Registration

SOR/2008-195 June 11, 2008

PROCEEDS OF CRIME (MONEY LAUNDERING) AND
TERRORIST FINANCING ACT

Regulations Amending Certain Regulations Made
Under the Proceeds of Crime (Money Laundering)
and Terrorist Financing Act (2008-2)

P.C. 2008-1032 June 11, 2008

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 73(1) (see footnote a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (see footnote b), hereby makes the annexed Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2008-2).

REGULATIONS AMENDING CERTAIN REGULATIONS MADE UNDER THE PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT (2008-2)

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING SUSPICIOUS TRANSACTION REPORTING REGULATIONS

1. (1) The portion of section 13 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations (see footnote 1) before paragraph (a) is replaced by the following:

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

(2) Paragraph 13(a) of the Regulations is amended by striking out “and” at the end of subparagraph (vii) and by adding the following after subparagraph (viii):

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

(3) Section 13 of the Regulations is amended by adding “and” at the end of paragraph (b) and by adding the following after that paragraph:

(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.

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING REGULATIONS

2. Subsection 15.1(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (see footnote 2) is amended by striking out “and” at the end of paragraph (h), by adding “and” at the end of paragraph (i) and by adding the following after paragraph (i):

(j) the measures taken to ascertain whether there are any civil or criminal penalties that have been imposed on the foreign financial institution in respect of anti-money laundering or anti-terrorist financing requirements and the results of those measures.

3. (1) Subsection 62(1) of the Regulations, as enacted by section 60 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-1) , SOR/2007-122, is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):

(d) the opening of an account by an entity for the deposit by a life insurance company affiliated with that entity of a death benefit under a life insurance policy or annuity where

(i) the account is opened in the name of a beneficiary that is a person,

(ii) only that death benefit may be deposited in the account, and

(iii) the policy or annuity contract, as applicable, under which the claim was made for the death benefit has been in existence for a period of at least two years before the day on which the claim for the death benefit was made.

(2) Paragraph 62(2)(a) of the Regulations, as enacted by section 60 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-1) , SOR/2007-122, is replaced by the following:

(a) the purchase of an exempt policy as defined in subsection 306(1) of the Income Tax Regulations;

(3) Paragraph 62(2)(m) of the Regulations, as enacted by section 60 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-1) , SOR/2007-122, and as replaced by subsection 26(4) of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-2) , SOR/2007-293, is replaced by the following:

(m) instances where the entity in respect of which a record is otherwise required to be kept is a public body, or a corporation that has minimum net assets of $75 million on its last audited balance sheet and whose shares are traded on a Canadian stock exchange or a stock exchange designated under subsection 262(1) of the Income Tax Act, and operates in a country that is a member of the Financial Action Task Force;

(4) Section 62 of the Regulations, as enacted by section 60 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-1) , SOR/2007-122, is amended by adding the following after subsection (3):

(4) For the purpose of paragraph (1)(d), an entity is affiliated with another entity if one of them is wholly owned by the other or both are wholly owned by the same entity.

4. (1) Paragraph 69(1)(a) of the Regulations is replaced by the following:

(a) in respect of signature cards, account operating agreements, account application forms, credit card applications and records setting out the intended use of the account, the day on which the account to which they relate is closed;

(a.1) in respect of client credit files that are required to be kept under paragraph 14(i) and records that are required to be kept under paragraph 14(n), 14.1(g) or 23(1)(f), the day on which the account to which they relate is closed;

(2) Subsection 69(1) of the Regulations is amended by striking out “and” at the end of paragraph (b) and by adding the following after that paragraph:

(b.1) in respect of client credit files that are required to be kept under paragraph 30(a), records that are required to be kept under section 11.1, paragraph 14(o), subsection 15.1(2) or section 20.1 or 31, lists that are required to be kept under section 32 and records, other than client information records, that are required to be kept under that section, the day on which the last business transaction is conducted; and

5. Section 3 of Part B of Schedule 7 to the Regulations, as enacted by section 75 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-1) , SOR/2007-122, is replaced by the following:

3. This method of ascertaining a person’s identity consists of consulting a reputable and independent database that is compiled from a directory of a telecommunications entity and that contains the names, addresses and telephone numbers of individuals in order to confirm the person’s name, address and telephone number.

6. Section 1 of Part C of Schedule 7 to the Regulations, as enacted by section 75 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-1) , SOR/2007-122, is replaced by the following:

1. This method of ascertaining a person’s identity consists of consulting a reputable and independent database that is compiled from a directory of a telecommunications entity and that contains the names, addresses and telephone numbers of individuals in order to confirm the person’s name, address and telephone number.

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING REGISTRATION REGULATIONS

7. Section 2 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations (see footnote 3) is replaced by the following:

2. For the purpose of subsection 54.1(3) of the Act, “identifying information” means the information set out in Part A and items 1 to 5 of Part C of Schedule 1, the date of revocation or expiration of the registration of a person or entity, if any, and the date of cessation of activity by a registered person or entity, if any.

COMING INTO FORCE

8. (1) Subject to subsection (2), these Regulations come into force on the day on which they are registered.

(2) Sections 2 and 4 come into force on June 23, 2008.

N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2008-194, Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.

Footnote a
S.C. 2006, c. 12, s. 39

Footnote b
S.C. 2000, c. 17; S.C. 2001, c. 41, s. 48

Footnote 1
SOR/2001-317; SOR/2002-185

Footnote 2
SOR/2002-184

Footnote 3
SOR/2007-121

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