Redline version of relevant section of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Proceeds of Crime (Money Laundering) and Terrorist Financing Act
S.C. 2000, c. 17

Record Keeping, Verifying Identity, Reporting of Suspicious Transactions and Registration

Application

5 This Part applies to the following persons and entities:

(a) authorized foreign banks within the meaning of section 2 of the Bank Act in respect of their business in Canada, or banks to which that Act applies;

(b) cooperative credit societies, savings and credit unions and caisses populaires regulated by a provincial Act and associations regulated by the Cooperative Credit Associations Act;

(c) life companies or foreign life companies to which the Insurance Companies Act applies or life insurance companies regulated by a provincial Act;

(d) companies to which the Trust and Loan Companies Act applies;

(e) trust companies regulated by a provincial Act;

(e.1) trust companies incorporated or formed by or under a provincial Act that are not regulated by a provincial Act;

(f) loan companies regulated by a provincial Act;

(g) persons and entities authorized under provincial legislation to engage in the business of dealing in securities or any other financial instruments or to provide portfolio management or investment advising services, other than persons who act exclusively on behalf of such an authorized person or entity;

(h) persons and entities that have a place of business in Canada and that are engaged in the business of providing at least one of the following services:

(i) foreign exchange dealing,

(ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,

(ii.‍1) transporting currency or money orders, traveller’s cheques or other similar negotiable instruments,

(iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named person or entity,

(iv) dealing in virtual currencies, or

(v) any prescribed service;

(h.1) persons and entities that do not have a place of business in Canada, that are engaged in the business of providing at least one of the following services that is directed at persons or entities in Canada, and that provide those services to their clients in Canada:

(i) foreign exchange dealing,

(ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,

(ii.‍1) transporting currency or money orders, traveller’s cheques or other similar negotiable instruments,

(iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named person or entity,

(iv) dealing in virtual currencies, or

(v) any prescribed service;

(i) persons and entities engaged in a prescribed business, profession or activity;

(j) persons and entities engaged in a prescribed business or profession, while carrying out a prescribed activity;

(k) the government of a province that, in accordance with paragraph 207(1)(a) of the Criminal Code,

(i) in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games, or

(ii) in any other permanent establishment, conducts and manages games that are operated on or through a slot machine, as defined in subsection 207(4.01) of the Criminal Code, or any other similar electronic gaming device, if there are more than 50 of those machines or other devices in the establishment;

(k.1) the government of a province that, in accordance with paragraph 207(1)(a) of the Criminal Code, conducts and manages a lottery scheme, other than bingo or the sale of lottery tickets, that is accessible to the public through the Internet or other digital network, except if the network is an internal network within an establishment described in subparagraph (k)(ii);

(k.2) an organization that, in accordance with paragraph 207(1)(b) of the Criminal Code, in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games, unless the organization is a registered charity, as defined in subsection 248(1) of the Income Tax Act, and the lottery scheme is conducted or managed for a period of not more than two consecutive days at a time;

(k.3) the board of a fair or of an exhibition, or the operator of a concession leased by such a board, that, in accordance with paragraph 207(1)(c) of the Criminal Code, in a permanent establishment that is held out to be a casino, conducts and manages a lottery scheme that includes games of roulette or card games;

(l) departments and agents or mandataries of Her Majesty in right of Canada or of a province that are engaged in the business of accepting deposit liabilities, that issue or sell money orders to, or redeem them from, the public or that sell prescribed precious metals, while carrying out a prescribed activity; and

(m) for the purposes of section 7, employees of a person or entity referred to in any of paragraphs (a) to (l).

Solicitor-client privilege or professional secrecy

11 Nothing in this Act requires a legal counsel to disclose any communication that is subject to solicitor-client privilege or, in Quebec, the professional secrecy of legal counsel.

Disclosure without consent

11.01 (1) A person or entity referred to in section 5 may disclose an individual’s personal information to another person or entity referred to in that section without the individual’s knowledge or consent if

(a) the information was collected in the course of the person or entity’s activities;

(b) the disclosure is reasonable for the purpose of detecting or deterring money laundering, terrorist activity financing or sanctions evasion;

(c) making the disclosure with the individual’s knowledge or consent would risk compromising the ability to detect or deter money laundering, terrorist activity financing or sanctions evasion; and

(d) the disclosure is made in accordance with the regulations.

Collection and use

(2) A person or entity referred to in section 5 may collect or use an individual’s personal information without their knowledge or consent if the information was disclosed to the person or entity under subsection (1) and the collection or use is carried out in accordance with the regulations.

Immunity

(3) No criminal or civil proceedings lie against a person or an entity that, in good faith, discloses information under subsection (1) or collects or uses information under subsection (2).

Disclosure of designated information

55 (3) If the Centre, on the basis of its analysis and assessment under paragraph 54(1)(c), has reasonable grounds to suspect that designated information would be relevant to investigating or prosecuting a money laundering offence or a terrorist activity financing offence, the Centre shall disclose the information to

(a) the appropriate police force;

(b) the Canada Revenue Agency, if the Centre also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence of obtaining or attempting to obtain a rebate, refund or credit to which a person or entity is not entitled, or of evading or attempting to evade paying taxes or duties imposed under an Act of Parliament administered by the Minister of National Revenue;

(b.01) the Agence du revenu du Québec, if the Centre also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence of obtaining or attempting to obtain a rebate, refund or credit to which a person or entity is not entitled, or of evading or attempting to evade paying taxes imposed under an Act of Parliament or of the legislature of Quebec administered by the Minister of Revenue of Quebec;

(b.1) the Canada Border Services Agency, if the Centre also has reasonable grounds to suspect that the information is relevant to an offence of evading or attempting to evade paying taxes or duties imposed under an Act of Parliament administered by the Agency;

(c) the Canada Revenue Agency, if the Centre also has reasonable grounds to suspect that the information is relevant to determining

(i) whether a registered charity, as defined in subsection 248(1) of the Income Tax Act, has ceased to comply with the requirements of that Act for its registration as such,

(ii) whether a person or entity that the Centre has reasonable grounds to suspect has applied to be a registered charity, as defined in subsection 248(1) of the Income Tax Act, is eligible to be registered as such, or

(iii) whether a person or entity that the Centre has reasonable grounds to suspect may apply to be a registered charity, as defined in subsection 248(1) of the Income Tax Act,

(A) has made or will make available any resources, directly or indirectly, to a listed entity as defined in subsection 83.01(1) of the Criminal Code,

(B) has made available any resources, directly or indirectly, to an entity as defined in subsection 83.01(1) of the Criminal Code that was at that time, and continues to be, engaged in terrorist activities as defined in that subsection or activities in support of them, or

(C) has made or will make available any resources, directly or indirectly, to an entity as defined in subsection 83.01(1) of the Criminal Code that engages or will engage in terrorist activities as defined in that subsection or activities in support of them;

(d) the Canada Border Services Agency, if the Centre also determines that the information is relevant to determining whether a person is a person described in sections 34 to 42 of the Immigration and Refugee Protection Act or is relevant to an offence under any of sections 91, 117 to 119, 126 or 127 of that Act;

(d.1) the Department of Citizenship and Immigration, if the Centre also determines that the information is relevant to determining whether a person is a person described in subsection 10(1), 19(2) or 22(1) of the Citizenship Act;

(e) the Canada Border Services Agency, if the Centre also determines that the information is relevant to investigating or prosecuting an offence of smuggling or attempting to smuggle goods subject to duties or an offence related to the importation or exportation of goods that are prohibited, controlled or regulated under the Customs Act or under any other Act of Parliament;

(f) the Communications Security Establishment, if the Centre also determines that the information is relevant to the foreign intelligence aspect of the Communications Security Establishment’s mandate, referred to in section 16 of the Communications Security Establishment Act; and

(f.1) the Competition Bureau, if the Centre also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under the Competition Act, the Consumer Packaging and Labelling Act, the Precious Metals Marking Act or the Textile Labelling Act or an attempt to commit such an offence;

(g) an agency or body that administers the securities legislation of a province, if the Centre also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under that legislation;

(g.1) an agency or body that administers the civil asset forfeiture legislation of a province, if the Centre also has reasonable grounds to suspect that the information would be relevant to proceedings under that legislation;

(h) the Minister of Foreign Affairs or a Minister designated under subsection 6(2) of the Special Economic Measures Act, if the Centre also determines that the information is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) of that Act; and

(i) the Minister of Foreign Affairs or a Minister designated under subsection 2.1(2) of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law), if the Centre also determines that the information is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) of that Act.

Disclosure — threats to security of Canada

55.1 (1) If the Centre, on the basis of its analysis and assessment under paragraph 54(1)(c), has reasonable grounds to suspect that designated information would be relevant to threats to the security of Canada, the Centre shall disclose the information to

(a) the Canadian Security Intelligence Service;

(b) the appropriate police force, if the Centre also has reasonable grounds to suspect that the information is relevant to investigating or prosecuting an offence under Canadian law that the Centre has reasonable grounds to suspect arises out of conduct constituting such a threat;

(c) the Canada Border Services Agency, if the Centre also has reasonable grounds to suspect that the information is relevant to determining whether a person is a person described in sections 34 to 42 of the Immigration and Refugee Protection Act or is relevant to an offence under any of sections 91, 117 to 119, 126 or 127 of that Act;

(c.1) the Department of Citizenship and Immigration, if the Centre also determines that the information is relevant to determining whether a person is a person described in subsection 10(1), 19(2) or 22(1) of the Citizenship Act;

(d) the Canada Border Services Agency, if the Centre also has reasonable grounds to suspect that the information is relevant to investigating or prosecuting an offence of smuggling or attempting to smuggle goods subject to duties or an offence related to the importation or exportation of goods that are prohibited, controlled or regulated under the Customs Act or under any other Act of Parliament;

(e) the Department of National Defence and the Canadian Forces, if the Centre also has reasonable grounds to suspect that the information is relevant to the conduct of the Department’s or the Canadian Forces’ investigative activities related to such a threat; and

(f) the Office of the Superintendent of Financial Institutions, if the Centre also has reasonable grounds to suspect that the information is relevant to the exercise of the powers or the performance of the duties and functions of the Superintendent under the Office of the Superintendent of Financial Institutions Act.

Regulations

73 (1) The Governor in Council may, on the recommendation of the Minister, make any regulations that the Governor in Council considers necessary for carrying out the purposes and provisions of this Act, including regulations

(a) respecting dealing in virtual currencies;

(b) respecting the keeping of records referred to in section 6;

(c) respecting the verification of the identity of persons and entities referred to in section 6.1 and requiring the reporting to government institutions or agencies of any discrepancies in information on the beneficial ownership or control of an entity arising out of that verification;

(d) respecting the reports to the Centre referred to in section 7 and subsections 7.1(1) and 9(1);

(e) respecting the determination of whether a person is a person described in any of paragraphs 9.3(1)(a) to (c);

(e.1) and (e.2) [Repealed, 2017, c. 20, s. 434]

(f) respecting the measures referred to in subsections 9.3(2) and (2.1);

(g) respecting the measures referred to in subsection 9.4(1);

(h) respecting the program referred to in subsection 9.6(1);

(i) respecting the special measures referred to in subsection 9.6(3);

(i.1) respecting the disclosure of information under subsection 11.01(1) or the collection or use of information under subsection 11.01(2), including the establishment and implementation of codes of practice by persons and entities referred to in section 5 and respecting the roles of the Privacy Commissioner and the Centre in relation to those codes;

(j) respecting the registration referred to in sections 11.1 to 11.2;

(k) respecting the reports referred to in subsection 12(1);

(k.1) respecting the assessments referred to in section 51.1;

(k.2) respecting the assessments referred to in section 51.2; and

(l) prescribing anything that by this Act is to be prescribed.

Publication

73.22(1) In the following cases, the Centre shall make public, as soon as feasible, the nature of the violation or the default, as the case may be, the name of the person or entity and the amount of the applicable penalty:

(a) a person or entity is deemed to have committed a violation under subsection 73.15(1) or (3);

(b) a person or entity is served with a notice of a decision made under subsection 73.15(2) indicating that they have committed a violation;

(c) a person or entity enters into a compliance agreement with the Centre;

(d) a person or entity is issued a notice of default in respect of a compliance agreement they have entered into with the Centre and they

(i) pay the amount they are liable to pay under subsection 73.18(1),

(ii) are served with a notice of a decision made under subsection 73.19(2) confirming the Centre’s decision that the compliance agreement has not been complied with, or

(iii) are deemed under subsection 73.19(3) to have not complied with the compliance agreement.

Publication — reasons

(2) In making public the nature of a violation, the Centre may include the reasons for its decision, including the relevant facts, analysis and considerations that formed part of the decision.

Reporting — section 9

77 (1) Every person or entity that contravenes subsection 9(1) or (3) is guilty of an offence and liable on summary conviction to a fine of not more than $1,000,000.

Reporting — section 11.43

(2) Every person or entity that contravenes section 11.43, only insofar as it relates to any required reporting measure as contemplated by paragraph 11.42(2)(e) and specified in a directive issued under subsection 11.42(1), is guilty of an offence and liable on summary conviction to a fine of not more than $1,000,000.

Verifications and reviews — sections 9.92 and 9.93

77.01 Every person or entity that knowingly contravenes section 9.92 or 9.93 is guilty of an offence and liable

(a) on summary conviction, to a fine of not more than $250,000 or to imprisonment for a term of not more than two years less a day, or to both; or

(b) on conviction on indictment, to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both.