Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2019

Canada Gazette, Part II, Volume 153, Number 14

Registration

SOR/2019-240 June 25, 2019

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT

P.C. 2019-903 June 22, 2019

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 73(1) footnotea and paragraphs 73.1(1)(a) to (c) footnoteb of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act footnotec, makes the annexed Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2019.

Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2019

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

1 (1) The definitions accountant, accounting firm, British Columbia notary corporation, CICA Handbook, credit union central, dealer in precious metals and stones, electronic funds transfer, financial entity, financial services cooperative, life insurance broker or agent, real estate broker or sales representative, real estate developer, SWIFT and trust company in subsection 1(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations footnote1 are repealed.

(2) The definition funds in subsection 1(2) of the Regulations is replaced by the following:

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)

(3) The definition cash in subsection 1(2) of the English version of the Regulations is replaced by the following:

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)

(4) Subsection 1(2) of the Regulations is amended by adding the following in alphabetical order:

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

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)

2 Sections 1.2 to 8 of the Regulations are replaced by the following:

Report Under Section 7 of the Act

3 (1) Subsection 9(1) of the English version of the Regulations is replaced by the following:

9 (1) Subject to section 11, a report made under section 7 of the Act concerning a financial transaction or 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 terrorist activity financing offence shall contain the information set out in Schedule 1.

(2) Subsection 9(2) of the Regulations is replaced by the following:

(2) The person or entity shall send the report to the Centre as soon as practicable after they have taken measures that enable them to establish that 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.

4 The heading before section 10 and sections 10 to 12.3 of the Regulations are replaced by the following:

Report Under Section 7.1 of the Act

10 (1) Subject to section 11, a report made under section 7.1 of the Act shall contain the information set out in Schedule 2.

(2) The person or entity shall send the report to the Centre immediately.

Reports

11 (1) The requirement to report information set out in Schedule 1 or 2 does not apply 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) In the case of an attempted transaction, the requirement to report information set out in Schedule 1 does not apply 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.

(3) The requirement to report information set out in Schedule 1 or 2 does not apply if the person or entity believes that taking the reasonable measures to obtain the information would inform a person or entity that conducts or attempts or proposes to conduct a transaction with them that the transaction and related information will be reported under section 7 or 7.1 of the Act.

(4) For greater certainty, although items in Schedules 1 and 2 are described in the singular, a person or entity shall report all known information that falls within an item.

(5) For greater certainty, a person or entity is not required to report information set out in any item of Schedule 1 or 2 that is not applicable in the circumstances.

12 A report shall be sent electronically in accordance with guidelines that are prepared by the Centre, if the sender has the technical capabilities to do so. If the sender does not have the technical capabilities to send the report electronically, the report shall be sent in paper format in accordance with guidelines that are prepared by the Centre.

12.1 (1) A person or entity that sends a report to the Centre shall keep a copy of the report for a period of at least five years after the day on which the report is sent.

(2) The copy of the report may be kept in a machine-readable or electronic form if a paper copy can be readily produced from it.

(3) For greater certainty, if the copy is the property of a person’s employer or of a person or entity with which the person is in a contractual relationship, the person is not required to keep it after the end of their employment or the contractual relationship.

5 The heading before section 13 of the English version of the Regulations is replaced by the following:

Designated Information

6 (1) The portion of section 13 of the English version of the Regulations before paragraph (a) is replaced by the following:

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

(2) The portion of paragraph 13(a) of the Regulations before subparagraph (vii) is replaced by the following:

  • (a) the following information concerning the person or entity that is involved in the transaction, attempted transaction, importation or exportation or a person or entity acting on their behalf:
    • (i) their address, telephone number and email address,
    • (ii) in the case of a person, their alias, date of birth and citizenship,
    • (iii) in the case of a person, 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 jurisdiction and country of issue and expiry date of the identification document,
    • (iv) in the case of an entity that is involved in the transaction, attempted transaction, importation or exportation, the date of its registration or incorporation, its registration or incorporation number and the jurisdiction and country of issue of that number,

(3) Paragraph 13(a) of the Regulations is amended by adding “and” at the end of subparagraph (vii), by striking out “and” at the end of subparagraph (viii) and by repealing subparagraph (ix).

(4) The portion of paragraph 13(b) of the English version of the Regulations before subparagraph (i) is replaced by the following:

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

(5) Subparagraphs 13(b)(i) to (iii) of the Regulations are replaced by the following:

  • (i) every account number and transit number that is involved,
  • (ii) the name of each account holder,
  • (iii) the number of the transaction or attempted transaction and every other reference number that is connected to the transaction or attempted transaction,

(6) Subparagraphs 13(b)(iv) to (vi) of the English version of the Regulations are replaced by the following:

  • (iv) the time of the transaction or attempted transaction,
  • (v) the type of transaction or attempted transaction,
  • (vi) the names of the parties to the transaction or attempted transaction,

(7) Subparagraphs 13(b)(viii) and (ix) of the Regulations are replaced by the following:

  • (viii) the name and address of each person who is authorized to act in respect of the account, and
  • (ix) the type of report, as listed in paragraph 54(1)(a) of the Act, from which the information disclosed is compiled; and

(8) Paragraph 13(c) of the Regulations is replaced by the following:

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

7 Schedule 1 to the Regulations is amended by replacing the references after the heading “SCHEDULE 1” with the following:

(Subsection 9(1) and section 11)

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Source: Government of Canada

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