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Version of document from 2007-12-13 to 2008-12-29:

Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations

SOR/2007-292

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT

Registration 2007-12-13

Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations

P.C. 2007-1921 2007-12-13

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 73.1(1)Footnote a of the Proceeds of Crime (Money Laundering) and Terrorist Financing ActFootnote b, hereby makes the annexed Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.

Interpretation

The following provision is not in force.

 In these Regulations, Act means the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The following provision is not in force.

 The short-form descriptions that are set out in column 2 of Part 1 of the schedule, and column 3 of Parts 2 and 3 of the schedule, form no part of these Regulations and are inserted for convenience of reference only.

Violations

The following provision is not in force.

 The contravention of any of the following provisions is a violation that may be proceeded with under sections 73.11 to 73.5 of the Act:

Classification

The following provision is not in force.
  •  (1) Each violation is classified as a minor, serious or very serious violation, as set out in column 3 of Part 1 of the schedule and column 4 of Parts 2 and 3 of the schedule.

  • (2) A series of minor violations identified on a notice of violation shall be considered to be a serious violation for the purpose of section 73.21 of the Act if the total of the penalties for the violations set out in the notice is equal to or greater than $10,000.

Penalties

The following provision is not in force.

 Subject to subsection 73.1(2) of the Act, the range of penalties in respect of a violation is

  • (a) $1 to $1,000 in the case of a minor violation;

  • (b) $1 to $100,000 in the case of a serious violation; and

  • (c) $1 to $500,000 in the case of a very serious violation.

Additional Criteria

The following provision is not in force.

 For the purposes of section 73.11 of the Act, the history of compliance by the person or entity with the Act, other than Part 2 of the Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations, are prescribed as criteria that are to be taken into account in determining the amount of a penalty.

Service of Documents

The following provision is not in force.
  •  (1) Service of any document under Part 4.1 of the Act may be made

    • (a) in the case of a person, by

      • (i) personally serving the document on the person,

      • (ii) leaving the document with someone who appears to be an adult member of the same household at the last known address or usual place of residence of the person, or

      • (iii) sending the document by registered mail, courier, fax or other electronic means to the person’s last known address or usual place of residence; and

    • (b) in the case of an entity, by

      • (i) leaving the document at the entity’s head office or place of business, with an officer or other person who appears to be in control or management of the head office or place of business,

      • (ii) sending the document by registered mail, courier or fax to the head office or place of business of the entity, or

      • (iii) sending the document by electronic means other than by fax to any person referred to in subparagraph (i).

  • (2) If a document is sent by fax or other electronic means, a copy of it shall also be sent by registered mail to the person’s last known address or usual place of residence, or, in the case of an entity, to the entity’s head office or place of business.

The following provision is not in force.

 In the absence of proof to the contrary, a document — other than a document that is personally served — is deemed to be served

  • (a) in the case of a document that is left with an adult referred to in subparagraph 7(1)(a)(ii), on the day the document is left with the adult;

  • (b) in the case of a document that is sent by registered mail or courier, on the tenth day after the date indicated in the receipt issued by the postal or courier service; and

  • (c) in the case of a document sent by fax or other electronic means, on the day of transmission.

Interest Rate Determination

The following provision is not in force.
  •  (1) For the purposes of section 73.28 of the Act, the prescribed rate of interest at any time in a particular quarter is the total of:

    • (a) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter; and

    • (b) four per cent.

  • (2) The interest referred to in subsection (1) is calculated and compounded monthly.

  • (3) For the purposes of subsection (1) quarter means a period of three consecutive months ending on March 31, June 30, September 30 or December 31.

Coming into Force

The following provision is not in force.

 These Regulations come into force on December 30, 2008.

The following schedule is not in force.

SCHEDULE(Sections 2, 3 and 4)

PART 1

Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Column 1Column 2Column 3
ItemProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing ActShort-form DescriptionClassification of Violation
162(2)Failure to give reasonable assistance and information reasonably required to an authorized personserious
263.1(2)Failure to provide, in accordance with a notice, documents or other information reasonably required by an authorized personserious

PART 2

Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

Column 1Column 2Column 3Column 4
ItemProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing ActProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing RegulationsShort-form DescriptionClassification of Violation
19(1)2Failure to convert foreign currency transactions into Canadian dollars based on the prescribed rateminor
29(1)4(1)Failure to send a report electronically, if the sender has the technical capabilities, in accordance with the guidelines prepared by the Centreminor
39(1)4(2)Failure to send a report in paper format, if the sender does not have the technical capabilities to send electronically, in accordance with guidelines prepared by the Centreminor
49(1)5(1)Failure to report an electronic funds transfer no later than five working days after the transferminor
59(1)5(2)(b)Failure to report a transaction for which a large cash transaction record must be kept within 15 days after the transactionminor
668(1)Failure to take reasonable measures to determine if an individual giving cash is acting on behalf of a third partyminor
768(2)Failure to keep a record of prescribed information respecting third partiesminor
868(3)Failure to keep a record of prescribed information respecting suspected third partiesminor
969(1)Failure to take reasonable measures when opening an account to determine if the account is to be used by or on behalf of a third partyminor
1069(2)Failure to keep a record of prescribed information respecting third partiesminor
1169(3)Failure to keep a record of prescribed information in respect of suspected third partiesminor
12610(1)Failure to take reasonable measures when client information record is created to determine whether the client is acting on behalf of a third party.minor
13610(2)Failure to keep a record of prescribed information when it is determined that the client is acting on behalf of a third partyminor
14610(3)Failure to keep a record of prescribed information when there are reasonable grounds to suspect that the client is acting on behalf of a third partyminor
15611Failure of a trust company to keep a record of prescribed information concerning inter vivos trustsminor
169(1)12(1)(a)Failure of a financial entity to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
179(1)12(1)(b)Failure of a financial entity to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
189(1)12(1)(c)Failure of a financial entity to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
19613Failure of a financial entity to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transactionminor
20614Failure of a financial entity to keep prescribed recordsminor
21615Failure of a trust company to keep prescribed records in respect of a trust for which it is trusteeminor
229(1)17Failure of a life insurance company or life insurance broker or agent who receives from a client an amount in cash of $10,000 or more in the course of a single transaction to report the transaction together with the prescribed informationminor
23618Failure of a life insurance company or life insurance broker or agent to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transactionminor
24619(1)Failure of a life insurance company or life insurance broker or agent to keep a client information record in respect of every annuity or policy for which $10,000 or more is paidminor
25620Failure of a life insurance company or life insurance broker or agent to keep prescribed records of a corporate clientminor
269(1)21Failure of a securities dealer who receives from a client an amount in cash of $10,000 or more in the course of a single transaction to report the transaction together with the prescribed informationminor
27622Failure of a securities dealer to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transactionminor
28623Failure of a securities dealer to keep prescribed recordsminor
299(1)28(1)(a)Failure of a money services business to report the receipt from a client of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
309(1)28(1)(b)Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
319(1)28(1)(c)Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
32629Failure of a money services business to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transactionminor
33630Failure of a money services business to keep prescribed recordsminor
349(1)35Failure of an accountant or accounting firm to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
35636(1)Failure of an accountant or accounting firm to keep prescribed recordsminor
36636(2)Failure of an accountant or accounting firm to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transactionminor
379(1)38Failure of a real estate broker or sales representative to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
38639(1)Failure of a real estate broker or sales representative to keep prescribed recordsminor
39639(2)Failure of a real estate broker or sales representative to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transactionminor
409(1)40(1)(a)Failure of a casino to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
419(1)40(1)(b)Failure of a casino to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
429(1)40(1)(c)Failure of a casino to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
43641(1)Failure of a casino to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transactionminor
44642(1)Failure of a casino to keep a large cash disbursement record in respect of prescribed transactions in the course of which the total amount of cash disbursed is $10,000 or moreminor
45643Failure of a casino to keep prescribed recordsminor
469(1)47Failure of a department or agent of Her Majesty in right of Canada or of a province to report the receipt from a client of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed informationminor
47648Failure of a department or agent of Her Majesty in right of Canada or of a province to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that it receives from a client in the course of a single transactionminor
48649Failure of a department or agent of Her Majesty in right of Canada or of a province to keep prescribed recordsminor
499(1)50(3)Failure of a specified financial entity to report changes in prescribed information within 15 days of the changeminor
509(1)50(4)(a)Failure of a specified financial entity to verify at least once every 12 months that prescribed conditions are still met in respect of each clientminor
519(1)50(4)(b)Failure of a specified financial entity to report prescribed information at least once every 12 monthsminor
526.153, 64(1) and 64(2)(b)Failure of a specified person or entity to ascertain in the prescribed manner and within the prescribed period the identity of every individual with whom the person or entity conducts a transaction in respect of which a record must be keptminor
536.154(1)(a), 64(1) and 64(2)(a)Failure of a financial entity to ascertain in the prescribed manner and within the prescribed period the identity of every person who signs a signature cardminor
546.154(1)(b), 64(1) and 64(2)(b)Failure of a financial entity to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transaction or transferminor
556.154(1)(d), 65(1) and 65(2)(a)Failure of a financial entity to confirm in the prescribed manner and within the prescribed period the existence of, and the prescribed information in respect of, corporations for which the financial entity opens an accountminor
566.154(1)(e), 66(1) and 66(2)(a)Failure of a financial entity to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which the financial entity opens an account.minor
576.155(a), 64(1) and 64(2)(c)Failure of a trust company to ascertain in the prescribed manner and within the prescribed period the identity of every person who is the settlor of an inter vivos trustminor
586.155(b), 65(1) and 65(2)(b)Failure of a trust company to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation that is the settlor of an institutional trustminor
596.155(c), 66(1) and 66(2)(b)Failure of a trust company to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, that is the settlor of an institutional trustminor
606.155(d)(i), 65(1), 65(2)(b) or 55(d)(i), 66(1) and 66(2)(b)Failure of a trust company to confirm in the prescribed manner and within the prescribed period the existence of — and, in the case of a corporation, the prescribed information in respect of — an entity that is authorized to act as a co-trustee of any trustminor
616.155(d)(ii), 64(1) and 64(2)(c)Failure of a trust company to ascertain in the prescribed manner and within the prescribed period the identity of persons who are authorized to give instructions with respect to an entity’s activities as co-trusteeminor
626.155(e), 64(1) and 64(2)(c)Failure of a trust company to ascertain in the prescribed manner and within the prescribed period the identity of each person who is authorized to act as co-trustee of any trustminor
636.156(1), 64(1) and 64(2)(d)Failure of a life insurance company or life insurance broker or agent to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for which a client information record is required to be keptminor
646.156(3), 65(1) and 65(2)(c)Failure of a life insurance company or life insurance broker or agent to confirm in the prescribed manner and within the prescribed period the existence of, and the prescribed information in respect of, every corporation in respect of which they are required to keep a client information recordminor
656.156(4), 66(1) and 66(2)(c)Failure of a life insurance company or life insurance broker or agent to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, in respect of which they are required to keep a client information recordminor
666.157(1), 64(1) and 64(2)(a)Failure of a securities dealer to ascertain in the prescribed manner and within the prescribed period the identity of every person who is authorized to give instructions in respect of an account for which a record must be keptminor
676.157(3), 65(1) and 65(2)(d)Failure of a securities dealer to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation for which it opens an accountminor
686.157(4), 66(1) and 66(2)(d)Failure of a securities dealer to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which it opens an accountminor
696.159(1)(a), 64(1) and 64(2)(b)Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction of $3,000 or more for the issuance or redemption of money orders, traveller’s cheques or other similar negotiable instrumentsminor
706.159(1)(b), 64(1) and 64(2)(b)Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for the remittance or transmission of $1,000 or moreminor
716.159(1)(c), 64(1) and 64(2)(b)Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a foreign currency exchange transaction of $3,000 or moreminor
726.159(2), 65(1) and 65(2)(c)Failure of a money services business to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation in respect of which a client information record is required to be keptminor
736.159(3), 66(1) and 66(2)(c)Failure of a money services business to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, in respect of which a client information record is required to be keptminor
746.160(a), 64(1) and 64(2)(a)Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who signs a signature card in respect of an account that the casino opensminor
756.160(b)(i), 64(1) and 64(2)(b)Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction with the casino for which a large cash disbursement record is required to be keptminor
766.160(b)(ii), 64(1) and 64(2)(b)Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction of $3,000 or more with the casino for which an extension of credit record is requiredminor
776.160(b)(iii), 64(1) and 64(2)(b)Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a foreign currency exchange transaction of $3,000 or more with the casino for which a transaction ticket is required to be keptminor
786.160(b)(iv), 64(1) and 64(2)(b)Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who requests that an amount of $1,000 or more be remitted or transmittedminor
796.160(e), 65(1) and 65(2)(a)Failure of a casino to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation for which the casino opens an accountminor
806.160(f), 66(1) and 66(2)(a)Failure of a casino to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which the casino opens an accountminor
816.161(a), 64(1) and 64(2)(d)Failure of a department or agent of Her Majesty in right of Canada or of a province to ascertain in the prescribed manner and within the prescribed period the identity of every person in respect of whom a client information record is required to be keptminor
826.161(b), 64(1) and 64(2)(b)Failure of a department or agent of Her Majesty in right of Canada or of a province to ascertain in the prescribed manner and within the prescribed period the identity of every person in respect of whom no client information record is required to be kept and who conducts a transaction that involves an amount of $3,000 or more for the issuance or redemption of money orders or other similar negotiable instrumentsminor
836.161(c), 65(1) and 65(2)(c)Failure of a department or agent of Her Majesty in right of Canada or of a province to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation in respect of which a client information record is keptminor
846.161(d), 66(1) and 66(2)(c)Failure of a department or agent of Her Majesty in right of Canada or of a province to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, in respect of which a client information record is keptminor
85665(3)Failure of a person or entity who ascertains information in respect of a corporation by referring to an electronic version of a record to keep a prescribed recordminor
86665(4)Failure of a person or entity who ascertains information in respect of a corporation by referring to a paper copy of a record to retain the record or a copy of itminor
87666(3)Failure of a person or entity who ascertains information in respect of an entity by referring to an electronic version of a record to keep a prescribed recordminor
88666(4)Failure of a person or entity who ascertains information in respect of an entity by referring to a paper copy of a record to retain the record or a copy of itminor
89667Failure of a person or entity that is required to ascertain the identity of a person to keep prescribed records in respect of the personminor
90669(1)Failure of a person or entity that is required to obtain, keep or create records to retain those records for a period of at least five yearsminor
91670Failure to retain records in such a way that they can be provided to an authorized person within 30 days after their requestminor
929.6(1)71(1)(a)Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance programserious
939.6(1)71(1)(b)Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officerserious
949.6(1)71(1)(c)Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factorsserious
959.6(1)71(1)(d)Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or personsserious
969.6(1)71(1)(e)Failure of a person or entity to institute and document the prescribed reviewserious
979.6(1)71(2)Failure of a person or entity to report prescribed information within 30 days after assessmentserious

PART 3

Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations

Column 1Column 2Column 3Column 4
ItemProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing ActProvision of Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting RegulationsShort-form DescriptionClassification of Violation
179(1)Failure of a person or entity to include prescribed information in a reportvery serious
279(2)Failure of a person or entity to send a report within the prescribed periodserious
37.110Failure of a person or entity to send a report containing the prescribed information without delayvery serious
4712(1)Failure to send report electronically, if the sender has the technical capabilities, in accordance with the guidelines prepared by the Centreserious
5712(2)Failure to send report in paper format, if the sender does not have the technical capabilities to send electronically, in accordance with the guidelines prepared by the Centreserious
6712(3)Failure to submit a report in paper format in accordance with the guidelines prepared by the Centreserious
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