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Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (SOR/2002-184)

Regulations are current to 2024-05-28 and last amended on 2022-06-29. Previous Versions

PART 1Requirements To Report Transactions and To Keep Records (continued)

Casinos (continued)

 For the purposes of sections 70 to 74, if a registered charity, as defined in subsection 248(1) of the Income Tax Act, conducts and manages, in a permanent establishment of a casino, for a period of not more than two consecutive days at a time, a lottery scheme that includes games of roulette or card games and, in doing so, acts under the supervision of the government of a province that is referred to in paragraph 5(k) of the Act, or of an organization that is referred to in paragraph 5(k.2) of the Act, that conducts and manages such a lottery scheme in the same establishment, the lottery scheme that is conducted and managed by the registered charity is considered to be conducted and managed by the supervising government or organization.

Departments and Agents or Mandataries of Her Majesty in Right of Canada or of a Province

 A department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province carries out an activity for the purposes of paragraph 5(l) of the Act when they accept deposit liabilities in the course of providing financial services to the public.

 A department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province carries out an activity for the purposes of paragraph 5(l) of the Act when they issue, sell or redeem money orders in the course of providing financial services to the public.

 A department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province that receives an amount of $10,000 or more in cash in a single transaction in connection with an activity referred to in section 77 shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

 A department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province that receives an amount of $10,000 or more in virtual currency in a single transaction in connection with an activity referred to in section 77 shall report the transaction to the Centre, together with the information set out in Schedule 4.

 A department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive in a single transaction in connection with an activity referred to in section 77, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

 A department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive in a single transaction in connection with an activity referred to in section 77, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

 A department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province shall keep the following records in connection with an activity referred to in section 77:

  • (a) if they receive an amount of $3,000 or more as consideration for the issuance or sale of one or more money orders from a person or entity other than either a financial entity or a person who is acting on behalf of a client that is a financial entity,

    • (i) a record of the date of the receipt,

    • (ii) in the case of a person, a record of their name, address, date of birth and the nature of their principal business or their occupation,

    • (iii) in the case of an entity, an information record,

    • (iv) a record of the amount received,

    • (v) a record indicating whether the amount received is in funds or virtual currency and the type and amount of each type of funds and each of the virtual currencies involved,

    • (vi) a record of the number of every account that is affected by the transaction, the type of account and the name of each account holder,

    • (vii) a record of every reference number that is connected to the transaction and has a function equivalent to that of an account number, and

    • (viii) if the amount received is in virtual currency, every transaction identifier, including the sending and receiving addresses;

  • (b) if they redeem one or more money orders that total $3,000 or more at the request of a person or entity,

    • (i) a record of the date of the redemption,

    • (ii) in the case of a person, a record of their name, address, date of birth and the nature of their principal business or their occupation,

    • (iii) in the case of an entity, an information record,

    • (iv) a record of the total amount of the money order or orders,

    • (v) a record of the name of the issuer of each money order,

    • (vi) a record of the number of every account that is affected by the redemption, the type of account and the name of each account holder,

    • (vii) a record of every reference number that is connected to the redemption and has a function equivalent to that of an account number; and

    • (viii) if the redemption involves virtual currency, every transaction identifier, including the sending and receiving addresses; and

  • (c) if the information record is in respect of a corporation, a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation in respect of transactions with the department or the agent or mandatary.

PART 2Requirement To Verify Identity

Application of Parts 5 and 6

 The provisions of this Part are subject to the provisions of Parts 5 and 6.

Persons and Entities Required To Keep Large Cash Transaction Record or Large Virtual Currency Transaction Record

 A person or entity shall verify, in accordance with section 105, 109 or 112, the identity of a person or entity from which they receive an amount

  • (a) in respect of which they are required to keep a large cash transaction record under these Regulations, unless the amount is received as a deposit made into a business account or a deposit made by means of an automated banking machine; or

  • (b) in respect of which they are required to keep a large virtual currency transaction record under these Regulations.

Suspicious Transactions

  •  (1) A person or entity that is subject to these Regulations shall take reasonable measures to verify, in accordance with section 105, 109 or 112, the identity of a person or entity that conducts or attempts to conduct a transaction with them that is required to be reported to the Centre under section 7 of the Act.

  • (2) If the person or entity believes that taking the reasonable measures would inform the person or entity that conducts or attempts to conduct a transaction with them that the transaction and related information will be reported under section 7 of the Act, they are not required to comply with subsection (1).

Financial Entities

 A financial entity shall

  • (a) in accordance with section 105, verify the identity of

    • (i) a person for whom it opens an account, other than a credit card account or a prepaid payment product account,

    • (ii) a person, other than an account holder, who is authorized to give instructions in respect of an account, other than a credit card account or a prepaid payment product account, and

    • (iii) a person – other than one referred to in subparagraph (i) or (ii) — who

      • (A) requests that it issue or redeem money orders, traveller’s cheques or similar negotiable instruments in an amount of $3,000 or more,

      • (B) requests that it initiate an international electronic funds transfer — or any other electronic funds transfer that is a SWIFT MT-103 message or its equivalent — of $1,000 or more,

      • (C) requests that it exchange an amount of $3,000 or more in a foreign currency exchange transaction,

      • (D) requests that it transfer an amount of $1,000 or more in virtual currency,

      • (E) requests that it exchange an amount of $1,000 or more in a virtual currency exchange transaction, or

      • (F) is the beneficiary of an international electronic funds transfer of $1,000 or more, or of a transfer of an amount of $1,000 or more in virtual currency, to whom it makes the remittance;

  • (b) in accordance with section 109, verify the identity of a corporation for which it opens an account, other than a credit card account or a prepaid payment product account; and

  • (c) in accordance with section 112, verify the identity of an entity, other than a corporation, for which it opens an account, other than a credit card account or a prepaid payment product account.

 A financial entity shall

  • (a) in accordance with section 105, verify the identity of a person for whom it opens a credit card account;

  • (b) in accordance with section 109, verify the identity of a corporation for which it opens a credit card account; and

  • (c) in accordance with section 112, verify the identity of an entity, other than a corporation, for which it opens a credit card account.

 A financial entity shall

  • (a) in accordance with section 105, verify the identity of

    • (i) a person for whom it opens a prepaid payment product account,

    • (ii) an authorized user, and

    • (iii) any other person who makes a payment of $1,000 or more to a prepaid payment product account;

  • (b) in accordance with section 109, verify the identity of

    • (i) a corporation for which it opens a prepaid payment product account, and

    • (ii) any other corporation that makes a payment of $1,000 or more to a prepaid payment product account; and

  • (c) in accordance with section 112, verify the identity of

    • (i) an entity, other than a corporation, for which it opens a prepaid payment product account, and

    • (ii) any other entity, other than a corporation, that makes a payment of $1,000 or more to a prepaid payment product account.

 A trust company shall also

  • (a) in accordance with section 105, verify the identity of a person who is the settlor of an inter vivos trust in respect of which it is required to keep a record under subsection 15(1);

  • (b) in accordance with section 109, verify the identity of a corporation that is the settlor of an institutional trust in respect of which it is required to keep a record under subsection 15(1);

  • (c) in accordance with section 112, verify the identity of an entity, other than a corporation, that is the settlor of an institutional trust in respect of which it is required to keep a record under subsection 15(1);

  • (d) in accordance with section 105, verify the identity of a person who is authorized to act as a co-trustee of a trust; and

  • (e) if an entity is authorized to act as a co-trustee of a trust,

    • (i) in accordance with section 105, verify the identity of all persons — up to three — who are authorized to give instructions with respect to the entity’s activities as co-trustee, and

    • (ii) in accordance with section 109 or 112, verify the identity of the entity.

 A financial entity that enters into a correspondent banking relationship

  • (a) shall ascertain the name and address of the foreign financial institution by examining a copy of the foreign financial institution’s banking licence, banking charter, authorization or certification to operate issued by the competent authority under the legislation of the jurisdiction in which the foreign financial institution was incorporated, of its certificate of incorporation or of a similar document; and

  • (b) shall take reasonable measures to ascertain, based on information that is accessible to the public, whether any civil or criminal penalties have been imposed on the foreign financial institution in respect of anti-money laundering or anti-terrorist financing requirements and, if such a penalty has been imposed, shall, for the purpose of detecting any transactions that are required to be reported to the Centre under section 7 of the Act, monitor all transactions conducted in the context of the correspondent banking relationship.

 If a client of a foreign financial institution has direct access to services provided by the financial entity under a correspondent banking relationship, the financial entity shall take reasonable measures to ascertain whether the foreign financial institution

  • (a) has, in respect of its clients that have direct access to the accounts of the financial entity, met requirements that are consistent with the requirements of section 86; and

  • (b) has agreed to provide relevant client identification information on request to the financial entity.

Life Insurance Companies and Life Insurance Brokers or Agents

 A life insurance company or life insurance broker or agent shall

  • (a) in accordance with section 105, verify the identity of a person in respect of whom they are required to keep an information record under section 22;

  • (b) in accordance with section 109, verify the identity of a corporation in respect of which they are required to keep an information record under section 22; and

  • (c) in accordance with section 112, verify the identity of an entity, other than a corporation, in respect of which they are required to keep an information record under section 22.

 

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