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Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

Version of section 11.1 from 2014-01-31 to 2016-06-29:

  •  (1) Every financial entity or securities dealer that is required to confirm the existence of an entity in accordance with these Regulations when it opens an account in respect of that entity, every life insurance company, life insurance broker or agent or legal counsel or legal firm that is required to confirm the existence of an entity in accordance with these Regulations and every money services business that is required to confirm the existence of an entity in accordance with these Regulations when it enters into an ongoing electronic funds transfer, fund remittance or foreign exchange service agreement with that entity, or a service agreement for the issuance or redemption of money orders, traveller’s cheques or other similar negotiable instruments, shall, at the time the existence of the entity is confirmed, obtain the following information:

    • (a) in the case of a corporation, the names of all directors of the corporation and the names and addresses of all persons who own or control, directly or indirectly, 25 per cent or more of the shares of the corporation;

    • (b) in the case of a trust, the names and addresses of all trustees and all known beneficiaries and settlors of the trust;

    • (c) in the case of an entity other than a corporation or trust, the names and addresses of all persons who own or control, directly or indirectly, 25 per cent or more of the entity; and

    • (d) in all cases, information establishing the ownership, control and structure of the entity.

  • (2) Every person or entity that is subject to subsection (1) shall take reasonable measures to confirm the accuracy of the information obtained under that subsection.

  • (3) The person or entity shall keep a record that sets out the information obtained and the measures taken to confirm the accuracy of that information.

  • (4) If the person or entity is not able to obtain the information referred to in subsection (1) or to confirm that information in accordance with subsection (2), the person or entity shall

    • (a) take reasonable measures to ascertain the identity of the most senior managing officer of the entity; and

    • (b) treat that entity as high risk for the purpose of subsection 9.6(3) of the Act and apply the prescribed special measures in accordance with section 71.1 of these Regulations.

  • (5) If the entity, the existence of which is being confirmed by a person or entity under subsection (1), is a not-for-profit organization, the person or entity shall determine, and keep a record that sets out, whether that entity is

    • (a) a charity registered with the Canada Revenue Agency under the Income Tax Act; or

    • (b) an organization, other than one referred to in paragraph (a), that solicits charitable donations from the public.

  • (6) This section does not apply in respect of a group plan account held within a dividend reinvestment plan or a distribution reinvestment plan, including a plan that permits purchases of additional shares or units by the member with contributions other than the dividends or distributions paid by the sponsor of the plan, if the sponsor of the plan is an entity whose shares or units are traded on a Canadian stock exchange, and that operates in a country that is a member of the Financial Action Task Force.

  • SOR/2007-122, s. 25
  • SOR/2007-293, s. 9
  • SOR/2013-15, s. 3
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