Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

154 (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), 119(1) to (3) and 120.2(1), (2) and (4) do not apply in respect of

• (a) a business account, if the financial entity, securities dealer or casino has already verified the identity of at least three persons who are authorized to give instructions in respect of the account;

• (b) a person who already has an account with the financial entity, securities dealer or casino, as the case may be; or

• (c) an account that is opened at the request of an entity for the deposit by a life insurance company that is affiliated with the entity of a death benefit under a life insurance policy or annuity if

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

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

  • (iii) the policy or annuity contract under which the claim for the death benefit is made has been in existence for a period of at least two years before the day on which the claim is made; and

• (d) an account that is opened for the sale of mutual funds if there are reasonable grounds to believe that identity has been verified in accordance with subsection 105(1) by a securities dealer in respect of

  • (i) the sale of the mutual funds for which the account has been opened, or

  • (ii) a transaction that is part of a series of transactions that includes that sale.

(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 to 120.2 and 123 do not apply in respect of

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

• (b) the sale of a group life insurance policy that does not provide for a cash surrender value or a savings component;

• (c) 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;

• (d) the sale of a registered annuity policy or a registered retirement income fund;

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

• (f) a transaction that is part of a reverse mortgage or structured settlement;

• (g) the opening of an account for the deposit and sale of shares from a corporate demutualization or the privatization of a Crown corporation;

• (h) the opening of an account in the name of an affiliate of a financial entity, if the affiliate carries out activities that are similar to those of persons and entities referred to in paragraphs 5(a) to (g) of the Act;

• (i) the opening of a registered plan account, including a locked-in retirement plan account, a registered retirement savings plan account and a group registered retirement savings plan account;

• (j) the opening of an account established in accordance with the escrow requirements of a Canadian securities regulator or Canadian stock exchange or provincial legislation;

• (k) the opening of an account if the account holder or settlor is a pension fund that is regulated under federal or provincial legislation;

• (l) the opening of an account in the name of, or in respect of which instructions are authorized to be given by, a financial entity, a securities dealer, a life insurance company or an investment fund that is regulated under provincial securities legislation;

• (m) a public body;

• (n) a corporation or trust that has minimum net assets of $75 million on its last audited balance sheet, whose shares or units are traded on a Canadian stock exchange or a stock exchange designated under subsection 262(1) of the Income Tax Act and that operates in a country that is a member of the Financial Action Task Force;

• (o) a subsidiary of a public body referred to in paragraph (m) or a corporation or trust referred to in paragraph (n) whose financial statements are consolidated with the financial statements of that public body, corporation or trust; or

• (p) the opening of an account solely in the course of providing accounting services to a securities dealer.

(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

• (a) the member’s contributions are made by the sponsor of the plan or by means of payroll deductions; and

• (b) the identity of the plan sponsor has been verified in accordance with subsection 109(1) or 112(1).

(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.