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

Marginal note:Measures and information: paragraph 5(e.1)

• 9.61 (1) Every entity referred to in paragraph 5(e.1) shall take the prescribed measures related to the program referred to in subsection 9.6(1) and shall provide the prescribed information to the Centre in the prescribed circumstances.

• Marginal note:Service

  (2) An entity referred to in paragraph 5(e.1) must provide to the Centre the name and address for service of a person who resides in Canada and who is authorized to accept, on behalf of the entity, notices that are served or caused to be served by the Centre under this Act.

• Marginal note:Authorized person

  (3) The service of a notice by or on behalf of the Centre on an entity referred to in paragraph 5(e.1) is sufficient if it is served on the person whose name is provided under subsection (2).

Marginal note:Foreign branches and subsidiaries

• 9.7 (1) Every entity referred to in any of paragraphs 5(a) to (g), except for authorized foreign banks within the meaning of section 2 of the Bank Act and for foreign companies within the meaning of subsection 2(1) of the Insurance Companies Act, shall, in respect of its foreign branches, and in respect of its foreign subsidiaries that carry out activities similar to those of entities referred to in those paragraphs and that are either wholly-owned by the entity or have financial statements that are consolidated with those of the entity, develop policies that establish requirements similar to the requirements of sections 6, 6.1 and 9.6 and ensure that those branches and subsidiaries apply those policies to the extent it is permitted by, and does not conflict with, the laws of the foreign state in which the branch or subsidiary is located.

• Marginal note:Board approval of policies

  (2) Before the policies referred to in subsection (1) are applied, the entity’s board of directors, if there is one, shall approve them.

• Marginal note:Exceptions

  (3) Subsection (1) does not apply to

  • (a) an entity that is a subsidiary of an entity to which that subsection applies; or

  • (b) an entity that is a subsidiary of a foreign entity that has developed policies that establish requirements for its subsidiaries that are similar to the requirements of sections 6, 6.1 and 9.6, if that subsidiary is applying those policies to the extent it is permitted by, and do not conflict with, the laws of Canada or a province.

• Marginal note:Records and reporting

  (4) If the application by a foreign branch or a foreign subsidiary of a policy referred to in subsection (1) is not permitted by or would conflict with the laws of the foreign state in which the branch or subsidiary is located, the entity shall keep, in accordance with section 6, a record of that fact and of the reasons why it is not permitted or it would conflict and shall, within a reasonable time, notify the Centre, and the principal agency or body that supervises or regulates it under federal or provincial law, of that fact and those reasons.

Marginal note:Information exchange between affiliated entities

• 9.8 (1) Every entity referred to in any of paragraphs 5(a) to (g) that is affiliated with an entity referred to in those paragraphs or with a foreign entity that carries out activities similar to those of entities referred to in those paragraphs shall develop and apply policies and procedures related to the exchange of information between the entity and those affiliated entities for the purpose of detecting or deterring a money laundering offence or a terrorist activity financing offence or of assessing the risk of such an offence.

• Marginal note:Affiliation

  (2) For the purposes of subsection (1), an entity is affiliated with another entity if one of them is wholly owned by the other, if both are wholly owned by the same entity or if their financial statements are consolidated.

Marginal note:Definition of agent or mandatary

9.9 In sections 9.91 to 9.93, agent or mandatary means an agent or mandatary acting on behalf of a person or entity referred to in paragraph 5(h) to provide any of the services referred to in that paragraph.

Marginal note:Agent or mandatary

9.91 A person or entity referred to in paragraph 5(h) shall

• (a) not engage a person or entity who is referred to in any of paragraphs 11.11(1)(a) to (f) as an agent or mandatary; and

• (b) cease engaging an agent or mandatary if they are a person or entity referred to in any of those paragraphs.

Marginal note:Duty to verify

9.92 A person or entity referred to in paragraph 5(h) shall

• (a) before engaging an agent or mandatary, verify whether they are a person or entity referred to in any of paragraphs 11.11(1)(a) to (f); and

• (b) within 30 days after the second anniversary of the most recent verification of an agent or mandatary under this section, verify whether the agent or mandatary, if they are acting on behalf of the person or entity on that anniversary, is a person or entity referred to in any of those paragraphs.

Marginal note:Agent or mandatary — criminal convictions

• 9.93 (1) A person or entity referred to in paragraph 5(h) shall, in respect of an agent or mandatary, obtain and review the documents referred to in subsection (2)

  • (a) before engaging the agent or mandatary; and

  • (b) within 30 days after the second anniversary of the most recent review carried out in respect of the agent or mandatary under this subsection, if the agent or mandatary is acting on behalf of the person or entity on that anniversary.

• Marginal note:Documents

  (2) The documents to be obtained and reviewed are the following:

  • (a) if the agent or mandatary is a person, a document that sets out their record of criminal convictions, or states that the person does not have one, that is issued by a competent authority of — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides; or

  • (b) if the agent or mandatary is an entity, for each of the chief executive officer, the president and the directors of the entity and for each person who owns or controls, directly or indirectly, 20% or more of the entity or the shares of the entity, a document that sets out the person’s record of criminal convictions, or states that the person does not have one, and that is issued by a competent authority of — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides.

• Marginal note:Translation

  (3) If any document referred to in this section is made in a language other than English or French, the person or entity shall also obtain and review a translation of it into one of those languages that is attested to by a person who is recognized as a certified translator either by a provincial organization or body that is competent under provincial law to issue such certifications or by an organization or body in a foreign state that is competent under the laws of that state to do so.

• Marginal note:Retention

  (4) The person or entity shall retain, for a prescribed period and in the prescribed manner, any document obtained under this section as well as any prescribed information.

Marginal note:Immunity

10 No criminal or civil proceedings lie against a person or an entity for making a report in good faith under section 7, 7.1 or 9, or for providing the Centre with information about suspicions of money laundering, of the financing of terrorist activities or of sanctions evasion.

Marginal note:Non-application to legal counsel

10.1 Sections 7 and 9 do 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:Solicitor-client privilege or professional secrecy

11 Nothing in this Act requires a legal counsel to disclose any communication that is subject to solicitor-client privilege or, in Quebec, the professional secrecy of legal counsel.

Marginal note:Disclosure without consent

• 11.01 (1) A person or entity referred to in section 5 may disclose an individual’s personal information to another person or entity referred to in that section without the individual’s knowledge or consent if

  • (a) the information was collected in the course of the person or entity’s activities;

  • (b) the disclosure is reasonable for the purpose of detecting or deterring money laundering, terrorist activity financing or sanctions evasion;

  • (c) making the disclosure with the individual’s knowledge or consent would risk compromising the ability to detect or deter money laundering, terrorist activity financing or sanctions evasion; and

  • (d) the disclosure is made in accordance with the regulations.

• Marginal note:Collection and use

  (2) A person or entity referred to in section 5 may collect or use an individual’s personal information without their knowledge or consent if the information was disclosed to the person or entity under subsection (1) and the collection or use is carried out in accordance with the regulations.

• Marginal note:Immunity

  (3) No criminal or civil proceedings lie against a person or an entity that, in good faith, discloses information under subsection (1) or collects or uses information under subsection (2).

Registration

Application and Revocation

Marginal note:Registration requirement

11.1 Except as otherwise prescribed by regulation, every person or entity referred to in paragraph 5(h) or (h.1), those referred to in paragraph 5(l) that issue or sell money orders to, or redeem them from, the public, and every other person or entity that is referred to in section 5 and that is prescribed must register with the Centre.

Marginal note:Ineligible for registration

• 11.11 (1) The following persons or entities are not eligible for registration with the Centre:

  • (a) a person or entity that is subject to sanctions associated with terrorist activity or a prohibition relating to financial services under the United Nations Act;

  • (b) a listed entity as defined in subsection 83.01(1) of the Criminal Code;

  • (b.1) a person or entity that is subject to a prohibition on financial or related services under the Special Economic Measures Act;

  • (b.2) a foreign national, as defined in section 2 of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law), who is the subject of an order or regulation made under paragraph 4(1)(a) of that Act or whose property is the subject of an order made under paragraph 4(1)(b) of that Act;

  • (b.3) a politically exposed foreign person, as defined in subsection 2(1) of the Freezing Assets of Corrupt Foreign Officials Act, whose property is the subject of an order or regulation under paragraph 4(1)(a) or an order under paragraph 4(1)(b) of that Act;

  • (c) a person or entity that has been convicted of any of the following:

    • (i) a money laundering offence, or an offence under the laws of a foreign state that is substantially similar to a money laundering offence,

    • (ii) a terrorist activity financing offence, or an offence under the laws of a foreign state that is substantially similar to a terrorist activity financing offence,

    • (iii) an offence under this Act or the Proceeds of Crime (money laundering) Act, chapter 26 of the Statutes of Canada, 1991 when convicted on indictment, or an offence under the laws of a foreign state that is substantially similar to an offence under either Act,

    • (iv) an offence under any of sections 83.18 to 83.231, 99 and 100, subsection 163.1(3) and sections 279.01 to 279.02, 286.2, 346, 354 and 467.11 to 467.13 of the Criminal Code, or an offence under the laws of a foreign state that is substantially similar to such an offence,

    • (iv.1) an offence under section 117 or 118 of the Immigration and Refugee Protection Act, an offence under section 131 of that Act in relation to an offence under section 117 or 118 of that Act, or an offence under the laws of a foreign state that is substantially similar to such an offence, or

    • (v) a conspiracy or an attempt to commit, being an accessory after the fact in relation to, or any counselling in relation to, an offence referred to in subparagraphs (i) to (iv);

  • (d) a person or entity that has been convicted on indictment or convicted more than once of an offence under any of the following, or that has been convicted of an offence under the laws of a foreign state that is substantially similar to an offence under any of the following:

    • (i) Part X of the Criminal Code,

    • (ii) the Controlled Drugs and Substances Act, except for the offence under subsection 4(1) of that Act,

    • (ii.1) the Cannabis Act, except for an offence under subsection 8(1) of that Act,

    • (iii) section 39, 44.2, 44.3, 48, 50.2 or 50.3 of the Food and Drugs Act, as that section read immediately before May 14, 1997,

    • (iv) section 4, 5, 6, 19.1 or 19.2 of the Narcotic Control Act, chapter N-1 of the Revised Statutes of Canada, 1985, as that section read immediately before May 14, 1997,

    • (v) section 159 of the Customs Act, or

    • (vi) subsection 239(1) or (1.1) of the Income Tax Act;

  • (e) an entity that is a corporation in respect of which a director, the chief executive officer, the president or a person who owns or controls, directly or indirectly, 20% or more of the shares has been convicted on indictment of an offence under this Act or the Proceeds of Crime (money laundering) Act, chapter 26 of the Statutes of Canada, 1991 or has been convicted of an offence under the laws of a foreign state that is substantially similar to an offence under either Act;

  • (e.1) a person or entity referred to in paragraph 5(h.1) that, having committed a violation, or a series of minor violations, under this Act that is classified as a serious violation or a very serious violation and being liable to a penalty for it, and 30 days having elapsed since the day on which all proceedings in respect of the violation are ended, has still not paid the penalty together with any interest imposed under section 73.28; or

  • (f) any prescribed person or entity.

• Marginal note:Revocation of registration

  (2) If a person or entity referred to in subsection (1) is registered with the Centre, its registration is revoked as of the day the person or entity becomes ineligible to register under that subsection. If the Centre becomes aware that a person’s or entity’s registration was revoked under this subsection, it must provide, without delay, a written notice of the revocation to that person or entity.