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

Regulations are current to 2022-11-16 and last amended on 2022-06-29. Previous Versions

PART 1Requirements To Report Transactions and To Keep Records (continued)

Financial Entities (continued)

[
  • SOR/2016-153, s. 19(E)
]

 A financial entity shall keep the following records in respect of every credit card account that it opens and of every transaction that is connected to that account:

  • (a) a record for each account holder and every other person — up to three, in the case of a business account — who is authorized to give instructions in respect of the account, containing their name and address, the nature of their principal business or their occupation and, in the case of a person, their date of birth;

  • (b) if an account holder is a corporation, a copy of the part of its official corporate records that contains any provision relating to the power to bind the corporation in respect of the account or transaction;

  • (c) a record of every application in respect of the account;

  • (d) a copy of every credit card statement that it sends to an account holder;

  • (e) a foreign currency exchange transaction ticket in respect of every foreign currency exchange transaction that is connected to the account;

  • (f) if it initiates an international electronic funds transfer of $1,000 or more at the request of a person or entity and the funds are transferred from the account, a record of

    • (i) the date on which the electronic funds transfer is initiated,

    • (ii) the type and amount of each type of funds that is involved in the initiation,

    • (iii) the person’s or entity’s name, address and telephone number, the nature of their principal business or their occupation and, in the case of a person, their date of birth,

    • (iv) the exchange rates used and their source,

    • (v) the name and address of each beneficiary,

    • (vi) the number of every account that is affected by the initiation, the type of account and the name of each account holder,

    • (vii) every reference number that is connected to the electronic funds transfer and has a function equivalent to that of an account number, and

    • (viii) the number of every account that is affected by the electronic funds transfer, other than those referred to in subparagraph (vi); and

  • (g) if it is the final recipient of an international electronic funds transfer of $1,000 or more and the remittance to the beneficiary is by payment to the account, a record of

    • (i) the date on which the electronic funds transfer is finally received,

    • (ii) the type and amount of each type of funds that is involved in the final receipt,

    • (iii) the name and address of each beneficiary, the nature of their principal business or their occupation and, in the case of a person, their date of birth,

    • (iv) the date of the remittance,

    • (v) the exchange rates used for the remittance and their source,

    • (vi) the type and amount of each type of funds involved in the remittance,

    • (vii) the number of every account that is affected by the final receipt or the remittance, the type of account and the name of each account holder,

    • (viii) every reference number that is connected to the electronic funds transfer and has a function equivalent to that of an account number,

    • (ix) the name and address of the person or entity that requested the initiation of the electronic funds transfer, unless that information was not, despite the taking of reasonable measures, included with the transfer and is not otherwise known, and

    • (x) the number of every account that is affected by the electronic funds transfer, other than those referred to in subparagraph (vii); and

  • (h) a virtual currency exchange transaction ticket in respect of every virtual currency exchange transaction that is connected to the account.

  •  (1) A financial entity shall keep the following records in respect of every prepaid payment product account that it opens and of every transaction that is made by means of a prepaid payment product that is connected to that account:

    • (a) a record of the name and address of each holder of a prepaid payment product account and each authorized user, the nature of their principal business or their occupation and, in the case of a person, their date of birth;

    • (b) if an account holder is a corporation, a copy of the part of its official corporate records that contains any provision relating to the power to bind the corporation in respect of the prepaid payment product account or the transaction;

    • (c) a record of every application in respect of the prepaid payment product account;

    • (d) a prepaid payment product slip in respect of every payment that is made to the prepaid payment product account;

    • (e) every debit and credit memo that it creates or receives in respect of the prepaid payment product account;

    • (f) a copy of every account statement that it sends to a holder of the prepaid payment product account;

    • (g) a foreign currency exchange transaction ticket in respect of every foreign currency exchange transaction that is connected to the prepaid payment product account;

    • (h) if it initiates an international electronic funds transfer of $1,000 or more at the request of a person or entity and the funds are transferred from the prepaid payment product account, a record of

      • (i) the date on which the electronic funds transfer is initiated,

      • (ii) the type and amount of each type of funds that is involved in the initiation,

      • (iii) the person’s or entity’s name, address and telephone number, the nature of their principal business or their occupation and, in the case of a person, their date of birth,

      • (iv) the exchange rates used and their source,

      • (v) the name and address of each beneficiary,

      • (vi) the number of every account that is affected by the initiation, the type of account and the name of each account holder,

      • (vii) every reference number that is connected to the electronic funds transfer and has a function equivalent to that of an account number, and

      • (viii) the number of every account that is affected by the electronic funds transfer, other than those referred to in subparagraph (vi);

    • (i) if it is the final recipient of an international electronic funds transfer of $1,000 or more and the remittance to the beneficiary is by payment to the prepaid payment product account, a record of

      • (i) the date on which the electronic funds transfer is finally received,

      • (ii) the type and amount of each type of funds that is involved in the final receipt,

      • (iii) the name and address of each beneficiary, the nature of their principal business or their occupation and, in the case of a person, their date of birth,

      • (iv) the date of the remittance,

      • (v) the exchange rates used for the remittance and their source,

      • (vi) if the remittance is in funds, the type and amount of each type of funds involved,

      • (vii) if the remittance is not in funds, the type of remittance and its value, if different from the amount of funds finally received,

      • (viii) the number of every account that is affected by the final receipt or the remittance, the type of account and the name of each account holder,

      • (ix) every reference number that is connected to the electronic funds transfer and has a function equivalent to that of an account number, and

      • (x) the name and address of the person or entity that requested the initiation of the electronic funds transfer, unless that information was not, despite the taking of reasonable measures, included with the transfer and is not otherwise known,

      • (xi) the number of every account that is affected by the electronic funds transfer, other than those referred to in subparagraph (viii);

    • (j) if it transfers from a prepaid payment product account an amount of $1,000 or more in virtual currency at the request of a person or entity, a record of

      • (i) the date of the transfer,

      • (ii) the type and amount of each virtual currency that is involved in the transfer,

      • (iii) the person’s or entity’s name and address, the nature of their principal business or their occupation and, in the case of a person, their date of birth,

      • (iv) the name and address of each beneficiary,

      • (v) the number of every account that is affected by the transaction, the type of account and the name of each account holder,

      • (vi) every reference number that is connected to the transaction and has a function equivalent to that of an account number,

      • (vii) every transaction identifier, including the sending and receiving addresses, and

      • (viii) the exchange rates used and their source;

    • (k) if it receives an amount of $1,000 or more in virtual currency for remittance to a beneficiary by payment to the prepaid payment product account, a record of

      • (i) the date of the receipt,

      • (ii) the type and amount of each virtual currency that is received,

      • (iii) the name and address of each beneficiary, the nature of their principal business or their occupation and, in the case of a person, their date of birth,

      • (iv) the date of the remittance,

      • (v) the exchange rates used for the remittance and their source,

      • (vi) if the remittance is in virtual currency, the type and amount of each virtual currency involved,

      • (vii) if the remittance is not in virtual currency, the type of remittance and its value, if different from the amount of virtual currency received,

      • (viii) the number of every account that is affected by the transaction, the type of account and the name of each account holder,

      • (ix) every reference number that is connected to the transaction and has a function equivalent to that of an account number,

      • (x) every transaction identifier, including the sending and receiving addresses, and

      • (xi) the name and address of the person or entity that requested the transfer unless that information was not, despite the taking of reasonable measures, included with the transfer and is not otherwise known; and

    • (l) a virtual currency exchange transaction ticket in respect of every virtual currency exchange transaction that is connected to the prepaid payment product account.

  • (2) In this section, prepaid payment product slip means a record that sets out

    • (a) the date of a payment to a prepaid payment product account;

    • (b) the name of the person or entity that makes the payment;

    • (c) the type and amount of each type of funds or each of the virtual currencies involved in the payment;

    • (d) the method by which the payment is made;

    • (e) the name of each holder of the prepaid payment product account; and

    • (f) the account number and, if different, the number that identifies the prepaid payment product that is connected to the account.

 [Repealed, SOR/2019-240, s. 28]

  •  (1) A trust company shall also keep the following records in respect of a trust for which it is trustee:

    • (a) a copy of the trust deed;

    • (b) a record of the settlor’s name and address and

      • (i) if the settlor is a person, their date of birth and the nature of their principal business or their occupation, and

      • (ii) if the settlor is an entity, the nature of its principal business; and

    • (c) if the trust is an institutional trust and the settlor is a corporation, a copy of the part of the official corporate records that contains any provision relating to the power to bind the corporation in respect of the trust.

  • (2) In this section, institutional trust means a trust that is established by a corporation or other entity for a particular business purpose and includes a pension plan trust, a pension master trust, a supplemental pension plan trust, a mutual fund trust, a pooled fund trust, a registered retirement savings plan trust, a registered retirement income fund trust, a registered education savings plan trust, a group registered retirement savings plan trust, a deferred profit sharing plan trust, an employee profit sharing plan trust, a retirement compensation arrangement trust, an employee savings plan trust, a health and welfare trust, an unemployment benefit plan trust, a foreign insurance company trust, a foreign reinsurance trust, a reinsurance trust, a real estate investment trust, an environmental trust and a trust established in respect of an endowment, a foundation or a registered charity.

 [Repealed, SOR/2019-240, s. 28]

  •  (1) For the purposes of subsections 9.4(1) and (3) of the Act,

    • (a) a prescribed entity is

      • (i) an entity referred to in paragraph 5(e.1) or (f) of the Act,

      • (ii) a financial services cooperative,

      • (iii) a life insurance company, or an entity that is a life insurance broker or agent, in respect of loans or prepaid payment products that it offers to the public or accounts that it maintains with respect to those loans or prepaid payment products, other than

        • (A) loans that are made by the insurer to a policy holder if the insured person has a terminal illness that significantly reduces their life expectancy and the loan is secured by the value of an insurance policy,

        • (B) loans that are made by the insurer to the policy holder for the sole purpose of funding the life insurance policy, and

        • (C) advance payments to which the policy holder is entitled that are made to them by the insurer,

      • (iv) a credit union central when it offers financial services to a person, or to an entity that is not a member of that credit union central, and

      • (v) a department, or an entity that is an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province, when it accepts deposit liabilities in the course of providing financial services to the public; and

    • (b) a prescribed foreign entity is a foreign financial institution.

  • (2) A financial entity shall, when it enters into a correspondent banking relationship, keep the following records:

    • (a) a record of the foreign financial institution’s name and address, its primary business line and the names of its directors;

    • (b) a copy of the foreign financial institution’s most recent annual report or audited financial statement;

    • (c) a copy of the foreign financial institution’s banking licence, banking charter, authorization or certification to operate issued by the competent authority under the legislation of the jurisdiction in which the foreign financial institution was incorporated, of its certificate of incorporation or of a similar document;

    • (d) a copy of the correspondent banking agreement or arrangement, or product agreements, defining the respective responsibilities of the financial entity and the foreign financial institution;

    • (e) a record of the anticipated correspondent banking account activity of the foreign financial institution, including the products or services to be used;

    • (f) a written statement from the foreign financial institution that it does not have, directly or indirectly, a correspondent banking relationship with a shell bank;

    • (g) a written statement from the foreign financial institution that it is in compliance with anti-money laundering and anti-terrorist financing legislation in every jurisdiction in which it operates; and

    • (h) a record of the measures taken to ascertain whether any civil or criminal penalties have been imposed on the foreign financial institution in respect of anti-money laundering or anti-terrorist financing requirements and the results of those measures.

  • (3) The financial entity shall take reasonable measures to ascertain whether the foreign financial institution has in place anti-money laundering and anti-terrorist financing policies and procedures, including procedures for approval for the opening of new accounts and, if the reasonable measures are unsuccessful or the policies and procedures are not in place, shall, for the purpose of detecting any transactions that are required to be reported to the Centre under section 7 of the Act, take reasonable measures to monitor all transactions conducted in the context of the correspondent banking relationship.

  • (4) For greater certainty, section 12 does not apply in respect of an account that is opened for a foreign financial institution in the context of a correspondent banking relationship.

 
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