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

Regulations are current to 2019-11-19 and last amended on 2019-06-25. Previous Versions

Reporting of Financial Transactions and Record Keeping (continued)

Departments and Agents or Mandataries of Her Majesty in Right of Canada or of a Province (continued)

[SOR/2016-153, s. 33(E)]

Sale or Redemption of Money Orders

 Every department and agent or mandatary of Her Majesty in right of Canada or of a province is subject to Part 1 of the Act when they sell or redeem money orders in the course of providing financial services to the public.

  • SOR/2016-153, s. 35(E)

 Subject to subsection 52(1), every department and agent or mandatary of Her Majesty in right of Canada or of a province that, while engaging in an activity referred to in section 46, 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.

  • SOR/2016-153, s. 35(E)

 Subject to subsection 52(2), every department and agent or mandatary of Her Majesty in right of Canada or of a province, while engaging in an activity referred to in section 46, shall keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive from a client in the course of a single transaction, unless the amount is received from a financial entity or a public body.

  • SOR/2016-153, s. 35(E)

 Subject to subsection 62(2), every department and agent or mandatary of Her Majesty in right of Canada or of a province that engages in an activity referred to in section 46 shall keep the following records in respect of that activity:

  • (a) every client information record that is created for the purpose of an ongoing business relationship between the department or agent or mandatary and a client;

  • (b) if the client information record is 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 transactions with the department or agent or mandatary;

  • (c) if the department or agent or mandatary receives $3,000 or more in consideration of the issuance of money orders or other similar negotiable instruments, a record of the date, the amount received, the name, address and date of birth of the person who in fact gives the amount and whether the amount is in cash, cheques, traveller’s cheques, money orders or other similar negotiable instruments; and

  • (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.

  • SOR/2007-122, s. 76
  • SOR/2007-293, s. 19
  • SOR/2016-153, s. 36(E)

Exceptions

  •  (1) A financial entity is not required to report transactions under paragraph 12(1)(a) in respect of a business of a client, if the following conditions are met:

    • (a) subject to subsection (2), the client is a corporation that carries on that business as an establishment described in sector 22, 44 (excluding codes 4411, 4412 and 44831) or 45 (excluding code 45392), or code 481, 482, 485 (excluding code 4853), 51322, 51331, 61121 or 61131 of the North American Industry Classification System as that sector or code read on January 31, 2003;

    • (b) the client has had

      • (i) for the entire preceding 24-month period, an account in respect of that business with that financial entity, or

      • (ii) an account in respect of that business with a financial entity other than the one referred to in subparagraph (i), for a continuous period of 24 months ending immediately before the client opened an account with that financial entity;

    • (c) the financial entity has records that indicate that the client has deposited $10,000 or more in cash into that account on an average of at least twice in every week for the preceding 12 months;

    • (d) the cash deposits made by the client are consistent with its usual practice in respect of the business;

    • (e) the financial entity has taken reasonable measures to determine the source of the cash for those deposits; and

    • (f) subject to subsection 52(1), the financial entity has provided to the Centre the information set out in Schedule 4.

  • (2) Paragraph (1)(a) does not apply to a corporation that carries on a business related to pawnbroking or a corporation whose principal business is the sale of vehicles, vessels, farm machinery, aircraft, mobile homes, jewellery, precious gems or metals, antiquities or art.

  • (3) A financial entity that, in accordance with subsection (1), chooses not to report transactions of more than $10,000 shall report to the Centre any change in the following information, within 15 days after the change is made:

    • (a) the name and address of the client;

    • (b) the nature of the client’s business; and

    • (c) the client’s incorporation number.

  • (4) A financial entity that, in accordance with subsection (1), chooses not to report transactions of more than $10,000 shall, at least once every 12 months,

    • (a) verify that the conditions referred to in subsection (1) are still met in respect of each client; and

    • (b) send a report to the Centre setting out the name and address of each client, together with the name of a senior officer of the financial entity who has confirmed that the conditions referred to in subsection (1) are still being met in respect of each client.

  • SOR/2003-358, s. 10

 Where a person or entity maintains a list of clients for the purposes of subsection 9(3) of the Act, the list must contain the name and address of each client and be kept in paper form or in a form referred to in section 68.

  •  (1) The requirement to report information set out in Schedules 1 to 6 does not apply to a person or entity in respect of information set out in an item of any of those Schedules that is not marked with an asterisk if, after taking reasonable measures to do so, the person or entity is unable to obtain the information.

  • (2) The requirement that a person or entity keep or retain a record or include information in it does not apply if the information that must be found in the record is readily obtainable from other records that the person or entity is required to keep or retain under these Regulations.

  • (3) Despite subsection (1), for the application of subsection 3(1), the requirement to report information set out in Schedules 1 to 3, 5 and 6 does not apply to a person or entity in respect of information set out in an item of any of those Schedules that is marked with an asterisk if, after taking reasonable measures to do so, the person or entity is unable to obtain the information.

  • (4) For greater certainty, Schedules 2 and 3 apply only to SWIFT members sending or receiving SWIFT messages.

  • SOR/2003-358, s. 11
  • SOR/2007-122, s. 47

Reporting of Financial Transactions and Record Keeping

 Every person or entity that enters into a business relationship under these Regulations shall keep a record that sets out the purpose and intended nature of the business relationship.

  • SOR/2013-15, s. 4

Ascertaining Identity

Persons or Entities Required to Keep Large Cash Transaction Records

 Subject to subsection 63(1), every person or entity that is required to keep and retain a large cash transaction record under these Regulations shall ascertain, in accordance with subsection 64(1), the identity of every person with whom the person or entity conducts a transaction in respect of which that record must be kept, other than a deposit made to a business account or a deposit made by means of an automated banking machine.

  • SOR/2003-358, s. 12
  • SOR/2007-122, s. 48

Suspicious Transactions

  •  (1) Except if the identity has been previously ascertained as required by these Regulations, every person or entity that is subject to these Regulations shall take reasonable measures to ascertain, in accordance with subsection 64(1), the identity of every person with whom the person or entity conducts or attempts to conduct a transaction that is required to be reported to the Centre under section 7 of the Act.

  • (2) Subsection (1) does not apply if the person or entity believes that complying with that subsection would inform the person that the transaction and the related information is being reported under section 7 of the Act.

  • SOR/2007-122, s. 48
  • SOR/2013-15, s. 5

 For the purposes of section 9.2 of the Act, the prescribed circumstances are the circumstances in which a financial entity, a securities dealer or a casino is required to ascertain the identity of a person or confirm the existence of an entity in connection with the opening of a new account in accordance with section 64, 65 or 66, as applicable.

  • SOR/2007-122, s. 48

Financial Entities

 Subject to sections 62 and 63, every financial entity shall

  • (a) in accordance with subsection 64(1), ascertain the identity of every person for whom a signature card is created in respect of an account, other than a credit card account, that the financial entity opens, except in the case of a business account for which signature cards are created for more than three persons, if the financial entity has ascertained the identity of at least three of those persons;

  • (b) in accordance with subsection 64(1), ascertain the identity of every person who conducts one of the following transactions, unless they hold an account, or are authorized to give instructions in respect of an account held, with the financial entity:

    • (i) a transaction whereby the financial entity issues or redeems money orders, traveller’s cheques or other similar negotiable instruments in an amount of $3,000 or more,

    • (ii) an electronic funds transfer, as prescribed by subsection 66.1(2), in an amount of $1,000 or more that is sent at the person’s request or on their behalf, or

    • (iii) a foreign currency exchange transaction of $3,000 or more;

  • (c) [Repealed, SOR/2007-122, s. 54]

  • (d) in accordance with section 65, confirm the existence of and ascertain the name and address of every corporation for which the financial entity opens an account and the names of the corporation’s directors; and

  • (e) in accordance with section 66, confirm the existence of every entity, other than a corporation, for which the financial entity opens an account.

  • SOR/2003-358, s. 13
  • SOR/2007-122, s. 49
  • SOR/2016-153, s. 37
 
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