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Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

Version of section 1 from 2022-04-05 to 2022-09-22:

  •  (1) In the Act and in these Regulations, shell bank means a foreign financial institution that

    • (a) does not have a place of business that

      • (i) is located at a fixed address — where it employs one or more persons on a full-time basis and maintains operating records related to its banking activities — in a country in which it is authorized to conduct banking activities, and

      • (ii) is subject to inspection by the regulatory authority that licensed it to conduct banking activities; and

    • (b) is not controlled by, or under common control with, a depository institution, credit union or foreign financial institution that maintains a place of business referred to in paragraph (a) in Canada or in a foreign country.

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

    accountant

    accountant means a chartered accountant, a certified general accountant, a certified management accountant or, if applicable, a chartered professional 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)

    annuity

    annuity has the same meaning as in subsection 248(1) of the Income Tax Act. (rente)

    authorized user

    authorized user means a person who is authorized by a holder of a prepaid payment product account to have electronic access to funds or virtual currency available in the account by means of a prepaid payment product that is connected to it. (utilisateur autorisé)

    British Columbia notary corporation

    British Columbia notary corporation means an entity that carries on the business of providing notary services to the public in 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)

    business relationship

    business relationship[Repealed, SOR/2019-240, s. 22]

    cash

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

    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[Repealed, SOR/2019-240, s. 22]

    client credit file

    client credit file[Repealed, SOR/2016-153, s. 15]

    client information record

    client information record[Repealed, SOR/2019-240, s. 22]

    correspondent banking relationship

    correspondent banking relationship has the same meaning as in subsection 9.4(3) of the Act. (relation de correspondant bancaire)

    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)

    crowdfunding platform

    crowdfunding platform means a website or an application or other software that is used to raise funds or virtual currency through donations. (plateforme de sociofinancement)

    crowdfunding platform services

    crowdfunding platform services means the provision and maintenance of a crowdfunding platform for use by other persons or entities to raise funds or virtual currency for themselves or for persons or entities specified by them. (services de plateforme de sociofinancement)

    dealer in precious metals and precious stones

    dealer in precious metals and precious 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 an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province when the department or the agent or mandatary carries out the activity, referred to in subsection 65(1), of selling precious metals to the public. (négociant en métaux précieux et pierres précieuses)

    deferred profit sharing plan

    deferred profit sharing plan has the same meaning as in subsection 248(1) of the Income Tax Act. (régime de participation différée aux bénéfices)

    deposit slip

    deposit slip means a record that sets out

    • (a) the date of the deposit;

    • (b) the name of the person or entity that makes the deposit;

    • (c) the amount of the deposit and of any part of it that is made in cash;

    • (d) the method by which the deposit is made; and

    • (e) the number of the account into which the deposit is made and the name of each account holder. (relevé de dépôt)

    electronic funds transfer

    electronic funds transfer means the transmission — by any electronic, magnetic or optical means — of instructions for the transfer of funds, including a transmission of instructions that is initiated and finally received by the same person or entity. In the case of SWIFT messages, only SWIFT MT-103 messages and their equivalent are included. It does not include a transmission of instructions for the transfer of funds

    • (a) [Repealed, SOR/2022-76, s. 1]

    • (b) that involves the beneficiary withdrawing cash from their account;

    • (c) that is carried out by means of a direct deposit or a pre-authorized debit;

    • (d) that is carried out by cheque imaging and presentment;

    • (e) that is both initiated and finally received by persons or entities that are acting to clear or settle payment obligations between themselves; or

    • (f) that is initiated or finally received by a person or entity referred to in paragraphs 5(a) to (h.1) of the Act for the purpose of internal treasury management, including the management of their financial assets and liabilities, if one of the parties to the transaction is a subsidiary of the other or if they are subsidiaries of the same corporation. (télévirement)

    employees profit sharing plan

    employees profit sharing plan has the same meaning as in subsection 248(1) of the Income Tax Act. (régime de participation des employés aux bénéfices)

    fiat currency

    fiat currency means a currency that is issued by a country and is designated as legal tender in that country. (monnaie fiduciaire)

    final receipt

    final receipt, in respect of an electronic funds transfer, means the receipt of the instructions by the person or entity that is to make the remittance to a beneficiary. (destinataire)

    financial entity

    financial entity means

    • (a) an entity that is referred to in any of paragraphs 5(a), (b) and (d) to (f) of the Act;

    • (b) a financial services cooperative;

    • (c) a life insurance company, or an entity that is a life insurance broker or agent, in respect of loans or prepaid payment products that it offers to the public and accounts that it maintains with respect to those loans or prepaid payment products, other than

      • (i) loans that are made by the insurer to a policy holder if the insured person has a terminal illness that significantly reduces their life expectancy and the loan is secured by the value of an insurance policy;

      • (ii) loans that are made by the insurer to the policy holder for the sole purpose of funding the life insurance policy; and

      • (iii) advance payments to which the policy holder is entitled that are made to them by the insurer;

    • (d) a credit union central when it offers financial services to a person, or to an entity that is not a member of that credit union central; and

    • (e) a department, or an entity that is an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province, when it carries out an activity referred to in section 76. (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, other than a caisse populaire. (coopérative de services financiers)

    foreign currency

    foreign currency means a fiat currency that is issued by a country other than Canada. (devise)

    foreign currency exchange transaction

    foreign currency exchange transaction means an exchange, at the request of another person or entity, of one fiat currency for another. (opération de change en devise)

    foreign currency exchange transaction ticket

    foreign currency exchange transaction ticket means a record respecting a foreign currency exchange transaction — including an entry in a transaction register — that sets out

    • (a) the date of the transaction;

    • (b) in the case of a transaction of $3,000 or more, the name and address of the person or entity that requests the exchange, the nature of their principal business or their occupation and, in the case of a person, their date of birth;

    • (c) the type and amount of each of the fiat currencies involved in the payment made and received by the person or entity that requests the exchange;

    • (d) the method by which the payment is made and received;

    • (e) the exchange rates used and their source;

    • (f) the number of every account that is affected by the transaction, the type of account and the name of each account holder; and

    • (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number. (fiche d’opération de change en devise)

    foreign money services business

    foreign money services business means a person or entity referred to in paragraph 5(h.1) of the Act. (entreprise de services monétaires étrangère)

    funds

    funds means

    • (a) cash and other fiat currencies, and securities, negotiable instruments or other financial instruments that indicate a title or right to or interest in them; or

    • (b) a private key of a cryptographic system that enables a person or entity to have access to a fiat currency other than cash.

    For greater certainty, it does not include virtual currency. (fonds)

    information record

    information record means a record that sets out the name and address of a person or entity and

    • (a) in the case of a person, their date of birth and the nature of their principal business or their occupation; and

    • (b) in the case of an entity, the nature of its principal business. (dossier de renseignements)

    initiation

    initiation, in respect of an electronic funds transfer, means the first transmission of the instructions for the transfer of funds. (amorcer)

    international electronic funds transfer

    international electronic funds transfer means an electronic funds transfer other than for the transfer of funds within Canada. (télévirement international)

    inter vivos trust

    inter vivos trust means a personal trust, other than a trust created by will. (fiducie entre vifs)

    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)

    large cash transaction record

    large cash transaction record means a record that indicates the receipt of an amount of $10,000 or more in cash in a single transaction and that contains the following information:

    • (a) the date of the receipt;

    • (b) if the amount is received for deposit into an account, the number of the account, the name of each account holder and the time of the deposit or an indication that the deposit is made in a night deposit box outside the recipient’s normal business hours;

    • (c) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;

    • (d) the type and amount of each fiat currency involved in the receipt;

    • (e) the method by which the cash is received;

    • (f) if applicable, the exchange rates used and their source;

    • (g) the number of every other account that is affected by the transaction, the type of account and the name of each account holder;

    • (h) every reference number that is connected to the transaction and has a function equivalent to that of an account number;

    • (i) the purpose of the transaction;

    • (j) the following details of the remittance of, or in exchange for, the cash received:

      • (i) the method of remittance,

      • (ii) if the remittance is in funds, the type and amount of each type of funds involved,

      • (iii) if the remittance is not in funds, the type of remittance and its value, if different from the amount of cash received, and

      • (iv) the name of every person or entity involved in the remittance and their account number or policy number or, if they have no account number or policy number, their identifying number; and

    • (k) if the amount is received by a dealer in precious metals and precious stones for the sale of precious metals, precious stones or jewellery,

      • (i) the type of precious metals, precious stones or jewellery,

      • (ii) the value of the precious metals, precious stones or jewellery, if different from the amount of cash received, and

      • (iii) the wholesale value of the precious metals, precious stones or jewellery. (relevé d’opération importante en espèces)

    large virtual currency transaction record

    large virtual currency transaction record means a record that indicates the receipt of an amount of $10,000 or more in virtual currency in a single transaction and that contains the following information:

    • (a) the date of the receipt;

    • (b) if the amount is received for deposit into an account, the name of each account holder;

    • (c) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;

    • (d) the type and amount of each virtual currency involved in the receipt;

    • (e) the exchange rates used and their source;

    • (f) the number of every other account that is affected by the transaction, the type of account and the name of each account holder;

    • (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number;

    • (h) every transaction identifier, including the sending and receiving addresses; and

    • (i) if the amount is received by a dealer in precious metals and precious stones for the sale of precious metals, precious stones or jewellery,

      • (i) the type of precious metals, precious stones or jewellery,

      • (ii) the value of the precious metals, precious stones or jewellery, if different from the amount of virtual currency received, and

      • (iii) the wholesale value of the precious metals, precious stones or jewellery. (relevé d’opération importante en monnaie virtuelle)

    legal firm

    legal firm means an entity that is engaged in the business of providing legal services to the public. (cabinet d’avocats)

    life insurance broker or agent

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

    life insurance company

    life insurance company means a life company or foreign life company to which the Insurance Companies Act applies or a life insurance company regulated by a provincial Act. (société d’assurance-vie)

    money services business

    money services business means a person or entity referred to in paragraph 5(h) of the Act. (entreprise de services monétaires)

    ongoing monitoring

    ongoing monitoring[Repealed, SOR/2019-240, s. 22]

    physical presence

    physical presence[Repealed, SOR/2019-240, s. 22]

    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)

    prepaid payment product

    prepaid payment product means a product that is issued by a financial entity and that enables a person or entity to engage in a transaction by giving them electronic access to funds or virtual currency paid to a prepaid payment product account held with the financial entity in advance of the transaction. It excludes a product that

    • (a) enables a person or entity to access a credit or debit account or one that is issued for use only with particular merchants; or

    • (b) is issued for single use for the purposes of a retail rebate program. (produit de paiement prépayé)

    prepaid payment product account

    prepaid payment product account means an account — other than an account to which only a public body or, if doing so for the purposes of humanitarian aid, a registered charity as defined in subsection 248(1) of the Income Tax Act, can add funds or virtual currency — that is connected to a prepaid payment product and that permits

    • (a) funds or virtual currency that total $1,000 or more to be added to the account within a 24-hour period; or

    • (b) a balance of funds or virtual currency of $1,000 or more to be maintained. (compte de produit de paiement prépayé)

    public body

    public body means

    • (a) a department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province;

    • (b) an incorporated city or town, village, metropolitan authority, township, district, county, rural municipality or other incorporated municipal body in Canada or an agent or mandatary in Canada of any of them; and

    • (c) an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority under the Excise Tax Act, or an agent or mandatary of such an organization. (organisme public)

    real estate broker or sales representative

    real estate broker or sales representative means a person or entity that is authorized under provincial legislation to act as an agent or mandatary for purchasers or vendors in respect of the purchase or sale of real property or immovables. (courtier ou agent immobilier)

    real estate developer

    real estate developer means a person or entity that, in any 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)

    receipt of funds record

    receipt of funds record means a record that indicates the receipt of an amount of funds and that contains the following information:

    • (a) the date of the receipt;

    • (b) if the amount is received from a person, their name, address and date of birth and the nature of their principal business or their occupation;

    • (c) if the amount is received from or on behalf of an entity, the entity’s name and address and the nature of its principal business;

    • (d) the amount of the funds received and of any part of the funds that is received in cash;

    • (e) the method by which the amount is received;

    • (f) the type and amount of each fiat currency involved in the receipt;

    • (g) if applicable, the exchange rates used and their source;

    • (h) the number of every account that is affected by the transaction in which the receipt occurs, the type of account and the name of each account holder;

    • (i) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;

    • (j) every reference number that is connected to the transaction and has a function equivalent to that of an account number; and

    • (k) the purpose of the transaction. (relevé de réception de fonds)

    registered pension plan

    registered pension plan has the same meaning as in subsection 248(1) of the Income Tax Act. (régime de pension agréé)

    registered retirement income fund

    registered retirement income fund has the same meaning as in subsection 248(1) of the Income Tax Act. (fonds enregistré de revenu de retraite)

    securities dealer

    securities dealer means a person or entity that is referred to in paragraph 5(g) of the Act. (courtier en valeurs mobilières)

    senior officer

    senior officer, in respect of an entity, means

    • (a) a director of the entity who is one of its full-time employees;

    • (b) the entity’s chief executive officer, chief operating officer, president, secretary, treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary, or any person who performs any of those functions; or

    • (c) any other officer who reports directly to the entity’s board of directors, chief executive officer or chief operating officer. (cadre dirigeant)

    signature

    signature includes an electronic signature or other information in electronic form that is created or adopted by a client of a person or entity referred to in section 5 of the Act and that is accepted by the person or entity as being unique to that client. (signature)

    signature card

    signature card, in respect of an account, means a document that is signed by a person who is authorized to give instructions in respect of the account, or electronic data that constitutes the signature of such a person. (fiche-signature)

    SWIFT

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

    transaction ticket

    transaction ticket[Repealed, SOR/2019-240, s. 22]

    trust company

    trust company means a company that is referred to in any of paragraphs 5(d) to (e.1) of the Act. (société de fiducie)

    virtual currency

    virtual currency means

    • (a) a digital representation of value that can be used for payment or investment purposes, that is not a fiat currency and that can be readily exchanged for funds or for another virtual currency that can be readily exchanged for funds; or

    • (b) a private key of a cryptographic system that enables a person or entity to have access to a digital representation of value referred to in paragraph (a). (monnaie virtuelle)

    virtual currency exchange transaction

    virtual currency exchange transaction means an exchange, at the request of another person or entity, of virtual currency for funds, funds for virtual currency or one virtual currency for another. (opération de change en monnaie virtuelle)

    virtual currency exchange transaction ticket

    virtual currency exchange transaction ticket means a record respecting a virtual currency exchange transaction — including an entry in a transaction register — that sets out

    • (a) the date of the transaction;

    • (b) in the case of a transaction of $1,000 or more, the name and address of the person or entity that requests the exchange, the nature of their principal business or their occupation and, in the case of a person, their date of birth;

    • (c) the type and amount of each type of funds and each of the virtual currencies involved in the payment made and received by the person or entity that requests the exchange;

    • (d) the method by which the payment is made and received;

    • (e) the exchange rates used and their source;

    • (f) the number of every account that is affected by the transaction, the type of account and the name of each account holder;

    • (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number; and

    • (h) every transaction identifier, including the sending and receiving addresses. (fiche d’opération de change en monnaie virtuelle)

  • SOR/2002-184, s. 72
  • SOR/2003-102, s. 3
  • SOR/2003-358, s. 4
  • SOR/2007-122, s. 19
  • SOR/2007-293, s. 6
  • SOR/2008-21, s. 3
  • SOR/2009-265, s. 3
  • SOR/2013-15, s. 1
  • SOR/2016-153, ss. 15, 81(F)
  • SOR/2019-240, s. 22
  • SOR/2020-112, s. 2
  • SOR/2022-76, s. 1
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