Version of document from 2017-06-17 to 2020-05-31:
Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations
SOR/2007-292
PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT
Registration 2007-12-13
Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations
P.C. 2007-1921 2007-12-13
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 73.1(1)Footnote a of the Proceeds of Crime (Money Laundering) and Terrorist Financing ActFootnote b, hereby makes the annexed Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.
Return to footnote aS.C. 2006, c. 12, s. 40
Return to footnote bS.C. 2000, c. 17; S.C. 2001, c. 41, s. 48
Interpretation
1 In these Regulations, Act means the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
2 The short-form descriptions that are set out in column 2 of Part 1 of the schedule, and column 3 of Parts 2, 3 and 4 of the schedule, form no part of these Regulations and are inserted for convenience of reference only.
- SOR/2008-194, s. 1
Violations
3 The contravention of any of the following provisions is a violation that may be proceeded with under sections 73.11 to 73.5 of the Act:
(a) a provision of the Act set out in Column 1 of Part 1 of the schedule;
(b) a provision of the Act and a provision of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations set out in Columns 1 and 2 of Part 2 of the schedule;
(c) a provision of the Act and a provision of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations set out in Columns 1 and 2 of Part 3 of the schedule; and
(d) a provision of the Act and a provision of the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations set out in Columns 1 and 2 of Part 4 of the schedule.
- SOR/2008-194, s. 2
Classification
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 to 4 of the schedule.
(2) A series of minor violations identified on a notice of violation shall be considered to be a serious violation for the purpose of section 73.21 of the Act if the total of the penalties for the violations set out in the notice is equal to or greater than $10,000.
- SOR/2008-194, s. 3
Penalties
5 Subject to subsection 73.1(2) of the Act, the range of penalties in respect of a violation is
(a) $1 to $1,000 in the case of a minor violation;
(b) $1 to $100,000 in the case of a serious violation; and
(c) $1 to $500,000 in the case of a very serious violation.
Additional Criteria
6 For the purposes of section 73.11 of the Act, the history of compliance by the person or entity with the Act, other than Part 2 of the Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations are prescribed as criteria that are to be taken into account in determining the amount of a penalty.
- SOR/2008-194, s. 4
Service of Documents
7 (1) Service of any document under Part 4.1 of the Act may be made
(a) in the case of a person, by
(i) personally serving the document on the person,
(ii) leaving the document with someone who appears to be an adult member of the same household at the last known address or usual place of residence of the person, or
(iii) sending the document by registered mail, courier, fax or other electronic means to the person’s last known address or usual place of residence; and
(b) in the case of an entity, by
(i) leaving the document at the entity’s head office or place of business, with an officer or other person who appears to be in control or management of the head office or place of business,
(ii) sending the document by registered mail, courier or fax to the head office or place of business of the entity, or
(iii) sending the document by electronic means other than by fax to any person referred to in subparagraph (i).
(2) If a document is sent by fax or other electronic means, a copy of it shall also be sent by registered mail to the person’s last known address or usual place of residence, or, in the case of an entity, to the entity’s head office or place of business.
8 In the absence of proof to the contrary, a document — other than a document that is personally served — is deemed to be served
(a) in the case of a document that is left with an adult referred to in subparagraph 7(1)(a)(ii), on the day the document is left with the adult;
(b) in the case of a document that is sent by registered mail or courier, on the tenth day after the date indicated in the receipt issued by the postal or courier service; and
(c) in the case of a document sent by fax or other electronic means, on the day of transmission.
Interest Rate Determination
9 (1) For the purposes of section 73.28 of the Act, the prescribed rate of interest at any time in a particular quarter is the total of:
(a) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter; and
(b) four per cent.
(2) The interest referred to in subsection (1) is calculated and compounded monthly.
(3) For the purposes of subsection (1) quarter means a period of three consecutive months ending on March 31, June 30, September 30 or December 31.
Coming into Force
10 These Regulations come into force on December 30, 2008.
SCHEDULE(Sections 2, 3 and 4)
PART 1
Proceeds of Crime (Money Laundering) and Terrorist Financing Act
| Column 1 | Column 2 | Column 3 | |
|---|---|---|---|
| Item | Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Act | Short-form Description | Classification of Violation |
| 1 | 9.4(2) | Having a correspondent banking relationship with a shell bank | serious |
| 2 | 9.7(1) | Failure to develop policies that establish requirements similar to those of sections 6, 6.1 and 9.6 of the Act and to ensure that foreign branches and foreign subsidiaries apply those policies | serious |
| 3 | 9.7(2) | Applying policies that establish requirements similar to those of sections 6, 6.1 and 9.6 of the Act before they are approved by a board of directors | serious |
| 4 | 9.7(4) | Failure to keep and retain a record of the fact that a foreign branch or foreign subsidiary cannot apply a policy and of the reasons why it cannot do so or to notify the Centre and the principal supervisory or regulating agency or body within a reasonable time | minor |
| 4.1 | 9.8(1) | Failure of an entity to develop and apply policies and procedures related to the exchange of information between it and affiliated entities | serious |
| 5 | 11.1 | Failure to be registered with the Centre | serious |
| 5.1 | 11.43 | Failure to comply with a ministerial directive | very serious |
| 5.2 | 11.44(1) | Failure to ensure that a foreign branch or foreign subsidiary complies with a ministerial directive | very serious |
| 5.3 | 11.44(2) | Failure to keep and retain a record of the fact that a foreign branch or foreign subsidiary cannot comply with a ministerial directive and of the reasons why it cannot do so or to notify the Centre and the principal supervisory or regulating agency or body within a reasonable time | serious |
| 6 | 62(2) | Failure to give reasonable assistance and information reasonably required to an authorized person | serious |
| 7 | 63.1(2) | Failure to provide, in accordance with a notice, documents or other information reasonably required by an authorized person | serious |
PART 2
Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
| Column 1 | Column 2 | Column 3 | Column 4 | |
|---|---|---|---|---|
| Item | Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Act | Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations | Short-form Description | Classification of Violation |
| 1 | 9(1) | 2 | Failure to convert foreign currency transactions into Canadian dollars using the prescribed rate | minor |
| 2 | 9(1) | 4(1) | Failure to send a report electronically, if the sender has the technical capabilities, in accordance with the guidelines prepared by the Centre | minor |
| 3 | 9(1) | 4(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 |
| 4 | 9(1) | 5(1) | Failure to report an electronic funds transfer no later than five working days after the transfer | minor |
| 5 | 9(1) | 5(2) | Failure to report a large casino disbursement or a transaction for which a large transaction record must be kept within 15 days after the disbursement or transaction | minor |
| 6 | 6 | 8(1) | Failure to take reasonable measures to determine if an individual giving cash is acting on behalf of a third party | minor |
| 7 | 6 | 8(2) | Failure to keep a record of prescribed information respecting third parties | minor |
| 8 | 6 | 8(3) | Failure to keep a record of prescribed information respecting suspected third parties | minor |
| 9 | 6 | 9(1) | Failure to take reasonable measures when opening an account to determine if the account is to be used by or on behalf of a third party | minor |
| 10 | 6 | 9(2) | Failure to keep a record of prescribed information respecting third parties | minor |
| 11 | 6 | 9(3) | Failure to keep a record of prescribed information in respect of suspected third parties | minor |
| 12 | 6 | 10(1) | Failure to take reasonable measures when client information record is created to determine whether the client is acting on behalf of a third party. | minor |
| 13 | 6 | 10(2) | Failure to keep a record of prescribed information when it is determined that the client is acting on behalf of a third party | minor |
| 14 | 6 | 10(3) | Failure to keep a record of prescribed information when there are reasonable grounds to suspect that the client is acting on behalf of a third party | minor |
| 15 | 6 | 11 | Failure of a trust company to keep a record of prescribed information concerning inter vivos trusts | minor |
| 15.1 | 6 | 11.1(1) | Failure to obtain the prescribed information | minor |
| 15.2 | 6 | 11.1(2) | Failure to take reasonable measures to confirm the accuracy of the prescribed information | minor |
| 15.3 | 6 | 11.1(3) | Failure to keep a record of the prescribed information and the measures taken to confirm its accuracy | minor |
| 15.4 | 6 | 11.1(4)(a) | Failure to take reasonable measures to ascertain the identity of an entity’s most senior managing officer | serious |
| 15.5 | 6 | 11.1(4)(b) | Failure to treat activities in respect of the entity as high risk and to take the prescribed special measures | serious |
| 15.6 | 6 | 11.1(5) | Failure to determine whether a not-for-profit organization is a prescribed entity and to keep a record of the determination | minor |
| 16 | 9(1) | 12(1)(a) | Failure of a financial entity to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 17 | 9(1) | 12(1)(b) | Failure of a financial entity to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 18 | 9(1) | 12(1)(c) | Failure of a financial entity to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 19 | 6 | 13 | Failure of a financial entity to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transaction | minor |
| 20 | 6 | 14 | Failure of a financial entity to keep prescribed records | minor |
| 20.1 | 6 | 14.1 | Failure of a financial entity to keep a prescribed record in respect of every credit card account that it opens | minor |
| 21 | 6 | 15 | Failure of a trust company to keep prescribed records in respect of a trust for which it is trustee | minor |
| 21.1 | 9.4(1)(a) | 15.1(1) and (2) | Failure of a specified entity entering into a correspondent banking relationship with a prescribed foreign entity to keep a prescribed record | minor |
| 21.2 | 9.4(1)(c) | 15.1(1) | Failure of a specified entity entering into a correspondent banking relationship with a prescribed foreign entity to obtain the approval of senior management | minor |
| 21.3 | 9.4(1)(d) | 15.1(1) | Failure of a specified entity entering into a correspondent banking relationship with a prescribed foreign entity to set out in writing their obligations and those of the foreign entity in respect of the correspondent banking services | minor |
| 21.4 | 9.4(1)(e) | 15.1(1) and (3) | Failure of a specified entity to take reasonable measures to ascertain whether a prescribed foreign entity with whom it has entered into a correspondent banking relationship has in place prescribed policies and procedures and, if they are not in place, to take prescribed measures | minor |
| 22 | 9(1) | 17 | Failure of a life insurance company or life insurance broker or agent who receives from a client an amount in cash of $10,000 or more in the course of a single transaction to report the transaction together with the prescribed information | minor |
| 23 | 6 | 18 | Failure of a life insurance company or life insurance broker or agent to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transaction | minor |
| 24 | 6 | 19(1) | Failure of a life insurance company or life insurance broker or agent to keep a client information record in respect of every annuity or policy for which $10,000 or more is paid | minor |
| 25 | 6 | 20 | Failure of a life insurance company or life insurance broker or agent to keep prescribed records of a corporate client | minor |
| 25.1 | 6 | 20.1 | Failure of a life insurance company or life insurance broker or agent to keep a record of prescribed information when a transaction is reviewed | minor |
| 26 | 9(1) | 21 | Failure of a securities dealer who receives from a client an amount in cash of $10,000 or more in the course of a single transaction to report the transaction together with the prescribed information | minor |
| 27 | 6 | 22 | Failure of a securities dealer to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transaction | minor |
| 28 | 6 | 23 | Failure of a securities dealer to keep prescribed records | minor |
| 29 | 9(1) | 28(1)(a) | Failure of a money services business to report the receipt from a client of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 30 | 9(1) | 28(1)(b) | Failure of a money services business to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 31 | 9(1) | 28(1)(c) | Failure of a money services business to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 32 | 6 | 29 | Failure of a money services business to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transaction | minor |
| 33 | 6 | 30 | Failure of a money services business to keep prescribed records | minor |
| 33.1 | 6 | 31 | Failure of a specified money services business to keep a record of prescribed information when a transaction is reviewed | minor |
| 33.2 | 6 | 32 | Failure of a specified money services business to keep a record of prescribed information | minor |
| 33.3 | 9 | 33.1 | Failure of a British Columbia notary public or notary corporation to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 33.4 | 6 | 33.2(1) | Failure of a British Columbia notary public or notary corporation to keep prescribed records | minor |
| 33.5 | 6 | 33.2(2) | Failure of a British Columbia notary public or notary corporation to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transaction | minor |
| 33.6 | 6 | 33.4 | Failure of a legal counsel or legal firm to keep prescribed records | minor |
| 33.7 | 6 | 33.5(a) | Failure of a legal counsel or legal firm to keep prescribed records | minor |
| 34 | 9(1) | 35 | Failure of an accountant or accounting firm to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 35 | 6 | 36(1) | Failure of an accountant or accounting firm to keep prescribed records | minor |
| 36 | 6 | 36(2) | Failure of an accountant or accounting firm to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transaction | minor |
| 37 | 9(1) | 38 | Failure of a real estate broker or sales representative to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 38 | 6 | 39(1) | Failure of a real estate broker or sales representative to keep prescribed records | minor |
| 39 | 6 | 39(2) | Failure of a real estate broker or sales representative to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transaction | minor |
| 39.1 | 9(1) | 39.2 | Failure of a dealer in precious metals and stones to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 39.2 | 6 | 39.3 | Failure of a dealer in precious metals and stones to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that is received from a client in the course of a single transaction | minor |
| 39.3 | 9(1) | 39.6 | Failure of a real estate developer to report the receipt of an amount of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 39.4 | 6 | 39.7(1) | Failure of a real estate developer to keep prescribed records when engaging in a prescribed activity | minor |
| 39.5 | 6 | 39.7(2) | Failure of a real estate developer when engaging in a prescribed activity to keep a large cash transaction record in respect of every amount of $10,000 or more that they receive in the course of a single transaction | minor |
| 40 | 9(1) | 40(1)(a) | Failure of a casino to report the receipt of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 41 | 9(1) | 40(1)(b) | Failure of a casino to report the sending out of Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 42 | 9(1) | 40(1)(c) | Failure of a casino to report the receipt from outside Canada of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 43 | 6 | 41(1) | Failure of a casino to keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transaction | minor |
| 44 | 9(1) | 42(1) | Failure of a casino to report the disbursement of $10,000 or more in the course of prescribed transactions, together with the prescribed information | minor |
| 45 | 6 | 43 | Failure of a casino to keep prescribed records | minor |
| 45.1 | 6 | 44(1) | Failure of a casino to take reasonable measures to determine if a person who receives a prescribed disbursement is acting on behalf of a third party | minor |
| 45.2 | 6 | 44(2) | Failure of a casino to keep a record of prescribed information when it is determined that the client is acting on behalf of a third party | minor |
| 45.3 | 6 | 44(3) | Failure of a casino to keep a record of prescribed information when there are reasonable grounds to suspect that the client is acting on behalf of a third party | minor |
| 46 | 9(1) | 47 | Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to report the receipt from a client of an amount in cash of $10,000 or more in the course of a single transaction, together with the prescribed information | minor |
| 47 | 6 | 48 | 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 every amount in cash of $10,000 or more that they receive from a client in the course of a single transaction | minor |
| 48 | 6 | 49 | Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to keep prescribed records | minor |
| 49 | 9(1) | 50(3) | Failure of a specified financial entity to report changes in prescribed information within 15 days of the change | minor |
| 50 | 9(1) | 50(4)(a) | Failure of a specified financial entity to verify at least once every 12 months that prescribed conditions are still met in respect of each client | minor |
| 51 | 9(1) | 50(4)(b) | Failure of a specified financial entity to report prescribed information at least once every 12 months | minor |
| 51.1 | 6 | 52.1 | Failure to keep a record of the purpose and intended nature of a business relationship | minor |
| 52 | 6.1 | 53, 64(1) and 64(2)(b) | Failure of a specified person or entity to ascertain in the prescribed manner and within the prescribed period the identity of every individual with whom the person or entity conducts a transaction in respect of which a record must be kept | minor |
| 52.1 | 6.1 | 53.1, 64(1) and 64(2)(b.1) | Failure to take reasonable measures to ascertain in the prescribed manner and within the prescribed period the identity of every person with whom a transaction that is required to be reported to the Centre is conducted or is attempted to be conducted | minor |
| 52.2 | 9.2 | 53.2, 64, 65 and 66 | Opening an account for a client by a specified person or entity in the prescribed circumstances when the identity of the client cannot be established in accordance with prescribed measures | serious |
| 53 | 6.1 | 54(a), 64(1) and 64(2)(a) | Failure of a financial entity to ascertain in the prescribed manner and within the prescribed period the identity of every person for whom a signature card is created | minor |
| 54 | 6.1 | 54(b), 64(1) and 64(2)(b) | Failure of a financial entity to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transaction or transfer | minor |
| 55 | 6.1 | 54(d), 65(1) and 65(2)(a) | Failure of a financial entity to confirm in the prescribed manner and within the prescribed period the existence of, and the prescribed information in respect of, corporations for which the financial entity opens an account | minor |
| 56 | 6.1 | 54(e), 66(1) and 66(2)(a) | Failure of a financial entity to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which the financial entity opens an account. | minor |
| 56.1 | 6.1 | 54.1(a), 64(1) and 64(2)(b.2) | Failure of a financial entity to ascertain in the prescribed manner and within the prescribed period the identity of every person for whom the financial entity opens a credit card account | minor |
| 56.2 | 6.1 | 54.1(b), 65(1) and 65(2)(a.1) | Failure of a financial entity to ascertain in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, a corporation for which the financial entity opens a credit card account | minor |
| 56.3 | 6.1 | 54.1(c), 66(1) and 66(2)(a.1) | Failure of a financial entity to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which the financial entity opens a credit card account | minor |
| 56.4 | 9.3(1) | 54.2(1)(a) and 67.1(3) | Failure of a financial entity to take reasonable measures within the prescribed period to determine whether a person for whom it opens an account 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 |
| 56.5 | 9.3(1) | 54.2(1)(b) and 67.2(5) | Failure of a financial entity to take reasonable measures within the prescribed period to determine whether a person who requests that an electronic funds transfer of $100,000 or more be initiated or on whose behalf the request is made is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons | minor |
| 56.6 | 9.3(1) | 54.2(1)(c) and 67.2(5) | Failure of a financial entity to take reasonable measures within the prescribed period to determine whether the beneficiary of an electronic funds transfer of $100,000 or more is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons | minor |
| 56.7 | 9.3(1) | 54.2(2) | Failure of a financial entity to 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 of one of those persons or a person who is closely associated with a politically exposed foreign person | minor |
| 56.71 | 6 | 54.2(3) and 67.1(3) | Failure of a financial entity that detects a fact that constitutes reasonable grounds to suspect that an account holder is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons to take reasonable measures within the prescribed period to determine whether they are such a person | minor |
| 56.8 | 6 | 54.3, 56.3, 57.2, 59.01, 59.11, 59.21, 59.31, 59.51, 60.1 and 61.1 | Failure to conduct ongoing monitoring of a business relationship and to keep a record of the measures taken and information obtained | minor |
| 56.9 | 6 | 54.4, 56.4, 57.3, 59.02, 59.12, 59.22, 59.32, 59.52, 60.2 and 61.2 | Failure to treat activities in respect of a person as high risk and to take the prescribed special measures | serious |
| 57 | 6.1 | 55(a), 64(1) and 64(2)(c) | Failure of a trust company to ascertain in the prescribed manner and within the prescribed period the identity of every person who is the settlor of an inter vivos trust | minor |
| 58 | 6.1 | 55(b), 65(1) and 65(2)(b) | Failure of a trust company to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation that is the settlor of an institutional trust | minor |
| 59 | 6.1 | 55(c), 66(1) and 66(2)(b) | Failure of a trust company to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, that is the settlor of an institutional trust | minor |
| 60 | 6.1 | 55(d)(i), 65(1), 65(2)(b) or 55(d)(i), 66(1) and 66(2)(b) | Failure of a trust company to confirm in the prescribed manner and within the prescribed period the existence of — and, in the case of a corporation, the prescribed information in respect of — an entity that is authorized to act as a co-trustee of any trust | minor |
| 61 | 6.1 | 55(d)(ii), 64(1) and 64(2)(c) | Failure of a trust company to ascertain in the prescribed manner and within the prescribed period the identity of persons who are authorized to give instructions with respect to an entity’s activities as co-trustee | minor |
| 62 | 6.1 | 55(e), 64(1) and 64(2)(c) | Failure of a trust company to ascertain in the prescribed manner and within the prescribed period the identity of each person who is authorized to act as co-trustee of any trust | minor |
| 62.1 | 9.4(1)(a) | 55.1(a) | Failure of a financial entity that enters into a correspondent banking relationship with a foreign financial institution to ascertain, in the prescribed manner, prescribed information in respect of the foreign financial institution | minor |
| 62.2 | 9.4(1)(a) | 55.1(b) | Failure of a financial entity that enters into a correspondent banking relationship with a foreign financial institution to take reasonable measures to ascertain, in the prescribed manner, prescribed information in respect of the foreign financial institution and to conduct prescribed monitoring | minor |
| 62.3 | 9.4(1)(a) | 55.2(a) | Failure of a financial entity that enters into a correspondent banking relationship with a foreign financial institution to take reasonable measures to ascertain whether the institution has met the prescribed requirements | minor |
| 62.4 | 9.4(1)(a) | 55.2(b) | Failure of a financial entity that enters into a correspondent banking relationship with a foreign financial institution to take reasonable measures to ascertain whether the institution has agreed to provide customer identification data | minor |
| 63 | 6.1 | 56(1), 64(1) and 64(2)(d) | Failure of a life insurance company or life insurance broker or agent to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for which a client information record is required to be kept | minor |
| 64 | 6.1 | 56(3), 65(1) and 65(2)(c) | Failure of a life insurance company or life insurance broker or agent to confirm in the prescribed manner and within the prescribed period the existence of, and the prescribed information in respect of, every corporation in respect of which they are required to keep a client information record | minor |
| 65 | 6.1 | 56(4), 66(1) and 66(2)(c) | Failure of a life insurance company or life insurance broker or agent to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, in respect of which they are required to keep a client information record | minor |
| 65.1 | 9.3(1) | 56.1 and 67.2(5) | Failure of a life insurance company or life insurance broker or agent to take reasonable measures within the prescribed period to determine whether a person who makes a lump-sum payment of $100,000 or more in respect of an immediate or deferred annuity or life insurance policy on their own behalf or on behalf of a third party is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons | minor |
| 66 | 6.1 | 57(1), 64(1) and 64(2)(a) | Failure of a securities dealer to ascertain in the prescribed manner and within the prescribed period the identity of every person who is authorized to give instructions in respect of an account for which a record must be kept | minor |
| 67 | 6.1 | 57(3), 65(1) and 65(2)(d) | Failure of a securities dealer to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation for which they open an account | minor |
| 68 | 6.1 | 57(4), 66(1) and 66(2)(d) | Failure of a securities dealer to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which they open an account | minor |
| 68.1 | 9.3(1) | 57.1(1) and 67.1(3) | Failure of a securities dealer to take reasonable measures within the prescribed period 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 of one of those persons or a person who is closely associated with a politically exposed foreign person | minor |
| 68.2 | 9.3(1) | 57.1(2) | Failure of a securities dealer to 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 of one of those persons or a person who is closely associated with a politically exposed foreign person | minor |
| 68.3 | 9.3(1) | 57.1(3) and 67.1(3) | Failure of a securities dealer that detects a fact that constitutes reasonable grounds to suspect that an account holder is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons to take reasonable measures within the prescribed period to determine whether they are such a person | minor |
| 69 | 6.1 | 59(1)(a), 64(1) and 64(2)(b) | Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction of $3,000 or more for the issuance or redemption of money orders, traveller’s cheques or other similar negotiable instruments | minor |
| 70 | 6.1 | 59(1)(b), 64(1) and 64(2)(b) | Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction for the remittance or transmission of $1,000 or more | minor |
| 71 | 6.1 | 59(1)(c), 64(1) and 64(2)(b) | Failure of a money services business to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a foreign currency exchange transaction of $3,000 or more | minor |
| 72 | 6.1 | 59(2), 65(1) and 65(2)(c) | Failure of a money services business to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation in respect of which a client information record is required to be kept | minor |
| 73 | 6.1 | 59(3), 66(1) and 66(2)(c) | Failure of a money services business to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, in respect of which a client information record is required to be kept | minor |
| 73.1 | 9.3(1) | 59(5)(a) and 67.2(5) | Failure of a money services business to take reasonable measures within the prescribed period to determine whether a person who requests that an electronic funds transfer of $100,000 or more be initiated or on whose behalf the request is made is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons | minor |
| 73.11 | 9.3(1) | 59(5)(b) and 67.2(5) | Failure of a money services business to take reasonable measures within the prescribed period to determine whether the beneficiary of an electronic funds transfer of $100,000 or more is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization or a family member of, or person who is closely associated with, one of those persons | minor |
| 73.12 | 6.1 | 59.1(a), 64(1) and 64(2)(e) | Failure of an accountant or accounting firm to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transaction | minor |
| 73.13 | 6.1 | 59.1(b), 65(1) and 65(2)(e) | Failure of an accountant or accounting firm to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation on whose behalf a prescribed transaction is conducted | minor |
| 73.14 | 6.1 | 59.1(c), 66(1) and 66(2)(e) | Failure of an accountant or accounting firm to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, on whose behalf a prescribed transaction is conducted | minor |
| 73.15 | 6.1 | 59.2(1)(a), 64(1) and 64(2)(e) | Failure of a real estate broker or sales representative to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transaction | minor |
| 73.16 | 6.1 | 59.2(1)(b), 65(1) and 65(2)(e) | Failure of a real estate broker or sales representative to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation on whose behalf a prescribed transaction is conducted | minor |
| 73.17 | 6.1 | 59.2(1)(c), 66(1) and 66(2)(e) | Failure of a real estate broker or sales representative to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, on whose behalf a prescribed transaction is conducted | minor |
| 73.18 | 6.1 | 59.2(3) | Failure of a real estate broker or sales representative that represents a party to a prescribed transaction to ascertain the identity or confirm the existence of parties that are not represented by a real estate broker or sales representative | minor |
| 73.19 | 6.1 | 59.3(a), 64(1) and 64(2)(b) | Failure of a British Columbia notary public or notary corporation to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transaction | minor |
| 73.2 | 6.1 | 59.3(b), 65(1) and 65(2)(e) | Failure of a British Columbia notary public or notary corporation to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation on whose behalf a prescribed transaction is conducted | minor |
| 73.21 | 6.1 | 59.3(c), 66(1) and 66(2)(e) | Failure of a British Columbia notary public or notary corporation to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, on whose behalf a prescribed transaction is conducted | minor |
| 73.22 | 6.1 | 59.4(1)(a), 64(1) and 64(2)(b) | Failure of a legal counsel or a legal firm to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a prescribed transaction | minor |
| 73.23 | 6.1 | 59.4(1)(b), 65(1) and 65(2)(e) | Failure of a legal counsel or a legal firm to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation on whose behalf a prescribed transaction is conducted | minor |
| 73.24 | 6.1 | 59.4(1)(c), 66(1) and 66(2)(e) | Failure of a legal counsel or a legal firm to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, on whose behalf a prescribed transaction is conducted | minor |
| 73.25 | 6.1 | 59.5(a), 64(1) and 64(2)(b) | Failure of a real estate developer to ascertain in the prescribed manner and within the prescribed period the identity of a person who conducts a prescribed transaction | minor |
| 73.26 | 6.1 | 59.5(b), 65(1) and 65(2)(e) | Failure of a real estate developer to confirm in the prescribed manner and within the prescribed period the existence of, and the prescribed information in respect of, corporations on whose behalf a prescribed transaction is conducted | minor |
| 73.27 | 6.1 | 59.5(c), 66(1) and 66(2)(e) | Failure of a real estate developer to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, on whose behalf a prescribed transaction is conducted | minor |
| 74 | 6.1 | 60(a), 64(1) and 64(2)(e.1) | Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person for whom a signature card is created in respect of an account that the casino opens | minor |
| 75 | 6.1 | 60(b)(i), 64(1) and 64(2)(b) | Failure of a casino to confirm in the prescribed manner and within the prescribed time the identity of every person who receives a prescribed amount from the casino | minor |
| 76 | 6.1 | 60(b)(ii), 64(1) and 64(2)(b) | Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a transaction of $3,000 or more with the casino for which an extension of credit record is required | minor |
| 77 | 6.1 | 60(b)(iii), 64(1) and 64(2)(b) | Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who conducts a foreign currency exchange transaction of $3,000 or more with the casino for which a transaction ticket is required to be kept | minor |
| 78 | 6.1 | 60(b)(iv), 64(1) and 64(2)(b) | Failure of a casino to ascertain in the prescribed manner and within the prescribed period the identity of every person who requests that an amount of $1,000 or more be remitted or transmitted | minor |
| 79 | 6.1 | 60(e), 65(1) and 65(2)(a) | Failure of a casino to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation for which the casino opens an account | minor |
| 80 | 6.1 | 60(f), 66(1) and 66(2)(a) | Failure of a casino to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, for which the casino opens an account | minor |
| 81 | 6.1 | 61(a), 64(1) and 64(2)(d) | Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to ascertain in the prescribed manner and within the prescribed period the identity of every person in respect of whom a client information record is required to be kept | minor |
| 82 | 6.1 | 61(b), 64(1) and 64(2)(b) | Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to ascertain in the prescribed manner and within the prescribed period the identity of every person in respect of whom no client information record is required to be kept and who conducts a transaction that involves an amount of $3,000 or more for the issuance or redemption of money orders or other similar negotiable instruments | minor |
| 83 | 6.1 | 61(c), 65(1) and 65(2)(c) | Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to confirm in the prescribed manner and within the prescribed period the existence of, and prescribed information in respect of, every corporation in respect of which a client information record is kept | minor |
| 84 | 6.1 | 61(d), 66(1) and 66(2)(c) | Failure of a department or agent or mandatary of Her Majesty in right of Canada or of a province to confirm in the prescribed manner and within the prescribed period the existence of every entity, other than a corporation, in respect of which a client information record is kept | minor |
| 84.1 | 6 | 64.1(3) | Failure to have entered into a written agreement or arrangement with an agent or mandatary, to obtain from them the information that the agent or mandatary referred to in order to ascertain a person’s identity and the information that the agent or mandatary verified as being that of the person and to be satisfied that the information is valid and current and that the person’s identity was ascertained in the prescribed manner | minor |
| 84.2 | 6 | 64.2 | Failure of a person or entity that is required to ascertain a person’s identity to keep prescribed information | minor |
| 85 | 6 | 65(3) | Failure of a person or entity who ascertains information in respect of a corporation by referring to an electronic version of a record to keep a prescribed record | minor |
| 86 | 6 | 65(4) | Failure of a person or entity who ascertains information in respect of a corporation by referring to a paper copy of a record to retain the record or a copy of it | minor |
| 87 | 6 | 66(3) | Failure of a person or entity who ascertains information in respect of an entity by referring to an electronic version of a record to keep a prescribed record | minor |
| 88 | 6 | 66(4) | Failure of a person or entity who ascertains information in respect of an entity by referring to a paper copy of a record to retain the record or a copy of it | minor |
| 88.1 | 9.5(a) | 66.1(1) and (2) | Failure of a prescribed person or entity to include prescribed information in prescribed electronic funds transfers | minor |
| 88.2 | 9.5(b) | 66.1(1) and (2) | Failure of a prescribed person or entity to take reasonable measures to ensure that any transfer that the person or entity receives includes prescribed information | minor |
| 89 | [Repealed, SOR/2016-153, s. 118] | |||
| 89.1 | 9.3(2) | 67.1(1)(a), (2) and (3) | Failure of a financial entity or securities dealer to take reasonable measures within the prescribed period to establish the source of funds that have been, will be or are expected to be deposited in an account | minor |
| 89.2 | 9.3(2) | 67.1(1)(b), (2) and (3) | Failure of a financial entity or securities dealer to obtain within the prescribed period the approval of senior management to keep an account open | minor |
| 89.3 | 9.3(2) | 67.1(1)(c) and (2) | Failure of a financial entity or securities dealer to conduct enhanced ongoing monitoring of the activities in respect of an account | minor |
| 89.4 | 9.3(2) | 67.2(1)(a), (2) and (5) | Failure of a financial entity, life insurance company, life insurance broker or agent or money services business to take reasonable measures within the prescribed period to establish the source of funds used for a prescribed transaction | minor |
| 89.5 | 9.3(2) | 67.2(1)(b), (2), (3), (4) and (5) | Failure of a financial entity, life insurance company, life insurance broker or agent or money services business to ensure that a member of senior management reviews a prescribed transaction within the prescribed period | minor |
| 89.6 | 9.3(2) | 67.3 | Failure to keep a record of reasonable measures taken, the date of each measure and the reasons why the measures were unsuccessful | minor |
| 90 | 6 | 69(1) | Failure of a person or entity that is required to obtain, keep or create records to retain those records for a period of at least five years | minor |
| 91 | 6 | 70 | Failure to retain records in such a way that they can be provided to an authorized person within 30 days after their request | minor |
| 92 | 9.6(1) | 71(1)(a) | Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance program | serious |
| 93 | 9.6(1) | 71(1)(b) | Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer | serious |
| 94 | 9.6(1) | 71(1)(c) | Failure of a 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 |
| 95 | 9.6(1) | 71(1)(d) | Failure of a person or entity that has employees, agents or mandataries or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or mandataries or persons | serious |
| 96 | 9.6(1) | 71(1)(e) | Failure of a person or entity to institute and document the prescribed review | serious |
| 97 | 9.6(1) | 71(2) | Failure of a person or entity to report prescribed information within 30 days after assessment | serious |
| 98 | 9.6(3) | 71.1 | Failure of a person or entity to take the prescribed special measures | serious |
PART 3
Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations
| Column 1 | Column 2 | Column 3 | Column 4 | |
|---|---|---|---|---|
| Item | Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Act | Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations | Short-form Description | Classification of Violation |
| 1 | 7 | 9(1) | Failure of a person or entity to include prescribed information in a report | very serious |
| 2 | 7 | 9(2) | Failure of a person or entity to send a report within the prescribed period | serious |
| 3 | 7.1 | 10 | Failure of a person or entity to send a report containing the prescribed information without delay | very serious |
| 4 | 7 | 12(1) | Failure to send report electronically, if the sender has the technical capabilities, in accordance with the guidelines prepared by the Centre | serious |
| 5 | 7 | 12(2) | Failure to send report in paper format, if the sender does not have the technical capabilities to send electronically, in accordance with the guidelines prepared by the Centre | serious |
| 6 | 7 | 12(3) | Failure to submit a report in paper format in accordance with the guidelines prepared by the Centre | serious |
| 7 | 6 | 12.1 | Failure of a person or entity to keep a copy of a report submitted to the Centre | minor |
| 8 | 6 | 12.3(1) | Failure of a person or entity to keep a copy of a prescribed report for the prescribed period | minor |
PART 4
Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations
| Column 1 | Column 2 | Column 3 | Column 4 | |
|---|---|---|---|---|
| Item | Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Act | Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations | Short-form Description | Classification of Violation |
| 1 | 11.12(1) | 4(a) and 5 | Failure of an applicant or a registered person or entity to submit an application for registration in the prescribed manner and with the prescribed information | serious |
| 2 | 11.13 | 4(b) and 5 | Failure of an applicant or a registered person or entity to submit a notification of a change to the information provided in a prescribed application in the prescribed manner and with the prescribed information | serious |
| 3 | 11.13 | 4(c) and 5 | Failure of an applicant or a registered person or entity to submit a notification of newly obtained information in the prescribed manner and with the prescribed information | serious |
| 4 | 11.14(1) | 4(d) and 5 | Failure of an applicant to submit a requested clarification within the prescribed time, in the prescribed manner and with the prescribed information | serious |
| 5 | 11.17(1) | 4(d) and 5 | Failure of a registered person or entity to submit a requested clarification within the prescribed period, in the prescribed manner and with the prescribed information | serious |
| 6 | 11.19 | 4(e), 5 and 6.1 | Failure of a registered person or entity to submit an application to renew their registration within the prescribed period, in the prescribed manner and with the prescribed information | serious |
| 7 | 11.2 | 4(f) and 6 | Failure of a registered person or entity that ceases an activity for which they are registered to submit notification of the cessation within the prescribed period, in the prescribed manner and with the prescribed information | serious |
- SOR/2008-194, ss. 5 to 27
- SOR/2016-153, ss. 100, 101(E), 102, 103(E), 104 to 111, 112(E), 113 to 119, 120 to 122(E), 123(F)
- Date modified: