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

Regulations are current to 2019-08-15 and last amended on 2019-06-25. Previous Versions

Ascertaining Identity (continued)

Financial Entities (continued)

 Subject to subsections 62(1) and (2) and section 63, every financial entity shall

  • (a) if the financial entity opens a credit card account in the name of a person, ascertain their identity in accordance with subsection 64(1);

  • (b) where the financial entity opens a credit card account in the name of a corporation, confirm the existence of and ascertain the name and address of the corporation and the names of its directors in accordance with section 65; and

  • (c) where the financial entity opens a credit card account in the name of an entity other than a corporation, confirm the existence of the entity in accordance with section 66.

  • SOR/2007-122, s. 50
  • SOR/2016-153, s. 38
  •  (1) Subject to section 62 and subsection 63(5), a financial entity shall

    • (a) in accordance with subsection 67.1(3), take reasonable measures to determine whether a person for whom it opens an account is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person;

    • (b) in accordance with subsection 67.2(5), take reasonable measures to determine whether a person who requests that an electronic funds transfer of $100,000 or more be initiated or on whose behalf the request is made is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons; and

    • (c) in accordance with subsection 67.2(5), take reasonable measures to determine whether a person who is a beneficiary of an electronic funds transfer of $100,000 or more is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons.

  • (2) Subject to section 62 and subsection 63(5), a financial entity shall take reasonable measures on a periodic basis to determine whether an account holder is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person.

  • (3) Subject to section 62 and subsection 63(5), if a financial entity or any of its employees or officers detects a fact that constitutes reasonable grounds to suspect that an account holder is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons, the financial entity shall, in accordance with subsection 67.1(3), take reasonable measures to determine whether the account holder is such a person.

  • SOR/2007-122, s. 50
  • SOR/2016-153, s. 39
  •  (1) A financial entity that is required to ascertain a person’s identity or confirm an entity’s existence shall

    • (a) conduct ongoing monitoring of its business relationship with that person or entity; and

    • (b) keep a record of the measures taken and the information obtained under paragraph (a).

  • (2) This section does not apply in respect of a group plan account held within a dividend reinvestment plan or a distribution reinvestment plan, including a plan that permits purchases of additional shares or units by the member with contributions other than the dividends or distributions paid by the sponsor of the plan, if the sponsor of the plan is an entity whose shares or units are traded on a Canadian stock exchange, and that operates in a country that is a member of the Financial Action Task Force.

  • SOR/2013-15, s. 6
  • SOR/2016-153, s. 40

 If, as a result of its ongoing monitoring of a business relationship with a person or entity under paragraph 54.3(1)(a), the financial entity considers that there is a high risk of a money laundering offence or terrorist activity financing offence, it shall treat the activities in respect of that person or entity as high risk for the purposes of subsection 9.6(3) of the Act and take the prescribed special measures referred to in section 71.1 of these Regulations.

  • SOR/2013-15, s. 6
  • SOR/2016-153, s. 41

 Subject to sections 62 and 63, every trust company shall, in addition to complying with section 54,

  • (a) in accordance with subsection 64(1), ascertain the identity of every person who is the settlor of an inter vivos trust in respect of which the company is required to keep records under section 15;

  • (b) in accordance with section 65, confirm the existence of and ascertain the name and address of every corporation that is the settlor of an institutional trust in respect of which the company is required to keep records in accordance with section 15;

  • (c) in accordance with section 66, confirm the existence of every entity, other than a corporation, that is the settlor of an institutional trust in respect of which the company is required to keep records in accordance with section 15;

  • (d) where an entity is authorized to act as a co-trustee of any trust

    • (i) confirm the existence of the entity and ascertain its name and address in accordance with section 65 or confirm the existence of the entity in accordance with section 66, as the case may be, and

    • (ii) in accordance with subsection 64(1), ascertain the identity of all persons — up to three — who are authorized to give instructions with respect to the entity’s activities as co-trustee; and

  • (e) in accordance with subsection 64(1), ascertain the identity of each person who is authorized to act as co-trustee of any trust.

  • SOR/2007-122, s. 51

Correspondent Banking Relationships

 Every financial entity that enters into a correspondent banking relationship shall

  • (a) ascertain the name and address of the foreign financial institution by examining a copy of the foreign financial institution’s banking licence, banking charter, authorization or certification to operate from the relevant regulatory agency or certificate of corporate status or a copy of another similar document; and

  • (b) take reasonable measures to ascertain, based on publicly available information, whether there are any civil or criminal penalties that have been imposed on the foreign financial institution in respect of anti-money laundering or anti-terrorist financing requirements and, if so, to conduct, for the purpose of detecting any transactions that are required to be reported under section 7 of the Act, ongoing monitoring of all transactions in the context of the correspondent banking relationship.

  • SOR/2007-122, s. 52

 In respect of correspondent banking relationships, where the customer of the foreign financial institution has direct access to the services provided under the correspondent banking relationship, the financial entity shall take reasonable measures to ascertain whether

  • (a) the foreign financial institution has, in respect of those of its customers that have direct access to the accounts of the financial entity, met requirements that are consistent with the requirements of sections 54 and 64; and

  • (b) the foreign financial institution has agreed to provide relevant customer identification data upon request to the financial entity.

  • SOR/2007-122, s. 52

Life Insurance Companies and Life Insurance Brokers or Agents

  •  (1) Subject to subsection (2), section 56.2 and subsections 62(2) and (3) and 63(1), every life insurance company or life insurance broker or agent shall ascertain, in accordance with subsection 64(1), the identity of every person who conducts, on the person’s own behalf or on behalf of a third party, a transaction with that life insurance company or life insurance broker or agent for which a client information record is required to be kept under section 19.

  • (2) A life insurance company or life insurance broker or agent is not required to ascertain the identity of a person where there are reasonable grounds to believe that the person’s identity has been ascertained in accordance with subsection 64(1) by another life insurance company or life insurance broker or agent in respect of the same transaction or of a transaction that is part of a series of transactions that includes the original transaction.

  • (3) Subject to subsections 62(2) and 63(2) and (4), every life insurance company or life insurance broker or agent shall, in accordance with section 65, confirm the existence of and ascertain the name and address of every corporation in respect of which they are required to keep a client information record and the names of the corporation’s directors.

  • (4) Subject to subsections 62(2) and 63(3), every life insurance company or life insurance broker or agent shall, in accordance with section 66, confirm the existence of every entity, other than a corporation, in respect of which they are required to keep a client information record.

  • SOR/2007-122, s. 53

 Subject to section 56.2 and subsections 62(2) and 63(5), a life insurance company or life insurance broker or agent shall, in accordance with subsection 67.2(5), take reasonable measures to determine whether a person who makes a lump-sum payment of $100,000 or more in respect of an immediate or deferred annuity or life insurance policy on their own behalf or on behalf of a third party is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons.

  • SOR/2007-122, s. 53
  • SOR/2016-153, s. 42
 
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