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

Act current to 2022-11-16 and last amended on 2021-06-29. Previous Versions

PART 1Record Keeping, Verifying Identity, Reporting of Suspicious Transactions and Registration (continued)

Reporting and Other Requirements (continued)

Marginal note:Information exchange between affiliated entities

  •  (1) Every entity referred to in any of paragraphs 5(a) to (g) that is affiliated with an entity referred to in those paragraphs or with a foreign entity that carries out activities similar to those of entities referred to in those paragraphs shall develop and apply policies and procedures related to the exchange of information between the entity and those affiliated entities for the purpose of detecting or deterring a money laundering offence or a terrorist activity financing offence or of assessing the risk of such an offence.

  • Marginal note:Affiliation

    (2) For the purposes of subsection (1), an entity is affiliated with another entity if one of them is wholly owned by the other, if both are wholly owned by the same entity or if their financial statements are consolidated.

  • 2006, c. 12, s. 8
  • 2010, c. 12, s. 1866
  • 2014, c. 20, s. 260

Marginal note:Immunity

 No criminal or civil proceedings lie against a person or an entity for making a report in good faith under section 7, 7.1 or 9, or for providing the Centre with information about suspicions of money laundering or of the financing of terrorist activities.

  • 2000, c. 17, s. 10
  • 2001, c. 41, s. 53

Marginal note:Non-application to legal counsel

 Sections 7 and 9 do 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.

  • 2006, c. 12, s. 9
  • 2010, c. 12, s. 1867(F)

Marginal note:Solicitor-client privilege or professional secrecy

 Nothing in this Act requires a legal counsel to disclose any communication that is subject to solicitor-client privilege or, in Quebec, the professional secrecy of legal counsel.

  • 2000, c. 17, s. 11
  • 2010, c. 12, s. 1868(E)
  • 2013, c. 40, ss. 279, 281(E)

Registration

Application and Revocation

Marginal note:Registration requirement

 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.

  • 2006, c. 12, s. 10
  • 2014, c. 20, s. 261
  • 2017, c. 20, ss. 419, 439

Marginal note:Ineligible for registration

  •  (1) The following persons or entities are not eligible for registration with the Centre:

    • (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;

    • (b) a listed entity as defined in subsection 83.01(1) of the Criminal Code;

    • (b.1) a person or entity that is subject to a prohibition on financial or related services under the Special Economic Measures Act;

    • (b.2) a foreign national, as defined in section 2 of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law), who is the subject of an order or regulation made under paragraph 4(1)(a) of that Act or whose property is the subject of an order made under paragraph 4(1)(b) of that Act;

    • (b.3) a politically exposed foreign person, as defined in subsection 2(1) of the Freezing Assets of Corrupt Foreign Officials Act, whose property is the subject of an order or regulation under paragraph 4(1)(a) or an order under paragraph 4(1)(b) of that Act;

    • (c) a person or entity that has been convicted of any of 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, 99 and 100, subsection 163.1(3) and sections 279.01 to 279.02, 286.2, 346, 354 and 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,

      • (iv.1) an offence under section 117 or 118 of the Immigration and Refugee Protection Act, an offence under section 131 of that Act in relation to an offence under section 117 or 118 of that Act, or an offence under the laws of a foreign state that is substantially similar to such an offence, or

      • (v) a conspiracy or an attempt to commit, being an accessory after the fact in relation to, or any counselling in relation to, an offence referred to in subparagraphs (i) to (iv);

    • (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:

      • (i) Part X of the Criminal Code,

      • (ii) the Controlled Drugs and Substances Act, except for the offence under subsection 4(1) of that Act,

      • (ii.1) the Cannabis Act, except for an offence under subsection 8(1) of that Act,

      • (iii) section 39, 44.2, 44.3, 48, 50.2 or 50.3 of the Food and Drugs Act, as that section read immediately before May 14, 1997,

      • (iv) section 4, 5, 6, 19.1 or 19.2 of the Narcotic Control Act, chapter N-1 of the Revised Statutes of Canada, 1985, as that section read immediately before May 14, 1997,

      • (v) section 159 of the Customs Act, or

      • (vi) subsection 239(1) or (1.1) of the Income Tax Act;

    • (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;

    • (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

    • (f) any prescribed person or entity.

  • Marginal note:Revocation of registration

    (2) If the Centre becomes aware that a person or entity referred to in subsection (1) is registered, the Centre shall revoke the registration and shall, without delay, inform the person or entity of the revocation.

  • 2006, c. 12, s. 11
  • 2014, c. 20, s. 262
  • 2017, c. 20, s. 420
  • 2018, c. 16, s. 183
  • 2021, c. 23, s. 162

Marginal note:Application for registration

  •  (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 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;

    • (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.

  • Marginal note:Agents, mandataries and branches

    (2) Any agent, mandatary or branch included on the list is not required to register with the Centre when they are acting in that capacity.

  • 2006, c. 12, s. 11
  • 2014, c. 20, s. 263
  • 2017, c. 20, ss. 421, 439

Marginal note:Changes to information

  •  (1) An applicant or a person or entity registered with the Centre shall notify the Centre, in the prescribed form and manner, of any change to the information provided in the application or of any newly obtained information that should have been included in the application within 30 days after the day on which the applicant or the registered person or entity becomes aware of the change or obtains the new information.

  • Marginal note: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.

Marginal note:Clarifications — applicant

  •  (1) An applicant shall provide the Centre, in the prescribed form and manner, with any clarifications that the Centre may request in respect of the information described in subsection 11.12(1) within 30 days after the day on which the request is made.

  • Marginal note:Denial of application

    (2) If the applicant does not provide the Centre with the clarifications within the 30 days, the Centre may deny the application and shall, without delay, inform the applicant of the denial.

Marginal note:Notice of registration

 The applicant is registered with the Centre once the Centre adds the applicant to the registry referred to in subsection 54.1(1). The Centre shall, without delay, send the applicant notice of their registration.

  • 2006, c. 12, s. 11

Marginal note:Denial of application

 The Centre shall deny the application of any person or entity referred to in subsection 11.11(1) and shall, without delay, inform the applicant of the denial.

  • 2006, c. 12, s. 11

Marginal note:Clarifications — registrant

  •  (1) A registered person or entity shall provide the Centre, in the prescribed form and manner, with any clarifications that the Centre may request in respect of the information described in subsection 11.12(1) within 30 days after the day on which the request is made.

  • Marginal note:Revocation of registration

    (2) If the registered person or entity does not provide the Centre with the clarifications within the 30 days, the Centre may revoke the registration and shall, without delay, inform the person or entity of the revocation.

Marginal note:Written reasons

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

  • 2006, c. 12, s. 11

Marginal note:Renewal of registration

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

  • 2006, c. 12, s. 11

Marginal note:Cessation of activity

 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.

  • 2006, c. 12, s. 11

Review

Marginal note:Application for review by Director

  •  (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).

  • 2006, c. 12, s. 11
 
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