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

Disclosure and Use of Information

Marginal note:Prohibition

• 36 (1) Subject to this section and subsection 12(1) of the Privacy Act, no official shall disclose the following:

  • (a) information set out in a report made under subsection 12(1), whether or not it is completed;

  • (b) any other information obtained for the purposes of this Part; or

  • (c) information prepared from information referred to in paragraph (a) or (b).

• Marginal note:Use of information

  (1.1) An officer may use information referred to in subsection (1) if the officer has reasonable grounds to suspect that the information is relevant to determining whether a person is a person described in sections 34 to 42 of the Immigration and Refugee Protection Act or is relevant to an offence under any of sections 91, 117 to 119, 126 or 127 of that Act.

• Marginal note:Disclosure of information to a police force

  (2) An officer who has reasonable grounds to suspect that information referred to in subsection (1) would be relevant to investigating or prosecuting a money laundering offence or a terrorist activity financing offence may disclose the information to the appropriate police force.

• Marginal note:Disclosure of information to the Centre

  (3) An officer may disclose to the Centre information referred to in subsection (1) if the officer has reasonable grounds to suspect that it would be of assistance to the Centre in the detection, prevention or deterrence of money laundering or of the financing of terrorist activities.

• Marginal note:Disclosure of information to Canada Revenue Agency

  (3.01) An officer may disclose to the Canada Revenue Agency information referred to in subsection (1) about the circumstances of a seizure under subsection 18(1) if the officer has reasonable grounds to suspect that the currency or monetary instruments seized

  • (a) are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or funds for use in the financing of terrorist activities; and

  • (b) relate to a registered charity as defined in subsection 248(1) of the Income Tax Act, to an entity that has applied for registration as such a registered charity, or to a person or any other entity that solicits charitable financial donations from the public.

• Marginal note:Recording of reasons for decision

  (3.1) If an officer decides to disclose information under any of subsections (2) to (3.01), the officer shall record in writing the reasons for the decision.

• Marginal note:Powers, duties and functions

  (4) An official may disclose information referred to in subsection (1) for the purpose of exercising powers or performing duties and functions under this Part.

• Marginal note:Immunity from compulsory processes

  (5) Subject to section 36 of the Access to Information Act and sections 34 and 37 of the Privacy Act, an official is required to comply with a subpoena, an order for production of documents, a summons or any other compulsory process only if it is issued in the course of

  • (a) criminal proceedings under an Act of Parliament that have been commenced by the laying of an information or the preferring of an indictment; or

  • (b) any legal proceedings that relate to the administration or enforcement of this Part.

• Definition of official

  (6) In this section and section 37, official means a person who obtained or who has or had access to information referred to in subsection (1) in the course of exercising powers or performing duties and functions under this Part.

Marginal note:Use of information

37 No official shall use information referred to in subsection 36(1) for any purpose other than exercising powers or performing duties and functions under this Part.

Agreements for Exchange of Information

Marginal note:Agreements with foreign states

• 38 (1) The Minister, with the consent of the Minister designated for the purpose of section 42, may enter into an agreement or arrangement in writing with the government of a foreign state, or an institution or agency of that state, that has reporting requirements similar to those set out in this Part, whereby

  • (a) information set out in reports made under subsection 12(1) in respect of currency or monetary instruments imported into Canada from that state will be provided to a department, institution or agency of that state that has powers and duties similar to those of the Canada Border Services Agency in respect of the reporting of currency or monetary instruments; and

  • (b) information contained in reports in respect of currency or monetary instruments imported into that state from Canada will be provided to the Canada Border Services Agency.

• Marginal note:Information sent under an agreement

  (2) When an agreement or arrangement referred to in subsection (1) is in effect with a foreign state or an institution or agency of that state and a person fulfils the reporting requirements of that state in respect of currency or monetary instruments that are imported into that state from Canada, the person is deemed to have fulfilled the requirements set out in section 12 in respect of the exportation of the currency or monetary instruments.

• Marginal note:Information received by the Centre

  (3) The information received under an agreement or arrangement referred to in subsection (1) shall be sent to the Centre and, for the purposes of any provision of this Act dealing with the confidentiality of information or the collection or use of information by the Centre, is deemed to be information set out in a report made under section 12.

Marginal note:Agreements with foreign states

38.1 The Minister, with the consent of the Minister designated for the purpose of section 42, may enter into an agreement or arrangement in writing with the government of a foreign state, or an institution or agency of that state, that has powers and duties similar to those of the Canada Border Services Agency, whereby the Canada Border Services Agency may, if it has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting a money laundering offence or a terrorist activity financing offence, provide information set out in a report made under section 20 to that government, institution or agency.

Delegation

Marginal note:Minister’s duties

• 39 (1) The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial powers or duties of the Minister, under this Part.

• Marginal note:President’s duties

  (2) The President may authorize an officer or a class of officers to exercise powers or perform duties of the President under this Part.

PART 2.1Reporting of Goods

Interpretation

Marginal note:Definitions

39.01 The following definitions apply in this Part.

goods

goods has the same meaning as in subsection 2(1) of the Customs Act. (marchandises)

officer

officer has the same meaning as in subsection 2(1) of the Customs Act. (agent)

Reporting

Marginal note:Reporting

• 39.02 (1) Every person or entity referred to in subsection (3) that reports the importation or exportation of goods under section 12 or 95 of the Customs Act shall declare to an officer, in accordance with the regulations,

  • (a) whether the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are goods relating to money laundering, to the financing of terrorist activities or to sanctions evasion; and

  • (b) that the goods are actually being imported or exported, as the case may be.

• Marginal note:Limitation

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

• Marginal note:Who must report

  (3) Goods shall be declared under subsection (1)

  • (a) in the case of goods 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 goods imported into Canada by courier or as mail, by the exporter of the goods or, on receiving notice under subsection 39.03(2), by the importer;

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

  • (d) in the case of goods, 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 or entity on whose behalf the goods are imported or exported.

• Marginal note:Payment for goods

  (4) A declaration referred to in subsection (1) must be made in respect of any financial transaction purporting to pay for goods being imported or exported in respect of which such declaration is required under that subsection.

• Marginal note:Duty to answer

  (5) Every person or entity referred to in subsection (3) that reports the importation or exportation of goods shall answer any questions asked by an officer in the exercise of their powers and the performance of their duties and functions under this Part.

• Marginal note:Records

  (6) Any person or entity that imports or exports goods or that causes or arranges for goods to be imported or exported — for sale or for any industrial, occupational, commercial, institutional or other like use, or any other use that may be prescribed — or that produces, supplies, distributes or consumes those goods for such a purpose shall keep at the person or entity’s place of business in Canada, or at any other place that the Minister may designate, any records in respect of the goods in any manner and for any period of time that may be prescribed. The person or entity shall, if an officer so requests, make the records available to the officer, within the time specified by the officer, and answer any questions asked by the officer in respect of them.

• Marginal note:Customs Act

  (7) Subsection 40(2) and sections 42 and 43 of the Customs Act apply, with any modifications that the circumstances require, to a person or entity that is required to keep records under subsection (6).

• Marginal note:Obligation to provide accurate information

  (8) Any information provided to an officer in the administration or enforcement of this Part shall be true, accurate and complete.

Retention

Marginal note:Temporary retention

• 39.03 (1) Subject to subsections (2) to (5), if a person or an entity indicates to an officer that they have goods to declare under section 39.02 but the declaration has not yet been completed, the officer may, after giving notice in the prescribed manner to the person or entity, retain the goods for the prescribed period.

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

  (2) In the case of goods 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) Goods may no longer be retained under subsection (1) if the officer is satisfied that the goods have been the subject of a declaration under section 39.02.

• Marginal note:Content of notice

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

  • (a) the period for which the goods may be retained;

  • (b) that if, within that period, the goods are declared under section 39.02, they may no longer be retained; and

  • (c) that goods retained at the end of that period are forfeited to His Majesty in right of Canada at that time.

• Marginal note:Forfeiture

  (5) Goods that are retained by an officer under subsection (1) are forfeited to His Majesty in right of Canada at the end of the period referred to in that subsection.

Searches

Marginal note:Search of person

• 39.04 (1) If an officer suspects on reasonable grounds that they have secreted on or about their person goods that have not been declared in accordance with section 39.02 or that are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are goods relating to money laundering, to the financing of terrorist activities or to sanctions evasion, the 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.

• 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:Customs Act

39.05 Paragraphs 99(1)(a) to (c.1), (e) and (f), subsection 99(4) and paragraph 99.1(2)(b) of the Customs Act apply, with any modifications that the circumstances require, to goods that must be declared under section 39.02.

Seizures

Marginal note:Seizure and forfeiture

• 39.06 (1) If an officer has reasonable grounds to believe that goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, the financing of terrorist activities or sanctions evasion, the officer may seize as forfeit the goods.

• Marginal note:Notice of seizure

  (2) An officer who seizes goods under subsection (1) shall

  • (a) if the goods were not imported or exported as mail, give the person from whom they were seized written notice of the seizure and the right to review and appeal set out in sections 39.14 and 39.21;

  • (b) if the goods were imported or exported as mail and the address of the exporter is known, give the exporter written notice of the seizure and the right to review and appeal set out in sections 39.14 and 39.21; and

  • (c) take the measures that are reasonable in the circumstances to give notice of the seizure to any person or entity that the officer believes on reasonable grounds is entitled to make an application under section 39.23 in respect of the goods.

• Marginal note:Service of notice

  (3) The service of a notice under paragraph (2)(b) is sufficient if it is sent by registered mail addressed to the exporter.