SOR/2002-184
What changed
Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
Comparing →
18 modified 24 added
PART 1: Requirements To Report Transactions and To Keep Records
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Money Services Businesses and Foreign Money Services Businesses
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s. 29.1added on 2022-05-02
For the purposes of subparagraphs 5(h)(v) and (h.1)(v) of the Act, crowdfunding platform services are a prescribed service.
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s. 36.1added on 2022-05-02
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(a)
keep an information record in respect of the person or entity to which they provide those services;
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(b)
keep a record of the purpose for which the funds or virtual currency are being raised; and
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(c)
if the person or entity for which the funds or virtual currency are being raised is different from the person or entity referred to in paragraph (a), (i) keep a record of their name, and (ii) take reasonable measures to obtain their address, the nature of their principal business or their occupation and, in the case of a person, their date of birth, and keep a record of the information obtained.
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(i)
keep a record of their name, and
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(ii)
take reasonable measures to obtain their address, the nature of their principal business or their occupation and, in the case of a person, their date of birth, and keep a record of the information obtained.
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PART 2: Requirement To Verify Identity
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Money Services Businesses and Foreign Money Services Businesses
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s. 95
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(1)
A money services business — or a foreign money services business in connection with services that they provide in Canada — shall, in accordance with section 105, verify the identity of a person who (a) requests that they issue or redeem money orders, traveller’s cheques or similar negotiable instruments in an amount of $3,000 or more; (a.1) requests that they transmit an amount of $1,000 or more in funds, other than in the case of an electronic funds transfer; (b) requests that they initiate an electronic funds transfer of $1,000 or more; (c) requests that they exchange an amount of $3,000 or more in a foreign currency exchange transaction; (d) requests that they transfer an amount of $1,000 or more in virtual currency; (e) requests that they exchange an amount of $1,000 or more in a virtual currency exchange transaction; (e.1) is a beneficiary of an amount of $1,000 or more in funds, to whom they make the remittance, other than in the case of an electronic funds transfer;
or(f) is a beneficiary of an international electronic funds transfer of $1,000 or more, or of a transfer of an amount of $1,000 or more in virtual currency, to whom they make the remittance; (g) is a person in respect of whom they are required to keep an information record under paragraph 36.1(a); or (h) donates an amount of $1,000 or more in funds or virtual currency using a crowdfunding platform that is provided and maintained by the money services business or foreign money services business. -
(e.1)
is a beneficiary of an amount of $1,000 or more in funds, to whom they make the remittance, other than in the case of an electronic funds transfer;
or -
(f)
is a beneficiary of an international electronic funds transfer of $1,000 or more, or of a transfer of an amount of $1,000 or more in virtual currency, to whom they make the remittance
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(g)added on 2022-05-02
is a person in respect of whom they are required to keep an information record under paragraph 36.1(a); or
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(h)added on 2022-05-02
donates an amount of $1,000 or more in funds or virtual currency using a crowdfunding platform that is provided and maintained by the money services business or foreign money services business.
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(3)
A money services business — or foreign money services business in connection with services that they provide in Canada — shall, in accordance with section 109, verify the identity of a corporation (a) in respect of which they are required to keep an information record under paragraph 36.1(a); (b) in respect of which they are required to keep an information record under section 37; or (c) that donates an amount of $1,000 or more in funds or virtual currency using a crowdfunding platform that is provided and maintained by the money services business or foreign money services business.
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(a)added on 2022-05-02
in respect of which they are required to keep an information record under paragraph 36.1(a);
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(b)added on 2022-05-02
in respect of which they are required to keep an information record under section 37; or
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(c)added on 2022-05-02
that donates an amount of $1,000 or more in funds or virtual currency using a crowdfunding platform that is provided and maintained by the money services business or foreign money services business.
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(4)
A money services business — or foreign money services business in connection with services that they provide in Canada — shall, in accordance with section 112, verify the identity of an entity, other than a corporation, (a) in respect of which they are required to keep an information record under paragraph 36.1(a); (b) in respect of which they are required to keep an information record under section 37; or (c) that donates an amount of $1,000 or more in funds or virtual currency using a crowdfunding platform that is provided and maintained by the money services business or foreign money services business.
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(a)added on 2022-05-02
in respect of which they are required to keep an information record under paragraph 36.1(a);
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(b)added on 2022-05-02
in respect of which they are required to keep an information record under section 37; or
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(c)added on 2022-05-02
that donates an amount of $1,000 or more in funds or virtual currency using a crowdfunding platform that is provided and maintained by the money services business or foreign money services business.
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PART 3: Measures for Verifying Identity
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s. 105
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(7)
The identity shall be verified (a) in the cases referred to in section 84, subparagraphs 86(a)(iii) and 88(a)(iii), paragraphs 95(1)(a) to (f), 96(a), 97(1)(a), 100(a), 101(1)(a) and 102(a), subparagraphs 103(a)(iii) to (vii) and paragraph 104(a), at the time of the transaction; (b) subject to paragraph (j), in the cases referred to in subparagraphs 86(a)(i) and (ii) and paragraph 94(a), before the first transaction, other than an initial deposit, is carried out on the account; (c) in the case referred to in section 85, before the transaction or attempted transaction is reported under section 7 of the Act; (d) in the case referred to in paragraph 87(a), before any credit card issued on the account is activated; (e) in the case referred to in subparagraph 88(a)(i), before the prepaid payment product account is activated; (f) in the case referred to in subparagraph 88(a)(ii), before the first transaction is carried out by the authorized user on the prepaid payment product account; (g) in the cases referred to in paragraphs 89(a) and (d) and subparagraph 89(e)(i), within 15 days after the day on which the trust company becomes the trustee; (h) subject to paragraph (j), in the case referred to in paragraph 92(a), within 30 days after the day on which the information record is created; (h.1) in the case referred to in paragraph 95(1)(g), at the time the information record is created; (h.2) in the case referred to in paragraph 95(1)(h), at the time of the donation; (i) in the cases referred to in subparagraphs 103(a)(i) and (ii), before any funds are disbursed; and (j) in the case of a group plan account, at the time a contribution in respect of a member of the group plan is made to the plan.
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(h.1)added on 2022-05-02
in the case referred to in paragraph 95(1)(g), at the time the information record is created;
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(h.2)added on 2022-05-02
in the case referred to in paragraph 95(1)(h), at the time of the donation;
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s. 109
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(4)
The corporation’s identity shall be verified (a) in the cases referred to in section 84 and subparagraph 88(b)(ii), at the time of the transaction; (b) in the case referred to in section 85, before the transaction or attempted transaction is reported under section 7 of the Act; (c) in the cases referred to in paragraphs 86(b) and 103(b), before the first transaction, other than the initial deposit, is carried out on the account; (d) in the case referred to in paragraph 87(b), before any credit card issued on the account is activated; (e) in the case referred to in subparagraph 88(b)(i), before the prepaid payment product account is activated; (f) in the cases referred to in paragraph 89(b) and subparagraph 89(e)(ii), within 15 days after the day on which the trust company becomes the trustee; (g) in the cases referred to in
paragraphparagraphs 92(b),subsection95(3)(b) andparagraph104(b), within 30 days after the day on which the information record is created; (h) in the case referred to in paragraph 94(b), within 30 days after the day on which the account is opened; (h.1) in the case referred to in paragraph 95(3)(a), at the time the information record is created; (h.2) in the case referred to in paragraph 95(3)(c), at the time of the donation; and (i) in the cases referred to in paragraphs 96(b), 97(1)(b), 100(b), 101(1)(b) and 102(b), within 30 days after the day on which the transaction is conducted. -
(g)
in the cases referred to in
paragraphparagraphs 92(b),subsection95(3)(b) andparagraph104(b), within 30 days after the day on which the information record is created; -
(h)
in the case referred to in paragraph 94(b), within 30 days after the day on which the account is opened;
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(h.1)added on 2022-05-02
in the case referred to in paragraph 95(3)(a), at the time the information record is created;
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(h.2)added on 2022-05-02
in the case referred to in paragraph 95(3)(c), at the time of the donation; and
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s. 112
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(3)
The entity’s identity shall be verified (a) in the cases referred to in section 84 and subparagraph 88(c)(ii), at the time of the transaction; (b) in the case referred to in section 85, before the transaction or attempted transaction is reported under section 7 of the Act; (c) in the cases referred to in paragraphs 86(c) and 103(c), before the first transaction, other than the initial deposit, is carried out on the account; (d) in the case referred to in paragraph 87(c), before any credit card issued on the account is activated; (e) in the case referred to in subparagraph 88(c)(i), before the prepaid payment product account is activated; (f) in the cases referred to in paragraph 89(c) and subparagraph 89(e)(ii), within 15 days after the day on which the trust company becomes the trustee; (g) in the cases referred to in
paragraphparagraphs 92(c),subsection95(4)(b) andparagraph104(c), within 30 days after the day on which the information record is created; (h) in the case referred to in paragraph 94(c), within 30 days after the day on which the account is opened; (h.1) in the case referred to in paragraph 95(4)(a), at the time the information record is created; (h.2) in the case referred to in paragraph 95(4)(c), at the time of the donation; and (i) in the cases referred to in paragraphs 96(c), 97(1)(c), 100(c), 101(1)(c) and 102(c), within 30 days after the day on which the transaction is conducted. -
(g)
in the cases referred to in
paragraphparagraphs 92(c),subsection95(4)(b) andparagraph104(c), within 30 days after the day on which the information record is created; -
(h)
in the case referred to in paragraph 94(c), within 30 days after the day on which the account is opened;
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(h.1)added on 2022-05-02
in the case referred to in paragraph 95(4)(a), at the time the information record is created;
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(h.2)added on 2022-05-02
in the case referred to in paragraph 95(4)(c), at the time of the donation; and
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PART 5: General Provisions
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Electronic Funds Transfers
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s. 124
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(2)
For the purposes of section 9.5 of the Act, the prescribed electronic funds transfers are
international(a) electronic funds transfers, aswelldefinedas other electronic funds transfers within the meaning ofin subsection 1(2), that are SWIFT MT-103 messages or their equivalent; and (b) international electronic funds transfers other than, in respect of financial entities and casinos, those carried out by means of a credit or debit card or a prepaid payment product if the beneficiary has an agreement with the payment service provider that permits payment by that means for the provision of goods and services. -
(a)added on 2022-05-02
electronic funds transfers, as defined in subsection 1(2), that are SWIFT MT-103 messages or their equivalent; and
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(b)added on 2022-05-02
international electronic funds transfers other than, in respect of financial entities and casinos, those carried out by means of a credit or debit card or a prepaid payment product if the beneficiary has an agreement with the payment service provider that permits payment by that means for the provision of goods and services.
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PART 6: Exceptions
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Electronic Funds Transfer by Credit or Debit Card or Prepaid Payment Product
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s. 150.1added on 2022-05-02
Paragraphs 7(1)(b) and (c), 12(o) to (q), 13(f) and (g), 14(1)(h) and (i), 70(1)(b) and (c) and 74(2)(c) to (e), clauses 86(a)(iii)(B) and (F), subparagraphs 116(1)(b)(i) and (ii) and paragraphs 120.2(3)(a) and (b) do not apply in respect of an electronic funds transfer that is carried out by means of a credit or debit card or a prepaid payment product if the beneficiary has an agreement with the payment service provider that permits payment by that means for the provision of goods and services.