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

11.45 [Repealed, 2014, c. 20, s. 269]

Marginal note:Inconsistency

11.46 In the event of any inconsistency or conflict between a directive issued under this Part and a regulation made under this Act, the directive prevails to the extent of the inconsistency or conflict.

Marginal note:Statutory Instruments Act

11.47 A directive issued under this Part is not a statutory instrument within the meaning of the Statutory Instruments Act. However, it must be published in the Canada Gazette.

Marginal note:Review

• 11.48 (1) The Minister shall, at least every three years after the issuance of a directive under this Part, review that directive to determine whether it is advisable, in the Minister’s opinion, to amend or revoke it.

• Marginal note:Relevant circumstance

  (2) In reviewing a directive, the Minister may take into account any circumstance that the Minister considers relevant.

Limitation and Prohibition of Financial Transactions

Marginal note:Regulations — limitation and prohibition

• 11.49 (1) The Governor in Council may, on the recommendation of the Minister, make regulations

  • (a) imposing a limitation or a prohibition on any person or entity referred to in section 5, with respect to entering into, undertaking or facilitating, directly or indirectly, any financial transaction, or any financial transaction within a class of financial transactions, originating from or bound for any foreign state, foreign entity or entity referred to in paragraph 5(e.1);

  • (b) prescribing terms and conditions with respect to a limitation or prohibition referred to in paragraph (a); and

  • (c) excluding any transaction or any class of transactions from a limitation or prohibition imposed under paragraph (a).

• Marginal note:Consultation with the Minister of Foreign Affairs

  (2) The Minister shall consult with the Minister of Foreign Affairs before making a recommendation.

• Marginal note:Relevant circumstances

  (3) The Minister may, before making a recommendation, take into account any circumstance that the Minister considers relevant. However, the Minister may only make a recommendation

  • (a) if

    • (i) an international organization, body, association or coalition or a grouping of states (such as the Financial Action Task Force) of which Canada is a member has called on its members to take measures in relation to a foreign state, foreign entity or entity referred to in paragraph 5(e.1) on the ground that the state’s or entity’s anti-money laundering or anti-terrorist financing measures are ineffective or insufficient, and

    • (ii) there is a risk that money laundering activities or terrorist financing activities may be carried out in that foreign state or by means of that foreign entity or entity referred to in paragraph 5(e.1);

  • (b) if the anti-money laundering or anti-terrorist financing measures that a foreign state, a foreign entity or an entity referred to in paragraph 5(e.1) has implemented are ineffective or insufficient, the risk of money laundering activities or terrorist financing activities being carried out in that foreign state or by means of that foreign entity or entity referred to in paragraph 5(e.1) is significant and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system; or

  • (c) if the risk of sanctions evasion being facilitated by or in that foreign state or by means of that foreign entity or entity referred to in paragraph 5(e.1) is significant and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system.

Marginal note:Review

• 11.5 (1) The Minister shall, at least every three years after the making of a regulation under this Part, review that regulation to determine whether it is advisable, in the Minister’s opinion, that it be amended or repealed.

• Marginal note:Relevant circumstances

  (2) In reviewing a regulation, the Minister may take into account any circumstance that the Minister considers relevant.

Marginal note:Foreign branches

11.6 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 ensure that its foreign branches comply with any regulation made under subsection 11.49(1) to the extent it is permitted by, and does not conflict with, the laws of the foreign state in which the branch is located.

Marginal note:Ministerial permit

• 11.7 (1) The Governor in Council may, by order, authorize the Minister to issue to any person or entity referred to in section 5 a permit to enter into, undertake or facilitate a financial transaction or class of financial transactions, specified by the Minister, that is otherwise limited or prohibited by regulation.

• Marginal note:Terms and conditions

  (2) A permit may be subject to any terms and conditions that the Minister considers appropriate.

• Marginal note:Amendment, etc.

  (3) The Minister may amend, suspend, revoke or reinstate a permit.

PART 2Reporting of Currency and Monetary Instruments

Interpretation

Definition of officer

11.8 In this Part, officer has the same meaning as in subsection 2(1) of the Customs Act.

Reporting

Marginal note:Currency and monetary instruments

• 12 (1) Every person or entity referred to in subsection (3) shall report to an officer, in accordance with the regulations, the importation or exportation of currency or monetary instruments of a value equal to or greater than the prescribed amount.

• Marginal note:Limitation

  (2) A person or entity is not required to make a report under subsection (1) in respect of an activity if the prescribed conditions are met in respect of the person, entity or activity, and if the person or entity satisfies an officer that those conditions have been met.

• Marginal note:Who must report

  (3) Currency or monetary instruments shall be reported under subsection (1)

  • (a) in the case of currency or monetary instruments in the actual possession of a person arriving in or departing from Canada, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, by that person or, in prescribed circumstances, by the person in charge of the conveyance;

  • (b) in the case of currency or monetary instruments imported into Canada by courier or as mail, by the exporter of the currency or monetary instruments or, on receiving notice under subsection 14(2), by the importer;

  • (c) in the case of currency or monetary instruments exported from Canada by courier or as mail, by the exporter of the currency or monetary instruments;

  • (d) in the case of currency or monetary instruments, other than those referred to in paragraph (a) or imported or exported as mail, that are on board a conveyance arriving in or departing from Canada, by the person in charge of the conveyance; and

  • (e) in any other case, by the person on whose behalf the currency or monetary instruments are imported or exported.

• Marginal note:Duty to answer and comply

  (4) Every person arriving in or departing from Canada shall

  • (a) answer truthfully any questions asked by the officer in the performance of the officer’s duties and functions under this Part; and

  • (b) if the person is arriving in or departing from Canada with any currency or monetary instruments in respect of which a report is made, on request of an officer, present the currency or monetary instruments that they are carrying or transporting, unload any conveyance or part of a conveyance or baggage and open or unpack any package or container that the officer wishes to examine.

• Marginal note:Sending reports to Centre

  (5) The Canada Border Services Agency shall send the reports they receive under subsection (1) to the Centre. It shall also create an electronic version of the information contained in each report, in the format specified by the Centre, and send it to the Centre by the electronic means specified by the Centre.

13 [Repealed, 2018, c. 27, s. 174]

Retention

Marginal note:Temporary retention

• 14 (1) Subject to subsections (2) to (5), if a person or an entity indicates to an officer that they have currency or monetary instruments to report under subsection 12(1) but the report has not yet been completed, the officer may, after giving notice in the prescribed manner to the person or entity, retain the currency or monetary instruments for the prescribed period.

• Marginal note:Importation or exportation by courier or as mail

  (2) In the case of currency or monetary instruments imported or exported by courier or as mail, the officer shall, within the prescribed period, give the notice to the exporter if the exporter’s address is known, or, if the exporter’s address is not known, to the importer.

• Marginal note:Limitation

  (3) Currency or monetary instruments may no longer be retained under subsection (1) if the officer is satisfied that the currency or monetary instruments have been reported under subsection 12(1).

• Marginal note:Content of notice

  (4) The notice referred to in subsection (1) must state

  • (a) the period for which the currency or monetary instruments may be retained;

  • (b) that if, within that period, the currency or monetary instruments are reported under subsection 12(1), they may no longer be retained; and

  • (c) that currency or monetary instruments retained at the end of that period are forfeited to Her Majesty in right of Canada at that time.

• Marginal note:Forfeiture and report to Centre

  (5) Currency or monetary instruments that are retained by an officer under subsection (1) are forfeited to Her Majesty in right of Canada at the end of the period referred to in that subsection, and the officer shall send any incomplete report in respect of the forfeited currency or monetary instruments made under subsection 12(1) to the Centre.

Searches

Marginal note:Search of the person

• 15 (1) An officer may search

  • (a) any person who has arrived in Canada, within a reasonable time after their arrival in Canada,

  • (b) any person who is about to leave Canada, at any time before their departure, or

  • (c) any person who has had access to an area designated for use by persons about to leave Canada and who leaves the area but does not leave Canada, within a reasonable time after they leave the area,

  if the officer suspects on reasonable grounds that the person has secreted on or about their person currency or monetary instruments that are of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1) and that have not been reported in accordance with that subsection.

• Marginal note:Person taken before senior officer

  (2) An officer who is about to search a person under this section shall, on the person’s request, without delay take the person before the senior officer at the place where the search is to take place.

• Marginal note:Discharge or search

  (3) A senior officer before whom a person is taken under subsection (2) shall, if the senior officer believes there are no reasonable grounds for suspicion under subsection (1), discharge the person or, if the senior officer believes otherwise, direct that the person be searched.

• Marginal note:Search by same sex

  (4) No person shall be searched under this section by a person who is not of the same sex, and if there is no officer of the same sex at the place where the search is to take place, an officer may authorize any suitable person of the same sex to perform the search.

Marginal note:Search of conveyance

• 16 (1) An officer may, in order to determine whether there are, on or about a conveyance, currency or monetary instruments of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1) and that have not been reported in accordance with that subsection, stop, board and search the conveyance, examine anything in or on it and open or cause to be opened any package or container in or on it and direct that the conveyance be moved to a customs office or other suitable place for the search, examination or opening.

• Marginal note:Search of baggage

  (2) An officer may, in order to determine whether there are, in baggage, currency or monetary instruments that are of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1) and that have not been reported in accordance with that subsection, search the baggage, examine anything in it and open or cause to be opened any package or container in it and direct that the baggage be moved to a customs office or other suitable place for the search, examination or opening.

Marginal note:Examination and opening of mail

• 17 (1) An officer may examine any mail that is being imported or exported and open or cause to be opened any such mail that the officer suspects on reasonable grounds contains currency or monetary instruments of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1).

• (2) and (3) [Repealed, 2017, c. 7, s. 53]

Seizures

Marginal note:Seizure and forfeiture

• 18 (1) If an officer believes on reasonable grounds that subsection 12(1) has been contravened, the officer may seize as forfeit the currency or monetary instruments.

• Marginal note:Return of seized currency or monetary instruments

  (2) The officer shall, on payment of a penalty in the prescribed amount, return the seized currency or monetary instruments to the individual from whom they were seized or to the lawful owner unless the officer has reasonable grounds to suspect that the currency or monetary instruments are proceeds of crime within the meaning of subsection 462.3(1) of the Criminal Code or funds for use in the financing of terrorist activities.

• Marginal note:Notice of seizure

  (3) An officer who seizes currency or monetary instruments under subsection (1) shall

  • (a) if they were not imported or exported as mail, give the person from whom they were seized written notice of the seizure and of the right to review and appeal set out in sections 25 and 30;

  • (b) if they were imported or exported as mail and the address of the exporter is known, give the exporter written notice of the seizure and of the right to review and appeal set out in sections 25 and 30; and

  • (c) take the measures that are reasonable in the circumstances to give notice of the seizure to any person whom the officer believes on reasonable grounds is entitled to make an application under section 32 in respect of the currency or monetary instruments.

• Marginal note:Service of notice

  (4) The service of a notice under paragraph (3)(b) is sufficient if it is sent by registered mail addressed to the exporter.