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

121 (1) A financial entity, securities dealer or casino that determines under paragraph 116(1)(a), subsection 116(2) or (3), section 119 or subsection 120.2(1), (2) or (4) that a person is a politically exposed foreign person or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, a politically exposed foreign person shall

• (a) take reasonable measures to establish the source of the funds or virtual currency that is or is expected to be deposited into the account in question and the source of the person’s wealth;

• (b) obtain the approval of a member of senior management to keep the account open; and

• (c) take the special measures referred to in section 157.

(2) A financial entity, securities dealer or casino shall also take the measures referred to in paragraphs (1)(a) to (c) if

• (a) they determine under paragraph 116(1)(a), subsection 116(2) or (3), section 119 or subsection 120.2(1), (2) or (4) that a person is a politically exposed domestic person, a head of an international organization or a family member — referred to in subsection 2(1) — of one of those persons or they determine under subsection 116(3), 119(3) or 120.2(4) that a person is closely associated with a politically exposed domestic person or a head of an international organization; and

• (b) they consider, based on an assessment of the risk referred to in subsection 9.6(2) of the Act, that there is a high risk of a money laundering offence or terrorist activity financing offence.

(3) A financial entity, securities dealer or casino shall take the reasonable measures referred to in paragraph 116(1)(a) and subsections 116(3), 119(1) and (3) and 120.2(1) and (4) — and, if applicable, shall take the measures referred to in paragraphs (1)(a) and (b) — within 30 days after the day on which the account is opened or the fact is detected, as the case may be.