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

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) or (h.1), 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 — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides;

  • (c) if the applicant is an entity referred to in paragraph 5(h) or (h.1), 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 — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides;

  • (c.1) if the applicant is a person or entity referred to in paragraph 5(h.1), the name and address for service of a person who resides in Canada and who is authorized to accept, on behalf of the person or entity, notices that are served or caused to be served by the Centre under this Act;

  • (c.2) if the applicant is an entity, the prescribed information in respect of the entity’s incorporation or formation; and

  • (d) any prescribed information.

• Marginal note:Translation

  (1.1) If a document referred to in paragraph (1)(b) or (c) is made in a language other than English or French, the application shall include a translation of it into one of those languages attested to by a person who is recognized as a certified translator either by a provincial organization or body that is competent under provincial law to issue such certifications or by an organization or body in a foreign state that this competent under the laws of that state to do so.

• 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 paragraph 11.12(1)(c.1) changes, and an applicant or registered person or entity who is or was required to provide the information described in that paragraph does not, within the period referred to 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.

Marginal note:Revocation — contravention

11.171 The Centre may revoke the registration of a person or entity that contravenes subsection 62(2) or a notice served under section 63.1 and shall, without delay, inform the person or entity of the revocation.

Marginal note:Written reasons

11.18 Any decision to deny an application or revoke a registration must be in writing with reasons.

Marginal note:Renewal of registration

11.19 A registered person or entity shall renew their registration in the prescribed form and manner every two years or within any longer prescribed period.

Marginal note:Cessation of activity

11.2 When a registered person or entity ceases an activity for which they are registered, they shall notify the Centre in the prescribed form and manner within 30 days after the day on which they cease the activity.

Review

Marginal note:Application for review by Director

• 11.3 (1) Within 30 days after the day on which the person or entity receives a decision to deny their application or revoke their registration, the person or entity may apply in writing to the Director of the Centre for a review of the decision and may provide any information in support of their application for review.

• Marginal note:Review by Director

  (2) The Director shall review the decision as soon as possible and shall take into consideration any information that the Director deems relevant.

• Marginal note:Decision of Director

  (3) The Director may either confirm the decision or substitute his or her own decision, and shall, without delay, serve notice of the decision with reasons on the person or entity, together with notice of the right of appeal under subsection 11.4(1).

Appeal to Federal Court

Marginal note:Appeal

• 11.4 (1) A person or entity that applied for a review under subsection 11.3(1) may appeal the Director’s decision to the Federal Court within 30 days after the day on which the decision is served, or within any longer period that the Court allows.

• Marginal note:Appeal

  (2) If the Director does not make a decision within 90 days after the day on which the Director received the application for review, the applicant may appeal to the Federal Court, within 30 days after the day on which the 90-day period expires, the decision to deny the application for registration or revoke the registration.

• Marginal note:Precautions against disclosure

  (3) In an appeal, the Court shall take every reasonable precaution, including, when appropriate, conducting hearings in private, to avoid the disclosure by the Court or any person or entity of information referred to in subsection 55(1). However, the Court is not required to take those precautions with respect to the appellant’s name and operating name.

PART 1.1Protection of Canada’s Financial System

Interpretation

Marginal note:Definition of foreign entity

11.41 In this Part, foreign entity means

• (a) an entity referred to in paragraph 5(h.1); or

• (b) an entity, other than an entity referred to in section 5, that is incorporated or formed by or under the laws of a foreign state, including its subsidiaries, if any, and that does not carry on business in Canada, if it carries out activities similar to those of entities referred to in any of paragraphs 5(a) to (g) or activities referred to in paragraph 5(h) or (h.1).

Ministerial Directive

Marginal note:Minister’s written directive

• 11.42 (1) In addition to any other measure required by this Act, the Minister may, by written directive, require any person or entity referred to in section 5 to take, in order to safeguard the integrity of Canada’s financial system, any measure specified in the directive with respect to any financial transaction, or any financial transaction within a class of financial transactions, originating from or bound for any foreign state, foreign entity or entity referred to in paragraph 5(e.1), that occurs or is attempted in the course of their activities, or with respect to any activity that is related to any such financial transaction or class of financial transactions.

• Marginal note:Measures

  (2) The measures specified in a directive may include provision for the following matters:

  • (a) the verification of the identity of any person or entity;

  • (b) the exercise of customer due diligence, including ascertaining the source of funds or of virtual currency in any financial transaction, the purpose of any financial transaction or the beneficial ownership or control of any entity;

  • (c) the monitoring of any financial transaction or any account;

  • (d) the keeping of any records;

  • (e) the reporting of any financial transaction to the Centre; and

  • (f) compliance with this Part and Part 1.

• Marginal note:Non-application to legal counsel

  (2.1) A requirement in a directive to take a reporting measure as contemplated by paragraph (2)(e) does 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:Director to communicate directive

  (3) The Minister may require the Director of the Centre to communicate a directive in accordance with the Minister’s instructions.

• Marginal note:Relevant circumstances

  (4) Before issuing a directive, the Minister may take into account any circumstance that the Minister considers relevant. However, the Minister may only issue a directive if

  • (a) an international organization, body, association or coalition or a grouping of states (such as the Financial Action Task Force) of which Canada is a member has called on its members to take measures in relation to a foreign state, foreign entity or entity referred to in paragraph 5(e.1) on the ground that the state’s or entity’s anti-money laundering or anti-terrorist financing measures are ineffective or insufficient;

  • (b) the anti-money laundering or anti-terrorist financing measures that a foreign state, a foreign entity or an entity referred to in paragraph 5(e.1) has implemented are ineffective or insufficient and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system;

  • (c) there is a risk that a foreign state, a foreign entity or a person or entity referred to in section 5 may be facilitating the financing of threats to the security of Canada and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system; or

  • (d) there is a risk that a foreign state, a foreign entity or a person or entity referred to in section 5 may be facilitating sanctions evasion and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system.

• Marginal note:Terms and conditions

  (5) The Minister may impose any terms and conditions in the directive that the Minister considers appropriate.

Marginal note:Duty to comply

11.43 The person or entity to which a directive under this Part applies shall comply with it within the time and in the manner specified in the directive.

Marginal note:Foreign branches and subsidiaries

• 11.44 (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 ensure that its foreign branches, and that 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, comply with any directive issued under this Part, except with respect to any reporting measure as contemplated by paragraph 11.42(2)(e), 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:Records and reporting

  (2) If compliance with a directive by a branch or a subsidiary 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.