Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (SOR/2002-184)

Life Insurance Companies and Life Insurance Brokers or Agents

• 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 they are acting as a managing general agent.

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

• (a) 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; or

• (b) the transaction

  • (i) involves the sale of an immediate or deferred annuity that is paid for entirely with funds that are directly transferred from a registered pension plan or from a pension plan that is required to be registered under the Pension Benefits Standards Act, 1985, or similar provincial legislation,

  • (ii) involves the sale of a registered annuity policy or a registered retirement income fund,

  • (iii) involves the sale of an immediate or deferred annuity that is paid for entirely with the proceeds of a group life insurance policy, or

  • (iv) is part of a reverse mortgage or structured settlement.

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 4.

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

• (a) 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; or

• (b) the transaction

  • (i) involves the sale of an immediate or deferred annuity that is paid for entirely with funds that are directly transferred from a registered pension plan or from a pension plan that is required to be registered under the Pension Benefits Standards Act, 1985, or similar provincial legislation,

  • (ii) involves the sale of a registered annuity policy or a registered retirement income fund,

  • (iii) involves the sale of an immediate or deferred annuity that is paid for entirely with the proceeds of a group life insurance policy, or

  • (iv) is part of a reverse mortgage or structured settlement.

20.1 [Repealed, SOR/2019-240, s. 28]

20.2 [Repealed, SOR/2019-240, s. 28]

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

  • (a) for which they are to receive an amount of $10,000 or more over the duration of the annuity or policy; or

  • (b) under which they are to remit an amount of $10,000 or more to a beneficiary over the duration of the annuity or policy.

• (2) The information record

  • (a) in connection with the sale referred to in paragraph (1)(a) shall be created when the life insurance company or life insurance broker or agent establishes the annuity or policy and shall be kept, subject to subsection (3), in respect of the annuitant or policy holder; and

  • (b) in connection with the sale referred to in paragraph (1)(b) shall be created before the life insurance company or life insurance broker or agent first remits funds or virtual currency to the beneficiary under the annuity or policy and shall be kept in respect of the beneficiary.

• (3) In the case of a life insurance policy that is a group life insurance policy or in the case of a group annuity, the information record shall be kept in respect of the applicant for the policy or annuity.

• (4) Paragraph (2)(b) does not apply if the life insurance company or life insurance broker or agent, due to facts or circumstances beyond its control, is unable to create the information record within the time period in which they are required, under federal or provincial legislation, to first remit funds or virtual currency to the beneficiary.

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 the 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.

Factors

24.1 A factor is engaged in a business or profession for the purposes of paragraph 5(i) of the Act.

• 24.11 (1) A factor shall report the following transactions and information to the Centre:

  • (a) the receipt from a person or entity of an amount of $10,000 or more in cash in a single transaction, together with the information set out in Schedule 1; and

  • (b) the receipt from a person or entity of an amount of $10,000 or more in virtual currency in a single transaction, together with the information set out in Schedule 4.

• (2) A factor is not required to report the transaction and information under paragraph (1)(a) if 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.

24.12 A factor 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 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.

24.13 A factor 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 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.

24.14 A factor shall keep the following records in respect of every factoring agreement that it enters into:

• (a) an information record in respect of the person or entity with whom it enters into the agreement;

• (b) if the information record is in respect of an entity, a record of the name, address and date of birth of every person who enters into the agreement on behalf of the entity and the nature of the person’s principal business or their occupation;

• (c) if the information record is in respect of a corporation, 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 factor;

• (d) a record of the financial capacity of the person or entity with which it enters into the agreement and the terms of the agreement;

• (e) for any payment it makes, a record of

  • (i) the date of the payment,

  • (ii) if the payment is in funds, the type and amount of each type of funds involved,

  • (iii) if the payment is not in funds, the type of payment and its value,

  • (iv) the method by which the payment is made,

  • (v) the name of every person or entity involved in the payment, and

  • (vi) every account number or other equivalent reference number connected to the payment; and

• (f) a receipt of funds record in respect of every amount of $3,000 or more that it receives, 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.

Financing or Leasing Entities

24.15 A financing or leasing entity is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when it is financing or leasing

• (a) property, other than real property or immovables, for business purposes;

• (b) passenger vehicles in Canada; or

• (c) property, other than real property or immovables, that is valued at $100,000 or more.

24.16 A financing or leasing entity that receives an amount of $10,000 or more in cash in a single transaction in connection with an activity referred to in section 24.15 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.

24.17 A financing or leasing entity 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 24.15 shall report the transaction to the Centre, together with the information set out in Schedule 4.

24.18 A financing or leasing entity shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that it receives in a single transaction in connection with an activity referred to in section 24.15, 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.

24.19 A financing or leasing 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 in a single transaction in connection with an activity referred to in section 24.15, 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.

24.2 A financing or leasing entity shall keep the following records in connection with an activity referred to in section 24.15 in respect of every financing or leasing arrangement that it enters into:

• (a) an information record in respect of the person or entity with which it enters into the arrangement;

• (b) if the information record is in respect of an entity, a record of the name, address and date of birth of every person who enters into the arrangement on behalf of the entity and the nature of the person’s principal business or their occupation;

• (c) if the information record is in respect of a corporation, 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 financial or leasing entity;

• (d) a record of the financial capacity of the person or entity with which it enters into the arrangement and the terms of the arrangement; and

• (e) in respect of every payment that it receives under the arrangement, other than a payment 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, a record of

  • (i) the date of the payment,

  • (ii) the name of the person or entity that makes the payment,

  • (iii) the amount of the payment and of any part of it that is made in cash, and

  • (iv) the method by which the payment is made.

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 4.

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.