Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

15.1 (1) For the purposes of subsections 9.4(1) and (3) of the Act, the prescribed foreign entity is a foreign financial institution.

(2) Every financial entity shall, when it enters into a correspondent banking relationship, keep a record in respect of the foreign financial institution containing the following information and documents:

• (a) the name and address of the foreign financial institution;

• (b) the names of the directors of the foreign financial institution;

• (c) the primary business line of the foreign financial institution;

• (d) a copy of the most recent annual report or audited financial statement of the foreign financial institution;

• (e) a copy of the foreign financial institution’s banking licence, banking charter, authorization or certification to operate from the relevant regulatory agency or certificate of corporate status or a copy of another similar document;

• (f) a copy of the correspondent banking agreement or arrangement, or product agreements, defining the respective responsibilities of each entity;

• (g) the anticipated correspondent banking account activity of the foreign financial institution, including the products or services to be used;

• (h) a statement from the foreign financial institution that it does not have, directly or indirectly, correspondent banking relationships with shell banks;

• (i) a statement from the foreign financial institution that it is in compliance with anti-money laundering and anti-terrorist financing legislation in its own jurisdiction; and

• (j) the measures taken to ascertain whether there are any civil or criminal penalties that 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 not, 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 conduct ongoing monitoring of all transactions conducted in the context of the correspondent banking relationship.

(4) For greater certainty, section 14 does not apply in respect of an account opened for a foreign financial institution in the context of a correspondent banking relationship.