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Financial Transactions and Reports Analysis Centre of Canada Assessment of Expenses Regulations (SOR/2023-195)

Regulations are current to 2024-05-01 and last amended on 2024-01-01. Previous Versions

Financial Transactions and Reports Analysis Centre of Canada Assessment of Expenses Regulations

SOR/2023-195

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT

Registration 2023-09-26

Financial Transactions and Reports Analysis Centre of Canada Assessment of Expenses Regulations

P.C. 2023-911 2023-09-25

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Financial Transactions and Reports Analysis Centre of Canada Assessment of Expenses Regulations under paragraphs 73(1)(k.1)Footnote a and (l)Footnote b of the Proceeds of Crime (Money Laundering) and Terrorist Financing ActFootnote c.

Definitions

Marginal note:Definitions

 The following definitions apply in these Regulations.

Act

Act means the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. (Loi)

specified report

specified report means a report made to the Centre under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations that is required to contain the information set out in any of Schedules 1 to 4 and 6 to those Regulations. (déclaration visée)

Assessment of Expenses

Marginal note:Prescribed expenses

 Expenses incurred by the Centre in relation to ensuring compliance with Parts 1 and 1.1 of the Act and in relation to the Centre’s activities under sections 51.1 to 51.3 of the Act are prescribed expenses for the purpose of subsection 51.1(1) of the Act.

Marginal note:Prescribed persons and entities

 The following persons and entities are prescribed for the purpose of subsection 51.1(3) of the Act:

  • (a) every bank to which the Bank Act applies and every authorized foreign bank as defined in section 2 of the Bank Act;

  • (b) every life company or foreign life company to which the Insurance Companies Act applies;

  • (c) every company to which the Trust and Loan Companies Act applies; and

  • (d) every person or entity, other than an entity referred to in paragraphs (a) to (c), that made 500 or more specified reports during the fiscal year in which the expenses referred to in subsection 51.1(1) of the Act were incurred.

Marginal note:Prescribed information

 All information that is required for performing a calculation under these Regulations is prescribed information for the purpose of section 51.3 of the Act.

Marginal note:Assessment in writing

 An assessment or interim assessment under section 51.1 of the Act must be made in writing.

Marginal note:Apportionment

 For the purpose of subsection 51.1(3) of the Act, the portion of the expenses incurred in a fiscal year that is to be assessed against a person or entity is to be determined

  • (a) in the case of an entity referred to in paragraph 3(a), by the formula

    A + B − C

    where

    A
    is the base assessment amount determined under section 7 for the entity in respect of the fiscal year,
    B
    is the proportional assessment amount determined under section 8 for the entity in respect of the fiscal year, and
    C
    is the amount of any interim assessment made against the entity under subsection 51.1(4) of the Act during the fiscal year;
  • (b) in the case of an entity referred to in paragraph 3(b) or (c), by the formula

    A + D − C

    where

    A
    is the base assessment amount determined under section 7 for the entity in respect of the fiscal year,
    D
    is the proportional assessment amount determined under section 9 for the entity in respect of the fiscal year, and
    C
    is the amount of any interim assessment made against the entity under subsection 51.1(4) of the Act during the fiscal year; and
  • (c) in the case of a person or entity referred to in paragraph 3(d), by the formula

    E − F

    where

    E
    is the proportional assessment amount determined under section 9 for the person or entity in respect of the fiscal year, and
    F
    is the amount of any interim assessment made against the person or entity under subsection 51.1(4) of the Act during the fiscal year.

Marginal note:Base amount

  •  (1) The base assessment amount for an entity referred to in any of paragraphs 3(a) to (c) in respect of a fiscal year is the amount determined by the following formula, rounded to the nearest multiple of $10 or, if the result obtained is equidistant from two multiples of $10, to the higher of them:

    G × H ÷ I

    where

    G
    is
    • (a) if the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year is greater than or equal to $1 trillion, $250,000,

    • (b) if the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year is greater than or equal to $500 billion but less than $1 trillion, $200,000,

    • (c) if the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year is greater than or equal to $100 billion but less than $500 billion, $150,000,

    • (d) if the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year is greater than or equal to $10 billion but less than $100 billion, $100,000,

    • (e) if the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year is greater than or equal to $1 billion but less than $10 billion, $75,000,

    • (f) if the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year is greater than or equal to $500 million but less than $1 billion, $50,000,

    • (g) if the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year is greater than or equal to $100 million but less than $500 million, $25,000,

    • (h) if the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year is greater than or equal to $10 million but less than $100 million, $10,000,

    • (i) if the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year is greater than 0 but less than $10 million, $5,000, or

    • (j) if the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year is less than or equal to 0, nil;

    H
    is the highest Consumer Price Index for any calendar year beginning with 2024 and ending with the calendar year that ends in the fiscal year; and
    I
    is the Consumer Price Index for 2024.
  • Marginal note:Consumer Price Index

    (2) For the purpose of subsection (1), a reference to the Consumer Price Index for a calendar year is a reference to the average of the all-items Consumer Price Index for Canada, not seasonally adjusted, as published by Statistics Canada under the authority of the Statistics Act, for each month in that year.

Marginal note:Proportional assessment amount — banks

  •  (1) The proportional assessment amount for an entity referred to in paragraph 3(a) in respect of a fiscal year is the amount determined by the formula

    (J − K) × (L ÷ M) × (N ÷ O)

    where

    J
    is the Centre’s expenses referred to in section 2 for the fiscal year;
    K
    is the total of all amounts determined under section 7 for the fiscal year;
    L
    is the number of specified reports that all entities referred to in paragraph 3(a) made during the fiscal year;
    M
    is the number of specified reports that all persons and entities made during the fiscal year;
    N
    is the value of the entity’s assets in Canada as of the end of the entity’s financial year that ends in the fiscal year; and
    O
    is the value of the assets in Canada of all entities referred to in paragraph 3(a) as of the end of each of those entities’ financial years that end in the fiscal year.
  • Marginal note:Value of assets

    (2) For the purposes of the descriptions of N and O in subsection (1), if the value of an entity’s assets in Canada is less than 0, the value of that entity’s assets in Canada is deemed to be nil.

Marginal note:Proportional assessment amount — non-banks

  •  (1) The proportional assessment amount in respect of a fiscal year for an entity referred to in paragraph 3(b) or (c) that made 500 or more specified reports during that year, or for a person or entity referred to in paragraph 3(d), is the amount determined by the formula

    (J − K) × (P ÷ M) × (Q ÷ R)

    where

    J
    is the Centre’s expenses referred to in section 2 for the fiscal year;
    K
    is the total of all amounts determined under section 7 for the fiscal year;
    P
    is the number of specified reports that persons or entities other than entities referred to in paragraph 3(a) made during the fiscal year;
    M
    is the number of specified reports that all persons and entities made during the fiscal year;
    Q
    is the number of specified reports that the person or entity made during the fiscal year; and
    R
    is the number of specified reports made during the fiscal year by all entities referred to in paragraph 3(b) or (c) that each made 500 or more specified reports during that year and by all persons and entities referred to in paragraph 3(d).
  • Marginal note:Fewer than 500 specified reports

    (2) The proportional assessment amount for an entity referred to in paragraph 3(b) or (c) in respect of a fiscal year during which the entity made fewer than 500 specified reports is nil.

Marginal note:Assets of subsidiaries

 For the purposes of subsection 7(1) and section 8, the value of an entity’s assets in Canada excludes the value of the assets in Canada of any subsidiary of the entity that is itself referred to in any of paragraphs 3(a) to (c).

Coming into Force

Marginal note:S.C. 2021, c. 23

Footnote * These Regulations come into force on the day on which section 170 of the Budget Implementation Act, 2021, No. 1 comes into force, but if they are registered after that day, they come into force on the day on which they are registered.


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