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Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (SOR/2002-184)

Regulations are current to 2021-09-11 and last amended on 2021-06-01. Previous Versions

Interpretation (continued)

[
  • SOR/2007-293, s. 5(F)
]

 [Repealed, SOR/2019-240, s. 23]

 [Repealed, SOR/2019-240, s. 23]

 [Repealed, SOR/2019-240, s. 23]

 [Repealed, SOR/2019-240, s. 23]

  •  (1) For the purposes of subsection 9.3(1) of the Act, a prescribed family member of a politically exposed foreign person, a politically exposed domestic person or a head of an international organization is

    • (a) their spouse or common-law partner;

    • (b) their child;

    • (c) their mother or father;

    • (d) the mother or father of their spouse or common-law partner; or

    • (e) a child of their mother or father.

  • (2) For the purposes of the definitions head of an international organization and politically exposed domestic person in subsection 9.3(3) of the Act, the prescribed period is five years.

 For the purposes of paragraph 5(l) of the Act, the prescribed precious metals are those defined as precious metals in subsection 1(2).

 For the purposes of these Regulations, 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.

 For the purposes of these Regulations, a person or entity to which section 5 of the Act applies enters into a business relationship with a client at the earliest of the following events:

  • (a) the time when the person or entity opens an account for the client, except in the circumstances set out in any of paragraphs 154(1)(a) to (d) and (2)(a) to (l) and (p) and subsection 154(3),

  • (b) the second time that the person or entity is required to verify the identity of the client under these Regulations,

  • (c) if the person or entity is a real estate broker or sales representative or a real estate developer, the first time that the person or entity is required to verify the identity of the client under these Regulations,

  • (d) if the person or entity is a money services business and the client is an entity, the time when the person or entity enters into a service agreement with the client to provide a service referred to in any of subparagraphs 5(h)(i) to (v) of the Act, and

  • (e) if the person or entity is a foreign money services business and the client is an entity in Canada, the time when the person or entity enters into a service agreement with the client to provide a service referred to in any of subparagraphs 5(h.1)(i) to (v) of the Act.

PART 1Requirements To Report Transactions and To Keep Records

Application of Parts 5 and 6

 The provisions of this Part are subject to the provisions of Parts 5 and 6.

Financial Entities

[
  • SOR/2016-153, s. 19(E)
]
  •  (1) A financial services cooperative is engaged in a business or profession for the purposes of paragraph 5(i) of the Act.

  • (2) A credit union central is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when it offers financial services to a person, or to an entity that is not a member of that credit union central.

  •  (1) A financial entity shall report the following transactions and information to the Centre:

    • (a) the receipt from a person or entity of an amount of $10,000 or more in cash in a single transaction, together with the information set out in Schedule 1;

    • (b) the initiation, at the request of a person or entity, of an international electronic funds transfer of $10,000 or more in a single transaction, together with the information set out in Schedule 2;

    • (c) the final receipt of an international electronic funds transfer of $10,000 or more in a single transaction, together with the information set out in Schedule 3; and

    • (d) the receipt from a person or entity of an amount of $10,000 or more in virtual currency in a single transaction, together with the information set out in Schedule 4.

  • (2) A financial entity is not required to report the transaction and information under paragraph (1)(a), if the amount is received from another financial entity or a public body or from a person who is acting on behalf of a client that is a financial entity or public body.

  •  (1) A financial entity is not required to report the transaction and information under paragraph 7(1)(a) if the following conditions are met:

    • (a) the entity from which or on whose behalf the financial entity receives the amount is a corporation that carries on business as an establishment described in sector 22, 44 (excluding codes 4411, 4412 and 44831) or 45 (excluding code 45392), or code 481, 482, 485 (excluding code 4853), 51711, 51751, 61121 or 61131 of the North American Industry Classification System as that sector or code read on January 31, 2003;

    • (b) the amount received is deposited into an account held by the corporation with the financial entity in respect of that business;

    • (c) the corporation has had

      • (i) for the entire preceding 24-month period, an account in respect of that business with the financial entity, or

      • (ii) an account in respect of that business with another financial entity for a continuous period of 24 months ending immediately before the corporation opened an account with the financial entity;

    • (d) the financial entity has records that indicate that the corporation has deposited an amount of $10,000 or more in cash into that account on an average of at least twice a week during the preceding 12 months;

    • (e) the cash deposits made by the corporation are consistent with the corporation’s usual practice in respect of the business;

    • (f) the financial entity has taken reasonable measures to determine the source of the cash for those deposits; and

    • (g) the financial entity provides to the Centre the information set out in Schedule 5.

  • (2) A corporation referred to in paragraph (1)(a) does not include one that carries on a business related to pawnbroking or whose principal business is the sale of vehicles, vessels, farm machinery, aircraft, mobile homes, jewellery, precious stones, precious metals, antiquities or art.

  • (3) A financial entity that, in accordance with subsection (1), does not report a transaction and information

    • (a) shall report to the Centre a change to the corporation’s name or address, the nature of the corporation’s business or the corporation’s incorporation number within 15 days after the day on which the change is made; and

    • (b) shall, at least once every 12 months,

      • (i) verify that the conditions referred to in subsection (1) continue to be met,

      • (ii) ensure that a senior officer of the financial entity confirms that those conditions continue to be met, and

      • (iii) send a report to the Centre setting out the corporation’s name and address and the name of the senior officer who gave the confirmation.

 
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