Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

8 (1) A financial entity is not required to report the transaction and information under paragraph 7(1)(a) if the following conditions are met:

• (a) the entity from which or on whose behalf the financial entity receives the amount is a corporation that carries on 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), 51711, 51751, 61121 or 61131 of the North American Industry Classification System as that sector or code read on January 31, 2003;

• (b) the amount received is deposited into an account held by the corporation with the financial entity in respect of that business;

• (c) the corporation has had

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

  • (ii) an account in respect of that business with another financial entity for a continuous period of 24 months ending immediately before the corporation opened an account with the financial entity;

• (d) the financial entity has records that indicate that the corporation has deposited an amount of $10,000 or more in cash into that account on an average of at least twice a week during the preceding 12 months;

• (e) the cash deposits made by the corporation are consistent with the corporation’s usual practice in respect of the business;

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

• (g) the financial entity provides to the Centre the information set out in Schedule 5.

(2) A corporation referred to in paragraph (1)(a) does not include one that carries on a business related to pawnbroking or whose principal business is the sale of vehicles, vessels, farm machinery, aircraft, mobile homes, jewellery, precious stones, precious metals, antiquities or art.

(3) A financial entity that, in accordance with subsection (1), does not report a transaction and information

• (a) shall report to the Centre a change to the corporation’s name or address, the nature of the corporation’s business or the corporation’s incorporation number within 15 days after the day on which the change is made; and

• (b) shall, at least once every 12 months,

  • (i) verify that the conditions referred to in subsection (1) continue to be met,

  • (ii) ensure that a senior officer of the financial entity confirms that those conditions continue to be met, and

  • (iii) send a report to the Centre setting out the corporation’s name and address and the name of the senior officer who gave the confirmation.