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Budget Implementation Act, 2017, No. 1 (S.C. 2017, c. 20)

Assented to 2017-06-22

PART 4Various Measures (continued)

DIVISION 192000, c. 17; 2001, c. 41, s. 48Proceeds of Crime (Money Laundering) and Terrorist Financing Act (continued)

Amendments to the Act (continued)

424 Section 11.44 of the Act is replaced by the following:

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.

  • 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.

426 Section 11.6 of the Act is replaced by the following:

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.

427 Subsection 30(1) of the Act is replaced by the following:

Marginal note:Appeal to Federal Court

  • 30 (1) A person who makes a request under section 25 for a decision of the Minister may, within 90 days after being notified of the decision, appeal the decision by way of an action in the Federal Court in which the person is the plaintiff and the Minister is the defendant.

428 Paragraph 53.3(1)(c) of the Act is replaced by the following:

  • (c) a government of a foreign state, an international organization or an institution or agency of a foreign state that has powers and duties similar to those of the Centre, with which the Minister or the Centre has entered into a written agreement or arrangement under subsection 56(1) or (2), if the agreement or arrangement so provides.

429 Subsection 55(7) of the Act is amended by striking out “and” at the end of paragraph (p) and by adding the following after paragraph (q):

  • (r) the name, address, electronic mail address and telephone number of every trustee and every known beneficiary and settlor of a trust referred to in paragraph (a);

  • (s) the name, address, electronic mail address and telephone number of each person who owns or controls, directly or indirectly, 25% or more of an entity referred to in paragraph (a), other than a trust; and

  • (t) information respecting the ownership, control and structure of an entity referred to in paragraph (a).

  • 430 (1) Subsection 55.1(1) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d):

    • (e) the Department of National Defence and the Canadian Forces, if the Centre also has reasonable grounds to suspect that the information is relevant to such a threat as it relates to that Department or the Canadian Forces.

  • (2) Subsection 55.1(3) of the Act is amended by striking out “and” at the end of paragraph (p) and by adding the following after paragraph (q):

    • (r) the name, address, electronic mail address and telephone number of every trustees and every known beneficiary and settlor of a trust referred to in paragraph (a);

    • (s) the name, address, electronic mail address and telephone number of each person who owns or controls, directly or indirectly, 25% or more of an entity referred to in paragraph (a), other than a trust; and

    • (t) information respecting the ownership, control and structure of an entity referred to in paragraph (a).

431 Subsection 56(1) of the Act is replaced by the following:

Marginal note:Agreements and arrangements

  • 56 (1) The Minister may enter into an agreement or arrangement, in writing, with the government of a foreign state or an international organization regarding the exchange, between the Centre and any institution or agency of that state or organization that has powers and duties similar to those of the Centre, of information that the Centre, institution or agency has reasonable grounds to suspect would be relevant to investigating or prosecuting a money laundering offence or a terrorist activity financing offence, or an offence that is substantially similar to either offence.

  • 432 (1) The portion of subsection 56.1(1) of the Act before paragraph (a) is replaced by the following:

    Marginal note:Disclosure to foreign agencies

    • 56.1 (1) The Centre may disclose designated information to an institution or agency of a foreign state or of an international organization that has powers and duties similar to those of the Centre, if

  • (2) Subsection 56.1(5) of the Act is amended by striking out “and” at the end of paragraph (o) and by adding the following after paragraph (p):

    • (q) the name, address, electronic mail address and telephone number of every trustee and every known beneficiary and settlor of a trust referred to in paragraph (a);

    • (r) the name, address, electronic mail address and telephone number of each person who owns or controls, directly or indirectly, 25% or more of an entity referred to in paragraph (a), other than a trust; and

    • (s) information respecting the ownership, control and structure of an entity referred to in paragraph (a).

433 The portion of subsection 65.1(1) of the Act before paragraph (a) is replaced by the following:

Marginal note:Agreements and arrangements

  • 65.1 (1) The Centre may enter into an agreement or arrangement, in writing, with an institution or agency of a foreign state that has powers and duties, similar to those of the Centre, with respect to verifying compliance with requirements to identify persons or entities, keep records or make reports, or with an international organization made up of such institutions or agencies, that stipulates

434 Paragraphs 73(1)(a) to (z.1) of the Act are replaced by the following:

  • (a) respecting dealing in virtual currencies;

  • (b) respecting the keeping of records referred to in section 6;

  • (c) respecting the verification of the identity of persons and entities referred to in section 6.1;

  • (d) respecting the reports to the Centre referred to in section 7 and subsections 7.1(1) and 9(1);

  • (e) respecting the determination of whether a person is a person described in any of paragraphs 9.3(1)(a) to (c);

  • (f) respecting the measures referred to in subsections 9.3(2) and (2.1);

  • (g) respecting the measures referred to in subsection 9.4(1);

  • (h) respecting the program referred to in subsection 9.6(1);

  • (i) respecting the special measures referred to in subsection 9.6(3);

  • (j) respecting the registration referred to in sections 11.1 to 11.2;

  • (k) respecting the reports referred to in subsection 12(1); and

  • (l) prescribing anything that by this Act is to be prescribed.

435 Subsection 73.15(2) of the French version of the Act is replaced by the following:

  • Marginal note:Présentation d’observations

    (2) Si des observations sont présentées conformément au procès-verbal, le directeur détermine, selon la prépondérance des probabilités, la responsabilité de l’intéressé. Le cas échéant, il peut, sous réserve des règlements pris en vertu de l’alinéa 73.1(1)c), imposer la pénalité mentionnée au procès-verbal ou une pénalité réduite, ou encore n’imposer aucune pénalité.

2014, c. 20Economic Action Plan 2014 Act, No. 1

Amendments to the Act

  • 436 (1) Subsection 256(2) of the French version of the Economic Action Plan 2014 Act, No. 1 is amended by replacing the portion of paragraph 5(h) before subparagraph (i) that it enacts with the following:

    • h) les personnes et entités qui ont un établissement au Canada et qui se livrent à la fourniture de l’un des services suivants :

  • (2) Subsection 256(2) of the Act is amended by replacing the subparagraphs 5(h)(iv) and (v) that it enacts with the following:

    • (iv) dealing in virtual currencies, or

    • (v) any prescribed service;

  • (3) Subsection 256(2) of the Act is amended by replacing the portion of paragraph 5(h.1) before subparagraph (i) that it enacts with the following:

    • (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:

  • (4) Subsection 256(2) of the Act is amended by replacing the subparagraphs 5(h.1)(iv) and (v) that it enacts with the following:

    • (iv) dealing in virtual currencies, or

    • (v) any prescribed service;

  • 437 (1) Section 258 of the Act is amended by replacing the subsections 9.3(2) and (2.1) that it enacts with the following:

    • Marginal note:Measures — politically exposed foreign persons

      (2) If the person or entity determines that it is dealing with a person described in paragraph (1)(a), the person or entity shall take the measures referred to in the regulations.

    • Marginal note:Measures — other persons

      (2.1) If the person or entity determines that it is dealing with a person described in paragraph (1)(b) or (c) and considers, based on an assessment referred to in subsection 9.6(2), that the person poses a high risk of committing a money laundering offence or a terrorist activity financing offence, the person or entity shall take the measures referred to in the regulations.

  • (2) Section 258 of the Act is amended by replacing the definition head of an international organization in the subsection 9.3(3) that it enacts with the following:

    head of an international organization

    head of an international organization means a person who, at a given time, holds — or has held within a prescribed period before that time — the office or position of head of an international organization that is established by the governments of states or the head of an institution of any such organization. (dirigeant d’une organisation internationale)

2000, c. 17; 2001, c. 41, s. 48Related Amendment to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

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:

Marginal note: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.

  • Marginal note: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.

Coordinating Amendments

Marginal note:2014, c. 20

  • 439 (1) In this section, other Act means the Economic Action Plan 2014 Act, No. 1.

  • (2) If subsection 256(2) of the other Act comes into force before section 436 of this Act, then

  • (3) If section 436 of this Act comes into force on the same day as subsection 256(2) of the other Act, then that section 436 is deemed to have come into force before that subsection 256(2).

  • (4) If section 258 of the other Act comes into force before section 437 of this Act, then

    • (a) that section 437 is deemed never to have come into force and is repealed;

    • (b) subsections 9.3(2) and (2.1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act are replaced by the following:

      • Marginal note:Measures — politically exposed foreign persons

        (2) If the person or entity determines that it is dealing with a person described in paragraph (1)(a), the person or entity shall take the measures referred to in the regulations.

      • Marginal note:Measures — other persons

        (2.1) If the person or entity determines that it is dealing with a person described in paragraph (1)(b) or (c) and considers, based on an assessment referred to in subsection 9.6(2), that the person poses a high risk of committing a money laundering offence or a terrorist activity financing offence, the person or entity shall take the measures referred to in the regulations.

    • (c) the definition head of an international organization in subsection 9.3(3) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:

      head of an international organization

      head of an international organization means a person who, at a given time, holds — or has held within a prescribed period before that time — the office or position of head of an international organization that is established by the governments of states or the head of an institution of any such organization. (dirigeant d’une organisation internationale)

  • (5) If section 437 of this Act comes into force on the same day as section 258 of the other Act, then that section 437 is deemed to have come into force before that section 258.

  • (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:

    Marginal note: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.

  • (7) If section 263 of the other Act comes into force before section 421 of this Act, then

    • (a) that section 421 is deemed never to have come into force and is repealed; and

    • (b) 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;

  • (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;

  • (9) If section 421 of this Act comes into force on the same day as section 263 of the other Act, then that section 421 is deemed to have come into force before that section 263 and subsection (8) applies as a consequence.

  • (10) If section 434 of this Act comes into force before subsection 294(1) of the other Act, then that subsection 294(1) is repealed.

  • (11) If section 434 of this Act comes into force on the same day as subsection 294(1) of the other Act, then that subsection 294(1) is deemed to have come into force before that section 434.

  • (12) If section 434 of this Act comes into force before subsection 294(3) of the other Act, then that subsection 294(3) is repealed.

  • (13) If section 434 of this Act comes into force on the same day as subsection 294(3) of the other Act, then that subsection 294(3) is deemed to have come into force before that section 434.

  • (14) If section 434 of this Act comes into force before subsection 294(5) of the other Act, then that subsection 294(5) is repealed.

  • (15) If section 434 of this Act comes into force on the same day as subsection 294(5) of the other Act, then that subsection 294(5) is deemed to have come into force before that section 434.

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