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

Regulations are current to 2021-09-11 and last amended on 2021-06-01. Previous Versions

PART 5General Provisions (continued)

Electronic Funds Transfers

  •  (1) For the purposes of section 9.5 of the Act, the prescribed persons or entities are the financial entities, money services businesses, foreign money services businesses and casinos that are required to keep a record under these Regulations in respect of an electronic funds transfer.

  • (2) For the purposes of section 9.5 of the Act, the prescribed electronic funds transfers are international electronic funds transfers, as well as other electronic funds transfers within the meaning of subsection 1(2) that are SWIFT MT-103 messages or their equivalent.

  • (3) For the purposes of paragraph 9.5(a) of the Act, the prescribed information is

    • (a) the beneficiary’s name and address; and

    • (b) if applicable, the account number or other reference number, if any, of the beneficiary.

  • (4) Every person or entity referred in subsection (1) must develop and apply written risk-based policies and procedures for determining, in the case of an electronic funds transfer received by them that, despite reasonable measures taken under paragraph 9.5(b) of the Act, does not have included with it any of the information required under paragraph 9.5(a) of the Act, whether they should suspend or reject the electronic funds transfer and any follow-up measures to be taken.

Virtual Currency Transfers

  •  (1) A financial entity, money services business or foreign money services business that is required to keep a record under these Regulations in respect of a virtual currency transfer shall

    • (a) include, with the transfer, the name, address and, if any, the account number or other reference number of both the person or entity who requested the transfer and the beneficiary; and

    • (b) take reasonable measures to ensure that any transfer received includes the information referred to in paragraph (a).

  • (2) Every person or entity referred to in subsection (1) shall develop and apply written risk-based policies and procedures for determining, in the case of a virtual currency transfer received by them that, despite reasonable measures taken under paragraph (1)(b), does not have included with it any of the information required under paragraph (1)(a), whether they should suspend or reject the virtual currency transfer and any follow-up measures to be taken.

Foreign Currency or Virtual Currency

 If a transaction is conducted in a foreign currency or virtual currency, the amount of the transaction shall be converted into Canadian dollars using

  • (a) the exchange rate that is published by the Bank of Canada for that foreign currency or virtual currency and that is in effect at the time of the transaction; or

  • (b) if no exchange rate is published by the Bank of Canada for that foreign currency or virtual currency, the exchange rate that the person or entity would use in the ordinary course of business at the time of the transaction.

Transactions That Are Deemed To Be Single

 If a person or entity that is required under these Regulations to report the receipt from a person or entity of an amount in cash or to keep a large cash transaction record receives amounts in cash that total $10,000 or more in two or more transactions that are made within 24 consecutive hours, those transactions are deemed to be a single transaction of $10,000 or more if that person or entity knows that

  • (a) the transactions are conducted by the same person or entity;

  • (b) the transactions are conducted on behalf of the same person or entity; or

  • (c) the amounts are for the same beneficiary.

  •  (1) If a person or entity that is required to report the initiation of an international electronic funds transfer under these Regulations initiates two or more international electronic funds transfers that total $10,000 or more within 24 consecutive hours, those transactions are deemed to be a single transaction of $10,000 or more if that person or entity knows that

    • (a) the electronic funds transfers are initiated at the request of the same person or entity;

    • (b) the requests are made on behalf of the same person or entity; or

    • (c) the amounts are for the same beneficiary.

  • (2) Paragraphs (1)(a) and (b) do not apply if the requests to initiate the electronic funds transfers are made by or on behalf of

    • (a) a public body;

    • (b) a corporation or trust that has minimum net assets of $75 million on its last audited balance sheet, whose shares or units are traded on a Canadian stock exchange or a stock exchange designated under subsection 262(1) of the Income Tax Act and that operates in a country that is a member of the Financial Action Task Force; or

    • (c) an administrator of a pension fund that is regulated under federal or provincial legislation.

  •  (1) If a person or entity that is required to report the final receipt of an electronic funds transfer under these Regulations finally receives two or more electronic funds transfers that total $10,000 or more within 24 consecutive hours, those transactions are deemed to be a single transaction of $10,000 or more if that person or entity knows that

    • (a) the electronic funds transfers are initiated at the request of the same person or entity; or

    • (b) the amounts are for the same beneficiary.

  • (2) Paragraph (1)(b) does not apply if the beneficiary is

    • (a) a public body;

    • (b) a corporation or trust that has minimum net assets of $75 million on its last audited balance sheet, whose shares or units are traded on a Canadian stock exchange or a stock exchange designated under subsection 262(1) of the Income Tax Act and that operates in a country that is a member of the Financial Action Task Force; or

    • (c) an administrator of a pension fund that is regulated under federal or provincial legislation.

  •  (1) If a person or entity that is required under these Regulations to report the receipt from a person or entity of an amount in virtual currency or to keep a large virtual currency transaction record receives amounts in virtual currency that total $10,000 or more in two or more transactions that are made within 24 consecutive hours, those transactions are deemed to be a single transaction of $10,000 or more if that person or entity knows that

    • (a) the transactions are conducted by the same person or entity;

    • (b) the transactions are conducted on behalf of the same person or entity; or

    • (c) the amounts are for the same beneficiary.

  • (2) Paragraph (1)(c) does not apply if the beneficiary is

    • (a) a public body;

    • (b) a corporation or trust that has minimum net assets of $75 million on its last audited balance sheet, whose shares or units are traded on a Canadian stock exchange or a stock exchange designated under subsection 262(1) of the Income Tax Act and that operates in a country that is a member of the Financial Action Task Force; or

    • (c) an administrator of a pension fund that is regulated under federal or provincial legislation.

 If, within 24 consecutive hours, a casino makes two or more disbursements that total $10,000 or more in any of the transactions referred to in paragraphs 71(a) to (h), those disbursements are deemed to be a single disbursement of $10,000 or more if the casino knows that

  • (a) the disbursements are requested by the same person or entity;

  • (b) the disbursements are received by the same person or entity;

  • (c) the disbursements are requested on behalf of the same person or entity; or

  • (d) the disbursements are received on behalf of the same person or entity.

 
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