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

Measures for Ascertaining Identity (continued)

 Every person or entity that is required under these Regulations to ascertain a person’s identity in connection with a record that the person or entity has created and is required to keep under these Regulations — or in connection with a transaction that they have carried out and in respect of which they are required to keep a record under these Regulations or under section 12.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations — shall set out in, or include with, that record the person’s name and the following information:

  • (a) if the person or entity ascertained the person’s identity in accordance with paragraph 64(1)(a), the date on which they did so, the type of document referred to, its number, the jurisdiction and country of issue of the document and, if applicable, its expiry date;

  • (b) if the person or entity ascertained the person’s identity in accordance with paragraph 64(1)(b), the date on which they did so, the source of the information, the type of information referred to and a number associated with the information;

  • (c) if the person or entity ascertained the person’s identity in accordance with paragraph 64(1)(c), the date on which they did so, the source of the information and the number of the person’s credit file;

  • (d) if the person or entity ascertained the person’s identity in accordance with paragraph 64(1)(d), the date on which they did so, the source of the information, the type of information referred to and the account number included in it — or if there is no account number included in it, a number associated with the information;

  • (e) if the entity ascertained the person’s identity in accordance with paragraph 64(1)(e), the date on which it did so, the name of the entity that had previously ascertained that person’s identity, the manner in which it had previously ascertained the person’s identity under one of paragraphs 64(1)(a) to (d) and the applicable information referred to in one of paragraphs (a) to (d) of this section that is associated with that manner of ascertaining identity;

  • (f) if the entity ascertained the person’s identity in accordance with paragraph 64(1)(e) and the other entity had previously ascertained the person’s identity before the coming into force of this section, the date on which the entity ascertained the person’s identity in accordance with paragraph 64(1)(e), the name of the other entity, the manner in which the other entity had previously ascertained the person’s identity under subsection 64(1) or (1.1), as it read at the time the other entity ascertained the person’s identity, and the applicable information referred to in one of paragraphs 67(a) to (k), as it read at the time the other entity ascertained the person’s identity; or

  • (g) if, under subsection 64(1.5), the person or entity is deemed to have complied with subsection 64(1), the reasons why the person’s identity could not be ascertained in the manner set out in one of paragraphs 64(1)(a) to (e) and the date on which the conditions set out in subsection 4(1) or (2) of the Access to Basic Banking Services Regulations were met.

  • SOR/2016-153, s. 71
  •  (1) The existence of a corporation shall be confirmed and its name and address and the names of its directors shall be ascertained as of the time referred to in subsection (2), by referring to its certificate of corporate status, a record that it is required to file annually under the applicable provincial securities legislation or any other record that ascertains its existence as a corporation. The record may be in paper form or in an electronic version that is obtained from a source that is accessible to the public.

  • (2) The information referred to in subsection (1) shall be ascertained,

    • (a) in the cases referred to in paragraphs 54(d) and 60(e), before the first transaction, other than the initial deposit, is carried out on the account;

    • (a.1) in the case referred to in paragraph 54.1(b), before any credit card is issued on the account;

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

    • (c) in the cases referred to in subsections 56(3) and 59(2) and paragraph 61(c), within 30 days after the client information record is created;

    • (d) in the case referred to in subsection 57(3), within 30 days after the opening of the account; and

    • (e) in the cases referred to in paragraphs 59.1(b), 59.2(1)(b), 59.3(b), 59.4(1)(b) and 59.5(b), within 30 days after the transaction.

  • (3) Where the information has been ascertained by referring to an electronic version of a record, the person or entity required to ascertain the information shall keep a record that sets out the corporation’s registration number, the type of record referred to and the source of the electronic version of the record.

  • (4) Where the information has been ascertained by referring to a paper copy of a record, the person or entity required to ascertain the information shall retain the record or a copy of it.

  • SOR/2007-122, s. 64
  • SOR/2007-293, s. 28
  • SOR/2008-21, s. 16
  • SOR/2016-153, s. 72
  •  (1) The existence of an entity, other than a corporation, shall be confirmed as of the time referred to in subsection (2), by referring to a partnership agreement, articles of association or other similar record that ascertains its existence. The record may be in paper form or in an electronic version that is obtained from a source that is accessible to the public.

  • (2) The existence of the entity shall be confirmed

    • (a) in the cases referred to in paragraphs 54(e) and 60(f), before the first transaction, other than the initial deposit, is carried out on the account;

    • (a.1) in the case referred to in paragraph 54.1(c), before any credit card is issued on the account;

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

    • (c) in the cases referred to in subsections 56(4) and 59(3) and paragraph 61(d), within 30 days after the client information record is created;

    • (d) in the case referred to in subsection 57(4), within 30 days after the account is opened; and

    • (e) in the cases referred to in paragraphs 59.1(c), 59.2(1)(c), 59.3(c), 59.4(1)(c) and 59.5(c), within 30 days after the transaction.

  • (3) Where the existence of the entity has been confirmed by referring to an electronic version of a record, the person or entity required to confirm that information shall keep a record that sets out the registration number of the entity whose existence is being confirmed, the type of record referred to and the source of the electronic version of the record.

  • (4) Where the existence of the entity has been confirmed by referring to a paper copy of a record, the person or entity required to confirm that information shall retain the record or a copy of it.

  • SOR/2007-122, s. 65
  • SOR/2007-293, s. 29
  • SOR/2008-21, s. 17
  • SOR/2016-153, s. 73
  •  (1) The prescribed persons or entities for the purpose of section 9.5 of the Act are every financial entity, money services business and casino that is required to keep a record under these Regulations in respect of an electronic funds transfer referred to in subsection (2).

  • (2) Subject to subsection (3), the prescribed electronic funds transfers to which section 9.5 of the Act applies are those as defined in subsection 1(2), but including transfers within Canada that are SWIFT MT 103 messages.

  • (3) For greater certainty, subsection (2) does not apply in respect of

    • (a) a transfer carried out using a credit or debit card, if the recipient has an agreement with the payment service provider permitting payment by such means for the provision of goods and services;

    • (b) a transfer where the recipient withdraws cash from their account;

    • (c) a transfer carried out by means of a direct deposit or a pre-authorized debit ; or

    • (d) a transfer carried out using cheque imaging and presentment.

  • SOR/2007-122, s. 66
  • SOR/2016-153, s. 81(F)

 [Repealed, SOR/2016-153, s. 74]

Due Diligence Measures with Respect to Persons Referred to in Subsection 9.3(1) of the Act

[SOR/2016-153, s. 75]
  •  (1) A financial entity or securities dealer that determines under paragraph 54.2(1)(a), subsection 54.2(2) or (3) or section 57.1 that a person is a politically exposed foreign person or a family member of, or person who is closely associated with, such a person shall

    • (a) take reasonable measures to establish the source of the funds that have been, will be or are expected to be deposited in the account in question;

    • (b) obtain the approval of senior management to keep the account open; and

    • (c) conduct enhanced ongoing monitoring of the activities in respect of the account for the purpose of detecting transactions that are required to be reported to the Centre under section 7 of the Act.

  • (2) A financial entity or securities dealer shall also take the measures referred to in paragraphs (1)(a) to (c) if

    • (a) they determine under paragraph 54.2(1)(a), subsection 54.2(2) or (3) or section 57.1 that a person is a politically exposed domestic person, a head of an international organization or a family member of one of those persons or they determine under subsection 54.2(3) or 57.1(3) that a person is closely associated with a politically exposed domestic person or a head of an international organization; and

    • (b) they consider, based on an assessment of the risk referred to in subsection 9.6(2) of the Act, that there is a high risk of a money laundering offence or terrorist activity financing offence.

  • (3) A financial entity or securities dealer shall take the reasonable measures referred to in paragraph 54.2(1)(a) and subsections 54.2(3) and 57.1(1) and (3) — and, if applicable, shall take the measures referred to in paragraphs (1)(a) and (b) — within 30 days after the day on which the account is opened or the day on which the fact that constitutes the reasonable grounds to suspect is detected, as the case may be.

  • SOR/2007-122, s. 66
  • SOR/2016-153, s. 76
 
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