Proceeds of Crime (Money Laundering) and Terrorist Financing Act

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.