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)

Life Insurance Companies and Life Insurance Brokers or Agents (continued)

 Subject to section 20.2 and subsection 62(2), every life insurance company or life insurance broker or agent shall keep a record of the following information when a transaction is reviewed under subsection 67.2(1) or (2):

  • (a) 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;

  • (b) the date of the determination;

  • (c) the source, if known, of the funds used for the transaction;

  • (d) the name of the member of senior management who reviewed the transaction; and

  • (e) the date of that review.

  • SOR/2007-122, s. 32
  • SOR/2007-293, s. 12
  • SOR/2016-153, s. 26

 Sections 17 to 20.1 do not apply to a life insurance company or a life insurance broker or agent when they are dealing in reinsurance.

  • SOR/2007-122, s. 32

Securities Dealers

 Subject to subsection 52(1), every securities dealer 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 set out in Schedule 1, unless the amount is received from a financial entity or a public body.

 Subject to subsection 52(2), every securities dealer 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 the cash is received from a financial entity or a public body.

 Subject to subsection 62(2), every securities dealer shall keep the following records:

  • (a) in respect of every account that the securities dealer opens, a signature card of every person who is authorized to give instructions in respect of the account or an account operating agreement or account application that contains that person’s signature;

  • (a.1) in respect of every account that the securities dealer opens, a record that sets out the intended use of the account;

  • (b) where the securities dealer opens an account in respect of 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 that account;

  • (c) where the securities dealer opens an account in the name of a person or of an entity other than a corporation, a record of 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;

  • (d) every new account application, confirmation of purchase or sale, guarantee, trade authorization, power of attorney and joint account agreement, and all correspondence that pertains to the operation of accounts, that the securities dealer creates in the normal course of business;

  • (e) a copy of every statement that the securities dealer sends to a client, if the information in the statement is not readily obtainable from other records that the securities dealer keeps and retains under these Regulations; and

  • (f) if the securities dealer obtains the approval referred to in subsection 67.1(1) or (2) to keep the account open, a record of

    • (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/2003-358, s. 6
  • SOR/2007-122, s. 33
  • SOR/2007-293, s. 13
  • SOR/2016-153, s. 27

 [Repealed, SOR/2007-122, s. 34]

 [Repealed, SOR/2007-122, s. 34]

 [Repealed, SOR/2007-122, s. 34]

Money Services Businesses

[SOR/2016-153, s. 81(F)]

 [Repealed, SOR/2007-122, s. 35]

  •  (1) Subject to subsection 52(1), every money services business shall report the following transactions and information to the Centre:

    • (a) the receipt from a client of an amount in cash of $10,000 or more in the course of a single transaction, together with the information referred to in Schedule 1, unless the cash is received from a financial entity or a public body;

    • (b) the sending out of Canada, at the request of a client, of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the information referred to in Schedule 2 or 5, as the case may be; and

    • (c) the receipt from outside Canada of an electronic funds transfer, sent at the request of a client, of $10,000 or more in the course of a single transaction, together with the information referred to in Schedule 3 or 6, as the case may be.

  • (2) For greater certainty, paragraph (1)(b) does not apply when the money services business sends an electronic funds transfer to a person or an entity in Canada, even if the final recipient is outside Canada.

  • (3) Paragraph (1)(b) applies in respect of a money services business that orders a person or entity, to which subsection (1), 12(1) or 40(1) applies, to send out of Canada an electronic funds transfer made at the request of a client, unless it provides that person or entity with the name and address of that client.

  • (4) Subject to subsection (5), for greater certainty, paragraph (1)(c) does not apply when the money services business receives an electronic funds transfer from a person or entity in Canada, even if the initial sender is outside Canada.

  • (5) Paragraph (1)(c) applies in respect of a money services business that receives an electronic funds transfer for a beneficiary in Canada from a person or entity to which subsection (1), 12(1) or 40(1) applies where the initial sender is outside Canada, unless the electronic funds transfer contains the name and address of that beneficiary.

  • SOR/2002-184, s. 75
  • SOR/2003-358, s. 8
  • SOR/2007-122, s. 36
  • SOR/2016-153, s. 81(F)

 Subject to subsection 52(2), every money services business 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 the cash is received from a financial entity or a public body.

  • SOR/2016-153, s. 81(F)

 Every money services business shall keep the following records in respect of any of the activities referred to in paragraph 5(h) of the Act:

  • (a) [Repealed, SOR/2016-153, s. 28]

  • (a.1) every internal memorandum that it receives or creates in the normal course of business and that concerns services provided to its clients;

  • (b) where a client information record is created in respect 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 transactions with the money services business, if the copy of that part is obtained in the normal course of business;

  • (c) where it receives an amount of $3,000 or more from a person or from an entity other than a financial entity in consideration of the issuance of traveller’s cheques, money orders or other similar negotiable instruments, a record of the amount received, the date it was received, the name, address and date of birth of the person who in fact gave the amount and whether the amount received was in cash, cheques, traveller’s cheques, money orders or other similar negotiable instruments;

  • (d) where money orders of $3,000 or more are cashed, a record of the name, address and date of birth of the person cashing the money orders and the name of the issuer of the money orders;

  • (e) where an amount of $1,000 or more is remitted or transmitted, a record of

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

    • (ii) if the client is an entity, the name, address, date of birth and telephone number of the person who, on behalf of the entity, requested that the transaction be initiated and the nature of that person’s principal business or their occupation, as applicable,

    • (iii) the reference number and date of the transaction,

    • (iv) the name of the beneficiary of the transaction, and

    • (v) the amount and currency of the transaction; and

  • (f) a transaction ticket in respect of every foreign currency exchange transaction.

  • SOR/2007-122, ss. 37, 76
  • SOR/2008-21, s. 6
  • SOR/2016-153, ss. 28, 81(F)
 
Date modified: