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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

Interpretation (continued)

[SOR/2007-293, s. 5(F)]
  •  (1) For the purposes of subsection 9.3(1) of the Act, a prescribed family member of a politically exposed foreign person, a politically exposed domestic person or a head of an international organization is

    • (a) their spouse or common-law partner;

    • (b) their child;

    • (c) their mother or father;

    • (d) the mother or father of their spouse or common-law partner; or

    • (e) a child of their mother or father.

  • (2) For the purposes of the definition politically exposed domestic person in subsection 9.3(3) of the Act, the prescribed period is five years.

  • SOR/2007-122, s. 20
  • SOR/2016-153, s. 16

 The prescribed precious metals for the purpose of paragraph 5(l) of the Act are precious metals as defined in subsection 1(2).

  • SOR/2007-293, s. 7

 For the purposes of these Regulations, an entity is affiliated with another entity if one of them is wholly owned by the other, if both are wholly owned by the same entity or if their financial statements are consolidated.

  • SOR/2016-153, s. 17

Non-application of Certain Provisions

 Sections 11.1, 12, 13, 14, 14.1, 15.1, 52.1, 53.1, 54, 54.1, 54.2 and 54.3 do not apply in respect of the credit card acquiring activities of a financial entity.

  • SOR/2007-122, s. 20
  • SOR/2013-15, s. 2

General

Foreign Currency

 If a transaction is carried out by a person or entity in a foreign currency, the amount of the transaction shall be converted into Canadian dollars using

  • (a) the official conversion rate of the Bank of Canada for that currency as published in the Bank of Canada’s Daily Memorandum of Exchange Rates that is in effect at the time of the transaction; or

  • (b) if no official conversion rate is set out in that publication for that currency, the conversion rate that the person or entity would use for that currency in the normal course of business at the time of the transaction.

  • SOR/2016-153, s. 18(E)

Single Transactions

  •  (1) In these Regulations, two or more cash transactions or electronic funds transfers of less than $10,000 each that are made within 24 consecutive hours and that total $10,000 or more are considered to be a single transaction of $10,000 or more if

    • (a) where a person is required to keep a large cash transaction record or to report an electronic funds transfer in accordance with these Regulations, the person knows that the transactions or transfers are conducted by, or on behalf of, the same person or entity; and

    • (b) where an entity is required to keep a large cash transaction record or to report an electronic funds transfer in accordance with these Regulations, an employee or a senior officer of the entity knows that the transactions or transfers are conducted by, or on behalf of, the same person or entity.

  • (2) For greater certainty, subsection (1) does not apply in respect of an electronic funds transfer sent to two or more beneficiaries where the transfer is requested by

    • (a) a public body or a corporation referred to in paragraph 62(2)(m); or

    • (b) an administrator of a pension fund that is regulated by or under an Act of Parliament or of the legislature of a province.

  • SOR/2007-122, s. 21

Sending Reports

  •  (1) A report that is required to be made to the Centre shall be sent electronically in accordance with guidelines for report submissions that are prepared by the Centre, if the sender has the technical capabilities to do so.

  • (2) The report shall be sent in paper format, in accordance with guidelines for report submissions that are prepared by the Centre, if the sender does not have the technical capabilities to send the report electronically.

Reporting Time Limits

  •  (1) A report that is required to be made under these Regulations in respect of an electronic funds transfer shall be sent to the Centre not later than five working days after the day of the transfer.

  • (2) A report in respect of a large casino disbursement or a transaction for which a large cash transaction record must be kept and retained under these Regulations shall be sent to the Centre within 15 days after the disbursement or transaction.

  • SOR/2008-21, s. 4

Transactions Conducted by Employees or Agents or Mandataries

[SOR/2016-153, s. 19(E)]
  •  (1) Where a person who is subject to the requirements of these Regulations is an employee of a person or entity referred to in any of paragraphs 5(a) to (l) of the Act, it is the employer rather than the employee who is responsible for meeting those requirements.

  • (2) If a person or entity that is subject to the requirements of these Regulations, other than a life insurance broker or agent, is an agent or mandatary of, or is authorized to act on behalf of, another person or entity referred to in any of paragraphs 5(a) to (l) of the Act, it is that other person or entity rather than the agent or mandatary or the authorized person or entity, as the case may be, that is responsible for meeting those requirements.

  • SOR/2016-153, s. 20(E)

 For the purposes of these Regulations, a person acting on behalf of their employer is considered to be acting on behalf of a third party except when the person is depositing cash into the employer’s business account.

  • SOR/2007-122, s. 22

Third Party Determination

  •  (1) Every person or entity that is required to keep a large cash transaction record under these Regulations shall take reasonable measures to determine whether the individual who in fact gives the cash in respect of which the record is kept is acting on behalf of a third party.

  • (2) Where the person or entity determines that the individual is acting on behalf of a third party, the person or entity shall keep a record that sets out

    • (a) the third party’s name, address and date of birth and the nature of the principal business or occupation of the third party, if the third party is an individual;

    • (b) if the third party is an entity, the third party’s name and address and the nature of the principal business of the third party, and, if the entity is a corporation, the entity’s incorporation number and its place of issue; and

    • (c) the nature of the relationship between the third party and the individual who gives the cash.

  • (3) Where the person or entity is not able to determine whether the individual is acting on behalf of a third party but there are reasonable grounds to suspect that the individual is doing so, the person or entity shall keep a record that

    • (a) indicates whether, according to the individual, the transaction is being conducted on behalf of a third party; and

    • (b) describes the reasonable grounds to suspect that the individual is acting on behalf of a third party.

  • SOR/2007-122, s. 76
  •  (1) Subject to subsections (4) and (4.1), every person or entity that is required to keep a signature card or an account operating agreement in respect of an account under these Regulations shall, at the time that the account is opened, take reasonable measures to determine whether the account is to be used by or on behalf of a third party.

  • (2) Subject to subsections (5) and (6), where the person or entity determines that the account is to be used by or on behalf of a third party, the person or entity shall keep a record that sets out

    • (a) the third party’s name, address and date of birth and the nature of the principal business or occupation of the third party, if the third party is an individual;

    • (b) if the third party is an entity, the third party’s name and address and the nature of the principal business of the third party, and, if the entity is a corporation, the entity’s incorporation number and its place of issue; and

    • (c) the nature of the relationship between the third party and the account holder.

  • (3) Where the person or entity is not able to determine if the account is to be used by or on behalf of a third party but there are reasonable grounds to suspect that it will be so used, the person or entity shall keep a record that

    • (a) indicates whether, according to the individual who is authorized to act in respect of the account, the account is to be used by or on behalf of a third party; and

    • (b) describes the reasonable grounds to suspect that the individual is acting on behalf of a third party.

  • (4) Subsection (1) does not apply in respect of an account where the account holder is a financial entity or a securities dealer that is engaged in the business of dealing in securities in Canada.

  • (4.1) Subsection (1) does not apply in respect of an account that is opened by a financial entity for use in relation to a credit card acquiring business.

  • (5) Subsection (2) does not apply where a securities dealer is required to keep an account operating agreement in respect of an account of a person or entity that is engaged in the business of dealing in securities only outside of Canada and where

    • (a) the account is in a country that is a member of the Financial Action Task Force;

    • (b) the account is in a country that is not a member of the Task Force referred to in paragraph (a) but has implemented the recommendations of the Task Force relating to customer identification and, at the time that the account is opened, the securities dealer has obtained written assurance from the entity where the account is located that the country has implemented those recommendations; or

    • (c) the account is in a country that is not a member of the Task Force referred to in paragraph (a) and has not implemented the recommendations of the Task Force relating to customer identification but, at the time that the account is opened, the securities dealer has ascertained the identity of all third parties relating to the account as described in subsection 64(1).

  • (6) Subsection (2) does not apply where

    • (a) the account is opened by a legal counsel, an accountant or a real estate broker or sales representative; and

    • (b) the person or entity has reasonable grounds to believe that the account is to be used only for clients of the legal counsel, accountant or real estate broker or sales representative, as the case may be.

  • SOR/2007-122, ss. 23, 76
 
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