person or entity shall renew their registration in the prescribed form and manner every two years or within any longer prescribed period.

Marginal note:Cessation of activity

11.2 When a registered person or entity ceases an activity for which they are registered, they shall notify the Centre in the prescribed form and manner within 30 days after the day on which they cease the activity.

Review

Marginal note:Application for review by Director

• 11.3 (1) Within 30 days after the day on which the person or entity receives a decision to deny their application or revoke their registration, the person or entity may apply in writing to the Director of the Centre for a review of the decision and may provide any information in support of their application for review.

• Marginal note:Review by Director

  (2) The Director shall review the decision as soon as possible and shall take into consideration any information that the Director deems relevant.

• Marginal note:Decision of Director

  (3) The Director may either confirm the decision or substitute his or her own decision, and shall, without delay, serve notice of the decision with reasons on the person or entity, together with notice of the right of appeal under subsection 11.4(1).

Appeal to Federal Court

Marginal note:Appeal

• 11.4 (1) A person or entity that applied for a review under subsection 11.3(1) may appeal the Director’s decision to the Federal Court within 30 days after the day on which the decision is served, or within any longer period that the Court allows.

• Marginal note:Appeal

  (2) If the Director does not make a decision within 90 days after the day on which the Director received the application for review, the applicant may appeal to the Federal Court, within 30 days after the day on which the 90-day period expires, the decision to deny the application for registration or revoke the registration.

• Marginal note:Precautions against disclosure

  (3) 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). However, the Court is not required to take those precautions with respect to the appellant’s name and operating name.

PART 1.1Protection of Canada’s Financial System

Interpretation

Marginal note: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).

Ministerial Directive

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.

• Marginal note:Measures

  (2) The measures specified in a directive may include provision for the following matters:

  • (a) the verification of the identity of any person or entity;

  • (b) the exercise of customer due diligence, including ascertaining the source of funds or of virtual currency in any financial transaction, the purpose of any financial transaction or the beneficial ownership or control of any entity;

  • (c) the monitoring of any financial transaction or any account;

  • (d) the keeping of any records;

  • (e) the reporting of any financial transaction to the Centre; and

  • (f) compliance with this Part and Part 1.

• Marginal note:Non-application to legal counsel

  (2.1) A requirement in a directive to take a reporting measure as contemplated by paragraph (2)(e) does not apply to persons or entities referred to in paragraph 5(i) or (j) who are, as the case may be, legal counsel or legal firms, when they are providing legal services.

• Marginal note:Director to communicate directive

  (3) The Minister may require the Director of the Centre to communicate a directive in accordance with the Minister’s instructions.

• Marginal note:Relevant circumstances

  (4) Before issuing a directive, the Minister may take into account any circumstance that the Minister considers relevant. However, the Minister may only issue a directive if

  • (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;

  • (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;

  • (c) there is a risk that a foreign state, a foreign entity or a person or entity referred to in section 5 may be facilitating the financing of threats to the security of Canada 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; or

  • (d) there is a risk that a foreign state, a foreign entity or a person or entity referred to in section 5 may be facilitating sanctions evasion 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.

• Marginal note:Terms and conditions

  (5) The Minister may impose any terms and conditions in the directive that the Minister considers appropriate.

Marginal note:Duty to comply

11.43 The person or entity to which a directive under this Part applies shall comply with it within the time and in the manner specified in the directive.

Marginal note:Foreign branches and subsidiaries

• 11.44 (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 ensure that its foreign branches, and that 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, comply with any directive issued under this Part, except with respect to any reporting measure as contemplated by paragraph 11.42(2)(e), 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.

• Marginal note:Records and reporting

  (2) If compliance with a directive by a branch or a subsidiary 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.

11.45 [Repealed, 2014, c. 20, s. 269]

Marginal note:Inconsistency

11.46 In the event of any inconsistency or conflict between a directive issued under this Part and a regulation made under this Act, the directive prevails to the extent of the inconsistency or conflict.

Marginal note:Statutory Instruments Act

11.47 A directive issued under this Part is not a statutory instrument within the meaning of the Statutory Instruments Act. However, it must be published in the Canada Gazette.

Marginal note:Review

• 11.48 (1) The Minister shall, at least every three years after the issuance of a directive under this Part, review that directive to determine whether it is advisable, in the Minister’s opinion, to amend or revoke it.

• Marginal note:Relevant circumstance

  (2) In reviewing a directive, the Minister may take into account any circumstance that the Minister considers relevant.

Limitation and Prohibition of Financial Transactions

Marginal note:Regulations — limitation and prohibition

• 11.49 (1) The Governor in Council may, on the recommendation of the Minister, make regulations

  • (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);

  • (b) prescribing terms and conditions with respect to a limitation or prohibition referred to in paragraph (a); and

  • (c) excluding any transaction or any class of transactions from a limitation or prohibition imposed under paragraph (a).

• Marginal note:Consultation with the Minister of Foreign Affairs

  (2) The Minister shall consult with the Minister of Foreign Affairs before making a recommendation.

• Marginal note:Relevant circumstances

  (3) The Minister may, before making a recommendation, take into account any circumstance that the Minister considers relevant. However, the Minister may only make a recommendation

  • (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);

  • (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; or

  • (c) if the risk of sanctions evasion being facilitated by or 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.

Marginal note:Review

• 11.5 (1) The Minister shall, at least every three years after the making of a regulation under this Part, review that regulation to determine whether it is advisable, in the Minister’s opinion, that it be amended or repealed.

• Marginal note:Relevant circumstances

  (2) In reviewing a regulation, the Minister may take into account any circumstance that the Minister considers relevant.

Marginal note:Foreign branches

11.6 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 ensure that its foreign branches comply with any regulation made under subsection 11.49(1) to the extent it is permitted by, and does not conflict with, the laws of the foreign state in which the branch is located.

Marginal note:Ministerial permit

• 11.7 (1) The Governor in Council may, by order, authorize the Minister to issue to any person or entity referred to in section 5 a permit to enter into, undertake or facilitate a financial transaction or class of financial transactions, specified by the Minister, that is otherwise limited or prohibited by regulation.

• Marginal note:Terms and conditions

  (2) A permit may be subject to any terms and conditions that the Minister considers appropriate.

• Marginal note:Amendment, etc.

  (3) The Minister may amend, suspend, revoke or reinstate a permit.