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)

Casinos (continued)

 A casino 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. 15
  • SOR/2016-153, s. 62

 If, as a result of their ongoing monitoring of a business relationship with a person or entity under paragraph 60.1(a), the casino 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. 15
  • SOR/2016-153, s. 63

Departments or Agents or Mandataries of Her Majesty in Right of Canada or of a Province that Sell or Redeem Money Orders

[SOR/2016-153, s. 64(E)]

 Subject to subsection 62(2) and section 63, a department or agent or mandatary of Her Majesty in right of Canada or of a province that engages in an activity referred to in section 46 shall

  • (a) in accordance with subsection 64(1), ascertain the identity of every person in respect of whom a client information record is required to be kept under paragraph 49(a);

  • (b) in accordance with subsection 64(1), ascertain the identity of every person in respect of whom they are not required to keep a client information record and who conducts a transaction that involves an amount of $3,000 or more for the issuance or redemption of money orders or other similar negotiable instruments;

  • (c) in accordance with section 65, confirm the existence of and ascertain the name and address of every corporation in respect of which a client information record is required to be kept under paragraph 49(a) and the names of the corporation’s directors; and

  • (d) in accordance with section 66, confirm the existence of every entity, other than a corporation, in respect of which a client information record is required to be kept under paragraph 49(a).

  • SOR/2007-122, s. 59
  • SOR/2007-293, s. 25
  • SOR/2016-153, s. 65(E)

 A department or agent or mandatary of Her Majesty in right of Canada or of a province that engages in an activity referred to in section 46 and 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. 16
  • SOR/2016-153, s. 66

 If, as a result of their ongoing monitoring of a business relationship with a person or entity under paragraph 61.1(a), the department or agent or mandatary of Her Majesty in right of Canada or of a province that engages in an activity referred to in section 46 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. 16
  • SOR/2016-153, s. 67

Exceptions to Record-keeping and Ascertaining Identity

  •  (1) Paragraphs 54(a) and (b), 54.1(a), 54.2(1)(a) and 55(a) and (e), subsections 57(1) and 57.1(1) and paragraphs 60(a) and (b) do not apply in respect of

    • (a) the opening of a business account in respect of which the financial entity, the securities dealer or the casino, as the case may be, has already ascertained the identity of at least three persons who are authorized to give instructions in respect of the account;

    • (b) the opening of an account for the sale of mutual funds where there are reasonable grounds to believe that identity has been ascertained in accordance with subsection 64(1) by a securities dealer in respect of

      • (i) the sale of the mutual funds for which the account has been opened, or

      • (ii) a transaction that is part of a series of transactions that includes that sale;

    • (c) a person who already has an account with the financial entity, the securities dealer or the casino, as the case may be; or

    • (d) the opening of an account by an entity for the deposit by a life insurance company affiliated with that entity of a death benefit under a life insurance policy or annuity where

      • (i) the account is opened in the name of a beneficiary that is a person,

      • (ii) only that death benefit may be deposited in the account, and

      • (iii) the policy or annuity contract, as applicable, under which the claim was made for the death benefit has been in existence for a period of at least two years before the day on which the claim for the death benefit was made.

  • (2) Sections 14, 14.1, 19, 20.1 and 23, subsection 33.2(1), section 33.4, subsections 36(1), 39(1) and 39.7(1), sections 43, 49, 54, 54.1, 54.2, 55, 56, 56.1, 57, 57.1 and 59.1, subsection 59.2(1) and sections 59.3, 59.4, 59.5, 60 and 61 do not apply in respect of

    • (a) the purchase of an exempt policy as defined in subsection 306(1) of the Income Tax Regulations;

    • (b) the purchase of a group life insurance policy that does not provide for a cash surrender value or a savings component;

    • (c) the purchase of an immediate or deferred annuity that is paid for entirely with funds that are directly transferred from a registered pension plan or from a pension plan that is required to be registered under the Pension Benefits Standards Act, 1985, or similar provincial legislation;

    • (d) the purchase of a registered annuity policy or a registered retirement income fund;

    • (e) the purchase of an immediate or deferred annuity that is paid for entirely with the proceeds of a group life insurance policy;

    • (f) a transaction that is part of a reverse mortgage or of a structured settlement;

    • (g) the opening of an account for the deposit and sale of shares from a corporate demutualization or the privatization of a Crown corporation;

    • (h) the opening of an account in the name of an affiliate of a financial entity, if that affiliate carries out activities that are similar to those of persons and entities referred to in paragraphs 5(a) to (g) of the Act;

    • (i) the opening of a registered plan account, including a locked-in retirement plan account, a registered retirement savings plan account and a group registered retirement savings plan account;

    • (j) the opening of an account established pursuant to the escrow requirements of a Canadian securities regulator or Canadian stock exchange or any provincial legislation;

    • (k) the opening of an account where the account holder or settlor is a pension fund that is regulated by or under an Act of Parliament or of the legislature of a province;

    • (l) the opening of an account in the name of, or in respect of which instructions are authorized to be given by, a financial entity, a securities dealer or a life insurance company or by an investment fund that is regulated under provincial securities legislation;

    • (m) instances where the entity in respect of which a record is otherwise required to be kept is a public body, or a corporation that has minimum net assets of $75 million on its last audited balance sheet and whose shares are traded on a Canadian stock exchange or a stock exchange designated under subsection 262(1) of the Income Tax Act, and operates in a country that is a member of the Financial Action Task Force;

    • (n) instances where the entity in respect of which a record is otherwise required to be kept is a subsidiary of a public body or a corporation referred to in paragraph (m) and the financial statements of the entity are consolidated with the financial statements of that public body or corporation; or

    • (o) the opening of an account that is opened solely in the course of providing customer accounting services to a securities dealer.

  • (3) In respect of a group plan account, other than one referred to in subsection (2), a financial entity, securities dealer, life insurance company or life insurance broker or agent is not required to ascertain the identity of, or keep a signature card in respect of, any individual member of the group plan or to determine whether they are 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 if

    • (a) the member’s contributions are made by the sponsor of the plan or by means of payroll deductions; and

    • (b) the existence of the plan sponsor has been confirmed in accordance with section 65 or 66.

  • (4) [Repealed, SOR/2016-153, s. 68]

  • (5) Subsections (1) to (3) do not apply if the person or entity is required to take reasonable measures to ascertain the identity of a person in accordance with section 53.1.

  • SOR/2003-358, s. 16
  • SOR/2007-122, s. 60
  • SOR/2007-293, s. 26
  • SOR/2008-21, s. 13
  • SOR/2008-195, s. 3
  • SOR/2013-15, s. 17
  • SOR/2016-153, s. 68
  • SOR/2016-207, s. 1
 
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