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

Reporting of Financial Transactions and Record Keeping (continued)

Financial Entities (continued)

 Subject to subsection 62(2), every financial entity shall, in respect of every credit card account that it opens, keep a credit card account record that includes

  • (a) where the account is opened in the name of a client that is a person or an entity other than a corporation, the name and address of the client and

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

    • (ii) if the client is an entity other than a corporation, the nature of their principal business;

  • (b) where the account is opened in the name of a client that is a corporation, a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation in respect of the account;

  • (c) the name, address and telephone number of every holder of a credit card for the account;

  • (d) the date of birth of every holder of a credit card for the account, if that information is known after reasonable measures have been taken by the financial entity to obtain it;

  • (e) every credit card application that the financial entity receives from the client in the normal course of business;

  • (f) a copy of every credit card statement that the financial entity sends to the client, if the information in the statement is not readily obtainable from other records that are kept and retained by it under these Regulations; and

  • (g) if it obtains the approval referred to in subsection 67.1(1) or (2) to keep the account open,

    • (i) the office or position and the organization or institution in respect of which the person is determined to be a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons,

    • (ii) the date of the determination,

    • (iii) the source, if known, of the funds that are or are expected to be deposited in the account,

    • (iv) the name of the member of senior management who gave the approval, and

    • (v) the date of that approval.

  • SOR/2007-122, s. 28
  • SOR/2016-153, s. 23
  •  (1) Every trust company shall, in addition to the records referred to in sections 13 and 14, 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, as applicable, and

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

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

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

  • SOR/2007-293, s. 11
  •  (1) For the purposes of subsections 9.4(1) and (3) of the Act, the prescribed foreign entity is a foreign financial institution.

  • (2) Every financial entity shall, when it enters into a correspondent banking relationship, keep a record in respect of the foreign financial institution containing the following information and documents:

    • (a) the name and address of the foreign financial institution;

    • (b) the names of the directors of the foreign financial institution;

    • (c) the primary business line of the foreign financial institution;

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

    • (e) a copy of the foreign financial institution’s banking licence, banking charter, authorization or certification to operate from the relevant regulatory agency or certificate of corporate status or a copy of another similar document;

    • (f) a copy of the correspondent banking agreement or arrangement, or product agreements, defining the respective responsibilities of each entity;

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

    • (h) a statement from the foreign financial institution that it does not have, directly or indirectly, correspondent banking relationships with shell banks;

    • (i) a statement from the foreign financial institution that it is in compliance with anti-money laundering and anti-terrorist financing legislation in its own jurisdiction; and

    • (j) the measures taken to ascertain whether there are any civil or criminal penalties that 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 not, 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 conduct ongoing monitoring of all transactions conducted in the context of the correspondent banking relationship.

  • (4) For greater certainty, section 14 does not apply in respect of an account opened for a foreign financial institution in the context of a correspondent banking relationship.

  • SOR/2007-122, s. 29
  • SOR/2008-195, s. 2

Life Insurance Companies and Life Insurance Brokers or Agents

 Part 1 of the Act applies to life insurance brokers or agents.

 Subject to section 20.2 and subsection 52(1), every life insurance company or life insurance broker or agent who receives from a client an amount in cash of $10,000 or more in the course of a single transaction shall report the transaction to the Centre, together with the information referred to in Schedule 1, except

  • (a) if the amount is received from a financial entity or a public body; or

  • (b) in respect of transactions referred to in any of paragraphs 62(2)(c) to (f).

  • SOR/2007-122, s. 30
  • SOR/2016-153, s. 24

 Subject to section 20.2 and subsection 52(2), every life insurance company or life insurance broker or agent shall keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transaction, unless

  • (a) the cash is received from a financial entity or a public body; or

  • (b) the transaction is a transaction referred to in any of paragraphs 62(2)(c) to (f).

  • SOR/2007-122, s. 31
  • SOR/2016-153, s. 25
  •  (1) Subject to section 20.2 and subsection 62(2), every life insurance company or life insurance broker or agent shall keep a client information record for every purchase from the company, broker or agent of an immediate or deferred annuity or a life insurance policy for which the client may pay $10,000 or more over the duration of the annuity or policy, regardless of the means of payment.

  • (2) Subject to section 20.2 and subsection 62(2), in the case of a life insurance policy that is a group life insurance policy or in the case of a group annuity, the client information record shall be kept in respect of the applicant for the policy or annuity.

  • SOR/2007-122, s. 32

 Subject to section 20.2, every life insurance company or life insurance broker or agent who keeps a client information record in respect of a corporation under subsection 19(1) shall also keep a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation in respect of transactions with the life insurance company or life insurance broker or agent, if the copy of that part is obtained in the normal course of business.

  • SOR/2007-122, s. 32
 
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