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Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

Version of section 57 from 2006-03-22 to 2008-06-22:

  •  (1) Subject to subsections (2) and (5), 62(2) and (4) and 63(1), every securities dealer shall ascertain, in accordance with paragraph 64(1)(c), the identity of every person who is authorized to give instructions in respect of an account for which a record must be kept by the securities dealer under subsection 23(1).

  • (2) Subsection (1) does not apply

    • (a) to business accounts in respect of which the securities dealer has already ascertained the identity of at least three persons who are authorized to give instructions in respect of the account;

    • (b) to accounts opened for the deposit and sale of shares from a corporate demutualization, an employee stock purchase plan or the privatization of a Crown corporation;

    • (c) to registered plan accounts, including locked-in retirement plan accounts, registered retirement savings plan accounts and group registered retirement savings plan accounts;

    • (d) to employees profit sharing plan accounts and deferred profit sharing plan accounts, unless the accounts are funded in whole or in part by contributions by a person or entity other than the employer;

    • (e) to dividend reinvestment plan accounts sponsored by a corporation for its investors, unless the accounts are funded in whole or in part by a source other than the corporation; or

    • (f) to accounts in the name of foreign affiliates of a financial entity.

  • (3) Subject to subsection 63(2), every securities dealer shall, in accordance with section 65, confirm the existence of and ascertain the name and address of every corporation for which it opens an account, and the names of the corporation’s directors.

  • (4) Subject to subsection 63(3), every securities dealer shall, in accordance with section 66, confirm the existence of every entity, other than a corporation, for which it opens an account.

  • (5) A securities dealer is not required to ascertain the identity of a person who is authorized to give instructions in respect of an account that is opened for the sale of mutual funds where there are reasonable grounds to believe that the person’s identity has been ascertained in accordance with paragraph 64(1)(c) by another securities dealer in respect of

    • (a) the sale of the mutual funds for which the account has been opened; or

    • (b) a transaction that is part of a series of transactions that includes that sale.

  • SOR/2003-358, s. 14
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