Interpretation

• 1 (1) [Repealed, SOR/2016-153, s. 1]

• (2) The following definitions apply in these Regulations.

  accountant

  accountant means a chartered accountant, a certified general accountant or a certified management accountant. (comptable)

  accounting firm

  accounting firm means an entity that is engaged in the business of providing accounting services to the public and has at least one partner, employee or administrator that is an accountant. (cabinet d’expertise comptable)

  Act

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

  British Columbia notary corporation

  British Columbia notary corporation means an entity that carries on the business of providing notary services to the public in the province of British Columbia in accordance with the Notaries Act, R.S.B.C. 1996, c. 334. (société de notaires de la Colombie-Britannique)

  British Columbia notary public

  British Columbia notary public means a person who is a member of the Society of Notaries Public of British Columbia. (notaire public de la Colombie-Britannique)

  cash

  cash means coins referred to in section 7 of the Currency Act, notes issued by the Bank of Canada pursuant to the Bank of Canada Act that are intended for circulation in Canada and coins or bank notes of countries other than Canada. (espèces)

  cash

  cash or currency[Repealed, SOR/2002-185, s. 2]

  casino

  casino means a government, organization, board or operator that is referred to in any of paragraphs 5(k) to (k.3) of the Act. (casino)

  CICA Handbook

  CICA Handbook means the handbook prepared and published by the Canadian Institute of Chartered Accountants, as amended from time to time. (Manuel de l’ICCA)

  credit union central

  credit union central means a central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act, or a credit union central or a federation of credit unions or caisses populaires that is regulated by a provincial Act other than one enacted by the legislature of Quebec. (centrale de caisses de crédit)

  dealer in precious metals and stones

  dealer in precious metals and stones means a person or entity that, in the course of their business activities, buys or sells precious metals, precious stones or jewellery. It includes a department or agent or mandatary of Her Majesty in right of Canada or of a province when the department or agent or mandatary is carrying out the activity, referred to in section 5, of selling precious metals to the public. (négociant en métaux précieux et pierres précieuses)

  electronic funds transfer

  electronic funds transfer means the transmission — through any electronic, magnetic or optical device, telephone instrument or computer — of instructions for the transfer of funds, other than the transfer of funds within Canada. In the case of SWIFT messages, only SWIFT MT 103 messages are included. (télévirement)

  financial entity

  financial entity means a bank that is regulated by the Bank Act, an authorized foreign bank, as defined in section 2 of that Act, in respect of its business in Canada, a cooperative credit society, savings and credit union or caisse populaire that is regulated by a provincial Act, an association that is regulated by the Cooperative Credit Associations Act, a financial services cooperative, a credit union central, a company that is regulated by the Trust and Loan Companies Act and a trust company or loan company that is regulated by a provincial Act. It includes a department or an entity that is an agent or mandatary of Her Majesty in right of Canada or of a province when it is carrying out an activity referred to in paragraph 8(a). (entité financière)

  financial services cooperative

  financial services cooperative means a financial services cooperative that is regulated by An Act respecting financial services cooperatives, CQLR, c. C-67.3, or An Act respecting the Mouvement Desjardins, S.Q. 2000, c. 77, other than a caisse populaire. (coopérative de services financiers)

  funds

  funds means either

  • (a) cash; or

  • (b) currency, securities, negotiable instruments or other financial instruments, in any form, that indicate a person’s or entity’s title or right to, or interest in, them. (fonds)

  jewellery

  jewellery means objects that are made of gold, silver, palladium, platinum, pearls or precious stones and that are intended to be worn as a personal adornment. (bijou)

  legal firm

  legal firm[Repealed, SOR/2003-102, s. 1]

  life insurance broker or agent

  life insurance broker or agent means a person or entity that is registered or licensed under provincial legislation to carry on the business of arranging contracts of life insurance. (représentant d’assurance-vie)

  listed person

  listed person has the same meaning as in section 1 of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism. (personne inscrite)

  money services business

  money services business[Repealed, SOR/2016-153, s. 1]

  precious metal

  precious metal means gold, silver, palladium or platinum in the form of coins, bars, ingots or granules or in any other similar form. (métal précieux)

  precious stones

  precious stones means diamonds, sapphires, emeralds, tanzanite, rubies or alexandrite. (pierre précieuse)

  real estate broker or sales representative

  real estate broker or sales representative means a person or entity that is registered or licensed under provincial legislation in respect of the sale or purchase of real estate. (courtier ou agent immobilier)

  real estate developer

  real estate developer means, on any given day in a calendar year, a person or entity who, in that calendar year and before that day or in any previous calendar year after 2007, has sold to the public, other than in the capacity of a real estate broker or sales representative,

  • (a) five or more new houses or condominium units;

  • (b) one or more new commercial or industrial buildings; or

  • (c) one or more new multi-unit residential buildings each of which contains five or more residential units, or two or more new multi-unit residential buildings that together contain five or more residential units. (promoteur immobilier)

  SWIFT

  SWIFT means the Society for Worldwide Interbank Financial Telecommunication. (SWIFT)

  trust company

  trust company means a company to which the Trust and Loan Companies Act applies or a trust company regulated by a provincial Act. (société de fiducie)

1.1 If a registered charity, as defined in subsection 248(1) of the Income Tax Act, conducts and manages, in a permanent establishment of a casino, a lottery scheme that includes games of roulette or card games for a period of not more than two consecutive days at a time and, in doing so, acts under the supervision of the government of a province that is referred to in paragraph 5(k) of the Act, or of an organization that is referred to in paragraph 5(k.2) of the Act, that conducts and manages such a lottery scheme in the same establishment, the lottery scheme that is conducted and managed by the registered charity is considered to be conducted and managed by the supervising government or organization.

1.2 The prescribed precious metals for the purpose of paragraph 5(l) of the Act are precious metals as defined in subsection 1(2).

2 For the purposes of these Regulations, a person acting on behalf of their employer is considered to be acting on behalf of a third party except when the person is depositing cash into the employer’s business account.

Application of Part 1 of the Act

• 2.1 (1) Part 1 of the Act applies to financial services cooperatives.

• (2) Every credit union central is subject to Part 1 of the Act when it offers financial services to a person or entity other than a financial entity that is a member of that credit union central.

3 Part 1 of the Act applies to life insurance brokers or agents.

• 4 (1) Subject to subsection (2), every British Columbia notary public and every British Columbia notary corporation is subject to Part 1 of the Act when they engage in any of the following activities on behalf of any person or entity, including the giving of instructions on behalf of any person or entity in respect of those activities:

  • (a) receiving or paying funds, other than those received or paid in respect of professional fees, disbursements, expenses or bail;

  • (b) purchasing or selling securities, real estate or business assets or entities; or

  • (c) transferring funds or securities by any means.

• (2) Subsection (1) does not apply in respect of a British Columbia notary public when they engage in any of the activities referred to in that subsection on behalf of their employer.

5 Every dealer in precious metals and stones that engages in the purchase or sale of precious metals, precious stones or jewellery in an amount of $10,000 or more in a single transaction, other than such a purchase or sale that is carried out in the course of, in connection with or for the purpose of manufacturing jewellery, extracting precious metals or precious stones from a mine or polishing or cutting precious stones, is subject to Part 1 of the Act.

• 6 (1) Subject to subsections (2) and (3), every accountant and every accounting firm is subject to Part 1 of the Act when they

  • (a) engage in any of the following activities on behalf of any person or entity, namely,

    • (i) receiving or paying funds,

    • (ii) purchasing or selling securities, real property or business assets or entities, or

    • (iii) transferring funds or securities by any means; or

  • (b) give instructions on behalf of any person or entity in respect of any activity referred to in paragraph (a).

  • (c) [Repealed, SOR/2007-122, s. 4]

• (2) Subsection (1) does not apply in respect of an accountant when they engage in any of the activities referred to in paragraph (1)(a) or (b) on behalf of their employer.

• (3) For greater certainty, subsection (1) does not apply in respect of audit, review or compilation engagements carried out in accordance with the recommendations set out in the CICA Handbook.

7 Every real estate broker or sales representative is subject to Part 1 of the Act when they act as an agent in respect of the purchase or sale of real estate.

• 7.1 (1) Every real estate developer is subject to Part 1 of the Act when

  • (a) in the case of a person or of an entity other than a corporation, they sell to the public a new house, a new condominium unit, a new commercial or industrial building or a new multi-unit residential building; and

  • (b) in the case of an entity that is a corporation, they sell to the public a new house, a new condominium unit, a new commercial or industrial building or a new multi-unit residential building on their own behalf or on behalf of a subsidiary or affiliate.

• (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.

8 Every department and agent or mandatary of Her Majesty in right of Canada or of a province is subject to Part 1 of the Act when, in the course of providing financial services to the public, the department or agent or mandatary

• (a) accepts deposit liabilities; or

• (b) sells or redeems money orders.

• 9 (1) Subject to section 11, a report under section 7 of the Act concerning a financial transaction or an attempted financial transaction in respect of which there are reasonable grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence or a terrorist activity financing offence shall contain the information set out in Schedule 1.

• (2) The report shall be sent to the Centre within 30 days after the day on which the person or entity or any of their employees or officers detects a fact respecting a financial transaction or an attempted financial transaction that constitutes reasonable grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence or a terrorist activity financing offence.

Report Made Under Section 83.1 of the Criminal Code or Under Section 8 of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism

10 Subject to section 11, a report made under section 7.1 of the Act shall be sent without delay to the Centre and shall contain the information set out in Schedule 2.

Exemption

• 11 (1) Where a transaction is required to be reported under section 7 or 7.1 of the Act, the requirement to report information set out in Schedule 1 or 2 does not apply to a person or entity in respect of information set out in an item of that Schedule that is not marked with an asterisk if, after taking reasonable measures to do so, the person or entity is unable to obtain the information.

• (2) Despite subsection (1), in the case of an attempted transaction, the requirement to report information set out in Schedule 1 does not apply to a person or entity in respect of information set out in an item of that Schedule that is marked with an asterisk if, after taking reasonable measures to do so, the person or entity is unable to obtain the information.

Sending

• 12 (1) The report referred to in section 9 shall be sent electronically in accordance with guidelines for report submissions that are prepared by the Centre if the sender has the technical capabilities to do so.

• (2) The report referred to in section 9 shall be sent in paper format in accordance with guidelines for report submissions that are prepared by the Centre if the sender does not have the technical capabilities to send the report electronically.

• (3) The report referred to in section 10 shall be sent in paper format in accordance with guidelines for report submissions that are prepared by the Centre.

Suspicious Transaction or Attempted Transaction Report

12.1 Every person or entity who submits to the Centre a Suspicious Transaction or Attempted Transaction Report set out in Schedule 1 shall keep a copy of the report.

12.2 The copy referred to in section 12.1 may be kept in a machine-readable form or in an electronic form, if a paper copy can be readily produced from it.

• 12.3 (1) Subject to subsection (2), every person or entity that is required by section 12.1 to keep a copy of the report referred to in that section shall retain that copy for a period of at least five years following the day on which the report was made.

• (2) Where the copy that is required by section 12.1 to be kept by a person is the property of their employer or a person or entity with which they are in a contractual relationship, they are not required to retain the copy after their employment or that contractual relationship ends.

Prescribed Information

13 The prescribed information for the purposes of paragraphs 55(7)(f), 55.1(3)(f) and 56.1(5)(f) of the Act is

• (a) the following information concerning the client, importer or exporter, or any person acting on their behalf, namely,

  • (i) their alias, if any,

  • (ii) their date of birth,

  • (iii) their address and electronic mail address,

  • (iii.1) their telephone number,

  • (iv) their citizenship,

  • (v) the number of an identification document issued to them by the federal government or a provincial government or by a foreign government that is not a municipal government, other than a document that contains their social insurance number, the issuing authority and, if available, the place of issue and expiry date of the identification document,

  • (vi) if the client, importer or exporter is a corporation, the date and jurisdiction of its incorporation and its incorporation number,

  • (vii) the name and address of any person or entity on whose behalf the financial transaction or attempted financial transaction is conducted or on whose behalf the importation or exportation is carried out,

  • (viii) the telephone number of the place of business where the financial transaction or attempted financial transaction occurred; and

  • (ix) if the client, importer or exporter is an entity, the entity’s type of business;

• (b) in the case of a financial transaction or an attempted financial transaction, the following information, namely,

  • (i) the transit and account numbers,

  • (ii) the full name of every account holder,

  • (iii) the transaction number, if any,

  • (iv) the time of the transaction,

  • (v) the type of transaction,

  • (vi) the names of the parties to the transaction,

  • (vii) the type of account,

  • (viii) the name and address of all persons authorized to act in respect of the account, if any, and

  • (ix) the type of report, as listed in paragraph 54(a) of the Act, from which the information disclosed is compiled; and

• (c) in the case of an importation or exportation of currency or monetary instruments, the country from which they are being imported or the country to which they are being exported.