Canada Gazette, Part I, Volume 152, Number 23: Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2018

June 9, 2018

Statutory authority
Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Sponsoring department
Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: In 2015–16, the Financial Action Task Force (FATF) evaluated Canada’s Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime for compliance with its standards, and identified a number of deficiencies that Canada needs to address. In addition, in 2014 and 2017, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) was amended through the Economic Action Plan 2014 Act, No. 1 and the Budget Implementation Act, 2017, No. 1 to strengthen the AML/ATF Regime. Regulatory changesfootnote1 are needed to operationalize some of the legislative changes, strengthen Canada’s AML/ATF Regime, and ensure its measures are aligned with the FATF standards.

Description: The proposed amendments to the regulations would strengthen Canada’s AML/ATF Regime by updating customer due diligence requirements and beneficial ownership reporting requirements; regulating businesses dealing in virtual currency; updating the schedules to the regulations; including foreign money service businesses (MSB) in Canada’s AML/ATF Regime; clarifying a number of existing requirements; and making minor technical amendments.

Cost-benefit statement: The proposed amendments would result in an estimated $1,867,698 (present value [PV]) in benefits and $61,132,622 (PV) in costs, for a net cost of $59,264,925 (PV) over a 10-year period in 2012 dollars. There are substantial qualitative benefits associated with the amendments that cannot be monetized. The proposed amendments would strengthen Canada’s AML/ATF Regime and improve compliance with the FATF international standards. Meeting these standards improves the integrity of the global AML/ATF framework. Furthermore, the amendments positively impact Canada’s international reputation, and would lead to regulatory efficiencies with other countries’ anti-money laundering and anti-terrorist financing regimes, making it easier for Canadian businesses to operate internationally.

“One-for-One” Rule and small business lens: The proposed amendments would result in a total annualized administrative cost increase on businesses, estimated at $463,098. The annualized administrative cost increase per affected business is estimated at approximately $20. However, the proposal is exempt from the requirement to offset under the “One-for-One” Rule, as it implements non-discretionary obligations. The proposed amendments would have nationwide impacts of $1 million or more, and impact small businesses; therefore, the small business lens applies.

Domestic and international coordination and cooperation: The proposed amendments would enhance the quality and scope of Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)’s disclosures of financial intelligence to law enforcement and other disclosure recipients, which would better assist them in their investigations.

Canada’s AML/ATF Regime is largely consistent with international standards set by the FATF. Although the standards set by the FATF are not legally binding, as a member, Canada is obligated to implement them and to submit to a peer evaluation of their effective implementation. Canada’s last mutual evaluation took place in 2015–16. The FATF’s report outlined a number of deficiencies, which the proposed amendments help to address.

Background

Canada’s AML/ATF Regime

The core elements of Canada’s AML/ATF Regime are set out in the Act. The Act applies to designated financial and non-financial entities (known as “reporting entities”footnote2) that provide access to the financial system and may therefore be susceptible to abuse by criminals seeking to integrate the proceeds of their crimes into the legitimate economy.

The Act sets out obligations that broadly fall into the following four categories: record keeping; verification of the identity of designated persons and entities (e.g. clients with whom the reporting entities conduct business); reporting of suspicious and other prescribed financial transactions (e.g. large cash transactions); and the establishment and implementation of an internal compliance program. The Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (the Regulations) set out how reporting entities are to fulfill these obligations.

FATF

Canada is a founding member of the FATF, an intergovernmental body that sets standards and promotes effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist activity financing and other related threats to the integrity of the international financial system. Although the standards set by the FATF are not legally binding, as a member, Canada is obligated to implement them and to submit to a peer evaluation of their effective implementation.

Not meeting this commitment could lead to a number of sanctions, from enhanced scrutiny measures to public listing and, in the extreme, suspension of membership from the FATF. Furthermore, non-compliance could cause serious reputational harm to Canada’s financial sector and subject Canadian financial institutions to increased regulatory burden when dealing with foreign counterparts or when doing business overseas.

In 2012, FATF took steps to enhance its standards. Canada’s last mutual evaluation took place in 2015–16. Although Canada’s AML/ATF Regime is largely consistent with FATF’s standards, the evaluation report outlined a number of deficiencies that Canada needs to address. One of the deficiencies raised by FATF evaluators was compliance with “customer due diligence” requirements (e.g. no requirement to check the source of wealth, or to identify the beneficiary of a life insurance payout).

Customer due diligence measures require that a reporting entity verify the identity of their client, understand the nature of the business relationship, and conduct ongoing monitoring. Strong due diligence measures allow for more effective ongoing monitoring of clients, and help reporting entities to be satisfied that the transactions and/or activities are in line with what they know about their clients. Reporting entities who know their clients and their activities are better able to assess the money laundering and terrorist activity financing risk level of those clients, and to identify and report any suspicious transactions conducted by those clients.

Other deficiencies identified by the FATF include not having a requirement to assess new technologies before their launch, no coverage of open loop prepaid cards, of foreign MSBs, or of businesses dealing in virtual currency.

The outcome of this evaluation was that Canada became subject to what is referred to as the “enhanced follow-up process.” This FATF process exists for countries with significant deficiencies in their AML/ATF regimes. Currently, Canada is required to report annually on its progress toward addressing the deficiencies identified in the 2015–16 mutual evaluation. A number of these deficiencies stem from Canada’s AML/ATF Regime not reflecting the ongoing modernization of the financial sector.

Modernization of the financial sector

Financial technology, or “FinTech,” refers to companies using technology to make financial services more effective and efficient. The various business models used to support or deliver new payment method services (e.g. prepaid cards, Internet and mobile payment services) have the advantage of helping people withdraw and convert funds more quickly than through traditional channels, including conducting international transactions in real time. While providing benefits to consumers, the new business models can complicate monitoring as well as make it difficult for authorities to follow the money trail. Also, transactions conducted through the Internet allow a certain degree of anonymity that can potentially be exploited by money launderers or terrorist activity financiers.

The Act and the associated regulations were originally intended for traditionally offered financial services, and “bricks and mortar” institutions. With the financial industry increasingly moving to the digital world, it is necessary to update the legal framework to ensure no loopholes emerge (e.g. prepaid cards, virtual currency, foreign MSBs) that could be exploited by criminals without stifling innovation in the financial sector.

Prepaid cards

Open-loop prepaid cards (i.e. cards that run on a payment card network and are not restricted for use only at a particular merchant or a group of merchants, such as a shopping centre gift card) provide access to funds that are paid in advance by the cardholder or a third party. These cards are not necessarily connected to a bank account, and the verification of cardholder identity varies from one financial institution to another. The wide variety of funding options also means that the origins of funds are difficult to trace and it is difficult to ascertain whether or not the money is from a legitimate source (e.g. some cards can be anonymously loaded with cash at a third party reseller location, such as a Canada Post office).

Virtual currency

The evolving financial services landscape is further influenced by virtual currencies, especially decentralized digital payment systems, like Bitcoin, that operate outside the traditional financial system. A virtual currency is a medium of exchange that allows for value to be held and exchanged in an electronic, non-physical manner, is not a fiat currency (i.e. the official currency of a country), has the intended purpose of being exchanged for real and virtual goods and services, and allows peer-to-peer transfers.

Virtual currencies can be “centralized,” in that they are issued and controlled by a single company or entity, or “decentralized,” in that there is no central authority that creates or manages it (e.g. Bitcoin). Rather, these tasks are managed collectively by the network of some virtual currency users.

In addition, virtual currencies can be “convertible” or “non-convertible,” depending on whether they can be exchanged for funds. Convertible virtual currencies are vulnerable to abuse for money laundering and terrorist activity financing purposes because they allow greater levels of anonymity, or in some cases complete anonymity, when compared to traditional non-cash payment methods. Virtual currencies can be accessed globally via online or mobile systems. They allow for the rapid transfer of funds within or across borders, oftentimes without any intermediary, are generally characterized by non-face-to-face customer relationships, and can circumvent the physical “brick and mortar” financial system entirely. Due to these characteristics, virtual currencies are increasingly being used to facilitate fraud and cybercrime, and to purchase illicit goods and services on the dark Web.

Foreign MSBs

The Internet and new payment methods provide an opportunity for foreign entities without a place of business in Canada to offer MSB services in Canada. These businesses are at risk of being exploited by money launderers and/or terrorist financiers, but the current AML/ATF framework was not envisioned to capture transactions conducted using non-traditional, Internet-based methods. This represents a gap in Canada’s legal framework and an uneven playing field for Canadian domestic competitors, who are required to abide by the Act.

Issues

First established in 2000–01, Canada’s AML/ATF Regime must regularly adapt and evolve to changes in its operating environment (e.g. to account for technological advancements like virtual currency or in response to ongoing modernization of the financial sector).

The Act was amended through the Economic Action Plan 2014 Act, No. 1 and the Budget Implementation Act, 2017, No. 1, to strengthen the AML/ATF Regime and align it with international standards. In 2015–16, the FATF evaluated Canada’s AML/ATF Regime, and identified a number of deficiencies.

Regulatory changes are needed to operationalize some of the legislative changes, close loopholes in Canada’s AML/ATF Regime, and address a number of the deficiencies outlined by the FATF.

Objectives

The proposed amendments would

Description

The proposed amendments make the following changes.

The proposed regulatory amendments would update the requirements for reporting entities to perform customer due diligence and help bring them in line with FATF recommendations.

The proposed amendments would help address and close the gaps that exist in Canada’s AML/ATF Regime, including regulating new business models and technologies, and address new emerging risks.

The proposed amendments would improve compliance, monitoring and enforcement efforts.

Finally, the following technical amendments would also be adopted:

Regulatory and non-regulatory options considered

Maintain status quo

Maintaining the status quo was determined not to be viable, given that without these regulatory changes, deficiencies in Canada’s AML/ATF Regime would remain in place. This would compromise the integrity of Canada’s financial system and the security and safety of Canadians at home and abroad. Furthermore, not addressing deficiencies in compliance with FATF standards would have significant adverse consequences for Canada.

Non-regulatory options

Canada’s AML/ATF Regime is set in legislation and regulations. To close loopholes and address the deficiencies identified by the FATF, there is no other option available but to amend the regulations.

Benefits and costs

Costs, Benefits and Distribution

10-Year PV Total
2019–2028
(2012 Price Year)

Annualized Average

A. Quantified impacts

Benefits

Measures

Simplified customer due diligence

$277,998

$39,581

Repeal of requirement to document reasonable measures taken

$1,413,701

$201,279

Low-risk customer due diligence for dealers in precious metals and stones and accountants

$175,999

$25,058

Total benefits

$1,867,698

$265,918

Costs

Measures

24-hour rule

$8,285,547

$1,179,676

Verifying beneficial ownership information accuracy

$453,728

$64,601

CDD for life insurance companies with regard to loans

$1,051,261

$149,676

Assessing the risk of new developments before launch

$6,198,170

$882,480

Source of wealth of politically exposed persons

$2,183,778

$310,921

Customer due diligence for prepaid cards

$2,778,903

$395,653

Updated reporting schedules

$39,911,124

$5,682,446

Requirements for businesses dealing in virtual currency

$270,112

$38,458

Total costs

$61,132,623

$8,703,911

Net costs

$59,264,925

$8,437,993

B. Qualitative impacts

Negative impacts

An analysis is currently underway to determine the extent of additional funding required to adapt FINTRAC’s IT systems.

Positive impacts

A strong and effective AML/ATF Regime acts as a deterrent to crime and therefore improves the safety of Canadians and the integrity of Canada’s financial system. In turn, this increases confidence in Canada’s financial system, making it an attractive place to invest and do business. Investors seek investment opportunities in locations that have a relatively low crime environment and that are politically and economically stable, among other factors. The willingness of businesses and individuals to invest in Canada could be negatively affected if Canada were viewed as weak on combating terrorist financing or if Canada were to have a reputation for being a safe haven for raising terrorist funds.

A strong reputation with regards to an effective AML/ATF Regime helps Canadian financial institutions avoid burdensome regulatory hurdles and additional costs when dealing with their foreign counterparts or doing business overseas.

Costs

As a result of the proposed amendments, reporting entities are expected to carry an estimated $54 million (PV) in compliance costs and $7.1 million (PV) in administrative costs for an estimated $61.1 million (PV) in total costs over a 10-year period (or $8.7 million annually). There are approximately 30 000 reporting entities, all of which are businesses.

These costs stem from internal IM/IT systems changes that would be required to support the implementation of the proposed amendments (e.g. to account for the changes to the 24-hour rule); the associated updates that would be required to reporting entities’ internal policies and procedures (e.g. to improve the accuracy of beneficial ownership information); and the provision of additional documents to FINTRAC if asked in a compliance examination (e.g. to fulfill the changes being made to the schedules to the Regulations).

Resource implications for the Government of Canada

It is anticipated that additional costs will be incurred by FINTRAC to operationalize and enforce the proposed amendments in order to adapt FINTRAC’s IT systems. Costing data is not available at this time; however, an analysis is currently underway to determine whether there will be incremental resource implications.

Benefits

Finance Canada has estimated that the proposed amendments would introduce $1.9 million (PV) in total administrative cost savings over 10 years to business. The majority of other benefits, however, cannot be quantified. These include reputational, economic and national security benefits.

The proposed amendments would strengthen Canada’s AML/ATF Regime and enhance its effectiveness by improving customer due diligence standards; closing loopholes; improving compliance, monitoring and enforcement; and strengthening information sharing. The amendments would also enhance the quality and scope of FINTRAC disclosures of financial intelligence to law enforcement and disclosure recipients, which should better assist them in their investigations. Strong AML/ATF policies help to deter and detect money laundering and terrorist activity financing offences.

The proposed amendments would also improve compliance with the FATF international standards and help Canada meet the necessary requirements to exit the enhanced follow-up process. Meeting these standards improves the integrity of the global AML/ATF framework, positively impacts Canada’s international reputation, and can lead to regulatory efficiencies with other countries’ AML/ATF regimes, making it easier for Canadian businesses to operate internationally. The methodology and assumptions used to calculate the costing estimates are available upon request.

“One-for-One” Rule

Canada’s obligations to meet the FATF’s international standards are non-discretionary in nature (due to the potential for punitive consequences in the event Canada fails to meet them). Other jurisdictions’ perception of Canada has tangible impacts on Canadian businesses. If Canada is not aligned with the FATF standards or is perceived by its international peers as making insufficient progress on its AML/ATF Regime generally, there could be negative reputational consequences for Canada’s financial sector, as well as increased costs for Canadian financial institutions.

By its nature, including the need to be aligned with FATF standards and effectively detecting and deterring crimes, Canada’s legislative and regulatory framework for combating money laundering and terrorist activity financing imposes an unavoidable burden on reporting entities.

The total net annualized administrative cost increase for regulated businesses is estimated at $463,098. The annualized administrative cost increase per affected business is estimated to be $20. Because Canada is required to make the proposed amendments in order to comply with FATF standards, they are considered non-discretionary in nature and are therefore exempt from the requirement to offset under the “One-for-One” Rule. This means that an equal amount of administrative burden would not have to be offset two years after these amendments are made.

These costs were estimated by using the Treasury Board Secretariat’s Regulatory Cost Calculator and the relevant monetization parameters for “One-for-One” Rule reporting.

Small business lens

The proposed amendments would have nationwide impacts of $1 million or more and would impact small businesses; therefore, the small business lens applies. It is assumed that roughly 24 000 small businesses are impacted by this proposal. The total incremental administrative and compliance costs imposed on small businesses are estimated at $54,071,262 ([PV], $7,698,532 annualized average), which is equivalent to $325 per small business impacted.

These costs stem from internal IM/IT systems changes required to support the implementation of the proposed amendments; the associated updates to reporting entities’ internal policies and procedures; and the additional reporting of information and provision of documents to FINTRAC.

Finance Canada is not able to provide a flexibility analysis for small businesses because the amendments are being made to comply with FATF standards, which, while not legally binding, Canada is obligated to follow. Finance Canada recognizes that businesses, irrespective of size, will require time to implement these changes and will therefore provide 12 months of transition to comply with the new requirements. While this does not constitute a special consideration for small businesses alone, it should be noted that impacts on business, of which small businesses constitute approximately 90%, have been considered in establishing compliance requirements.

Furthermore, a number of amendments are being introduced to reduce regulatory burden on all businesses. Only a fraction of the burden relief has been quantified, as most of the burden being offset stems from requirements that are in the Act and not directly in the regulations.

Consultation

In December 2011, Finance Canada released a formal consultation paper on its website. The paper covered a wide range of proposed measures that serve to strengthen Canada’s AML/ATF framework, and was open for public comment for a period of 71 days. Over 50 submissions were received from a wide range of reporting sectors and industry associations representing financial entities (banks, credit unions and trust companies), life insurance companies, securities dealers, MSBs, accountants, lawyers, casinos, real estate agents and dealers in precious metals and stones. A large majority of the submissions were supportive of the proposed measures, and some submissions included additional proposals. Finance Canada had follow-up meetings with private sector representatives to discuss their submissions.

Due to the high volume of measures proposed in the consultation paper, implementation of the required changes was divided into two sets of regulatory amendments. The first set of amendments was made to the regulations in 2016, and was published in the Canada Gazette, Part II, on June 29, 2016. This proposal represents the second set of amendments to the regulations.

From 2013 to 2015, Finance Canada implemented a targeted consultation strategy on both sets of the proposed amendments, which was supported by the use of discussion papers and informal discussions with key reporting entities (e.g. financial entities) impacted by the proposed amendments. In 2015–16, additional consultations were undertaken with financial institutions regarding virtual currency regulatory policy proposals.

Finally, the proposed amendments were also broadly discussed at the Advisory Committee on Money Laundering and Terrorist Financing.footnote4

While reporting entities have expressed concern with the implementation costs associated with the proposed amendments (e.g. those associated with updating their procedures, policies and systems and training their staff), overall, they are supportive of the intent and need for these changes.

Rationale

Money laundering and terrorist activity financing are a threat to the integrity of Canada’s financial system and the security and safety of Canadians at home and abroad. Money laundering supports and perpetuates criminal activity by legitimizing the proceeds of crime. It can help criminals to harness more economic and social power, creating the right incentives for criminals to engage in more criminal activity.

Terrorist activity financing can pose a serious threat to Canada’s national security and to Canada’s domestic and international interests. Terrorist activity financing supports and sustains the activities of domestic and international terrorists that can result in terrorist attacks in Canada or abroad, causing destruction and loss of life. Furthermore, the economic consequences to Canada of terrorist activity financing can be significant if the funds raised are used to carry out a terrorist attack in Canada or against Canada’s interests abroad.

A robust legislative and regulatory framework helps to prevent and deter money laundering and terrorist activity financing by ensuring that entities that provide access to the financial system know their customers and are vigilant. For example, the records that are kept by reporting entities, as required by the Act and its regulations, are available to police forces (upon procurement of a proper warrant) when investigating money laundering offences or to police forces and law enforcement and national security agencies when investigating terrorist activity financing offences. Such information could assist in the investigation, apprehension, and prosecution of money launderers and terrorist financiers.

The proposed amendments would strengthen Canada’s AML/ATF Regime by aligning it with international standards, closing loopholes and ensuring it reflects ongoing changes in the operating environment (i.e. in response to FinTech and the ongoing modernization of the financial sector). They would also help to address the deficiencies identified by the FATF.

Implementation, enforcement and service standards

Under the Act, FINTRAC is designated as Canada’s financial intelligence unit and the regulator responsible for administering and enforcing the Act and regulations.

FINTRAC’s responsibilities include the overall supervision of reporting entities to determine compliance with the Act and regulations. Under the Act, reporting entities are required to comply with FINTRAC’s information demands and to give all reasonable assistance when FINTRAC carries out its compliance responsibilities.

Once the proposed amendments are approved, FINTRAC would update its guidance to set out its expectations for how obligations are to be met as well as undertake possible outreach activities to ensure reporting entities are aware of the new obligations. FINTRAC would be responsible for enforcing the obligations and would scope them into their compliance examinations and processes. Should non-compliance be identified, FINTRAC could impose AMPs or take other enforcement actions.

The proposed amendments would come into force 12 months after their registration.

Contact

Lynn Hemmings
Acting Director General
Financial Systems Division
Financial Sector Policy Branch
Department of Finance
90 Elgin Street
Ottawa, Ontario
K1A 0G5
Email: fin.fc-cf.fin@canada.ca

PROPOSED REGULATORY TEXT

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council, 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 Actfootnotec, proposes to make the annexed Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2018.

Interested persons may make representations concerning the proposed Regulations within 90 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Lisa Pezzack, Director General, Financial Systems Division, Financial Sector Policy Branch, Department of Finance, 90 Elgin Street, Ottawa, Ontario K1A 0G5 (email: fin.fc-cf.fin@canada.ca).

Ottawa, May 31, 2018

Jurica Čapkun
Assistant Clerk of the Privy Council

Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2018

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

1 (1) The definitions CICA Handbook, electronic funds transfer, financial entity, precious metal, SWIFT and trust company in subsection 1(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulationsfootnote5 are repealed.

(2) The definitions bijou and pierre précieuse in subsection 1(2) of the French version of the Regulations are repealed.

(3) The definitions accountant, British Columbia notary corporation, dealer in precious metals and stones, funds, life insurance broker or agent and real estate broker or sales representative in subsection 1(2) of the Regulations are replaced by the following:

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

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)

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 or mandatary of Her Majesty in right of Canada or of a province when the department or the agent or mandatary carries out the activity, referred to in section 5, of selling precious metals to the public. (négociant en métaux précieux et pierres précieuses)

funds means

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

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)

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)

(4) The definition cabinet d’expertise comptable in subsection 1(2) of the French version of the Regulations is replaced by the following:

cabinet d’expertise comptable Entité qui exploite une entreprise qui fournit des services d’expertise comptable au public et qui compte au moins un comptable parmi ses associés, ses employés ou ses gestionnaires. (accounting firm)

(5) 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)

(6) The portion of the definition real estate developer in subsection 1(2) of the Regulations before paragraph (a) is replaced by the following:

real estate developer means, on any given day in a calendar year, a person or entity that, in that calendar year and before that day or in any previous calendar year after 2007, has sold to the public, other than in the capacity of a real estate broker or sales representative,

(7) 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)

precious metals means gold, silver, palladium and platinum in the form of coins, bars, ingots or granules or in a similar form. (métaux précieux)

virtual currency means

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

bijoux Objets faits d’or, d’argent, de palladium, de platine, de perles ou de pierres précieuses et destinés à être portés comme parure personnelle. (jewellery)

pierres précieuses Diamant, saphir, émeraude, tanzanite, rubis ou alexandrite. (precious stones)

2 Sections 1.2 to 3 of the Regulations are replaced by the following:

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

Persons and Entities Referred to in Section 5 of the Act

2.1 (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.

3 (1) A life insurance broker or agent is engaged in a business or profession for the purposes of paragraph 5(i) of the Act.

(2) Subsection (1) does not apply to a life insurance broker or agent when, under the terms of an agreement or arrangement with a life insurance company, they offer the products or services of that company exclusively to other life insurance brokers or agents.

3 (1) Subsection 4(1) of the Regulations before paragraph (c) is replaced by the following:

4 (1) A British Columbia notary public or British Columbia notary corporation is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when, on behalf of a person or entity, they

(2) Paragraph 4(1)(c) of the English version of the Regulations is replaced by the following:

(3) Subsection 4(1) of the Regulations is amended by adding the following after paragraph (c):

(4) Subsection 4(2) of the Regulations is replaced by the following:

(2) Subsection (1) does not apply to a British Columbia notary public who is acting in the capacity of an employee.

4 Sections 5 to 7 of the Regulations are replaced by the following:

5 (1) A dealer in precious metals and precious stones, other than a department or an agent or mandatary of Her Majesty in right of Canada or of a province, that buys or sells precious metals, precious stones or jewellery for an amount of $10,000 or more is engaged in an activity for the purposes of paragraph 5(i) of the Act. A department or an agent or mandatary of Her Majesty in right of Canada or of a province carries out an activity for the purposes of paragraph 5(l) of the Act when they sell precious metals to the public for an amount of $10,000 or more.

(2) The activities referred to in subsection (1) do not include a purchase or sale that is carried out in the course of or in connection with manufacturing a product that contains precious metals or precious stones, extracting precious metals or precious stones from a mine or polishing or cutting precious stones.

(3) For greater certainty, the activities referred to in subsection (1) include the sale of precious metals, precious stones or jewellery that are left on consignment with a dealer in precious metals and precious stones. Goods left with an auctioneer for sale at auction are not considered to be left on consignment.

6 (1) An accountant or accounting firm is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when, on behalf of a person or entity, they

(2) For greater certainty, the activities referred to in subsection (1) do not include activities that are carried out in the course of an audit, a review or a compilation engagement within the meaning of the CPA Canada Handbook that is prepared and published by the Chartered Professional Accountants of Canada, as amended from time to time.

(3) Subsection (1) does not apply to an accountant who is acting in the capacity of an employee or of a person who either is authorized by law to carry on the business, or to monitor the business or financial affairs, of an insolvent or bankrupt person or entity or is authorized to act under a security agreement.

7 A real estate broker or sales representative is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when they act as an agent or mandatary for a purchaser or vendor in respect of the purchase or sale of real property or immovables.

5 Subsection 7.1(1) of the Regulations is replaced by the following:

7.1 (1) A real estate developer is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when the real estate developer

6 Section 8 of the Regulations is replaced by the following:

8 A department or an agent or mandatary of Her Majesty in right of Canada or of a province carries out an activity for the purposes of paragraph 5(l) of the Act when, in the course of providing financial services to the public, they accept deposit liabilities or issue, sell or redeem money orders.

Report Made Under Section 7 of the Act

7 (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 within three days after the day on which measures taken by them 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.

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

Report Made 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 within three days after the day on which they make a disclosure under subsection 83.1(1) of the Criminal Code or subsection 8(1) of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism.

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

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.

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

Designated Information

10 (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:

(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:

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

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

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

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

11 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)

12 Part A of Schedule 1 to the Regulations is replaced by the following:

PART A

Information with Respect to Reporting Person or Entity and Place of Business Where Transaction Is Conducted or Attempted

13 The heading of Part B of Schedule 1 to the Regulations is replaced by the following:

Information with Respect to Transaction or Attempted Transaction

14 Items 3 to 9 of Part B of Schedule 1 to the Regulations are replaced by the following:

15 Parts C to F of Schedule 1 to the Regulations are replaced by the following:

PART C

Account and Reference Number Information

PART D

Information with Respect to Person or Entity That Conducts or Attempts To Conduct Transaction

PART E

Information with Respect to Person or Entity on Whose Behalf Transaction Is Conducted or Attempted

16 Item 1 of Part G of Schedule 1 to the Regulations is replaced by the following:

1* Detailed description of grounds to suspect that transaction or attempted transaction is related to commission or attempted commission of money laundering offence or terrorist activity financing offence

17 The heading of Part H to Schedule 1 to the Regulations is replaced by the following:

Action Taken

18 Schedule 2 to the Regulations is amended by replacing the references after the heading “SCHEDULE 2” with the following:

(Subsections 10(1) and 11(1)and (3) to (5))

19 Part A of Schedule 2 to the Regulations is replaced by the following:

PART A

Information With Respect to Reporting Person or Entity and Place of Business Where Transaction Is Conducted or Proposed To Be Conducted

20 The heading of Part B of Schedule 2 to the English version of the Regulations is replaced by the following:

Reason for Filing Report

21 Item 1 of Part B of Schedule 2 to the English version of the Regulations is replaced by the following:

22 Items 2 to 8 of Part B of Schedule 2 to the Regulations are replaced by the following:

23 The heading of Part C of Schedule 2 to the Regulations is replaced by the following:

Information with Respect to Property

24 Items 2 and 3 of Part C of Schedule 2 to the Regulations are replaced by the following:

25 Parts D to H of Schedule 2 to the Regulations are replaced by the following:

PART D

Information with Respect to Transaction or Proposed Transaction

PART E

Account and Reference Number Information

PART F

Information with Respect to Person or Entity That Conducts or Proposes To Conduct Transaction

PART G

Information with Respect to Person or Entity on Whose Behalf Transaction Is Conducted or Proposed To Be Conducted

Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

26 (1) Subsection 1(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations footnote 6 is replaced by the following:

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

(2) The definitions CICA Handbook, client information record, physical presence, precious metal and transaction ticket in subsection 1(2) of the Regulations are repealed.

(3) The definitions bijou and pierre précieuse in subsection 1(2) of the French version of the Regulations are repealed.

(4) The definitions accountant, British Columbia notary corporation, dealer in precious metals and stones, deposit slip, electronic funds transfer, financial entity, funds, large cash transaction record, life insurance broker or agent, real estate broker or sales representative, receipt of funds record and trust company in subsection 1(2) of the Regulations are replaced by the following:

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

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)

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 or mandatary of Her Majesty in right of Canada or 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)

deposit slip means a record that sets out

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. It excludes a transmission of instructions for the transfer of funds

financial entity means

funds means

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

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:

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)

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)

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

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

(5) The definition cabinet d’expertise comptable in subsection 1(2) of the French version of the Regulations is replaced by the following:

cabinet d’expertise comptable Entité qui exploite une entreprise qui fournit des services d’expertise comptable au public et qui compte au moins un comptable parmi ses associés, ses employés ou ses gestionnaires. (accounting firm)

(6) 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)

(7) The definitions fiche-signature and signature in subsection 1(2) of the French version of the Regulations are replaced by the following:

fiche-signature S’entend, à l’égard d’un compte, du document signé par une personne habilitée à donner des instructions à l’égard du compte ou des données électroniques constituant la signature d’une telle personne. (signature card)

signature S’entend notamment d’une signature électronique ou de tout autre renseignement électronique créé ou adopté par le client d’une personne ou entité visée à l’article 5 de la Loi et que cette personne ou entité reconnaît comme étant propre à ce client. (signature)

(8) The portion of the definition business relationship in subsection 1(2) of the Regulations before paragraph (a) is replaced by the following:

business relationship means a relationship that is established with a client by a person or entity to which section 5 of the Act applies and that involves financial transactions or the provision of services related to those transactions and

(9) The portion of the definition business relationship in subsection 1(2) of the Regulations after paragraph (a) is replaced by the following:

It does not include anything referred to in any of paragraphs 157(1)(a) and (c) and (2)(a) to (o) and subsection 157(3). (relation d’affaires)

(10) The portion of the definition ongoing monitoring in subsection 1(2) of the Regulations before paragraph (a) is replaced by following:

ongoing monitoring means monitoring on a periodic basis, based on an assessment of the risk referred to in subsection 9.6(2) of the Act that is undertaken in accordance with subsection 159(1), by a person or entity of their business relationship with a client for the purpose of

(11) Paragraph (b) of the definition ongoing monitoring in subsection 1(2) of the Regulations is replaced by the following:

(12) Paragraph (a) of the definition public body in subsection 1(2) of the Regulations is replaced by the following:

(13) The portion of the definition real estate developer in subsection 1(2) of the Regulations before paragraph (a) is replaced by the following:

real estate developer means, on any given day in a calendar year, a person or entity that, in that calendar year and before that day or in any previous calendar year after 2007, has sold to the public, other than in the capacity of a real estate broker or sales representative,

(14) The portion of the definition senior officer in subsection 1(2) of the Regulations before paragraph (a) is replaced by the following:

senior officer, in respect of an entity, means

(15) Paragraphs (a) and (b) of the definition cadre dirigeant in subsection 1(2) of the French version of the Regulations are replaced by the following:

(16) Paragraph (d) of the definition contrôle continu in subsection 1(2) of the French version of the Regulations is replaced by the following:

(17) The portion of the definition organisme public in subsection 1(2) of the French version of the Regulations before paragraph (a) is replaced by the following:

organisme public S’entend :

(18) Paragraphs (b) and (c) of the definition organisme public in subsection 1(2) of the French version of the Regulations are replaced by the following:

(19) Paragraph (a) of the definition relation d’affaires in subsection 1(2) of the French version of the Regulations is replaced by the following:

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

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)

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)

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

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)

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

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

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

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

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

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:

precious metals means gold, silver, palladium and platinum in the form of coins, bars, ingots or granules or in a similar form. (métaux précieux)

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 enables a person or entity to access a credit or debit account or one that is issued for use only with particular merchants. (produit de paiement prépayé)

prepaid payment product account means an account that is connected to a prepaid payment product and that permits

virtual currency means

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

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

bijoux Objets faits d’or, d’argent, de palladium, de platine, de perles ou de pierres précieuses et destinés à être portés comme parure personnelle. (jewellery)

pierres précieuses Diamant, saphir, émeraude, tanzanite, rubis ou alexandrite. (precious stones)

27 Sections 1.1 to 8 of the Regulations are replaced by the following:

2 (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

(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.

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

4 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.

PART 1

Requirements To Report Transactions and To Keep Records

Application of Parts 5 and 6

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

Financial Entities

6 (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.

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

(2) A financial entity is not required to report the transaction and information

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

(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

28 (1) Subsections 9(1) to (5) of the Regulations are replaced by the following:

9 (1) A person or entity that is required under these Regulations to keep a signature card or an account operating agreement shall, when they open the account, take reasonable measures to determine whether the account will be used by or on behalf of a third party.

(2) If the person or entity determines that the account will be used by or on behalf of a third party, the person or entity shall take reasonable measures to obtain the following information and shall keep a record of the information obtained:

(3) If the person or entity is not able to determine whether the account will be used by or on behalf of a third party but there are reasonable grounds to suspect that it will, the person or entity shall keep a record that

(4) Subsection (1) does not apply if every account holder is a financial entity or a securities dealer that is engaged in the business of dealing in securities in Canada.

(5) Subsection (2) does not apply if a securities dealer is required to keep an account operating agreement in respect of an account of a person or entity that is engaged in the business of dealing in securities only outside Canada and

(2) Section 9 of the Regulations is renumbered as section 138 and is repositioned accordingly.

29 Sections 10 and 11 of the Regulations are replaced by the following:

9 A financial entity that maintains a list of clients for the purposes of subsection 9(3) of the Act shall

10 A financial entity shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that it receives from a person or entity in a single transaction, unless 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.

11 A financial entity shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that it receives from a person or entity in a single transaction, unless 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.

12 A financial entity shall keep the following records in respect of every account that it opens and of every transaction that is conducted with it, other than those referred to in section 13 or 14:

30 The heading before section 11.1 of the Regulations is replaced by the following:

Information with Respect to Directors of a Corporation or Other Entity, Persons Who Own or Control 25% or More of a Corporation or Other Entity and Beneficiaries and Settlors of a Trust

31 (1) Subsection 11.1(1) of the Regulations is amended by replacing “confirm the existence of an entity” with “verify an entity’s identity”.

(2) Subsection 11.1(1) of the English version of the Regulations is amended by replacing “the existence of the entity is confirmed” with “the entity’s identity is verified”.

(3) Subsection 11.1(1) of the French version of the Regulations is amended by replacing “opérations de change” with “opérations de change en devise”.

(4) Paragraph 11.1(1)(a) of the Regulations is replaced by the following:

(5) Subsections 11.1(2) to (4) of the Regulations are replaced by the following:

(1.1) Subsection (1) also applies to

(2) Every person and entity that is subject to subsection (1) shall take reasonable measures to confirm the accuracy of the information when it is first obtained under that subsection and when it is kept up to date in the course of ongoing monitoring.

(3) The person or entity shall keep a record that sets out the information and the measures taken to confirm the accuracy of the information.

(4) If the person or entity is not able to obtain the information, to keep it up to date or to confirm its accuracy, they shall take

(6) The portion of subsection 11.1(5) of the Regulations before paragraph (a) is replaced by the following:

(5) If the entity whose identity is being verified under subsection (1) is a not-for-profit organization, the person or entity shall determine, and keep a record that sets out, whether that entity is

(7) Section 11.1 of the Regulations is renumbered as section 141 and that section 141 and the heading before it are repositioned accordingly.

32 The headings before section 11.2 and sections 11.2 to 15.1 of the Regulations are replaced by the following:

13 A financial entity shall keep the following records in respect of every credit card account that it opens and of every transaction that is connected to that account:

14 (1) A financial entity shall keep the following records in respect of every prepaid payment product account that it opens and of every transaction that is made by means of a prepaid payment product that is connected to that account:

(2) In this section, prepaid payment product slip means a record that sets out

15 (1) A trust company shall also keep the following records in respect of a trust for which it is trustee:

(2) In this section, institutional trust means a trust that is established by a corporation or other entity for a particular business purpose and includes a pension plan trust, a pension master trust, a supplemental pension plan trust, a mutual fund trust, a pooled fund trust, a registered retirement savings plan trust, a registered retirement income fund trust, a registered education savings plan trust, a group registered retirement savings plan trust, a deferred profit sharing plan trust, an employee profit sharing plan trust, a retirement compensation arrangement trust, an employee savings plan trust, a health and welfare trust, an unemployment benefit plan trust, a foreign insurance company trust, a foreign reinsurance trust, a reinsurance trust, a real estate investment trust, an environmental trust and a trust established in respect of an endowment, a foundation or a registered charity.

33 Sections 16 to 33.2 of the Regulations are replaced by the following:

16 (1) For the purposes of subsections 9.4(1) and (3) of the Act,

(2) A financial entity shall, when it enters into a correspondent banking relationship, keep the following records:

(3) The financial entity shall take reasonable measures to ascertain whether the foreign financial institution has in place anti-money laundering and anti-terrorist financing policies and procedures, including procedures for approval for the opening of new accounts and, if the reasonable measures are unsuccessful or the policies and procedures are not in place, shall, for the purpose of detecting any transactions that are required to be reported to the Centre under section 7 of the Act, take reasonable measures to monitor all transactions conducted in the context of the correspondent banking relationship.

(4) For greater certainty, section 12 does not apply in respect of an account that is opened for a foreign financial institution in the context of a correspondent banking relationship.

17 (1) A life insurance broker or agent is engaged in a business or profession for the purposes of paragraph 5(i) of the Act.

(2) Subsection (1) does not apply to a life insurance broker or agent when, under the terms of an agreement or arrangement with a life insurance company, they offer the products or services of that company exclusively to other life insurance brokers or agents.

18 A life insurance company or life insurance broker or agent that receives an amount of $10,000 or more in cash from a person or entity in a single transaction shall report the transaction to the Centre, together with the information set out in Schedule 1, unless

19 A life insurance company or life insurance broker or agent that receives an amount of $10,000 or more in virtual currency from a person or entity in a single transaction shall report the transaction to the Centre, together with the information set out in Schedule 5.

20 A life insurance company or life insurance broker or agent shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive from a person or entity in a single transaction, unless

21 A life insurance company or life insurance broker or agent shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive from a person or entity in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

22 (1) A life insurance company or life insurance broker or agent shall, regardless of the means of payment, keep an information record in connection with the sale of an immediate or deferred annuity or a life insurance policy

(2) The information record

23 A life insurance company or life insurance broker or agent that keeps an information record under section 22 in respect of a corporation shall also keep a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation in respect of transactions with the life insurance company or life insurance broker or agent.

24 Sections 18 to 23 do not apply to a life insurance company or life insurance broker or agent when they are dealing in reinsurance.

Securities Dealers

25 A securities dealer that receives an amount of $10,000 or more in cash from a person or entity in a single transaction shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

26 A securities dealer that receives an amount of $10,000 or more in virtual currency from a person or entity in a single transaction shall report the transaction to the Centre, together with the information set out in Schedule 5.

27 A securities dealer shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive from a person or entity in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

28 A securities dealer shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive from a person or entity in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

29 A securities dealer shall keep the following records in respect of every account that they open:

Money Services Businesses and Foreign Money Services Businesses

30 (1) A money services business shall report the following transactions and information to the Centre:

(2) A money services business is not required to report the transaction and information

31 A money services business shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive from a person or entity in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

32 A money services business shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive from a person or entity in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

33 (1) A foreign money services business shall report the following transactions and information to the Centre:

(2) A foreign money services business is not required to report the transaction and information

34 A foreign money services business shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive from a person or entity in Canada in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

35 A foreign money services business shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive from a person or entity in Canada in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

36 A money services business shall keep the following records in connection with a service referred to in any of subparagraphs 5(h)(i) to (v) of the Act that they provide, and a foreign money services business shall keep the following records in connection with a service referred to in any of subparagraphs 5(h.1)(i) to (v) of the Act that they provide to persons or entities in Canada:

37 A money services business that enters into an agreement with an entity to provide a service referred to in any of subparagraphs 5(h)(i) to (v) of the Act to that entity — and a foreign money services business that enters into an agreement with an entity in Canada to provide a service referred to in any of subparagraphs 5(h.1)(i) to (v) of the Act to that entity — shall keep

British Columbia Notaries Public and British Columbia Notary Corporations

38 (1) A British Columbia notary public or British Columbia notary corporation is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when, on behalf of a person or entity, they

(2) Subsection (1) does not apply to a British Columbia notary public who is acting in the capacity of an employee.

39 A British Columbia notary public or British Columbia notary corporation that receives an amount of $10,000 or more in cash in a single transaction in connection with an activity referred to in section 38 shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

40 A British Columbia notary public or British Columbia notary corporation that receives an amount of $10,000 or more in virtual currency in a single transaction in connection with an activity referred to in section 38 shall report the transaction to the Centre, together with the information set out in Schedule 5.

41 A British Columbia notary public or British Columbia notary corporation shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive in a single transaction in connection with an activity referred to in section 38, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

42 A British Columbia notary public or British Columbia notary corporation shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive in a single transaction in connection with an activity referred to in section 38, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

34 Section 33.3 of the Regulations is renumbered as section 44 and that section 44 and the heading before it are repositioned accordingly.

35 Sections 33.4 and 33.5 of the Regulations are renumbered as sections 45 and 46, respectively, and are repositioned accordingly.

36 Section 34 of the Regulations and the heading before it are replaced by the following:

43 A British Columbia notary public or British Columbia notary corporation shall keep the following records in connection with an activity referred to in section 38:

37 Section 35 of the Regulations, as enacted by SOR/2002-184, is repealed.

38 (1) The portion of subsection 36(1) of the Regulations before paragraph (a), as enacted by section 15 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-2), SOR/2007-293, is repealed.

(2) Paragraphs 36(1)(a) and (b) of the Regulations, as enacted by section 40 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-1), SOR/2007-122, are repealed.

(3) Subsections 36(2) and (3) of the Regulations, as enacted by section 40 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-1), SOR/2007-122, are repealed.

39 The heading before section 37 of the Regulations, as enacted by SOR/2002-184, is repealed.

40 Section 37 of the Regulations, as enacted by section 41 of the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007-1), SOR/2007-122, is repealed.

41 Sections 38 to 59.32 of the Regulations are replaced by the following:

Accountants and Accounting Firms

47 (1) An accountant or accounting firm is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when, on behalf of a person or entity, they

(2) For greater certainty, the activities in subsection (1) do not include activities that are carried out in the course of an audit, a review or a compilation engagement within the meaning of the CPA Canada Handbook prepared and published by the Chartered Professional Accountants of Canada, as amended from time to time.

(3) Subsection (1) does not apply to an accountant who is acting in the capacity of an employee or of a person who either is authorized by law to carry on the business, or to monitor the business or financial affairs, of an insolvent or bankrupt person or entity or is authorized to act under a security agreement.

48 An accountant or accounting firm that receives an amount of $10,000 or more in cash in a single transaction in connection with an activity referred to in section 47 shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

49 An accountant or accounting firm that receives an amount of $10,000 or more in virtual currency in a single transaction in connection with an activity referred to in section 47 shall report the transaction to the Centre, together with the information set out in Schedule 5.

50 An accountant or accounting firm shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive in a single transaction in connection with an activity referred to in section 47, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

51 An accountant or accounting firm shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive in a single transaction in connection with an activity referred to in section 47, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

52 An accountant or accounting firm shall keep the following records in connection with an activity referred to in section 47:

Real Estate Brokers or Sales Representatives

53 A real estate broker or sales representative is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when they act as an agent or mandatary for a purchaser or vendor in respect of the purchase or sale of real property or immovables.

54 A real estate broker or sales representative that receives an amount of $10,000 or more in cash in a single transaction in connection with an activity referred to in section 53 shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

55 A real estate broker or sales representative that receives an amount of $10,000 or more in virtual currency in a single transaction in connection with an activity referred to in section 53 shall report the transaction to the Centre, together with the information set out in Schedule 5.

56 A real estate broker or sales representative shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive in a single transaction in connection with an activity referred to in section 53, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

57 A real estate broker or sales representative shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive in a single transaction in connection with an activity referred to in section 53, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

58 (1) A real estate broker or sales representative shall keep the following records in connection with an activity referred to in section 53:

(2) If two or more of the parties to a transaction are represented by a real estate broker or sales representative and one of those real estate brokers or sales representatives receives funds in respect of the transaction from a party that is represented by another real estate broker or sales representative, the real estate broker or sales representative that represents the party from which the funds are received is responsible for keeping the receipt of funds record referred to in paragraph (1)(a) and, if applicable, the copy referred to in paragraph (1)(c).

(3) A real estate broker or sales representative that is responsible under subsection (2) for keeping a receipt of funds record is not required to include in that record any of the following information if, after taking reasonable measures to do so, they are unable to obtain it:

(4) A real estate broker or sales representative that is responsible under subsection (2) for keeping a receipt of funds record and that determines that the transaction affects a trust account held by another real estate broker or sales representative shall include that information in the record but is not required to include

Real Estate Developers

59 A real estate developer is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when the real estate developer

60 A real estate developer that receives an amount of $10,000 or more in cash in a single transaction in connection with an activity referred to in section 59 shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

61 A real estate developer that receives an amount of $10,000 or more in virtual currency in a single transaction in connection with an activity referred to in section 59 shall report the transaction to the Centre, together with the information set out in Schedule 5.

62 A real estate developer shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive in a single transaction in connection with an activity referred to in section 59, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

63 A real estate developer shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive in a single transaction in connection with an activity referred to in section 59, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

64 A real estate developer shall keep the following records in connection with an activity referred to in section 59:

Dealers in Precious Metals and Precious Stones

65 (1) A dealer in precious metals and precious stones, other than a department or an agent or mandatary of Her Majesty in right of Canada or of a province, that buys or sells precious metals, precious stones or jewellery for an amount of $10,000 or more is engaged in an activity for the purposes of paragraph 5(i) of the Act. A department or an agent or mandatary of Her Majesty in right of Canada or of a province carries out an activity for the purposes of paragraph 5(l) of the Act when they sell precious metals to the public for an amount of $10,000 or more.

(2) The activities referred to in subsection (1) do not include a purchase or sale that is carried out in the course of or in connection with manufacturing a product that contains precious metals or precious stones, extracting precious metals or precious stones from a mine or polishing or cutting precious stones.

(3) For greater certainty, the activities referred to in subsection (1) include the sale of precious metals, precious stones or jewellery that are left on consignment with a dealer in precious metals and precious stones. Goods left with an auctioneer for sale at auction are not considered to be left on consignment.

66 A dealer in precious metals and precious stones that receives an amount of $10,000 or more in cash in a single transaction in connection with an activity referred to in section 65 shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

67 A dealer in precious metals and precious stones that receives an amount of $10,000 or more in virtual currency in a single transaction in connection with an activity referred to in section 65 shall report the transaction to the Centre, together with the information set out in Schedule 5.

68 A dealer in precious metals and precious stones shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive in a single transaction in connection with an activity referred to in section 65, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

69 A dealer in precious metals and precious stones shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive in a single transaction in connection with an activity referred to in section 65, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

Casinos

70 (1) A casino shall report the following transactions and information to the Centre:

(2) A casino is not required to report the transaction and information

71 A casino shall report to the Centre the disbursement, in any of the following transactions, of $10,000 or more in a single transaction, together with the information set out in Schedule 7:

72 (1) A casino shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that the casino receives from a person or entity in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

(2) For greater certainty, the transactions referred to in subsection (1) include the following:

73 A casino shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that the casino receives from a person or entity in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

74 A casino shall keep the following records in respect of every account that the casino opens and of every transaction that is conducted with the casino:

75 For the purposes of sections 70 to 74, if a registered charity, as defined in subsection 248(1) of the Income Tax Act, conducts and manages, in a permanent establishment of a casino, a lottery scheme that includes games of roulette or card games for a period of not more than two consecutive days at a time and, in doing so, acts under the supervision of the government of a province that is referred to in paragraph 5(k) of the Act, or of an organization that is referred to in paragraph 5(k.2) of the Act, that conducts and manages such a lottery scheme in the same establishment, the lottery scheme that is conducted and managed by the registered charity is considered to be conducted and managed by the supervising government or organization.

Departments and Agents or Mandataries of Her Majesty in Right of Canada or of a Province

76 A department or an agent or mandatary of Her Majesty in right of Canada or of a province carries out an activity for the purposes of paragraph 5(l) of the Act when they accept deposit liabilities in the course of providing financial services to the public.

77 A department or an agent or mandatary of Her Majesty in right of Canada or of a province carries out an activity for the purposes of paragraph 5(l) of the Act when they issue, sell or redeem money orders in the course of providing financial services to the public.

42 Section 59.4 of the Regulations is renumbered as section 97 and that section 97 and the heading before it are repositioned accordingly.

43 Sections 59.41 and 59.42 of the Regulations are renumbered as sections 98 and 99, respectively, and are repositioned accordingly.

44 The heading before section 59.5 and sections 59.5 to 66.1 of the Regulations are replaced by the following:

78 A department or an agent or mandatary of Her Majesty in right of Canada or of a province that receives an amount of $10,000 or more in cash in a single transaction in connection with an activity referred to in section 77 shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

79 A department or an agent or mandatary of Her Majesty in right of Canada or of a province that receives an amount of $10,000 or more in virtual currency in a single transaction in connection with an activity referred to in section 77 shall report the transaction to the Centre, together with the information set out in Schedule 5.

80 A department or an agent or mandatary of Her Majesty in right of Canada or of a province shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that they receive in a single transaction in connection with an activity referred to in section 77, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

81 A department or an agent or mandatary of Her Majesty in right of Canada or of a province shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that they receive in a single transaction in connection with an activity referred to in section 77, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.

82 A department or an agent or mandatary of Her Majesty in right of Canada or of a province shall keep the following records in connection with an activity referred to in section 77:

PART 2

Requirement To Verify Identity

Application of Parts 5 and 6

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

Persons and Entities Required To Keep Large Cash Transaction Record or Large Virtual Currency Transaction Record

84 A person or entity shall verify, in accordance with subsection 105(1), 109(1) or 112(1), the identity of a person or entity from which they receive an amount

Suspicious Transactions

85 (1) A person or entity that is subject to these Regulations shall take reasonable measures to verify, in accordance with subsection 105(1), 109(1) or 112(1), the identity of a person or entity that conducts or attempts to conduct a transaction with them that is required to be reported to the Centre under section 7 of the Act.

(2) If the person or entity believes that taking the reasonable measures would inform the person or entity that conducts or attempts to conduct a transaction with them that the transaction and related information will be reported under section 7 of the Act, they are not required to comply with subsection (1) but shall keep a record of the reasons for the belief.

Financial Entities

86 A financial entity shall

45 The heading before section 67.1 and sections 67.1 to 76 of the Regulations are replaced by the following:

87 A financial entity shall

88 A financial entity shall

89 A trust company shall also

90 (1) A financial entity that enters into a correspondent banking relationship

(2) A certificate of incorporation or similar document referred to in paragraph (1)(a) must have been issued within the previous year by a competent authority under the legislation of the jurisdiction in which the foreign financial institution was incorporated.

91 If a client of a foreign financial institution has direct access to services provided by the financial entity under a correspondent banking relationship, the financial entity shall take reasonable measures to ascertain whether the foreign financial institution

Life Insurance Companies and Life Insurance Brokers or Agents

92 A life insurance company or life insurance broker or agent shall

93 Section 92 does not apply to a life insurance company or a life insurance broker or agent when they are dealing in reinsurance.

Securities Dealers

94 A securities dealer shall

Money Services Businesses and Foreign Money Services Businesses

95 (1) A money services business — or a foreign money services business in connection with services that they provide in Canada — shall, in accordance with subsection 105(1), verify the identity of a person who

(2) Paragraphs (1)(a) to (e) do not apply if an employee who is authorized to order transactions under an agreement referred to in section 37 conducts the transaction on behalf of their employer under the agreement.

(3) A money services business or foreign money services business shall, in accordance with subsection 109(1), verify the identity of a corporation in respect of which they are required to keep an information record under section 37.

(4) A money services business or foreign money services business shall, in accordance with subsection 112(1), verify the identity of an entity, other than a corporation, in respect of which they are required to keep an information record under section 37.

(5) Subsections (3) and (4) do not apply if the entity is

British Columbia Notaries Public and British Columbia Notary Corporations

96 A British Columbia notary public or British Columbia notary corporation shall

46 Section 77 of the Regulations and the heading before it, as enacted by SOR/2002-184, are repealed.

47 The heading before section 78 of the Regulations, as enacted by SOR/2002-184, is repealed.

48 (1) Subsection 78(1) of the Regulations, as enacted by SOR/2002-184, is repealed.

(2) Subsection 78(2) of the Regulations, as enacted by section 1 of the Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, SOR/2002-413, is repealed.

49 The Regulations are amended by adding the following after section 99:

Accountants and Accounting Firms

100 An accountant or accounting firm shall

Real Estate Brokers or Sales Representatives

101 (1) A real estate broker or sales representative shall

(2) If every party to a transaction is represented by a real estate broker or sales representative, each real estate broker or sales representative is required only to verify the identity of the party or parties that they represent.

(3) If one or more but not all of the parties to a transaction are represented by a real estate broker or sales representative, each real estate broker or sales representative shall take reasonable measures to verify the identity of the party or parties that are not represented.

(4) If a real estate broker or sales representative is unable to verify the identity of a party under subsection (3), they shall keep a record that sets out the measures taken, the date on which each measure was taken and the reasons why the measures were unsuccessful.

Real Estate Developers

102 A real estate developer shall

Casinos

103 A casino shall

Departments and Agents or Mandataries of Her Majesty in Right of Canada or of a Province That Issue, Sell or Redeem Money Orders

104 A department or an agent or mandatary of Her Majesty in right of Canada or of a province shall

PART 3

Measures for Verifying Identity

105 (1) A person or entity that is required to verify a person’s identity shall do so

(2) The identity of a person who is under 12 years of age shall be verified for the purposes of subsection (1) by verifying the identity of one of their parents or their guardian or tutor.

(3) The identity of a person who is at least 12 years of age but not more than 15 years of age may be verified by referring under subparagraph (1)(d)(i) to information that includes the name and address of one of the person’s parents or their guardian or tutor, and by confirming that the address is that of the person.

(4) For the purposes of subparagraphs (1)(d)(i) to (iii), the information that is referred to must not be from, or derived from, the same source, and neither the person whose identity is being verified nor the person or entity that is verifying their identity can be a source. If information in a credit file is referred to, the credit file must have been in existence for at least six months.

(5) A document that is used by a person or entity to verify identity under subsection (1) must be authentic, valid and current. Other information that is used for that purpose must be valid and current.

(6) In the case of a retail deposit account referred to in subsection 448.1(1) of the Bank Act, if a person or entity cannot verify a person’s identity in accordance with one of paragraphs (1)(a) to (e), they are deemed to comply with subsection (1) if the person who requests that the account be opened meets the conditions set out in subsection 4(1) or (2) of the Access to Basic Banking Services Regulations.

(7) The identity shall be verified

106 (1) A person or entity that is required to verify a person’s identity in accordance with subsection 105(1) may rely on an agent or mandatary to take the measures to do so.

(2) The person or entity may rely on measures that were previously taken by an agent or mandatary to verify the person’s identity if the agent or mandatary was, at the time they took the measures,

(3) In order to rely, under subsection (1) or (2), on measures taken by an agent or mandatary, the person or entity shall

107 (1) A person or entity that is required to verify a person’s identity in accordance with subsection 105(1) may rely on measures that were previously taken by another person or entity if

(2) The person or entity that is required to verify a person’s identity shall not rely on measures that were previously taken by an entity referred to in paragraph (1)(b) unless they are satisfied, after taking into account the risk of money laundering or terrorist activity financing offences in the foreign state in which that entity carries out the activities, that

(3) In order to rely, under subsection (1), on measures taken by another person or entity, the person or entity that is required to verify a person’s identity shall

108 A person or entity that is required to verify a person’s identity under these Regulations shall keep a record that sets out the person’s name and the following information:

109 (1) A person or entity that is required to verify a corporation’s identity shall do so by referring to its certificate of incorporation, to a record that it is required to file annually under applicable provincial securities legislation or to the most recent version of any other record that proves its existence as a corporation, and by confirming its existence, its name and address and the names of its directors.

(2) A certificate of incorporation or other record that proves the corporation’s existence must have been issued within the previous year by a competent authority under the legislation of the jurisdiction in which the corporation was incorporated.

(3) A record that is used to verify identity under subsection (1) must be authentic, valid and current.

(4) The names of a corporation’s directors do not need to be confirmed if the corporation is a securities dealer.

(5) The corporation’s identity shall be verified

(6) If a person or entity that is required to verify a corporation’s identity does so by referring to an electronic version of a record that is contained in a database that is accessible to the public, they shall keep a record that sets out the corporation’s registration number, the type of record referred to and the source of the electronic version of the record. In any other case, they shall keep the record or a copy of it.

110 (1) A person or entity that is required to verify a corporation’s identity in accordance with subsection 109(1) may rely on measures that were previously taken by another person or entity if

(2) The person or entity that is required to verify a corporation’s identity shall not rely on measures that were previously taken by an entity referred to in paragraph (1)(b) unless they are satisfied, after taking into account the risk of money laundering or terrorist activity financing offences in the foreign state in which that entity carries out the activities, that

(3) In order to rely, under subsection (1), on measures taken by another person or entity, the person or entity that is required to verify a corporation’s identity shall

111 (1) If a person or entity that is referred to in any of paragraphs 5(a) to (g) of the Act and that is required to verify a corporation’s identity in accordance with subsection 109(1) considers, based on an assessment of the risk referred to in subsection 9.6(2) of the Act, that there is a low risk of a money laundering offence or terrorist activity financing offence, they are deemed to comply with subsection 109(1) if

(2) If the person or entity subsequently considers, based on an assessment of the risk referred to in subsection 9.6(2) of the Act, that the risk of a money laundering offence or terrorist activity financing offence has increased and is no longer low, they shall verify the corporation’s identity in accordance with subsection 109(1) as soon as feasible.

112 (1) A person or entity that is required to verify the identity of an entity other than a corporation shall do so by referring to a partnership agreement, to articles of association or to the most recent version of any other record that proves its existence, and by confirming its existence and its name and address.

(2) A record that is used to verify identity under subsection (1) must be authentic, valid and current.

(3) The entity’s identity shall be verified

(4) If the person or entity that is required to verify an entity’s identity does so by referring to an electronic version of a record that is contained in a database that is accessible to the public, they shall keep a record that sets out the entity’s registration number, the type of record referred to and the source of the electronic version of the record. In any other case, they shall keep the record or a copy of it.

113 (1) A person or entity that is required to verify an entity’s identity in accordance with subsection 112(1) may rely on measures that were previously taken by another person or entity if

(2) The person or entity that is required to verify an entity’s identity shall not rely on measures that were previously taken by an entity referred to in paragraph (1)(b) unless they are satisfied, after taking into account the risk of money laundering or terrorist activity financing offences in the foreign state in which that entity carries out the activities, that

(3) In order to rely, under subsection (1), on measures taken by another person or entity, the person or entity that is required to verify an entity’s identity shall

114 (1) If a person or entity that is referred to in any of paragraphs 5(a) to (g) of the Act and that is required to verify an entity’s identity in accordance with subsection 112(1) considers, based on an assessment of the risk referred to in subsection 9.6(2) of the Act, that there is a low risk of a money laundering offence or terrorist activity financing offence, they are deemed to comply with subsection 112(1) if

(2) If the person or entity subsequently considers, based on an assessment of the risk referred to in subsection 9.6(2) of the Act, that the risk of a money laundering offence or terrorist activity financing offence has increased and is no longer low, they shall verify the entity’s identity in accordance with subsection 112(1) as soon as feasible.

PART 4

Requirements with Respect to Persons Referred to in Subsection 9.3(1) of the Act

Application of Parts 5 and 6

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

Financial Entities

116 (1) A financial entity shall take reasonable measures to determine whether

(2) A financial entity shall take reasonable measures on a periodic basis to determine whether either of the following persons is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member — referred to in subsection 2(1) — of one of those persons or a person who is closely associated with a politically exposed foreign person:

(3) If a financial entity or any of its employees or officers detects a fact that constitutes reasonable grounds to suspect that a person referred to in paragraph (2)(a) or (b) is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, one of those persons, the financial entity shall take reasonable measures to determine whether they are such a person.

Life Insurance Companies and Life Insurance Brokers or Agents

117 A life insurance company or life insurance broker or agent shall take reasonable measures to determine whether either of the following persons is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, one of those persons:

118 Section 117 does not apply to a life insurance company or a life insurance broker or agent when they are dealing in reinsurance.

Securities Dealers

119 (1) A securities dealer shall take reasonable measures to determine whether a person for whom they open an account is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member — referred to in subsection 2(1) — of one of those persons or a person who is closely associated with a politically exposed foreign person.

(2) A securities dealer shall take reasonable measures on a periodic basis to determine whether an account holder is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member — referred to in subsection 2(1) — of one of those persons or a person who is closely associated with a politically exposed foreign person.

(3) If a securities dealer or any of their employees or officers detects a fact that constitutes reasonable grounds to suspect that an account holder is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, one of those persons, the securities dealer shall take reasonable measures to determine whether the account holder is such a person.

Money Services Businesses and Foreign Money Services Businesses

120 (1) A money services business shall take reasonable measures to determine whether any of the following persons is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, one of those persons:

(2) A foreign money services business shall take reasonable measures to determine whether any of the following persons is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, one of those persons:

Required Measures

121 (1) A financial entity or securities dealer that determines under paragraph 116(1)(a), subsection 116(2) or (3) or section 119 that a person is a politically exposed foreign person or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, such a person shall

(2) A financial entity or securities dealer shall also take the measures referred to in paragraphs (1)(a) to (c) if

(3) A financial entity or securities dealer shall take the reasonable measures referred to in paragraph 116(1)(a) and subsections 116(3) and 119(1) and (3) — and, if applicable, shall take the measures referred to in paragraphs (1)(a) and (b) — within 30 days after the day on which the account is opened or the fact is detected, as the case may be.

122 (1) A financial entity, life insurance company, life insurance broker or agent, money services business or foreign money services business that determines under subparagraph 116(1)(b)(i) or (iii), paragraph 117(a) or 120(1)(a) or (2)(a) that a person is a politically exposed foreign person or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, such a person shall

(2) A financial entity, money services business or foreign money services business that determines under subparagraph 116(1)(b)(iv) or paragraph 120(1)(c) or (2)(c) that a person is a politically exposed foreign person or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, such a person shall

(3) A financial entity, money services business or foreign money services business that determines under subparagraph 116(1)(b)(ii) or (v) or paragraph 120(1)(b) or (d) or (2)(b) or (d) that a beneficiary is a politically exposed foreign person or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, such a person shall ensure that a member of senior management reviews the transaction.

(4) A life insurance company or life insurance broker or agent that determines under paragraph 117(b) that a beneficiary is a politically exposed foreign person or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, such a person shall

(5) A financial entity, life insurance company, life insurance broker or agent, money services business or foreign money services business shall also take the measures referred to in paragraphs (1)(a) and (b) if

(6) A financial entity, money services business or foreign money services business shall also take the measures referred to in paragraphs (2)(a) and (b) if

(7) A financial entity, money services business or foreign money services business shall also take the measure referred to in subsection (3) if

(8) A life insurance company or life insurance broker or agent shall also take the measures referred to in paragraphs (4)(a) and (b) if

(9) A financial entity, life insurance company, life insurance broker or agent, money services business or foreign money services business shall take the reasonable measures referred to in paragraphs 116(1)(b) and 117(a) and subsections 120(1) and (2) — and, if applicable, shall take the measures referred to in paragraphs (1)(a) and (b), (2)(a) and (b) or subsection (3), as the case may be — within 30 days after the day on which the transaction is conducted.

(10) A life insurance company or life insurance broker or agent shall take the reasonable measures referred to in paragraph 117(b) before they first remit funds to the beneficiary under the annuity or policy — and, if applicable, shall take the measures referred to in paragraphs (4)(a) and (b) before the transaction is conducted.

Requirements To Keep Records

123 (1) If a financial entity or securities dealer obtains approval under subsection 121(1) or (2) to keep an account open, they shall keep a record of

(2) If a transaction that is conducted with a financial entity, money services business or foreign money services business is reviewed under any of subsections 122(1) to (3) and (5) to (7), the financial entity, money services business or foreign money services business shall keep a record of

(3) If a transaction that is conducted with a life insurance company or life insurance broker or agent is reviewed or approved under any of subsections 122(1), (4), (5) and (8), the life insurance company or life insurance broker or agent shall keep a record of

PART 5

General Provisions

Electronic Funds Transfers

124 (1) For the purposes of section 9.5 of the Act, the prescribed persons or entities are the financial entities, money services businesses, foreign money services businesses and casinos that are required to keep a record under these Regulations in respect of an electronic funds transfer.

(2) For the purposes of paragraph 9.5(a) of the Act, the prescribed information is

Foreign Currency or Virtual Currency

125 If a transaction is conducted in a foreign currency or virtual currency, the amount of the transaction shall be converted into Canadian dollars using

Transactions That Are Deemed To Be Single

126 If a person or entity that is required under these Regulations to report the receipt from a person or entity of an amount in cash or to keep a large cash transaction record receives amounts in cash that total $10,000 or more in two or more transactions that are made within 24 consecutive hours, those transactions are deemed to be a single transaction of $10,000 or more if that person or entity knows that

127 (1) If a person or entity that is required to report the initiation of an electronic funds transfer under these Regulations initiates two or more electronic funds transfers that total $10,000 or more within 24 consecutive hours, those transactions are deemed to be a single transaction of $10,000 or more if that person or entity knows that

(2) Unless the person or entity that is required to report the initiation of an electronic funds transfer under these Regulations knows that the amounts are for the same beneficiary, subsection (1) does not apply if the requests are made by or on behalf of

128 (1) If a person or entity that is required to report the final receipt of an electronic funds transfer under these Regulations finally receives two or more electronic funds transfers that total $10,000 or more within 24 consecutive hours, those transactions are deemed to be a single transaction of $10,000 or more if that person or entity knows that

(2) Unless the person or entity that is required to report the final receipt of an electronic funds transfer under these Regulations knows that the requests to initiate the electronic funds transfer were made by or on behalf of the same person or entity, subsection (1) does not apply if the beneficiary is

129 If a person or entity that is required under these Regulations to report the receipt from a person or entity of an amount in virtual currency or to keep a large virtual currency transaction record receives amounts in virtual currency that total $10,000 or more in two or more transactions that are made within 24 consecutive hours, those transactions are deemed to be a single transaction of $10,000 or more if that person or entity knows that

130 If a person or entity that is required to report a transfer of virtual currency under these Regulations makes two or more transfers of virtual currency that total $10,000 or more within 24 consecutive hours, those transfers are deemed to be a single transaction of $10,000 or more if that person or entity knows that

131 If, within 24 consecutive hours, a casino makes two or more disbursements that total $10,000 or more in any of the transactions referred to in paragraphs 71(a) to (h), those disbursements are deemed to be a single disbursement of $10,000 or more if the casino knows that

Reports

132 (1) A report that is required to be made to the Centre under these Regulations shall be sent electronically in accordance with guidelines that are prepared by the Centre, if the sender has the technical capabilities to do so.

(2) The report shall be sent in paper format in accordance with guidelines that are prepared by the Centre, if the sender does not have the technical capabilities to send the report electronically.

(3) For greater certainty, although items in Schedules 1 to 7 are described in the singular, a person or entity shall report all known information that falls within an item.

133 (1) A report that is required to be made under these Regulations in respect of an electronic funds transfer shall be sent to the Centre within five working days after the day on which the person or entity initiates or finally receives the electronic funds transfer, as the case may be.

(2) A report that is required to be made under these Regulations in respect of a transfer or receipt of an amount in virtual currency shall be sent to the Centre within five working days after the day on which the person or entity transfers or receives the amount, as the case may be.

(3) A report that is required to be made under these Regulations in respect of a receipt of an amount in cash or in respect of a disbursement referred to in section 71 shall be sent to the Centre within 15 days after the day on which the person or entity receives the amount or makes the disbursement, as the case may be.

Transactions Conducted by Employees and Authorized Persons and Entities

134 (1) For greater certainty, if a person who is subject to these Regulations is an employee of a person or entity referred to in any of paragraphs 5(a) to (l) of the Act, it is the employer rather than the employee that is responsible for complying with these Regulations.

(2) For greater certainty, if a person or entity that is subject to these Regulations, other than a life insurance broker or agent, is authorized to act on behalf of another person or entity referred to in any of paragraphs 5(a) to (l) of the Act in any capacity, including as an agent or mandatary, it is that other person or entity rather than the authorized person or entity that is responsible for complying with these Regulations.

Third-Party Determination

135 (1) A person or entity that is required under these Regulations to report the receipt from a person or entity of an amount of $10,000 or more in cash or in virtual currency or to keep a large cash transaction record or a large virtual currency transaction record shall, when they receive the amount in cash or virtual currency, take reasonable measures to determine whether the person from whom the cash or virtual currency is received is acting on behalf of a third party.

(2) If the person or entity determines that the person from whom the cash or virtual currency is received is acting on behalf of a third party, the person or entity shall take reasonable measures to obtain the following information and shall keep a record of the information obtained:

(3) If the person or entity is not able to determine whether the person from whom the cash or virtual currency is received is acting on behalf of a third party but there are reasonable grounds to suspect that they are, the person or entity shall keep a record that

136 (1) A person or entity that is required under these Regulations to report to the Centre the initiation of an electronic funds transfer or the transfer of virtual currency at the request of a person or entity shall, when the request is made, take reasonable measures to determine whether the person or entity that makes the request is acting on behalf of a third party.

(2) If the person or entity determines that the person or entity that makes the request is acting on behalf of a third party, the person or entity shall take reasonable measures to obtain the following information and shall keep a record of the information obtained:

(3) If the person or entity is not able to determine whether the person or entity that makes the request is acting on behalf of a third party but there are reasonable grounds to suspect that they are, the person or entity shall keep a record that

137 (1) A person or entity that is required under these Regulations to report to the Centre the final receipt of an electronic funds transfer or the receipt of virtual currency shall, when they make the remittance to a beneficiary, take reasonable measures to determine whether the beneficiary is acting on behalf of a third party.

(2) If the person or entity determines that a beneficiary is acting on behalf of a third party, they shall take reasonable measures to obtain the following information and shall keep a record of the information obtained:

(3) If the person or entity is not able to determine whether a beneficiary is acting on behalf of a third party but there are reasonable grounds to suspect that they are, the person or entity shall keep a record that

50 The Regulations are amended by adding the following after section 138:

139 (1) A person or entity that is required to keep an information record under these Regulations shall, when they create the information record, take reasonable measures to determine whether the person or entity to which it pertains is acting on behalf of a third party.

(2) If the person or entity determines that the person or entity to which the information record pertains is acting on behalf of a third party, the person or entity shall take reasonable measures to obtain the following information and shall keep a record of the information obtained:

(3) If the person or entity is not able to determine whether the person or entity to which the information record pertains is acting on behalf of a third party but there are reasonable grounds to suspect that they are, the person or entity shall keep a record that

140 (1) A casino that is required to report a disbursement under section 71 shall, when the casino makes the disbursement, take reasonable measures to determine whether the person or entity that requests that the disbursement be made is acting on behalf of a third party.

(2) If the casino determines that the person or entity that makes the request is acting on behalf of a third party, the casino shall take reasonable measures to obtain the following information and shall keep a record of the information obtained:

(3) If the casino is not able to determine whether the person or entity that makes the request is acting on behalf of a third party but there are reasonable grounds to suspect that they are, the casino shall keep a record that

51 The Regulations are amended by adding the following after section 141:

142 A trust company that is required to keep a record in respect of an inter vivos trust under these Regulations shall keep a record that sets out the name, address and telephone number of each beneficiary that is known when the trust company becomes a trustee for the inter vivos trust and

Deemed Receipt of Funds and Virtual Currency

143 (1) For the purposes of paragraph 7(1)(a), section 18 or 25 or paragraph 30(1)(a) or 70(1)(a), if the person or entity that has the obligation to report authorizes another person or entity to receive funds on their behalf, and that other person or entity receives an amount of $10,000 or more in cash in a single transaction in accordance with the authorization, the person or entity that has the obligation to report is deemed to have received the amount when it is received by the other person or entity.

(2) For the purposes of paragraph 33(1)(a), if the foreign money services business authorizes another person or entity to receive funds on their behalf from a person or entity in Canada, and that other person or entity receives an amount of $10,000 or more in cash in a single transaction in accordance with the authorization, the foreign money services business is deemed to have received the amount when it is received by the other person or entity.

(3) For the purposes of section 39, 48, 54, 60, 66 or 78, if the person or entity that has the obligation to report authorizes another person or entity to receive funds on their behalf in connection with the activity referred to in that section, and that other person or entity receives an amount of $10,000 or more in cash in a single transaction in accordance with the authorization, the person or entity that has the obligation to report is deemed to have received the amount when it is received by the other person or entity.

144 (1) For the purposes of paragraph 7(1)(e), section 19 or 26 or paragraph 30(1)(g) or 70(1)(d), if the person or entity that has the obligation to report authorizes another person or entity to receive virtual currency on their behalf, and that other person or entity receives an amount of $10,000 or more in virtual currency in a single transaction in accordance with the authorization, the person or entity that has the obligation to report is deemed to have received the amount when it is received by the other person or entity.

(2) For the purposes of paragraph 33(1)(g), if the foreign money services business authorizes another person or entity to receive virtual currency on their behalf from a person or entity in Canada, and that other person or entity receives an amount of $10,000 or more in virtual currency in a single transaction in accordance with the authorization, the foreign money services business is deemed to have received the amount when it is received by the other person or entity.

(3) For the purposes of section 40, 49, 55, 61, 67 or 79, if the person or entity that has the obligation to report authorizes another person or entity to receive virtual currency on their behalf in connection with the activity referred to in that section, and that other person or entity receives an amount of $10,000 or more in virtual currency in a single transaction in accordance with the authorization, the person or entity that has the obligation to report is deemed to have received the amount when it is received by the other person or entity.

145 (1) For the purposes of section 10, 20, 27 or 31 or subsection 72(1), if the person or entity that has the obligation to keep a large cash transaction record authorizes another person or entity to receive funds on their behalf, and that other person or entity receives an amount of $10,000 or more in cash in a single transaction in accordance with the authorization, the person or entity that has the obligation to keep the large cash transaction record is deemed to have received the amount when it is received by the other person or entity.

(2) For the purposes of section 34, if the foreign money services business authorizes another person or entity to receive funds on their behalf from a person or entity in Canada, and that other person or entity receives an amount of $10,000 or more in cash in a single transaction in accordance with the authorization, the foreign money services business is deemed to have received the amount when it is received by the other person or entity.

(3) For the purposes of section 41, 50, 56, 62, 68 or 80, if the person or entity that has the obligation to keep a large cash transaction record authorizes another person or entity to receive funds on their behalf in connection with the activity referred to in that section, and that other person or entity receives an amount of $10,000 or more in cash in a single transaction in accordance with the authorization, the person or entity that has the obligation to keep the large cash transaction record is deemed to have received the amount when it is received by the other person or entity.

146 (1) For the purposes of section 11, 21, 28, 32 or 73, if the person or entity that has the obligation to keep a large virtual currency transaction record authorizes another person or entity to receive virtual currency on their behalf, and that other person or entity receives an amount of $10,000 or more in virtual currency in a single transaction in accordance with the authorization, the person or entity that has the obligation to keep the large virtual currency transaction record is deemed to have received the amount when it is received by the other person or entity.

(2) For the purposes of section 35, if the foreign money services business authorizes another person or entity to receive virtual currency on their behalf from a person or entity in Canada, and that other person or entity receives an amount of $10,000 or more in virtual currency in a single transaction in accordance with the authorization, the foreign money services business is deemed to have received the amount when it is received by the other person or entity.

(3) For the purposes of section 42, 51, 57, 63, 69 or 81, if the person or entity that has the obligation to keep a large virtual currency transaction record authorizes another person or entity to receive virtual currency on their behalf in connection with the activity referred to in that section, and that other person or entity receives an amount of $10,000 or more in virtual currency in a single transaction in accordance with the authorization, the person or entity that has the obligation to keep the large virtual currency transaction record is deemed to have received the amount when it is received by the other person or entity.

Record-keeping

147 A person or entity that sends a report to the Centre shall keep a copy of the report.

148 Every person and entity that enters into a business relationship shall keep a record that sets out the purpose and intended nature of the business relationship.

149 (1) A person or entity that is required to verify the identity of another person or entity shall keep a record of the measures taken when they conduct ongoing monitoring of their business relationship with that person or entity and of the information obtained from that ongoing monitoring.

(2) Subsection (1) does not apply

150 If a record is required to be kept under these Regulations, the record or a copy of it may be kept in a machine-readable or electronic form if a paper copy can readily be produced from it.

151 (1) A person or entity that is required to keep records under these Regulations shall keep those records for a period of at least five years after

(2) For greater certainty, if a record that is kept under these Regulations 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 the record after the end of their employment or the contractual relationship.

152 Every record that is required to be kept under these Regulations shall be kept in such a way that it can be provided to an authorized person within 30 days after the day on which a request is made to examine it under section 62 of the Act.

PART 6

Exceptions

Payment Card Processing Activities

153 Sections 7, 10 to 14, 16, 85 to 88 and 116, subsections 123(1) and (2), sections 138, 141 and 148 and subsection 149(1) do not apply to the activities of a financial entity in respect of the processing for a merchant of payments by credit card or prepaid payment product.

Requirements with Respect to Virtual Currency

154 (1) For greater certainty, paragraphs 7(1)(d) and (e), section 11, paragraphs 12(r) to (t), 13(k) and 14(1)(n) to (p), sections 19, 21, 26 and 28, paragraphs 30(1)(f) and (g), section 32, paragraphs 33(1)(f) and (g), section 35, paragraphs 36(g), (h) and (j), sections 40, 42, 49, 51, 55, 57, 61, 63, 67 and 69, paragraph 70(1)(d) and sections 73, 79 and 81 do not apply to

(2) In this section, distributed ledger means a digital ledger that is maintained by multiple persons or entities and that can only be modified by a consensus of those persons or entities.

Requirement To Report Information

155 (1) The requirement to report information set out in any of Schedules 1 to 7 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) The requirement to report information set out in any of Schedules 1 to 5 and 7 does not apply in respect of information set out in an item of that Schedule that is marked with an asterisk if

(3) For greater certainty, a person or entity is not required to report information set out in any item of Schedules 1 to 7 that is not applicable in the circumstances.

Requirement To Include Information in a Record

156 A person or entity that is required to keep a record under these Regulations is not required to include information in that record that is readily obtainable from other records that they are required to keep under these Regulations.

Other Requirements

157 (1) Subparagraphs 86(a)(i) and (ii), paragraphs 87(a), 89(a) and (d), 94(a), 103(a) and 116(1)(a) and subsections 116(2) and (3) and 119(1) to (3) do not apply in respect of

(2) Sections 12 to 14, 22, 29, 43, 45 and 52, subsection 58(1), sections 64, 74, 82, 86 to 89, 92, 94, 96, 97 and 100, subsection 101(1) and sections 102 to 104, 116, 117, 119 and 123 do not apply in respect of

(3) A financial entity, securities dealer, life insurance company or life insurance broker or agent is not required to verify the identity of, or to keep a signature card for, a person who is a member of a group plan account or to determine whether they are a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, one of those persons if

(4) Subsections (1) to (3) do not apply if a person or entity conducts or attempts to conduct a transaction that is required to be reported to the Centre under section 7 of the Act.

158 (1) If a person or entity verifies a person’s identity in accordance with subsection 105(1) and complies with section 108 — or if, before the coming into force of this subsection, they ascertained a person’s identity in accordance with these Regulations, and complied with the related record-keeping provisions, as they read at the time — they are not required to verify the person’s identity again unless they have doubts about the information that was used for that purpose.

(2) If a person or entity verifies a corporation’s identity in accordance with subsection 109(1) — or if, before the coming into force of this subsection, they confirmed the corporation’s existence and ascertained its name and address and the names of its directors in accordance with these Regulations, and complied with the related record-keeping provisions, as they read at the time — they are not required to verify it again unless they have doubts about the information that was used for that purpose.

(3) If a person or entity verifies the identity of an entity other than a corporation in accordance with subsection 112(1) — or if, before the coming into force of this subsection, they confirmed the entity’s existence in accordance with these Regulations, and complied with the related record-keeping provisions, as they read at the time — they are not required to verify it again unless they have doubts about the information that was used for that purpose.

(4) If a person or entity determines that a person is a politically exposed foreign person or a family member, referred to in subsection 2(1), of such a person — or if, before the coming into force of this subsection, they determined that a person is a politically exposed foreign person, as defined in subsection 9.3(3) of the Act as it read at the time the determination was made — they are not required to make the determination again.

PART 7

Compliance Programs and Special Measures

159 (1) For the purposes of subsection 9.6(1) of the Act, a person or entity referred to in that subsection shall implement the compliance program referred to in that subsection by

(2) If the person or entity intends to carry out a new development or introduce a new technology that may have an impact on their clients, business relationships, products or delivery channels or the geographic location of their activities, they shall, in accordance with paragraph (1)(c), assess and document the risk referred to in subsection 9.6(2) of the Act before doing so.

(3) A review referred to in paragraph (1)(f) shall be carried out and the results documented every two years by an internal or external auditor of the person or entity, or by the person or entity if they do not have an auditor.

(4) An entity shall report the findings of the review, any updates made to the policies and procedures within the reporting period and the status of the implementation of those updates in writing to a senior officer within 30 days after the day on which the review is completed.

160 The prescribed special measures that are required to be taken by a person or entity referred to in subsection 9.6(1) of the Act for the purposes of subsection 9.6(3) of the Act are the development and application of written policies and procedures for

52 Schedules 1 to 8 to the Regulations are replaced by the following:

SCHEDULE 1

(Paragraph 7(1)(a), sections 18 and 25, paragraphs 30(1)(a) and 33(1)(a), sections 39, 48, 54, 60 and 66, paragraph 70(1)(a), section 78, subsection 132(3) and section 155)

Report with Respect to Receipt of Cash

PART A

Information with Respect to Reporting Person or Entity and Place of Business Where Cash Is Received

PART B

Information with Respect to Transaction

PART C

Account and Reference Number Information

PART D

Information with Respect to Person or Entity That Conducts Transaction That Does Not Involve Deposit into Business Account

PART E

Information with Respect to Person or Entity That Conducts Transaction That Involves Deposit into Business Account Other than Night Deposit or Quick Drop

PART F

Information with Respect to Person or Entity on Whose Behalf Transaction is Conducted

SCHEDULE 2

(Paragraphs 7(1)(b), 30(1)(b) and (d), 33(1)(b) and (d) and 70(1)(b), subsection 132(3) and section 155)

Report with Respect to Initiation of Electronic Funds Transfers

PART A

Information with Respect to Electronic Funds Transfer

PART B

Account and Reference Number Information

PART C

Information with Respect to Person Who Requests Initiation of Electronic Funds Transfer

PART D

Information with Respect to Entity That Requests Initiation of Electronic Funds Transfer

PART E

Information with Respect to Holder of Account From Which Funds are Withdrawn (if Different from Person or Entity in Part C or D)

PART F

Information with Respect to Person or Entity on Whose Behalf Initiation of Electronic Funds Transfer Is Requested

PART G

Information with Respect to Person or Entity That Initiates Electronic Funds Transfer

PART H

Information with Respect to Every Person or Entity That Sends or Is To Send Electronic Funds Transfer Initiated by Another Person or Entity

PART I

Information with Respect to Person or Entity That Finally Receives or Is To Finally Receive Electronic Funds Transfer

PART J

SWIFT Message — Information with Respect to Every Other Person or Entity That Is Involved in Effecting Electronic Funds Transfer

PART K

Information with Respect to Beneficiary

PART L

Information with Respect to Person or Entity on Whose Behalf Beneficiary Is To Receive Remittance

SCHEDULE 3

(Paragraphs 7(1)(c), 30(1)(c) and (e), 33(1)(c) and (e) and 70(1)(c), subsection 132(3) and section 155)

Report with Respect to Final Receipt of Electronic Funds Transfers

PART A

Information with Respect to Electronic Funds Transfer

PART B

Account and Reference Number Information

PART C

Information with Respect to Person Who Requests Initiation of Electronic Funds Transfer

PART D

Information with Respect to Entity That Requests Initiation of Electronic Funds Transfer

PART E

Information with Respect to Holder of Account From Which Funds Are Withdrawn (if Different from Person or Entity in Part C or D)

PART F

Information with Respect to Person or Entity on Whose Behalf Initiation of Electronic Funds Transfer Is Requested

PART G

Information with Respect to Person or Entity That Initiates Electronic Funds Transfer

PART H

Information with Respect to Every Person or Entity That Sends Electronic Funds Transfer Initiated by Another Person or Entity

PART I

Information with Respect to Person or Entity That Finally Receives Electronic Funds Transfer

PART J

SWIFT Message — Information with Respect to Every Other Person or Entity That Is Involved in Effecting Electronic Funds Transfer

PART K

Information with Respect to Beneficiary

PART L

Information with Respect to Person or Entity on Whose Behalf Beneficiary Is to Receive Remittance

SCHEDULE 4

(Paragraphs 7(1)(d), 30(1)(f) and 33(1)(f), subsection 132(3) and section 155)

Report with Respect to Transfer of Virtual Currency

PART A

Information with Respect to Reporting Person or Entity

PART B

Information with Respect to Transfer

PART C

Account and Reference Number Information

PART D

Information with Respect to Person Who Requests Transfer

PART E

Information with Respect to Entity That Requests Transfer

PART F

Information with Respect to Person or Entity on Whose Behalf Transfer Is Requested

PART G

Information with Respect to Person or Entity That Receives Transfer for Remittance to Beneficiary

PART H

Information with Respect to Every Other Person or Entity That is Involved in Effecting Transfer

PART I

Information with Respect to Beneficiary

PART J

Information with Respect to Person or Entity on Whose Behalf Beneficiary Is to Receive Remittance

SCHEDULE 5

(Paragraph 7(1)(e), sections 19 and 26, paragraphs 30(1)(g) and 33(1)(g), sections 40, 49, 55, 61 and 67, paragraph 70(1)(d), section 79, subsection 132(3) and section 155)

Report with Respect to Receipt of Virtual Currency

PART A

Information with Respect to Reporting Person or Entity and Place of Business Where Virtual Currency Is Received

PART B

Information with Respect to Transaction

PART C

Account and Reference Number Information

PART D

Information with Respect to Person Who Requests Transfer or From Whom Virtual Currency Is Directly Transferred

PART E

Information with Respect to Entity That Requests Transfer or From Which Virtual Currency Is Directly Transferred

PART F

Information with Respect to Person or Entity on Whose Behalf Transfer Is Requested or Virtual Currency Is Directly Transferred

PART G

Information with Respect to Person or Entity That Effects Transfer on Request

PART H

Information with Respect to Every Other Person or Entity That Is Involved in Effecting Transfer on Request

PART I

Information with Respect to Beneficiary

PART J

Information with Respect to Person or Entity on Whose Behalf Beneficiary Receives Remittance

SCHEDULE 6

(Paragraph 8(1)(g) and subsections 132(3) and 155(1) and (3))

Information To Be Provided by Financial Entity That Chooses Not To Report Large Cash Transaction

PART A

Information with Respect to Financial Entity

PART B

Information with Respect to Corporation

SCHEDULE 7

(Section 71, subsection 132(3) and section 155)

Report with Respect to Casino Disbursement

PART A

Information with Respect to Reporting Person or Entity and Place of Business Where Disbursement Is Made

PART B

Information with Respect to Disbursement

PART C

Account and Reference Number Information

PART D

Information with Respect to Person Who Requests Disbursement

PART E

Information with Respect to Entity That Requests Disbursement

PART F

Information with Respect to Person or Entity on Whose Behalf Disbursement Is Requested

PART G

Information with Respect to Person or Entity That Receives Disbursement (if Different from Person or Entity in Part D, E or F)

Cross-border Currency and Monetary Instruments Reporting Regulations

53 (1) Paragraph (b) of the definition effets in subsection 1(1) of the French version of the Cross-border Currency and Monetary Instruments Reporting Regulations footnote 7 is replaced by the following:

(2) The definitions agent de transfert and moyen de transport non commercial de passagers in subsection 1(2) of the French version of the Regulations are replaced by the following:

agent de transfert Personne ou entité nommée par une personne morale pour tenir les comptes en ce qui a trait aux détenteurs d’actions, de débentures et de bons, annuler et émettre des certificats et expédier les chèques de dividendes. (transfer agent)

moyen de transport non commercial de passagers S’entend du moyen de transport qui ne transporte pas de passagers moyennant paiement, y compris l’aéronef d’affaires, l’aéronef privé et l’embarcation de plaisance. (non-commercial passenger conveyance)

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

currency 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)

54 Section 2 of the Regulations is replaced by the following:

2 (1) For the purposes of subsection 12(1) of the Act, the prescribed amount is $10,000.

(2) The amount is in Canadian dollars, or in its equivalent in a foreign currency using

55 The heading before section 3 of the English version of the Regulations is replaced by the following:

Manner of Reporting

56 The portion of paragraph 3(b) of the French version of the Regulations before subparagraph (i) is replaced by the following:

57 The Regulations are amended by adding the following after section 3:

3.1 For greater certainty, although items in Schedules 1 to 3 are described in the singular, a person or entity shall report all known information that falls within an item.

58 Sections 19 to 24 of the Regulations are repealed.

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

(Subparagraph 3(b)(i), section 3.1 and paragraphs 4(3)(a) and (3.1)(a))

60 The heading of Part A of Schedule 1 to the Regulations is replaced by the following:

Information with Respect to Person Described in Paragraph 12(3)(a) of Act

61 Items 1 and 2 of Part A of Schedule 1 to the Regulations are replaced by the following:

62 Items 5 to 7 of Part A of Schedule 1 to the Regulations are replaced by the following:

63 Part C of Schedule 1 to the Regulations is replaced by the following:

PART C

Information with Respect to Each Currency That Is Imported or Exported

PART D

Information with Respect to Each Monetary Instrument That Is Imported or Exported

64 Schedule 2 to the Regulations is amended by replacing the references after the heading “SCHEDULE 2” with the following:

(Subparagraphs 3(b)(ii) and (iii), section 3.1 and paragraphs 4(3)(a) and (3.1)(a))

65 The heading of Schedule 2 to the French version of the Regulations is replaced by the following:

Renseignements à fournir par la personne visée à l’alinéa 12(3)a) de la Loi (si elle transporte les espèces ou les effets pour le compte d’une entité ou d’une autre personne) ou par la personne ou entité visée aux alinéas 12(3)b), c) ou e) de la Loi

66 The heading of Part A of Schedule 2 to the Regulations is replaced by the following:

Information with Respect to Person on Whose Behalf Person Described in Paragraph 12(3)(a) of Act Is Transporting or with Respect to Person Described in Paragraph 12(3)(b), (c) or (e) of Act

67 Items 1 and 2 of Part A of Schedule 2 to the Regulations are replaced by the following:

68 Items 5 to 7 of Part A of Schedule 2 to the Regulations are replaced by the following:

69 The heading of Part B of Schedule 2 to the Regulations is replaced by the following:

Information with Respect to Entity on Whose Behalf Person Described in Paragraph 12(3)(a) of Act Is Transporting or with Respect to Entity Described in Paragraph 12(3)(b) or (c) of Act

70 Items 1 and 2 of Part B of Schedule 2 to the Regulations are replaced by the following:

71 Items 4 and 5 of Part B of Schedule 2 to the Regulations are replaced by the following:

72 The heading of Part C of Schedule 2 to the Regulations is replaced by the following:

Information with Respect to Importation or Exportation

73 Items 3 to 7 of Part C of Schedule 2 to the Regulations are replaced by the following:

74 The heading of Part D of Schedule 2 to the Regulations is replaced by the following:

Information with Respect to Person Described in Paragraph 12(3)(a) of Act or with Respect to Person Acting on Behalf of Person or Entity Described in Paragraph 12(3)(b), (c) or (e) of Act

75 Items 1 and 2 of Part D of Schedule 2 to the Regulations are replaced by the following:

76 Items 5 to 7 of Part D of Schedule 2 to the Regulations are replaced by the following:

77 Part E of Schedule 2 to the Regulations is replaced by the following:

PART E

Information with Respect to Each Currency That Is Imported or Exported

PART F

Information with Respect to Each Monetary Instrument That Is Imported or Exported

78 Schedule 3 to the Regulations is amended by replacing the references after the heading “SCHEDULE 3” with the following:

(Subparagraph 3(b)(iv), section 3.1 and paragraphs 4(3)(a) and (3.1)(a))

79 The heading of Part A of Schedule 3 to the Regulations is replaced by the following:

Information with Respect to Person Described in Paragraph 12(3)(d) of Act

80 Items 1 and 2 of Part A of Schedule 3 to the Regulations are replaced by the following:

81 Items 5 to 10 of Part A of Schedule 3 to the Regulations are replaced by the following:

82 Item 11 of Part A of Schedule 3 to the French version of the Regulations is replaced by the following:

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

83 The heading before section 1 of the French version of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations footnote 8 is replaced by the following:

Définitions et interprétation

84 Section 1 of the Regulations is amended by adding the following in alphabetical order:

financial entity has the same meaning as in subsection 1(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. (entité financière)

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

85 Section 2 of the Regulations is replaced by the following:

2 For the purposes of subsection 54.1(3) of the Act, identifying information means the information set out in Part A of Schedule 1 and in items 1 to 5 of Part C of that Schedule and the dates on which a person’s or entity’s registration is revoked or expires and on which a registered person or entity ceases an activity.

86 Section 3 of the Regulations is replaced by the following:

3 (1) A corporation is not eligible for registration with the Centre if its chief executive officer, its president or one of its directors or a person or entity that owns or controls, directly or indirectly, 20% or more of the shares of the corporation is referred to in any of paragraphs 11.11(1)(a) to (d), (e.1) and (f) of the Act.

(2) An entity that is not a corporation is not eligible for registration with the Centre if its chief executive officer, its president or one of its directors or a person or entity that owns or controls, directly or indirectly, 20% or more of the entity is referred to in any of paragraphs 11.11(1)(a) to (d), (e.1) and (f) of the Act.

87 (1) The portion of section 4 of the Regulations before paragraph (d) is replaced by the following:

4 An applicant or a registered person or entity must submit the following information to the Centre in electronic form in accordance with guidelines that are prepared by the Centre if they have the technical capability to do so or by telephone if they do not:

(2) Paragraph 4(d) of the French version of the Regulations is replaced by the following:

(3) Paragraphs 4(e) and (f) of the Regulations is replaced by the following:

88 Sections 5 and 6 of the Regulations are replaced by the following:

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

89 Sections 6.1 and 7 of the Regulations are replaced by the following:

6.1 For the purposes of section 11.19 of the Act, when a person or entity that is referred to in paragraph 5(h) of the Act and that is engaged in the business of providing the service referred to in subparagraph 5(h)(iv) of the Act, or a person or entity that is referred to in paragraph 5(h.1) of the Act, renews their registration for the first time, they must do so no later than

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

(Sections 2, 5 and 6.01)

91 The heading of Schedule 1 to the French version of the Regulations is replaced by the following:

Renseignements devant être inclus dans la demande d’inscription ou de renouvellement d’inscription, dans la communication de modification de renseignements dans la demande existante, dans la communication de nouveaux renseignements obtenus et dans les précisions de renseignements dans la demande existante

92 The heading of Part A of Schedule 1 to the Regulations is replaced by the following:

Identifying Information with Respect to Applicant

93 Item 1 of Part A of Schedule 1 to the Regulations is replaced by the following:

94 Items 3 and 4 of Part A of Schedule 1 to the Regulations are replaced by the following:

95 Items 6 to 11 of Part A of Schedule 1 to the Regulations are replaced by the following:

96 The heading of Part B of Schedule 1 to the Regulations is replaced by the following:

Information with Respect to Applicant

97 Item 1 of Part B of Schedule 1 to the Regulations is replaced by the following:

98 Item 2 of Part B of Schedule 1 to the French version of the Regulations is replaced by the following:

99 Item 3 of Part B of Schedule 1 to the Regulations is repealed.

100 Items 5 and 6 of Part B of Schedule 1 to the Regulations are replaced by the following:

101 Paragraph 7(a) of Part B of Schedule 1 to the English version of the Regulations is replaced by the following:

102 Paragraphs 7(b) and (c) of Part B of Schedule 1 to the Regulations are replaced by the following:

103 Paragraph 8(a) of Part B of Schedule 1 to the English version of the Regulations is replaced by the following:

104 Paragraphs 8(b) and (c) of Part B of Schedule 1 to the Regulations are replaced by the following:

105 Items 9 to 17 of Part B of Schedule 1 to the Regulations are replaced by the following:

106 Item 18 of Part B of Schedule 1 to the English version of the Regulations is replaced by the following:

107 Parts C and D of Schedule 1 to the Regulations are replaced by the following:

PART C

Information with Respect to Applicant’s Agents or Mandataries and Branches

108 Schedule 2 to the Regulations is amended by replacing the references after the heading “SCHEDULE 2” with the following:

(Sections 6 and 6.01)

109 Item 1 of Schedule 2 to the Regulations is replaced by the following:

110 Item 2 of Schedule 2 to the French version of the Regulations is replaced by the following:

111 Items 3 to 5 of Schedule 2 to the Regulations are replaced by the following:

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

112 Section 2 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations footnote 9 is replaced by the following:

113 Paragraph 3(d) of the Regulations is repealed.

114 Subsection 4(1) of the Regulations is replaced by the following:

4 (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.

115 Section 6 of the French version of the Regulations is replaced by the following:

6 Pour l’application de l’article 73.11 de la Loi, le montant de la pénalité est déterminé compte tenu des antécédents de conformité de la personne ou entité avec la Loi — à l’exception de la partie 2 —, le Règlement sur le recyclage des produits de la criminalité et le financement des activités terroristes, le Règlement sur la déclaration des opérations douteuses — recyclage des produits de la criminalité et financement des activités terroristes et le Règlement sur l’inscription — recyclage des produits de la criminalité et financement des activités terroristes.

116 Section 10 of the Regulations and the heading before it are repealed.

117 Item 1 of Part I of the schedule to the Regulations is renumbered as item 1.6.

118 Part 1 of the schedule to the Regulations is amended by adding the following before item 1.6:

Item

Column 1

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

Column 2



Short-form Description

Column 3



Classification of Violation

1

7

Failure of the specified person or entity to report the transaction as required

very serious

1.1

9(3)

Failure of the specified person or entity to establish and maintain the specified list

serious

1.2

9.2

Opening an account for a client by the specified person or entity in the prescribed circumstances if the identity of the client cannot be established in accordance with the prescribed measures

serious

1.3

9.31(1)

Opening or maintaining an account by the specified entity for, or having a correspondent banking relationship with, the specified person or entity

serious

1.4

9.4(1)(c)

Failure of the specified entity to obtain the approval of senior management in respect of the correspondent banking services

serious

1.5

9.4(1)(d)

Failure of the specified entity to set out in writing its obligations and those of the foreign entity in respect of the correspondent banking services

serious

119 Part 1 of the schedule to the Regulations is amended by adding the following after item 1.6:

Item

Column 1

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

Column 2



Short-form Description

Column 3



Classification of Violation

1.7

9.5(a)

Failure of the specified person or entity to include the prescribed information with the electronic funds transfer

minor

1.8

9.5(b)

Failure of the specified person or entity to take reasonable measures to ensure that any electronic funds transfer that the person or entity receives includes the required information

minor

1.9

9.6(3)

Failure of the specified person or entity to take the specified special measures

serious

120 Part 1 of the schedule to the Regulations is amended by adding the following after item 5:

Item

Column 1

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

Column 2



Short-form Description

Column 3



Classification of Violation

5.01

11.12(1)

Failure of an applicant to submit the specified application for registration in the prescribed manner together with the prescribed information

serious

5.02

11.13

Failure of an applicant or a registered person or entity to submit a notification of a change to the information contained in the application or of newly obtained information in the prescribed manner

serious

5.03

11.14(1)

Failure of an applicant to submit a requested clarification within the prescribed time and in the prescribed manner, together with the required information

serious

5.04

11.17(1)

Failure of a registered person or entity to submit a requested clarification within the prescribed time and in the prescribed manner, together with the prescribed information

serious

5.05

11.19

Failure of a registered person or entity to renew their registration in the prescribed manner and within the prescribed time

serious

5.06

11.2

Failure of a registered person or entity to submit a notification of the cessation of an activity for which they are registered, within the prescribed time and in the prescribed manner, together with the prescribed information

serious

121 Part 2 of the schedule to the Regulations is replaced by the following:

PART 2

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

Item

Column 1

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

Column 2

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

Column 3




Short-form Description

Column 4



Classification of Violation

1

9(1)

7(1)(a)

Failure of a financial entity to report the receipt of $10,000 or more in cash, together with the required information

minor

2

9(1)

7(1)(b)

Failure of a financial entity to report the initiation of an electronic funds transfer of $10,000 or more, together with the required information

minor

3

9(1)

7(1)(c)

Failure of a financial entity to report the final receipt of an electronic funds transfer of $10,000 or more, together with the required information

minor

4

9(1)

7(1)(d)

Failure of a financial entity to report the transfer of $10,000 or more in virtual currency, together with the required information

minor

5

9(1)

7(1)(e)

Failure of a financial entity to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

6

9(1)

8(3)(a)

Failure of a financial entity to report a change to the required information within the prescribed period

minor

7

9(1)

8(3)(b)(i)

Failure of a financial entity to verify, in accordance with the prescribed frequency, that the prescribed conditions continue to be met

minor

8

9(1)

8(3)(b)(ii)

Failure of a financial entity to ensure, in accordance with the prescribed frequency, that a senior officer of the financial entity confirms that the conditions continue to be met

minor

9

9(1)

8(3)(b)(iii)

Failure of a financial entity to send a report containing the required information in accordance with the prescribed frequency

minor

10

9(3)

9(a)

Failure of a financial entity to include on the specified list the name and address of each client

minor

11

9(3)

9(b)

Failure of a financial entity to maintain the specified list in the required manner

minor

12

6

10

Failure of a financial entity to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

13

6

11

Failure of a financial entity to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

14

6

12

Failure of a financial entity to keep the required records in respect of every account that it opens or transaction that is conducted with it

minor

15

6

13

Failure of a financial entity to keep the required records in respect of every credit card account that it opens and every transaction connected to that account

minor

16

6

14

Failure of a financial entity to keep the required records in respect of every prepaid payment product account that it opens and every transaction made by means of a prepaid payment product connected to that account

minor

17

6

15

Failure of a trust company to keep the required records in respect of a trust for which it is trustee

minor

18

9.4(1)(a)

16(2)

Failure of the specified financial entity to keep the required records

minor

19

9.4(1)(e)

16(3)

Failure of the specified financial entity to take reasonable measures to ascertain whether the specified foreign financial institution has in place the prescribed policies and procedures and, if not, to take the required measures

serious

20

9(1)

18

Failure of the specified life insurance company or life insurance broker or agent to report the receipt of $10,000 or more in cash, together with the required information

minor

21

9(1)

19

Failure of the specified life insurance company or life insurance broker or agent to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

22

6

20

Failure of the specified life insurance company or life insurance broker or agent to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

23

6

21

Failure of a life insurance company or life insurance broker or agent to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

24

6

22

Failure of a life insurance company or life insurance broker or agent to keep an information record in connection with the specified sale at the prescribed time

minor

25

6

23

Failure of the specified life insurance company or life insurance broker or agent to keep the required record in respect of a corporation

minor

26

9(1)

25

Failure of the specified securities dealer to report the receipt of $10,000 or more in cash, together with the required information

minor

27

9(1)

26

Failure of the specified securities dealer to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

28

6

27

Failure of a securities dealer to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

29

6

28

Failure of a securities dealer to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

30

6

29

Failure of a securities dealer to keep the required records in respect of every account they open

minor

31

9(1)

30(1)(a)

Failure of a money services business to report the receipt of $10,000 or more in cash, together with the required information

minor

32

9(1)

30(1)(b)

Failure of a money services business to report the initiation of an electronic funds transfer of $10,000 or more, together with the required information

minor

33

9(1)

30(1)(c)

Failure of a money services business to report the final receipt of an electronic funds transfer of $10,000 or more, together with the required information

minor

34

9(1)

30(1)(d)

Failure of a money services business to report the initiation of an electronic funds transfer of $10,000 or more, together with the required information, if the electronic funds transfer is finally received by the same money services business

minor

35

9(1)

30(1)(e)

Failure of a money services business to report the final receipt of an electronic funds transfer of $10,000 or more, together with the required information, if the electronic funds transfer was initiated by the same money services business

minor

36

9(1)

30(1)(f)

Failure of a money services business to report the transfer of $10,000 or more in virtual currency, together with the required information

minor

37

9(1)

30(1)(g)

Failure of a money services business to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

38

6

31

Failure of a money services business to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

39

6

32

Failure of a money services business to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

40

9(1)

33(1)(a)

Failure of a foreign money services business to report the receipt of $10,000 or more in cash, together with the required information

minor

41

9(1)

33(1)(b)

Failure of a foreign money services business to report the initiation of an electronic funds transfer of $10,000 or more, together with the required information

minor

42

9(1)

33(1)(c)

Failure of a foreign money services business to report the final receipt of an electronic funds transfer of $10,000 or more, together with the required information

minor

43

9(1)

33(1)(d)

Failure of a foreign money services business to report the initiation of an electronic funds transfer of $10,000 or more, together with the required information, if the electronic funds transfer is finally received by the same foreign money services business

minor

44

9(1)

33(1)(e)

Failure of a foreign money services business to report the final receipt of an electronic funds transfer of $10,000 or more, together with the required information, if the electronic funds transfer was initiated by the same foreign money services business

minor

45

9(1)

33(1)(f)

Failure of a foreign money services business to report the transfer of $10,000 or more in virtual currency, together with the required information

minor

46

9(1)

33(1)(g)

Failure of a foreign money services business to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

47

6

34

Failure of a foreign money services business to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

48

6

35

Failure of foreign money services business to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

49

6

36

Failure of a money services business or foreign money services business to keep the required records

minor

50

6

37

Failure of the specified money services business or foreign money services business to keep the required records

minor

51

9(1)

39

Failure of a British Columbia notary public or British Columbia notary corporation to report the receipt of $10,000 or more in cash, together with the required information

minor

52

9(1)

40

Failure of a British Columbia notary public or British Columbia notary corporation to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

53

6

41

Failure of a British Columbia notary public or British Columbia notary corporation to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

54

6

42

Failure of a British Columbia notary public or British Columbia notary corporation to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

55

6

43

Failure of a British Columbia notary public or British Columbia notary corporation to keep the required records

minor

56

9(1)

48

Failure of the specified accountant or accounting firm to report the receipt of $10,000 or more in cash, together with the required information

minor

57

9(1)

49

Failure of the specified accountant or accounting firm to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

58

6

50

Failure of an accountant or accounting firm to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

59

6

51

Failure of an accountant or accounting firm to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

60

6

52

Failure of an accountant or accounting firm to keep the required records

minor

61

9(1)

54

Failure of the specified real estate broker or sales representative to report the receipt of $10,000 or more in cash, together with the required information

minor

62

9(1)

55

Failure of the specified real estate broker or sales representative to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

63

6

56

Failure of a real estate broker or sales representative to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

64

6

57

Failure of a real estate broker or sales representative to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

65

6

58(1)

Failure of a real estate broker or sales representative to keep the required records

minor

66

9(1)

60

Failure of the specified real estate developer to report the receipt of $10,000 or more in cash, together with the required information

minor

67

9(1)

61

Failure of the specified real estate developer to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

68

6

62

Failure of a real estate developer to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

69

6

63

Failure of a real estate developer to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

70

6

64

Failure of a real estate developer to keep the required records

minor

71

9(1)

66

Failure of the specified dealer in precious metals and precious stones to report the receipt of $10,000 or more in cash, together with the required information

minor

72

9(1)

67

Failure of the specified dealer in precious metals and precious stones to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

73

6

68

Failure of a dealer in precious metals and precious stones to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

74

6

69

Failure of a dealer of precious metals and precious stones to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

75

9(1)

70(1)(a)

Failure of a casino to report the receipt of $10,000 or more in cash, together with the required information

minor

76

9(1)

70(1)(b)

Failure of a casino to report the initiation of an electronic funds transfer of $10,000 or more, together with the required information

minor

77

9(1)

70(1)(c)

Failure of a casino to report the final receipt of an electronic funds transfer of $10,000 or more, together with the required information

minor

78

9(1)

70(1)(d)

Failure of a casino to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

79

9(1)

71

Failure of a casino to report the disbursement of $10,000 or more in the specified transactions, together with the required information

minor

80

6

72(1)

Failure of a casino to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

81

6

73

Failure of a casino to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

82

6

74

Failure of a casino to keep the required records

minor

83

9(1)

78

Failure of the specified department or agent or mandatary of Her Majesty in right of Canada or of a province to report the receipt of $10,000 or more in cash, together with the required information

minor

84

9(1)

79

Failure of the specified department or agent or mandatary of Her Majesty in right of Canada or of a province to report the receipt of $10,000 or more in virtual currency, together with the required information

minor

85

6

80

Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to keep a large cash transaction record in respect of the receipt of $10,000 or more in cash

minor

86

6

81

Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to keep a large virtual currency transaction record in respect of the receipt of $10,000 or more in virtual currency

minor

87

6

82

Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to keep the required records

minor

88

6.1

84

Failure of a person or entity to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

89

6.1

85(1)

Failure of the specified person or entity to take reasonable measures to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

90

6.1

85(2)

Failure of the specified person or entity to keep the required record

minor

91

6.1

86

Failure of a financial entity to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

92

6.1

87

Failure of a financial entity to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

93

6.1

88

Failure of a financial entity to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

94

6.1

89

Failure of a trust company to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

95

9.4(1)(a)

90(1)(a)

Failure of the specified financial entity to ascertain, in the prescribed manner, the required information

minor

96

9.4(1)(a)

90(1)(b)

Failure of the specified financial entity to take reasonable measures to ascertain, in the prescribed manner, the required information and to conduct required monitoring

minor

97

9.4(1)(a)

91(a)

Failure of the specified financial entity to take reasonable measures to ascertain whether the foreign financial institution has met the prescribed requirements

minor

98

9.4(1)(a)

91(b)

Failure of the specified financial entity to take reasonable measures to ascertain whether the foreign financial institution has agreed to provide the relevant client identification information

minor

99

6.1

92

Failure of a life insurance company or life insurance broker or agent to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

100

6.1

94

Failure of a securities dealer to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

101

6.1

95(1), (3) or (4)

Failure of a money services business or foreign money services business to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

102

6.1

96

Failure of a British Columbia notary public or British Columbia notary corporation to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

103

6.1

100

Failure of an accountant or accounting firm to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

104

6.1

101(1)

Failure of a real estate broker or sales representative to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

105

6.1

101(4)

Failure of a real estate broker or sales representative to keep the required record

minor

106

6.1

102

Failure of a real estate developer to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

107

6.1

103

Failure of a casino to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

108

6.1

104

Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to verify in the prescribed manner and within the prescribed period the identity of the specified person or entity

minor

109

6

108

Failure of a person or entity required to verify a person’s identity to keep the required record

minor

110

6

109(6)

Failure of a person or entity required to verify a corporation’s identity to keep the required record

minor

111

6

111(2)

Failure of the specified person or entity to verify the corporation’s identity as soon as feasible

minor

112

6

112(4)

Failure of a person or entity required to verify an entity other than a corporation’s identity to keep the required record

minor

113

6.1

114(2)

Failure of the specified person or entity to verify an entity other than a corporation’s identity as soon as feasible

minor

114

9.3(1)

116(1)(a)

Failure of a financial entity to take reasonable measures to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person

minor

115

9.3(1)

116(1)(b)

Failure of a financial entity to take reasonable measures to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member of, or a person who is closely associated with, one of those persons

minor

116

9.3(1)

116(2)

Failure of a financial entity to take reasonable measures on a periodic basis to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person

minor

117

9.3(1)

116(3)

Failure of a financial entity to take reasonable measures to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member of, or a person who is closely associated with, one of those persons

minor

118

9.3(1)

117(a)

Failure of a life insurance company or life insurance broker or agent to take reasonable measures to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member of, or a person who is closely associated with, one of those persons

minor

119

9.3(1)

117(b)

Failure of a life insurance company or life insurance broker or agent to take reasonable measures to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member of, or a person who is closely associated with, one of those persons

minor

120

9.3(1)

119(1)

Failure of a securities dealer to take reasonable measures to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person

minor

121

9.3(1)

119(2)

Failure of a securities dealer to take reasonable measures on a periodic basis to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member of one of those persons or a person who is closely associated with a politically exposed foreign person

minor

122

9.3(1)

119(3)

Failure of a securities dealer to take reasonable measures to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member of, or person who is closely associated with, one of those persons

minor

123

9.3(1)

120(1)

Failure of a money services business to take reasonable measures to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member of, or a person who is closely associated with, one of those persons

minor

124

9.3(1)

120(2)

Failure of a foreign money services business to take reasonable measures to determine whether the specified person is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member of, or person who is closely associated with, one of those persons

minor

125

9.3(2)

121(1)(a) or (2)

Failure of the specified financial entity or securities dealer to take reasonable measures to establish the source of funds or virtual currency that have been, will be or are expected to be deposited in to an account and the sources of the person’s wealth

minor

126

9.3(2)

121(1)(b) or (2)

Failure of the specified financial entity or securities dealer to obtain the required approval

minor

127

9.3(2)

121(1)(c) or (2)

Failure of the specified financial entity or securities dealer to take the special measures

minor

128

9.3(2)

121(3)

Failure of the specified financial entity or securities dealer to take the required actions within the prescribed period

minor

129

9.3(2)

122(1)(a)

Failure of the specified financial entity, life insurance company, life insurance broker or agent, money services business or foreign money services business to take reasonable measures to establish the sources of funds or virtual currency used for the specified transaction and the sources of the person’s wealth

minor

130

9.3(2)

122(1)(b)

Failure of the specified financial entity, life insurance company, life insurance broker or agent, money services business or foreign money services business to ensure that a member of senior management reviews the specified transaction

minor

131

9.3(2)

122(2)(a)

Failure of the specified financial entity, money services business or foreign money services business to take reasonable measures to establish the sources of the virtual currency used for the specified transaction and the sources of the person’s wealth

minor

132

9.3(2)

122(2)(b)

Failure of the specified financial entity, money services business or foreign money services business to ensure that a member of senior management reviews the specified transaction

minor

133

9.3(2)

122(3)

Failure of the specified financial entity, money services business or foreign money services business to ensure that a member of senior management reviews the specified transaction

minor

134

9.3(2)

122(4)(a)

Failure of the specified life insurance company or life insurance broker or agent to take reasonable measures to establish the sources of the funds or virtual currency received from the specified person and the sources of the beneficiary’s wealth

minor

135

9.3(2)

122(4)(b)

Failure of the specified life insurance company or life insurance broker or agent to ensure that a member of senior management approves the specified transaction

minor

136

9.3(2)

122(5)

Failure of the specified financial entity, life insurance company, life insurance broker or agent, money services business or foreign money services business to take reasonable measures to establish the sources of the funds or virtual currency used for the specified transaction and the sources of the person’s wealth

minor

137

9.3(2)

122(5)

Failure of the specified financial entity, life insurance company, life insurance broker or agent, money services business or foreign money services business to ensure that a member of senior management reviews the specified transaction

minor

138

9.3(2)

122(6)

Failure of the specified financial entity, money services business or foreign money services business to take reasonable measures to establish the sources of the virtual currency used for the specified transaction and the sources of the person’s wealth

minor

139

9.3(2)

122(6)

Failure of the specified financial entity, money services business or foreign money services business to ensure that a member of senior management reviews the specified transaction

minor

140

9.3(2)

122(7)

Failure of the specified financial entity, money services business or foreign money services business to ensure that a member of senior management reviews the specified transaction

minor

141

9.3(2)

122(8)

Failure of the specified life insurance company or life insurance broker or agent to take reasonable measures to establish the sources of the funds or virtual currency received from the specified person and the sources of the beneficiary’s wealth

minor

142

9.3(2)

122(8)

Failure of the specified life insurance company or life insurance broker or agent to ensure that a member of senior management approves the specified transaction

minor

143

9.3(2)

122(9)

Failure of the financial entity, life insurance company or life insurance broker or agent, money services business or foreign money services business to take the required reasonable measures within the prescribed time

minor

144

9.3(2)

122(10)

Failure of a life insurance company or life insurance broker or agent to take the required reasonable measures within the prescribed time

minor

145

6

123(1)

Failure of the specified financial entity or securities dealer to keep the required record

minor

146

6

123(2)

Failure of the specified financial entity, money services business or foreign money services business to keep the required record

minor

147

6

123(3)

Failure of the specified life insurance company or life insurance broker or agent to keep the required record

minor

148

9(1)

125

Failure to convert foreign currency or virtual currency transactions into Canadian dollars using the prescribed rate

minor

149

9(1)

132(1)

Failure to send a report electronically, if the sender has the technical capabilities to do so, in accordance with guidelines prepared by the Centre

minor

150

9(1)

132(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 Centre

minor

151

9(1)

133(1)

Failure to report to the Centre an electronic funds transfer within the prescribed period

minor

152

9(1)

133(2)

Failure to report to the Centre a transfer or receipt of virtual currency within the prescribed period

minor

153

9(1)

133(3)

Failure to report to the Centre the receipt of $10,000 or more in cash in respect of the specified disbursement within the prescribed period

minor

154

6

135(1)

Failure of the specified person or entity to take reasonable measures to determine whether the specified person is acting on behalf of a third party

minor

155

6

135(2)

Failure of the specified person or entity to take reasonable measures to obtain the required information and keep the required record

minor

156

6

135(3)

Failure of the specified person or entity to keep the required record

minor

157

6

136(1)

Failure of the specified person or entity to take reasonable measures to determine whether the specified person is acting on behalf of a third party

minor

158

6

136(2)

Failure of the specified person or entity to take reasonable measures to obtain the required information and keep the required record

minor

159

6

136(3)

Failure of the specified person or entity to keep the required record

minor

160

6

137(1)

Failure of the specified person or entity to take reasonable measures to determine whether the specified beneficiary is acting on behalf of a third party

minor

161

6

137(2)

Failure of the specified person or entity to take reasonable measures to obtain the required information and keep the required record

minor

162

6

137(3)

Failure of the specified person or entity to keep the required record

minor

163

6

138(1)

Failure of the specified person or entity to take reasonable measures when opening an account to determine whether the account is to be used by a third party or on behalf of a third party

minor

164

6

138(2)

Failure of the specified person or entity to take reasonable measures to obtain the required information and keep the required record

minor

165

6

138(3)

Failure of the specified person or entity to keep the required record

minor

166

6

139(1)

Failure of the specified person or entity to take reasonable measures to determine whether the specified person or entity is acting on behalf of a third party

minor

167

6

139(2)

Failure of the specified person or entity to take reasonable measures to obtain the required information and keep the required record

minor

168

6

139(3)

Failure of the specified person or entity to keep the required record

minor

169

6

140(1)

Failure of the specified casino to take reasonable measures to determine whether the specified person or entity is acting on behalf of a third party

minor

170

6

140(2)

Failure of the specified casino to take reasonable measures to obtain the required information and keep the required record

minor

171

6

140(3)

Failure of the specified casino to keep the required record

minor

172

6

141(1) and (1.1)

Failure of the specified person or entity to obtain the required information

minor

173

6

141(2)

Failure of the specified person or entity to take reasonable measures to confirm the accuracy of the specified information

minor

174

6

141(3)

Failure of the specified person or entity to keep the required record

minor

175

6

141(4)(a)

Failure of the specified person or entity to take reasonable measures to ascertain the identity of the specified person

serious

176

6

141(4)(b)

Failure of the specified person or entity to take the special measures

serious

177

6

141(5)

Failure of the specified person or entity to determine whether a not-for-profit organization is a prescribed entity and to keep the required record

minor

178

6

142

Failure of the specified trust company to keep the required record concerning an inter vivos trust

minor

179

6

147

Failure to keep a copy of the report sent to the Centre

minor

180

6

148

Failure of the specified person or entity to keep the required record

minor

181

6

149

Failure of the specified person or entity to keep the required record

minor

182

6

151(1)

Failure of the specified person or entity to keep a required record for the prescribed period

minor

183

6

152

Failure to keep a record in the prescribed manner

minor

184

9.6(1)

159(1)(a)

Failure of the specified person or entity to appoint a person to be responsible for the implementation of a compliance program

serious

185

9.6(1)

159(1)(b)

Failure of the specified person or entity to develop and apply the specified compliance policies and procedures

serious

186

9.6(1)

159(1)(c) and (2)

Failure of the specified person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors

serious

187

9.6(1)

159(1)(d) and (e)

Failure of the specified person or entity to develop and maintain the specified program and to deliver training

serious

188

9.6(1)

159(1)(f)

Failure of the specified person or entity to institute and document the specified plan within the prescribed period

serious

189

9.6(1)

159(4)

Failure of the specified entity to report within the prescribed period

serious

122 The heading of Part 3 of the schedule to the French version of the Regulations is replaced by the following:

Loi sur le recyclage des produits de la criminalité et le financement des activités terroristes et Règlement sur la déclaration des opérations douteuses — recyclage des produits de la criminalité et financement des activités terroristes

123 Items 1 to 8 of Part 3 of the schedule to the Regulations are replaced by the following:

Item

Column 1


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

Column 2

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

Column 3





Short-form Description

Column 4




Classification of Violation

1

7

9(1)

Failure to make the specified report containing the required information

serious

2

7

9(2)

Failure to send the report within the prescribed period

serious

3

7.1

10

Failure to make the specified report containing the required information and to send it without delay

very serious

4

7

12

Failure to send the specified report electronically, if the sender has the technical capabilities to do so, in accordance with guidelines prepared by the Centre

serious

5

7

12

Failure to send the specified report in paper format, if the sender does not have the technical capabilities to send electronically, in accordance with guidelines prepared by the Centre

serious

6

6

12.1(1)

Failure to keep a copy of the report submitted to the Centre for the prescribed period

minor

124 Part 4 of the schedule to the Regulations is repealed.

Coming into Force

125 These Regulations come into force on the first anniversary of the day on which they are registered.