Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

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

Regulations are current to 2021-06-28 and last amended on 2021-06-01. Previous Versions

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

Financial Entities (continued)

[
  • SOR/2016-153, s. 19(E)
]

 [Repealed, SOR/2019-240, s. 28]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 [Repealed, SOR/2019-240, s. 28]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.

Life Insurance Companies and Life Insurance Brokers or Agents

  •  (1) A life insurance broker or agent is engaged in a business or profession for the purposes of paragraph 5(i) of the Act.

  • (2) Subsection (1) does not apply to a life insurance broker or agent when they are acting as a managing general agent.

 A life insurance company or life insurance broker or agent that receives an amount of $10,000 or more in cash from a person or entity in a single transaction shall report the transaction to the Centre, together with the information set out in Schedule 1, unless

  • (a) the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body; or

  • (b) the transaction

    • (i) involves the sale of an immediate or deferred annuity that is paid for entirely with funds that are directly transferred from a registered pension plan or from a pension plan that is required to be registered under the Pension Benefits Standards Act, 1985, or similar provincial legislation,

    • (ii) involves the sale of a registered annuity policy or a registered retirement income fund,

    • (iii) involves the sale of an immediate or deferred annuity that is paid for entirely with the proceeds of a group life insurance policy, or

    • (iv) is part of a reverse mortgage or structured settlement.

 A life insurance company or life insurance broker or agent that receives an amount of $10,000 or more in virtual currency from a person or entity in a single transaction shall report the transaction to the Centre, together with the information set out in Schedule 4.

 A life insurance company or life insurance broker or agent shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive from a person or entity in a single transaction, unless

  • (a) the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body; or

  • (b) the transaction

    • (i) involves the sale of an immediate or deferred annuity that is paid for entirely with funds that are directly transferred from a registered pension plan or from a pension plan that is required to be registered under the Pension Benefits Standards Act, 1985, or similar provincial legislation,

    • (ii) involves the sale of a registered annuity policy or a registered retirement income fund,

    • (iii) involves the sale of an immediate or deferred annuity that is paid for entirely with the proceeds of a group life insurance policy, or

    • (iv) is part of a reverse mortgage or structured settlement.

 
Date modified: