Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (SOR/2002-184)

Regulations are current to 2019-06-20 and last amended on 2017-06-17. Previous Versions

Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

SOR/2002-184

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT

Registration 2002-05-09

Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

P.C. 2002-781 2002-05-09

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 73(1)Footnote a of the Proceeds of Crime (Money Laundering) and Terrorist Financing ActFootnote b, hereby makes the annexed Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

Interpretation

[SOR/2007-293, s. 5(F)]
  •  (1) The following definitions apply in the Act and in these Regulations.

    casino

    casino means a government, organization, board or operator that is referred to in any of paragraphs 5(k) to (k.3) of the Act. (casino)

    shell bank

    shell bank means a foreign financial institution that does not have a physical presence in any country, unless it is controlled by or is under common control with a depository institution, credit union or foreign financial institution that maintains a physical presence in Canada or in a foreign country. (banque fictive)

  • (2) The following definitions apply in these Regulations.

    accountant

    accountant means a chartered accountant, a certified general accountant or a certified management accountant. (comptable)

    accounting firm

    accounting firm means an entity that is engaged in the business of providing accounting services to the public and has at least one partner, employee or administrator that is an accountant. (cabinet d’expertise comptable)

    Act

    Act means the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. (Loi)

    annuity

    annuity has the same meaning as in subsection 248(1) of the Income Tax Act. (rente)

    British Columbia notary corporation

    British Columbia notary corporation means an entity that carries on the business of providing notary services to the public in the province of British Columbia in accordance with the Notaries Act, R.S.B.C. 1996, c. 334. (société de notaires de la Colombie-Britannique)

    British Columbia notary public

    British Columbia notary public means a person who is a member of the Society of Notaries Public of British Columbia. (notaire public de la Colombie-Britannique)

    business relationship

    business relationship means any relationship with a client, established by a person or entity to which section 5 of the Act applies, to conduct financial transactions or provide services related to those transactions and, as the case may be,

    • (a) if the client holds one or more accounts with that person or entity, all transactions and activities relating to those accounts; or

    • (b) if the client does not hold an account, only those transactions and activities in respect of which that person or entity is required to ascertain the identity of a person or confirm the existence of an entity under these Regulations.

    It does not include any transaction or activity referred to in paragraph 62(1)(a), (b) or (d) or subsection 62(2) or (3). (relation d’affaires)

    cash

    cash means coins referred to in section 7 of the Currency Act, notes issued by the Bank of Canada pursuant to the Bank of Canada Act that are intended for circulation in Canada or coins or bank notes of countries other than Canada. (espèces)

    CICA Handbook

    CICA Handbook means the handbook prepared and published by the Canadian Institute of Chartered Accountants, as amended from time to time. (Manuel de l’ICCA)

    client credit file

    client credit file[Repealed, SOR/2016-153, s. 15]

    client information record

    client information record means a record that sets out a client’s name and address and

    • (a) if the client is a person, their date of birth and the nature of their principal business or their occupation, as applicable; and

    • (b) if the client is an entity, the nature of their principal business. (dossier-client)

    correspondent banking relationship

    correspondent banking relationship has the same meaning as in subsection 9.4(3) of the Act. (relation de correspondant bancaire)

    credit union central

    credit union central means a central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act, or a credit union central or a federation of credit unions or caisses populaires that is regulated by a provincial Act other than one enacted by the legislature of Quebec. (centrale de caisses de crédit)

    dealer in precious metals and stones

    dealer in precious metals and stones means a person or entity that, in the course of their business activities, buys or sells precious metals, precious stones or jewellery. It includes a department or agent or mandatary of Her Majesty in right of Canada or of a province when the department or agent or mandatary is carrying out the activity, referred to in section 39.1, of selling precious metals to the public. (négociant en métaux précieux et pierres précieuses)

    deferred profit sharing plan

    deferred profit sharing plan has the same meaning as in subsection 248(1) of the Income Tax Act. (régime de participation différée aux bénéfices)

    deposit slip

    deposit slip means a record that sets out the date of a deposit, the holder of the account in whose name the deposit is made, the number of the account, the amount of the deposit and any part of the deposit that is made in cash. (relevé de dépôt)

    electronic funds transfer

    electronic funds transfer means the transmission — through any electronic, magnetic or optical device, telephone instrument or computer — of instructions for the transfer of funds, other than the transfer of funds within Canada. In the case of SWIFT messages, only SWIFT MT 103 messages are included. (télévirement)

    employees profit sharing plan

    employees profit sharing plan has the same meaning as in subsection 248(1) of the Income Tax Act. (régime de participation des employés aux bénéfices)

    financial entity

    financial entity means a bank that is regulated by the Bank Act, an authorized foreign bank, as defined in section 2 of that Act, in respect of its business in Canada, a cooperative credit society, savings and credit union or caisse populaire that is regulated by a provincial Act, an association that is regulated by the Cooperative Credit Associations Act, a financial services cooperative, a credit union central, a company that is regulated by the Trust and Loan Companies Act and a trust company or loan company that is regulated by a provincial Act. It includes a department or an entity that is an agent or mandatary of Her Majesty in right of Canada or of a province when it is carrying out an activity referred to in section 45. (entité financière)

    financial services cooperative

    financial services cooperative means a financial services cooperative that is regulated by An Act respecting financial services cooperatives, CQLR, c. C-67.3, or An Act respecting the Mouvement Desjardins, S.Q. 2000, c. 77, other than a caisse populaire. (coopérative de services financiers)

    funds

    funds means either

    • (a) cash; or

    • (b) currency, securities, negotiable instruments or other financial instruments, in any form, that indicate a person’s or entity’s title or right to, or interest in, them. (fonds)

    inter vivos trust

    inter vivos trust means a personal trust, other than a trust created by will. (fiducie entre vifs)

    jewellery

    jewellery means objects that are made of gold, silver, palladium, platinum, pearls or precious stones and that are intended to be worn as a personal adornment. (bijou)

    large cash transaction record

    large cash transaction record means a record that indicates the receipt of an amount of $10,000 or more in cash in the course of a single transaction and that contains the following information:

    • (a) as the case may be

      • (i) if the amount is received for deposit by a financial entity, the name of each person or entity in whose account the amount is deposited, or

      • (ii) in any other case, the name of the person from whom the amount is in fact received, their address and date of birth and the nature of their principal business or their occupation, if the information is not readily obtainable from other records that the recipient keeps and retains under these Regulations;

    • (b) the date of the transaction;

    • (c) where the transaction is a deposit that is made during normal business hours of the recipient, the time of the deposit or, where the transaction is a deposit that is made by means of a night deposit before or after those hours, an indication that the deposit was a night deposit;

    • (d) the number of any account that is affected by the transaction, and the type of that account, the full name of any person or entity that holds the account and the currency in which account transactions are conducted;

    • (e) the purpose and details of the transaction, including other persons or entities involved and the type of transaction (such as cash, electronic funds transfer, deposit, currency exchange , the purchase or cashing of a cheque, money order, traveller’s cheque or banker’s draft or the purchase of precious metals, precious stones or jewellery);

    • (f) whether the cash is received by armoured car, in person, by mail or in any other way;

    • (g) the amount and currency of the cash received; and

    • (h) where the amount is received by a dealer in precious metals and stones for the sale of precious metals, precious stones or jewellery,

      • (i) the type of precious metals, precious stones or jewellery involved in the transaction,

      • (ii) the value of the transaction, if different from the amount of the cash received, and

      • (iii) the wholesale value of the transaction. (relevé d’opération importante en espèces)

    legal firm

    legal firm means an entity that is engaged in the business of providing legal services to the public. (cabinet d’avocats)

    life insurance broker or agent

    life insurance broker or agent means a person or entity that is registered or licensed under provincial legislation to carry on the business of arranging contracts of life insurance. (représentant d’assurance-vie)

    life insurance company

    life insurance company means a life company or foreign life company to which the Insurance Companies Act applies or a life insurance company regulated by a provincial Act. (société d’assurance-vie)

    money services business

    money services business means a person or entity referred to in paragraph 5(h) of the Act. (entreprise de services monétaires)

    ongoing monitoring

    ongoing monitoring means monitoring on a periodic basis based on the risk assessment undertaken in accordance with subsection 9.6(2) of the Act and subsection 71(1) of these Regulations, by a person or entity to which section 5 of the Act applies of their business relationship with a client for the purpose of

    • (a) detecting any transactions that are required to be reported in accordance with section 7 of the Act;

    • (b) keeping client identification information and the information referred to in sections 11.1 and 52.1 up to date;

    • (c) reassessing the level of risk associated with the client’s transactions and activities; and

    • (d) determining whether transactions or activities are consistent with the information obtained about their client, including the risk assessment of the client. (contrôle continu)

    physical presence

    physical presence means, in respect of a foreign financial institution, a place of business that is maintained by the institution, is located at a fixed address in a country in which the institution is authorized to conduct banking activities — at which address it employs one or more individuals on a full-time basis and maintains operating records related to its banking activities — and is subject to inspection by the banking authority that licensed the institution to conduct banking activities. (présence physique)

    precious metal

    precious metal means gold, silver, palladium or platinum in the form of coins, bars, ingots or granules or in any other similar form. (métal précieux)

    precious stones

    precious stones means diamonds, sapphires, emeralds, tanzanite, rubies or alexandrite. (pierre précieuse)

    public body

    public body means

    • (a) any department or agent or mandatary of Her Majesty in right of Canada or of a province;

    • (b) an incorporated city or town, village, metropolitan authority, township, district, county, rural municipality or other incorporated municipal body in Canada or an agent or mandatary in Canada of any of them; and

    • (c) an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority under the Excise Tax Act, or an agent or mandatary of such an organization. (organisme public)

    real estate broker or sales representative

    real estate broker or sales representative means a person or entity that is registered or licensed under provincial legislation in respect of the sale or purchase of real estate. (courtier ou agent immobilier)

    real estate developer

    real estate developer means, on any given day in a calendar year, a person or entity who, in that calendar year and before that day or in any previous calendar year after 2007, has sold to the public, other than in the capacity of a real estate broker or sales representative,

    • (a) five or more new houses or condominium units;

    • (b) one or more new commercial or industrial buildings; or

    • (c) one or more new multi-unit residential buildings each of which contains five or more residential units, or two or more new multi-unit residential buildings that together contain five or more residential units. (promoteur immobilier)

    receipt of funds record

    receipt of funds record means, in respect of a transaction in which an amount of funds is received, a record that contains the following information:

    • (a) if the information is not readily obtainable from other records that the recipient keeps and retains under these Regulations, the name of the person or entity from whom the amount is in fact received and

      • (i) where the amount is received from a person, their address and date of birth and the nature of their principal business or their occupation, and

      • (ii) where the amount is received from an entity, their address and the nature of their principal business;

    • (b) the date of the transaction;

    • (c) the number of any account that is affected by the transaction, and the type of that account, the full name of the person or entity that is the account holder and the currency in which the transaction is conducted;

    • (d) the purpose and details of the transaction, including other persons or entities involved and the type and form of the transaction;

    • (e) if the funds are received in cash, whether the cash is received by armoured car, in person, by mail or in any other way; and

    • (f) the amount and currency of the funds received. (relevé de réception de fonds)

    registered pension plan

    registered pension plan has the same meaning as in subsection 248(1) of the Income Tax Act. (régime de pension agréé)

    registered retirement income fund

    registered retirement income fund has the same meaning as in subsection 248(1) of the Income Tax Act. (fonds enregistré de revenu de retraite)

    securities dealer

    securities dealer means a person or entity that is referred to in paragraph 5(g) of the Act. (courtier en valeurs mobilières)

    senior officer

    senior officer, in respect of an entity, means, if applicable,

    • (a) a director of the entity who is one of its full-time employees;

    • (b) the entity’s chief executive officer, chief operating officer, president, secretary, treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary, or any person who performs any of those functions; or

    • (c) any other officer who reports directly to the entity’s board of directors, chief executive officer or chief operating officer. (cadre dirigeant)

    signature

    signature includes an electronic signature or other information in electronic form that is created or adopted by a client of a person or entity referred to in section 5 of the Act and that is accepted by the person or entity as being unique to that client. (signature)

    signature card

    signature card, in respect of an account, means a document that is signed by a person who is authorized to give instructions in respect of the account, or electronic data that constitutes the signature of such a person. (fiche-signature)

    SWIFT

    SWIFT means the Society for Worldwide Interbank Financial Telecommunication. (SWIFT)

    transaction ticket

    transaction ticket means a record respecting a foreign currency exchange transaction — which may take the form of an entry in a transaction register — that sets out

    • (a) the date, amount and currency of the purchase or sale;

    • (b) the method, amount and currency of the payment made or received; and

    • (c) in the case of a transaction of $3,000 or more that is carried out by a person, their name, address and date of birth. (fiche d’opération)

    trust company

    trust company means a trust company to which the Trust and Loan Companies Act applies or a trust company regulated by a provincial Act. ((société de fiducie))

  • SOR/2002-184, s. 72
  • SOR/2003-102, s. 3
  • SOR/2003-358, s. 4
  • SOR/2007-122, s. 19
  • SOR/2007-293, s. 6
  • SOR/2008-21, s. 3
  • SOR/2009-265, s. 3
  • SOR/2013-15, s. 1
  • SOR/2016-153, ss. 15, 81(F)
 
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