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

Short Title

Marginal note:Short title

1 This Act may be cited as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Interpretation

Marginal note:Definitions

• 2 (1) The definitions in this section apply in this Act.

  authorized person

  authorized person means a person who is authorized under subsection 45(2). (personne autorisée)

  Centre

  Centre means the Financial Transactions and Reports Analysis Centre of Canada established by section 41. (Centre)

  client

  client includes a person or entity that engages in a financial transaction with another person or entity. (client)

  Commissioner

  Commissioner[Repealed, 2005, c. 38, s. 124]

  courier

  courier[Repealed, 2017, c. 20, s. 407]

  customs office

  customs office has the same meaning as in subsection 2(1) of the Customs Act. (bureau de douane)

  entity

  entity means a body corporate, a trust, a partnership, a fund or an unincorporated association or organization. (entité)

  Financial Action Task Force

  Financial Action Task Force means the Financial Action Task Force on Money Laundering established in 1989. (Groupe d’action financière)

  foreign state

  foreign state, except for the purposes of Part 2, means a country other than Canada and includes any political subdivision or territory of a foreign state. (État étranger)

  legal counsel

  legal counsel means, in Quebec, an advocate or a notary and, in any other province, a barrister or solicitor. (conseiller juridique)

  legal firm

  legal firm means an entity that is engaged in the business of providing legal services to the public. (cabinet juridique)

  mail

  mail has the same meaning as in subsection 2(1) of the Canada Post Corporation Act. (envois ou courrier)

  Minister

  Minister means, in relation to sections 24.1 to 39, the Minister of Public Safety and Emergency Preparedness and, in relation to any other provision of this Act, the Minister of Finance. (ministre)

  money laundering offence

  money laundering offence means an offence under subsection 462.31(1) or (2.1) of the Criminal Code. (infraction de recyclage des produits de la criminalité)

  officer

  officer[Repealed, 2014, c. 20, s. 254]

  person

  person means an individual. (personne)

  prescribed

  prescribed means prescribed by regulations made by the Governor in Council. (Version anglaise seulement)

  President

  President means the President of the Canada Border Services Agency appointed under subsection 7(1) of the Canada Border Services Agency Act. (président)

  sanctions evasion offence

  sanctions evasion offence means an offence arising from the contravention of a restriction or prohibition established by an order or a regulation made under the United Nations Act, the Special Economic Measures Act or the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). (infraction de contournement de sanctions)

  terrorist activity

  terrorist activity has the same meaning as in subsection 83.01(1) of the Criminal Code. (activité terroriste)

  terrorist activity financing offence

  terrorist activity financing offence means an offence under section 83.02, 83.03 or 83.04 of the Criminal Code or an offence under section 83.12 of the Criminal Code arising out of a contravention of section 83.08 of that Act. (infraction de financement des activités terroristes)

  threats to the security of Canada

  threats to the security of Canada has the same meaning as in section 2 of the Canadian Security Intelligence Service Act. (menaces envers la sécurité du Canada)

  violation

  violation means a contravention of this Act or the regulations that is designated as a violation by regulations made under subsection 73.1(1). (violation)

• Marginal note:Definitions — regulations

  (2) The Governor in Council may, on the recommendation of the Minister, make regulations defining the following words and expressions:

  • (a) courier;

  • (b) monetary instruments;

  • (c) shell bank;

  • (d) identifying information, for the purposes of subsection 54.1(3);

  • (e) virtual currency; and

  • (f) dealing in virtual currencies.

Object of Act

Marginal note:Object

3 The object of this Act is

• (a) to implement specific measures to detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of money laundering offences and terrorist activity financing offences, including

  • (i) establishing record keeping and client identification requirements for financial services providers and other persons or entities that engage in businesses, professions or activities that are susceptible to being used for money laundering or the financing of terrorist activities,

  • (ii) requiring the reporting of suspicious financial transactions and of cross-border movements of currency and monetary instruments, and

  • (iii) establishing an agency that is responsible for ensuring compliance with Parts 1 and 1.1 and for dealing with reported and other information;

• (b) to respond to the threat posed by organized crime by providing law enforcement officials with the information they need to deprive criminals of the proceeds of their criminal activities, while ensuring that appropriate safeguards are put in place to protect the privacy of persons with respect to personal information about themselves;

• (c) to assist in fulfilling Canada’s international commitments to participate in the fight against transnational crime, particularly money laundering, and the fight against terrorist activity; and

• (d) to enhance Canada’s capacity to take targeted measures to protect its financial system and to facilitate Canada’s efforts to mitigate the risk that its financial system could be used as a vehicle for money laundering and the financing of terrorist activities.

Her Majesty

Marginal note:Binding on Her Majesty

4 This Act is binding on Her Majesty in right of Canada or a province.

PART 1Record Keeping, Verifying Identity, Reporting of Suspicious Transactions and Registration

Application

Marginal note:Application of Part

5 This Part applies to the following persons and entities:

• (a) authorized foreign banks within the meaning of section 2 of the Bank Act in respect of their business in Canada, or banks to which that Act applies;

• (b) cooperative credit societies, savings and credit unions and caisses populaires regulated by a provincial Act and associations regulated by the Cooperative Credit Associations Act;

• (c) life companies or foreign life companies to which the Insurance Companies Act applies or life insurance companies regulated by a provincial Act;

• (d) companies to which the Trust and Loan Companies Act applies;

• (e) trust companies regulated by a provincial Act;

• (e.1) trust companies incorporated or formed by or under a provincial Act that are not regulated by a provincial Act;

• (f) loan companies regulated by a provincial Act;

• (g) persons and entities authorized under provincial legislation to engage in the business of dealing in securities or any other financial instruments or to provide portfolio management or investment advising services, other than persons who act exclusively on behalf of such an authorized person or entity;

• (h) persons and entities that have a place of business in Canada and that are engaged in the business of providing at least one of the following services:

  • (i) foreign exchange dealing,

  • (ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,

  • (ii.1) transporting currency or money orders, traveller’s cheques or other similar negotiable instruments,

  • (iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named person or entity,

  • (iv) dealing in virtual currencies, or

  • (v) any prescribed service;

• (h.1) persons and entities that do not have a place of business in Canada, that are engaged in the business of providing at least one of the following services that is directed at persons or entities in Canada, and that provide those services to their clients in Canada:

  • (i) foreign exchange dealing,

  • (ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,

  • (ii.1) transporting currency or money orders, traveller’s cheques or other similar negotiable instruments,

  • (iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named person or entity,

  • (iv) dealing in virtual currencies, or

  • (v) any prescribed service;

• (i) persons and entities engaged in a prescribed business, profession or activity;

• (j) persons and entities engaged in a prescribed business or profession, while carrying out a prescribed activity;

• (k) the government of a province that, in accordance with paragraph 207(1)(a) of the Criminal Code,

  • (i) in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games, or

  • (ii) in any other permanent establishment, conducts and manages games that are operated on or through a slot machine, as defined in subsection 207(4.01) of the Criminal Code, or any other similar electronic gaming device, if there are more than 50 of those machines or other devices in the establishment;

• (k.1) the government of a province that, in accordance with paragraph 207(1)(a) of the Criminal Code, conducts and manages a lottery scheme, other than bingo or the sale of lottery tickets, that is accessible to the public through the Internet or other digital network, except if the network is an internal network within an establishment described in subparagraph (k)(ii);

• (k.2) an organization that, in accordance with paragraph 207(1)(b) of the Criminal Code, in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games, unless the organization is a registered charity, as defined in subsection 248(1) of the Income Tax Act, and the lottery scheme is conducted or managed for a period of not more than two consecutive days at a time;

• (k.3) the board of a fair or of an exhibition, or the operator of a concession leased by such a board, that, in accordance with paragraph 207(1)(c) of the Criminal Code, in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games;

• (l) departments and agents or mandataries of Her Majesty in right of Canada or of a province that are engaged in the business of accepting deposit liabilities, that issue or sell money orders to, or redeem them from, the public or that sell prescribed precious metals, while carrying out a prescribed activity; and

• (m) for the purposes of section 7, employees of a person or entity referred to in any of paragraphs (a) to (l).

Marginal note:Clarification

5.1 For greater certainty, this Part does not apply to persons or entities referred to in paragraph 5(h.1) in respect of the services they provide to persons or entities outside Canada.

Record Keeping and Verifying Identity

Marginal note:Record keeping

6 Every person or entity referred to in section 5 shall keep records in accordance with the regulations.