Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17)

Marginal note:Foreign branches and subsidiaries

• 9.7 (1) Every entity referred to in any of paragraphs 5(a) to (g), except for authorized foreign banks within the meaning of section 2 of the Bank Act and for foreign companies within the meaning of subsection 2(1) of the Insurance Companies Act, shall, in respect of its foreign branches, and in respect of its foreign subsidiaries that carry out activities similar to those of entities referred to in those paragraphs and that are either wholly-owned by the entity or have financial statements that are consolidated with those of the entity, develop policies that establish requirements similar to the requirements of sections 6, 6.1 and 9.6 and ensure that those branches and subsidiaries apply those policies to the extent it is permitted by, and does not conflict with, the laws of the foreign state in which the branch or subsidiary is located.

• Marginal note:Board approval of policies

  (2) Before the policies referred to in subsection (1) are applied, the entity’s board of directors, if there is one, shall approve them.

• Marginal note:Exceptions

  (3) Subsection (1) does not apply to

  • (a) an entity that is a subsidiary of an entity to which that subsection applies; or

  • (b) an entity that is a subsidiary of a foreign entity that has developed policies that establish requirements for its subsidiaries that are similar to the requirements of sections 6, 6.1 and 9.6, if that subsidiary is applying those policies to the extent it is permitted by, and do not conflict with, the laws of Canada or a province.

• Marginal note:Records and reporting

  (4) If the application by a foreign branch or a foreign subsidiary of a policy referred to in subsection (1) is not permitted by or would conflict with the laws of the foreign state in which the branch or subsidiary is located, the entity shall keep, in accordance with section 6, a record of that fact and of the reasons why it is not permitted or it would conflict and shall, within a reasonable time, notify the Centre, and the principal agency or body that supervises or regulates it under federal or provincial law, of that fact and those reasons.

Marginal note:Information exchange between affiliated entities

• 9.8 (1) Every entity referred to in any of paragraphs 5(a) to (g) that is affiliated with an entity referred to in those paragraphs or with a foreign entity that carries out activities similar to those of entities referred to in those paragraphs shall develop and apply policies and procedures related to the exchange of information between the entity and those affiliated entities for the purpose of detecting or deterring a money laundering offence or a terrorist activity financing offence or of assessing the risk of such an offence.

• Marginal note:Affiliation

  (2) For the purposes of subsection (1), an entity is affiliated with another entity if one of them is wholly owned by the other, if both are wholly owned by the same entity or if their financial statements are consolidated.

Marginal note:Immunity

10 No criminal or civil proceedings lie against a person or an entity for making a report in good faith under section 7, 7.1 or 9, or for providing the Centre with information about suspicions of money laundering, of the financing of terrorist activities or of sanctions evasion.

Marginal note:Non-application to legal counsel

10.1 Sections 7 and 9 do not apply to persons or entities referred to in paragraph 5(i) or (j) who are, as the case may be, legal counsel or legal firms, when they are providing legal services.

Marginal note:Solicitor-client privilege or professional secrecy

11 Nothing in this Act requires a legal counsel to disclose any communication that is subject to solicitor-client privilege or, in Quebec, the professional secrecy of legal counsel.

Registration

Application and Revocation

Marginal note:Registration requirement

11.1 Except as otherwise prescribed by regulation, every person or entity referred to in paragraph 5(h) or (h.1), those referred to in paragraph 5(l) that issue or sell money orders to, or redeem them from, the public, and every other person or entity that is referred to in section 5 and that is prescribed must register with the Centre.

Marginal note:Ineligible for registration

• 11.11 (1) The following persons or entities are not eligible for registration with the Centre:

  • (a) a person or entity that is subject to sanctions associated with terrorist activity or a prohibition relating to financial services under the United Nations Act;

  • (b) a listed entity as defined in subsection 83.01(1) of the Criminal Code;

  • (b.1) a person or entity that is subject to a prohibition on financial or related services under the Special Economic Measures Act;

  • (b.2) a foreign national, as defined in section 2 of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law), who is the subject of an order or regulation made under paragraph 4(1)(a) of that Act or whose property is the subject of an order made under paragraph 4(1)(b) of that Act;

  • (b.3) a politically exposed foreign person, as defined in subsection 2(1) of the Freezing Assets of Corrupt Foreign Officials Act, whose property is the subject of an order or regulation under paragraph 4(1)(a) or an order under paragraph 4(1)(b) of that Act;

  • (c) a person or entity that has been convicted of any of the following:

    • (i) a money laundering offence, or an offence under the laws of a foreign state that is substantially similar to a money laundering offence,

    • (ii) a terrorist activity financing offence, or an offence under the laws of a foreign state that is substantially similar to a terrorist activity financing offence,

    • (iii) an offence under this Act or the Proceeds of Crime (money laundering) Act, chapter 26 of the Statutes of Canada, 1991 when convicted on indictment, or an offence under the laws of a foreign state that is substantially similar to an offence under either Act,

    • (iv) an offence under any of sections 83.18 to 83.231, 99 and 100, subsection 163.1(3) and sections 279.01 to 279.02, 286.2, 346, 354 and 467.11 to 467.13 of the Criminal Code, or an offence under the laws of a foreign state that is substantially similar to such an offence,

    • (iv.1) an offence under section 117 or 118 of the Immigration and Refugee Protection Act, an offence under section 131 of that Act in relation to an offence under section 117 or 118 of that Act, or an offence under the laws of a foreign state that is substantially similar to such an offence, or

    • (v) a conspiracy or an attempt to commit, being an accessory after the fact in relation to, or any counselling in relation to, an offence referred to in subparagraphs (i) to (iv);

  • (d) a person or entity that has been convicted on indictment or convicted more than once of an offence under any of the following, or that has been convicted of an offence under the laws of a foreign state that is substantially similar to an offence under any of the following:

    • (i) Part X of the Criminal Code,

    • (ii) the Controlled Drugs and Substances Act, except for the offence under subsection 4(1) of that Act,

    • (ii.1) the Cannabis Act, except for an offence under subsection 8(1) of that Act,

    • (iii) section 39, 44.2, 44.3, 48, 50.2 or 50.3 of the Food and Drugs Act, as that section read immediately before May 14, 1997,

    • (iv) section 4, 5, 6, 19.1 or 19.2 of the Narcotic Control Act, chapter N-1 of the Revised Statutes of Canada, 1985, as that section read immediately before May 14, 1997,

    • (v) section 159 of the Customs Act, or

    • (vi) subsection 239(1) or (1.1) of the Income Tax Act;

  • (e) an entity that is a corporation in respect of which a director, the chief executive officer, the president or a person who owns or controls, directly or indirectly, 20% or more of the shares has been convicted on indictment of an offence under this Act or the Proceeds of Crime (money laundering) Act, chapter 26 of the Statutes of Canada, 1991 or has been convicted of an offence under the laws of a foreign state that is substantially similar to an offence under either Act;

  • (e.1) a person or entity referred to in paragraph 5(h.1) that, having committed a violation, or a series of minor violations, under this Act that is classified as a serious violation or a very serious violation and being liable to a penalty for it, and 30 days having elapsed since the day on which all proceedings in respect of the violation are ended, has still not paid the penalty together with any interest imposed under section 73.28; or

  • (f) any prescribed person or entity.

• Marginal note:Revocation of registration

  (2) If a person or entity referred to in subsection (1) is registered with the Centre, its registration is revoked as of the day the person or entity becomes ineligible to register under that subsection. If the Centre becomes aware that a person’s or entity’s registration was revoked under this subsection, it must provide, without delay, a written notice of the revocation to that person or entity.

Marginal note:Application for registration

• 11.12 (1) An application for registration shall be submitted to the Centre in the prescribed form and manner and shall include

  • (a) a list of the applicant’s agents or mandataries or branches that are engaged, on behalf of the applicant, in the activities referred to in paragraph 5(h) or (h.1), in issuing or selling money orders to, or redeeming them from, the public if the applicant is a person or entity referred to in paragraph 5(l), or in any prescribed activities;

  • (b) if the applicant is a person referred to in paragraph 5(h.1)

    • (i) the name and address for service of an individual who resides in Canada and who is authorized to accept, on behalf of the person, notices that are served or caused to be served by the Centre under this Act,

    • (ii) a document that sets out the person’s record of criminal convictions, or states that the person does not have one, that is issued by a competent authority of the foreign state in which the person resides, and, if the document is made in a language other than English or French, a translation of it into one of those languages attested to by a person who is recognized as a certified translator by a provincial organization or body that is competent under provincial law to issue such certifications;

  • (c) if the applicant is an entity referred to in paragraph 5(h.1)

    • (i) the name and address for service of an individual who resides in Canada and who is authorized to accept, on behalf of the entity, notices that are served or caused to be served by the Centre under this Act, and

    • (ii) for each of the chief executive officer, the president and the directors of the entity and for each person who owns or controls, directly or indirectly, 20% or more of the entity or the shares of the entity, a document that sets out the person’s record of criminal convictions, or states that the person does not have one, and that is issued by a competent authority of the foreign state in which the person resides, and, if the document is made in a language other than English or French, a translation of it into one of those languages attested to by a person who is recognized as a certified translator by a provincial organization or body that is competent under provincial law to issue such certifications; and

  • (d) any prescribed information.

• Marginal note:Agents, mandataries and branches

  (2) Any agent, mandatary or branch included on the list is not required to register with the Centre when they are acting in that capacity.

Marginal note:Changes to information

• 11.13 (1) An applicant or a person or entity registered with the Centre shall notify the Centre, in the prescribed form and manner, of any change to the information provided in the application or of any newly obtained information that should have been included in the application within 30 days after the day on which the applicant or the registered person or entity becomes aware of the change or obtains the new information.

• Marginal note:Denial or revocation

  (2) If the name or address for service of a person referred to in subparagraph 11.12(1)(b)(i) or (c)(i) changes, and an applicant or registered person or entity who is or was required to provide the information described in paragraph 11.12(1)(b) or (c) does not, within the period provided in subsection (1), provide the Centre with the new name or address for service, the Centre shall without delay after becoming aware of that fact deny the application, or revoke the registration, as the case may be, and shall, without delay, inform the applicant or registered person or entity of the denial or revocation.

Marginal note:Clarifications — applicant

• 11.14 (1) An applicant shall provide the Centre, in the prescribed form and manner, with any clarifications that the Centre may request in respect of the information described in subsection 11.12(1) within 30 days after the day on which the request is made.

• Marginal note:Denial of application

  (2) If the applicant does not provide the Centre with the clarifications within the 30 days, the Centre may deny the application and shall, without delay, inform the applicant of the denial.

Marginal note:Notice of registration

11.15 The applicant is registered with the Centre once the Centre adds the applicant to the registry referred to in subsection 54.1(1). The Centre shall, without delay, send the applicant notice of their registration.

Marginal note:Denial of application

11.16 The Centre shall deny the application of any person or entity referred to in subsection 11.11(1) and shall, without delay, inform the applicant of the denial.

Marginal note:Clarifications — registrant

• 11.17 (1) A registered person or entity shall provide the Centre, in the prescribed form and manner, with any clarifications that the Centre may request in respect of the information described in subsection 11.12(1) within 30 days after the day on which the request is made.

• Marginal note:Revocation of registration

  (2) If the registered person or entity does not provide the Centre with the clarifications within the 30 days, the Centre may revoke the registration and shall, without delay, inform the person or entity of the revocation.