Budget Implementation Act, 2017, No. 1 (S.C. 2017, c. 20)

Consequential Amendments

R.S., c. A-1Access to Information Act

404 Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to

and a corresponding reference to “section 28”.

R.S., c. F-11Financial Administration Act

405 Part I of Schedule III to the Financial Administration Act is amended by adding, in alphabetical order, a reference to

R.S., c. M-13; 2000, c. 8, s. 2Payments in Lieu of Taxes Act

406 Schedule IV to the Payments in Lieu of Taxes Act is amended by adding, in alphabetical order, a reference to

DIVISION 192000, c. 17; 2001, c. 41, s. 48Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Amendments to the Act

• 407 (1) The definition courier in section 2 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is repealed.

• (2) The definition client in section 2 of the Act is replaced by the following:

  client

  client includes a person or entity that engages in a financial transaction with another person or entity. (client)

• (3) Section 2 of the Act is amended by adding the following in alphabetical order:

  foreign state

  foreign state, except for the purposes of Part 2, means a country other than Canada and includes any political subdivision or territory of a foreign state. (État étranger)

• (4) Section 2 of the Act is renumbered as subsection 2(1) and is amended by adding the following:

  • Marginal note:Definitions — regulations

    (2) The Governor in Council may, on the recommendation of the Minister, make regulations defining the following words and expressions:

    • (a) courier;

    • (b) monetary instruments;

    • (c) shell bank; and

    • (d) identifying information, for the purposes of subsection 54.1(3).

• 408 (1) Section 5 of the Act is amended by adding the following after paragraph (e):

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

• (2) Paragraphs 5(i) and (j) of the Act are replaced by the following:

  • (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;

• (3) Paragraph 5(l) of the Act is replaced by the following:

  • (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

409 Sections 6 and 6.1 of the Act are replaced by the following:

410 The portion of section 7 of the Act before paragraph (a) is replaced by the following:

411 Subsection 7.1(1) of the Act is replaced by the following:

412 Section 8 of the Act is replaced by the following:

413 The portion of subsection 9(1) of the Act before paragraph (a) is replaced by the following:

414 Sections 9.1 and 9.2 of the Act are replaced by the following:

• 415 (1) The portion of subsection 9.4(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Correspondent banking

  • 9.4 (1) Every entity referred to in any of paragraphs 5(a), (b), (d) and (e) and every other entity that is referred to in section 5 and that is prescribed shall take the measures referred to in the regulations in respect of any correspondent banking relationship it enters into with a prescribed foreign entity and shall take the following measures before entering into such a correspondent banking relationship:

• (2) The portion of subsection 9.4(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Correspondent banking

  • 9.4 (1) Every entity referred to in any of paragraphs 5(a), (b), (d), (e) and (e.1) and every other entity that is referred to in section 5 and that is prescribed shall take the measures referred to in the regulations in respect of any correspondent banking relationship it enters into with a prescribed foreign entity and shall take the following measures before entering into such a correspondent banking relationship:

• (3) Subsection 9.4(3) of the Act is replaced by the following:

  • Marginal note:Definition of correspondent banking relationship

    (3) For the purposes of this section, correspondent banking relationship means a relationship created by an agreement or arrangement under which an entity referred to in any of paragraphs 5(a), (b), (d), (e) and (e.1) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a prescribed foreign entity prescribed services or international electronic funds transfers, cash management or cheque clearing services.

416 Subsection 9.6(3) of the Act is replaced by the following:

417 The Act is amended by adding the following after section 9.6:

• 418 (1) Subsection 9.7(1) of the Act is replaced by the following:

  Marginal note:Foreign branches and subsidiaries

  • 9.7 (1) Every entity referred to in any of paragraphs 5(a) to (g), except for authorized foreign banks within the meaning of section 2 of the Bank Act and for foreign companies within the meaning of subsection 2(1) of the Insurance Companies Act, shall, in respect of its foreign branches, and in respect of its foreign subsidiaries that carry out activities similar to those of entities referred to in those paragraphs and that are either wholly-owned by the entity or have financial statements that are consolidated with those of the entity, develop policies that establish requirements similar to the requirements of sections 6, 6.1 and 9.6 and ensure that those branches and subsidiaries apply those policies to the extent it is permitted by, and does not conflict with, the laws of the foreign state in which the branch or subsidiary is located.

• (2) Subsection 9.7(4) of the Act is replaced by the following:

  • Marginal note:Records and reporting

    (4) If the application by a foreign branch or a foreign subsidiary of a policy referred to in subsection (1) is not permitted by or would conflict with the laws of the foreign state in which the branch or subsidiary is located, the entity shall keep, in accordance with section 6, a record of that fact and of the reasons why it is not permitted or it would conflict and shall, within a reasonable time, notify the Centre, and the principal agency or body that supervises or regulates it under federal or provincial law, of that fact and those reasons.

419 Section 11.1 of the Act is replaced by the following:

• 420 (1) Paragraph 11.11(1)(a) of the Act is replaced by the following:

  • (a) a person or entity that is subject to sanctions associated with terrorist activity or a prohibition relating to financial services under the United Nations Act;

• (2) Subsection 11.11(1) of the Act is amended by adding the following after paragraph (b):

  • (b.1) a person or entity that is subject to a prohibition on financial or related services under the Special Economic Measures Act;

• (3) The portion of paragraph 11.11(1)(c) of the French version of the Act before subparagraph (i) is replaced by the following:

  • c) la personne ou entité condamnée pour l’une ou l’autre des infractions ci-après ou qui a été condamnée pour une infraction essentiellement similaire prévue par les lois d’un État étranger :

• (4) Subparagraphs 11.11(1)(c)(i) to (iv) of the English version of the Act are replaced by the following:

  • (i) a money laundering offence, or an offence under the laws of a foreign state that is substantially similar to a money laundering offence,

  • (ii) a terrorist activity financing offence, or an offence under the laws of a foreign state that is substantially similar to a terrorist activity financing offence,

  • (iii) an offence under this Act or the Proceeds of Crime (money laundering) Act, chapter 26 of the Statutes of Canada, 1991 when convicted on indictment, or an offence under the laws of a foreign state that is substantially similar to an offence under either Act,

  • (iv) an offence under any of sections 83.18 to 83.231, 354 or 467.11 to 467.13 of the Criminal Code, or an offence under the laws of a foreign state that is substantially similar to such an offence, or

• (5) The portion of paragraph 11.11(1)(d) of the Act before subparagraph (i) is replaced by the following:

  • (d) a person or entity that has been convicted on indictment or convicted more than once of an offence under any of the following, or that has been convicted of an offence under the laws of a foreign state that is substantially similar to an offence under any of the following:

• (6) Paragraph 11.11(1)(e) of the Act is replaced by the following:

  • (e) an entity that is a corporation in respect of which a director, the chief executive officer, the president or a person who owns or controls, directly or indirectly, 20% or more of the shares has been convicted on indictment of an offence under this Act or the Proceeds of Crime (money laundering) Act, chapter 26 of the Statutes of Canada, 1991 or has been convicted of an offence under the laws of a foreign state that is substantially similar to an offence under either Act;

421 Subsection 11.12(1) of the Act is replaced by the following:

422 Section 11.41 of the Act is replaced by the following:

• 423 (1) Subsection 11.42(1) of the Act is replaced by the following:

  Marginal note:Minister’s written directive

  • 11.42 (1) In addition to any other measure required by this Act, the Minister may, by written directive, require any person or entity referred to in section 5 to take, in order to safeguard the integrity of Canada’s financial system, any measure specified in the directive with respect to any financial transaction, or any financial transaction within a class of financial transactions, originating from or bound for any foreign state, foreign entity or entity referred to in paragraph 5(e.1), that occurs or is attempted in the course of their activities, or with respect to any activity that is related to any such financial transaction or class of financial transactions.

• (2) Paragraph 11.42(2)(d) of the Act is replaced by the following:

  • (d) the keeping of any records;

• (3) Paragraphs 11.42(4)(a) and (b) of the Act are replaced by the following:

  • (a) an international organization, body, association or coalition or a grouping of states (such as the Financial Action Task Force) of which Canada is a member has called on its members to take measures in relation to a foreign state, foreign entity or entity referred to in paragraph 5(e.1) on the ground that the state’s or entity’s anti-money laundering or anti-terrorist financing measures are ineffective or insufficient; or

  • (b) the anti-money laundering or anti-terrorist financing measures that a foreign state, a foreign entity or an entity referred to in paragraph 5(e.1) has implemented are ineffective or insufficient and, as a result, the Minister is of the opinion that there could be an adverse impact on the integrity of the Canadian financial system or a reputational risk to that system.