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

Regulations are current to 2019-08-28 and last amended on 2019-06-25. Previous Versions

Ascertaining Identity (continued)

Exceptions to Record-keeping and Ascertaining Identity (continued)

  •  (1) If a person or entity ascertains a person’s identity in accordance with subsection 64(1) and complies with section 64.2 — or if, before the coming into force of this subsection, they ascertained a person’s identity in accordance with subsection 64(1) or (1.1) and complied with section 67, as they read at the time the identity was ascertained — they are not required to ascertain the person’s identity again unless they have doubts about the information that was used for that purpose.

  • (1.1) [Repealed, SOR/2016-153, s. 69]

  • (2) If a person or entity confirms a corporation’s existence and ascertains its name and address and the names of its directors in accordance with section 65, they are not required to confirm its existence or ascertain that information again unless they have doubts about the information that was used for that purpose.

  • (3) If a person or entity confirms the existence of an entity other than a corporation in accordance with section 66, they are not required to confirm its existence again unless they have doubts about the information that was used for that purpose.

  • (4) Despite paragraphs 54(d) and 54.1(b), subsections 56(3), 57(3) and 59(2) and paragraphs 59.1(b), 59.2(1)(b), 60(e) and 61(c), the names of a corporation’s directors do not need to be ascertained if the corporation is a securities dealer.

  • (5) If a person or entity determines that a person is a politically exposed foreign person or a family member of such a person — or if, before the coming into force of this subsection, they determined that a person is a politically exposed foreign person, as defined in subsection 9.3(3) of the Act as it read at the time the determination was made — they are not required to make the determination again.

  • SOR/2003-358, s. 17
  • SOR/2007-122, s. 61
  • SOR/2016-153, s. 69

Measures for Ascertaining Identity

  •  (1) In the cases referred to in sections 53, 53.1 and 54, paragraph 54.1(a) and sections 55, 56, 57, 59, 59.1, 59.2, 59.3, 59.4, 59.5, 60 and 61, a person’s identity is to be ascertained

    • (a) by referring to an identification document that contains their name and photograph and that is issued by the federal government or a provincial government or by a foreign government that is not a municipal government, and by verifying that the name and photograph are those of the person;

    • (b) by referring to information concerning them that the person or entity that is ascertaining their identity receives, on request, from a federal or provincial government body — or an agent or mandatary of such a body — that is authorized in Canada to ascertain the identity of persons, and by verifying that either the name and address or the name and date of birth included in the information are those of the person;

    • (c) by referring to information that is in their credit file — if that file is located in Canada and has been in existence for at least three years — and by verifying that the name, address and date of birth in the credit file are those of the person;

    • (d) by doing any two of the following:

      • (i) referring to information from a reliable source that includes their name and address, and verifying that the name and address are those of the person,

      • (ii) referring to information from a reliable source that includes their name and date of birth, and verifying that the name and date of birth are those of the person, or

      • (iii) referring to information that includes their name and confirms that they have a deposit account or a credit card or other loan account with a financial entity, and verifying that information; or

    • (e) by confirming that one of the following entities previously ascertained their identity in accordance with any of paragraphs (a) to (d), and by verifying that the name, address and date of birth in the entity’s record are those of the person:

      • (i) an entity that is referred to in any of paragraphs 5(a) to (g) of the Act and that is affiliated with the entity that is ascertaining the person’s identity,

      • (ii) an entity that carries on activities outside Canada similar to the activities of a person or entity referred to in any of paragraphs 5(a) to (g) of the Act and that is affiliated with the entity that is ascertaining the person’s identity, or

      • (iii) a financial entity that is subject to the Act and that is a member of the same financial services cooperative or credit union central as the entity that is ascertaining the person’s identity.

  • (1.1) The identity of a person who is under 12 years of age shall be ascertained for the purposes of subsection (1) by ascertaining the identity of one of their parents or their guardian or tutor.

  • (1.2) The identity of a person who is at least 12 years of age but not more than 15 years of age may be ascertained by referring under subparagraph (1)(d)(i) to information that includes the name and address of one of the person’s parents or their guardian or tutor and by verifying that the address is that of the person.

  • (1.21) [Repealed, SOR/2016-153, s. 70]

  • (1.3) For the purposes of subparagraphs (1)(d)(i) to (iii), the information that is referred to must be from different sources, and neither the person whose identity is being ascertained nor the person or entity that is ascertaining their identity can be a source.

  • (1.4) If a document is used to ascertain identity under subsection (1), it must be authentic, valid and current. Other information that is used for that purpose must be valid and current.

  • (1.5) In the case of a retail deposit account referred to in subsection 448.1(1) of the Bank Act, if a person or entity cannot ascertain a person’s identity in the manner set out in one of paragraphs (1)(a) to (e), they are deemed to comply with subsection (1) if the person who requests that the account be opened meets the conditions set out in subsection 4(1) or (2) of the Access to Basic Banking Services Regulations.

  • (2) The identity shall be ascertained

    • (a) in the cases referred to in paragraph 54(a) and subsection 57(1), before the first transaction, other than an initial deposit, is carried out on an account;

    • (b) in the cases referred to in section 53, paragraph 54(b), subsection 59(1) and paragraphs 59.3(a), 59.4(1)(a), 59.5(a), 60(b) and 61(b), at the time of the transaction;

    • (b.1) in the case referred to in section 53.1, before the transaction is reported as required under section 7 of the Act;

    • (b.2) in the case referred to in paragraph 54.1(a), before any credit card is activated;

    • (c) in the cases referred to in paragraphs 55(a), (d) and (e), within 15 days after the trust company becomes the trustee;

    • (d) in the cases referred to in subsection 56(1) and paragraph 61(a), within 30 days after the client information record is created;

    • (e) in the cases referred to in paragraphs 59.1(a) and 59.2(1)(a), at the time of the transaction;

    • (e.1) in the case referred to in paragraph 60(a), before any funds are disbursed; and

    • (f) in the case referred to in subsection 62(3), at the time a contribution in respect of an individual member of the group plan is made to the plan, if

      • (i) the member’s contribution is not made as described in paragraph 62(3)(a), or

      • (ii) the existence of the plan sponsor has not been confirmed in accordance with section 65 or 66.

  • (3) [Repealed, SOR/2016-153, s. 70]

  • SOR/2007-122, s. 62
  • SOR/2007-293, s. 27
  • SOR/2008-21, s. 14
  • SOR/2009-265, s. 5
  • SOR/2016-153, s. 70
  • SOR/2019-240, s. 39
  •  (1) A person or entity that is required to take measures to ascertain a person’s identity under subsection 64(1) may rely on an agent or mandatary to take those measures.

  • (2) The person or entity may rely on measures that were previously taken by an agent or mandatary to ascertain the person’s identity if the agent or mandatary was, at the time they took the measures,

    • (a) acting in their own capacity, whether or not they were required to take the measures under these Regulations; or

    • (b) acting as an agent or mandatary under a written agreement or arrangement — entered into with another person or entity that is required to take measures to ascertain a person’s identity — for the purposes of ascertaining identity under subsection 64(1).

  • (3) In order to rely on measures taken by an agent or mandatary under subsection (1) or (2), the person or entity shall

    • (a) have entered into a written agreement or arrangement with the agent or mandatary for the purposes of ascertaining a person’s identity under subsection 64(1);

    • (b) obtain from the agent or mandatary all of the information that the agent or mandatary referred to in order to ascertain the person’s identity and the information that the agent or mandatary verified as being that of the person; and

    • (c) be satisfied that the information is valid and current and that the agent or mandatary ascertained the person’s identity in the manner described in one of paragraphs 64(1)(a) to (d).

  • SOR/2007-122, s. 63
  • SOR/2008-21, s. 15
  • SOR/2016-153, s. 71
 
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