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

Ascertaining Identity (continued)

Life Insurance Companies and Life Insurance Brokers or Agents (continued)

 Sections 56, 56.1, 56.3 and 56.4 do not apply to a life insurance company or a life insurance broker or agent when they are dealing in reinsurance.

  • SOR/2007-122, s. 53
  • SOR/2013-15, s. 7

 A life insurance company or life insurance broker or agent that is required to ascertain a person’s identity or confirm an entity’s existence shall

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

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

  • SOR/2013-15, s. 7
  • SOR/2016-153, s. 43

 If, as a result of their ongoing monitoring of a business relationship with a person or entity under paragraph 56.3(a), the life insurance company or life insurance broker or agent considers that there is a high risk of a money laundering offence or terrorist activity financing offence, they 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. 7
  • SOR/2016-153, s. 44

Securities Dealers

  •  (1) Subject to section 62 and subsection 63(1), every securities dealer shall ascertain, in accordance with subsection 64(1), the identity of every person who is authorized to give instructions in respect of an account for which a record must be kept by the securities dealer under section 23.

  • (2) [Repealed, SOR/2007-122, s. 54]

  • (3) Subject to section 62 and subsections 63(2) and (4), every securities dealer shall, in accordance with section 65, confirm the existence of every corporation for which they open an account and ascertain its name and address and the names of its directors.

  • (4) Subject to section 62 and subsection 63(3), every securities dealer shall, in accordance with section 66, confirm the existence of every entity, other than a corporation, for which they open an account.

  • (5) [Repealed, SOR/2007-122, s. 54]

  • SOR/2003-358, s. 14
  • SOR/2007-122, s. 54
  • SOR/2016-153, s. 45
  •  (1) Subject to section 62 and subsection 63(5), a securities dealer shall, in accordance with subsection 67.1(3), take reasonable measures to determine whether a person for whom they open 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.

  • (2) Subject to section 62 and subsection 63(5), a securities dealer 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 securities dealer or any of their 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 securities dealer 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. 55
  • SOR/2016-153, s. 46

 A securities dealer that is required to ascertain a person’s identity or confirm an entity’s existence shall

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

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

  • SOR/2013-15, s. 8
  • SOR/2016-153, s. 47

 If, as a result of their ongoing monitoring of a business relationship with a person or entity under paragraph 57.2(a), the securities dealer considers that there is a high risk of a money laundering offence or terrorist activity financing offence, they 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. 8
  • SOR/2016-153, s. 48

 [Repealed, SOR/2007-122, s. 56]

Money Services Businesses

[SOR/2016-153, s. 81(F)]
  •  (1) Subject to subsection 63(1), every money services business shall, in accordance with subsection 64(1), ascertain the identity of every person who conducts any of the following transactions:

    • (a) the issuance or redemption of money orders, traveller’s cheques or other similar negotiable instruments in an amount of $3,000 or more;

    • (b) the remittance or transmission of $1,000 or more by any means through any person or entity; or

    • (c) a foreign currency exchange transaction of $3,000 or more.

  • (2) Subject to subsections (6) and 63(2) and (4), every money services business shall, in accordance with section 65, confirm the existence of every corporation in respect of which they are required to keep a client information record and ascertain the name and address of the corporation and the names of the corporation’s directors.

  • (3) Subject to subsections (6) and 63(3), every money services business 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 .

  • (4) Subsection (1) does not apply when a person referred to in section 32 conducts a transaction on behalf of their employer under an agreement referred to in that section.

  • (5) Subject to subsection 63(5), a money services business shall, in accordance with subsection 67.2(5), take reasonable measures to determine whether

    • (a) 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; or

    • (b) 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.

  • (6) Subsections (2) and (3) do not apply in respect of an entity referred to in paragraph 62(2)(m) or (n) with which the money service business has entered into a service agreement referred to in section 32.

  • SOR/2007-122, s. 57
  • SOR/2007-293, s. 20
  • SOR/2016-153, ss. 49, 81(F)

 A money services business that is required to ascertain a person’s identity or confirm an entity’s existence shall

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

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

  • SOR/2013-15, s. 9
  • SOR/2016-153, s. 50

 If, as a result of their ongoing monitoring of a business relationship with a person or entity under paragraph 59.01(a), the money services business considers that there is a high risk of a money laundering offence or terrorist activity financing offence, they 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. 9
  • SOR/2016-153, s. 51

Accountants and Accounting Firms

 Subject to subsection 62(2) and section 63, every accountant and every accounting firm shall, in respect of a transaction for which a record is required to be kept under subsection 36(1),

  • (a) in accordance with subsection 64(1), ascertain the identity of every person who conducts the transaction;

  • (b) in accordance with section 65, confirm the existence of and ascertain the name and address of every corporation on whose behalf the transaction is conducted and the names of its directors; and

  • (c) in accordance with section 66, confirm the existence of every entity, other than a corporation, on whose behalf the transaction is conducted.

  • SOR/2007-122, s. 57
  • SOR/2007-293, s. 21

 An accountant or accounting firm that is required to ascertain a person’s identity or confirm an entity’s existence shall

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

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

  • SOR/2013-15, s. 10
  • SOR/2016-153, s. 52
 
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