Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Marginal note:Correspondent banking

• 9.4 (1) Every entity referred to in any of paragraphs 5(a), (b), (d), (e) and (e.1) and every other entity that is referred to in section 5 and that is prescribed shall take the measures referred to in the regulations in respect of any correspondent banking relationship it enters into with a prescribed foreign entity and shall take the following measures before entering into such a correspondent banking relationship:

  • (a) obtain prescribed information about the foreign entity and its activities;

  • (b) ensure that the foreign entity is not a shell bank as defined in the regulations;

  • (c) obtain the approval of senior management;

  • (d) set out in writing their obligations and those of the foreign entity in respect of the correspondent banking services; and

  • (e) any prescribed measures.

• Marginal note:Prohibition — shell bank

  (2) No person or entity shall have a correspondent banking relationship with a shell bank as defined in the regulations.

• Marginal note:Definition of correspondent banking relationship

  (3) For the purposes of this section, correspondent banking relationship means a relationship created by an agreement or arrangement under which an entity referred to in any of paragraphs 5(a), (b), (d), (e) and (e.1) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a prescribed foreign entity prescribed services or international electronic funds transfers, cash management or cheque clearing services.