Economic Action Plan 2014 Act, No. 1 (S.C. 2014, c. 20)
Full Document:
- HTMLFull Document: Economic Action Plan 2014 Act, No. 1 (Accessibility Buttons available) |
- PDFFull Document: Economic Action Plan 2014 Act, No. 1 [1577 KB]
Assented to 2014-06-19
PART 6VARIOUS MEASURES
Division 19Money Laundering and Terrorist Financing
2000, c. 17; 2001, c. 41, s. 48Proceeds of Crime (Money Laundering) and Terrorist Financing Act
Marginal note:2006, c. 12, s. 8
259. Subsection 9.4(2) of the Act is replaced by the following:
Marginal note:Prohibition — shell bank
(2) No person or entity shall have a correspondent banking relationship with a shell bank as defined in the regulations.
Marginal note:2010, c. 12, s. 1866
260. Sections 9.7 and 9.8 of the Act are 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 section 2 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 country in which the branch or subsidiary is located.
Marginal note:Board approval of policies
(2) Before the policies referred to in subsection (1) are applied, the entity’s board of directors, if there is one, shall approve them.
Marginal note:Exceptions
(3) Subsection (1) does not apply to
(a) an entity that is a subsidiary of an entity to which that subsection applies; or
(b) an entity that is a subsidiary of a foreign entity that has developed policies that establish requirements for its subsidiaries that are similar to the requirements of sections 6, 6.1 and 9.6, if that subsidiary is applying those policies to the extent it is permitted by, and do not conflict with, the laws of Canada or a province.
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 country in which the branch or subsidiary is located, the entity shall keep and retain, 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.
Marginal note:Information exchange between affiliated entities
9.8 (1) Every entity referred to in any of paragraphs 5(a) to (g) that is affiliated with an entity referred to in those paragraphs or with a foreign entity that carries out activities similar to those of entities referred to in those paragraphs shall develop and apply policies and procedures related to the exchange of information between the entity and those affiliated entities for the purpose of detecting or deterring a money laundering offence or a terrorist activity financing offence or of assessing the risk of such an offence.
Marginal note:Affiliation
(2) For the purposes of subsection (1), an entity is affiliated with another entity if one of them is wholly owned by the other, if both are wholly owned by the same entity or if their financial statements are consolidated.
Marginal note:2006, c. 12, s. 10
261. Section 11.1 of the Act is replaced by the following:
Marginal note:Registration requirement
11.1 Except as otherwise provided in the regulations, every person or entity referred to in paragraph 5(h) or (h.1), those referred to in paragraph 5(l) that sell money orders to the public, and every other person or entity that is referred to in section 5 and that is prescribed must be registered with the Centre in accordance with this section and sections 11.11 to 11.2.
Marginal note:2006, c. 12, s. 11
262. (1) Subparagraphs 11.11(1)(c)(i) to (iv) of the Act are replaced by the following:
(i) a money laundering offence, or an offence under the laws of a foreign country that is substantially similar to a money laundering offence,
(ii) a terrorist activity financing offence, or an offence under the laws of a foreign country 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 country 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 country that is substantially similar to such an offence, or
Marginal note:2006, c. 12, s. 11
(2) Paragraphs 11.11(1)(d) and (e) of the Act are replaced by the following:
(d) a person or entity that has been convicted on indictment or convicted more than once for an offence under any of the following, or that has been convicted of an offence under the laws of a foreign country that is substantially similar to an offence under any of the following:
(i) Part X of the Criminal Code,
(ii) the Controlled Drugs and Substances Act, except for the offence under subsection 4(1) of that Act,
(iii) section 39, 44.2, 44.3, 48, 50.2 or 50.3 of the Food and Drugs Act, as that section read immediately before May 14, 1997, or
(iv) section 4, 5, 6, 19.1 or 19.2 of the Narcotic Control Act, chapter N-1 of the Revised Statutes of Canada, 1985, as that section read immediately before May 14, 1997;
(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 country that is substantially similar to an offence under either Act;
(3) Subsection 11.11(1) of the Act is amended by adding the following after paragraph (e):
(e.1) a person or entity referred to in paragraph 5(h.1) that, having committed a violation, or a series of minor violations, under this Act that is classified as a serious violation or a very serious violation and being liable to a penalty for it, and 30 days having elapsed since the day on which all proceedings in respect of the violation are ended, has still not paid the penalty together with any interest imposed under section 73.28; or
Marginal note:2006, c. 12, s. 11
263. Subsection 11.12(1) of the Act is replaced by the following:
Marginal note:Application for registration
11.12 (1) An application for registration shall be submitted to the Centre in the prescribed form and manner and shall include
(a) a list of the applicant’s agents, mandataries or branches that are engaged, on behalf of the applicant, in the activities referred to in paragraph 5(h) or (h.1), in selling money orders to the public if the applicant is a person or entity referred to in paragraph 5(l), or in any prescribed activities;
(b) if the applicant is a person referred to in paragraph 5(h.1)
(i) the name and address for service of an individual who resides in Canada and who is authorized to accept, on behalf of the person, notices that are served or caused to be served by the Centre under this Act,
(ii) a document that sets out the person’s record of criminal convictions, or states that the person does not have one, that is issued by a competent authority of the foreign state in which the person resides, and, if the document is made in a language other than English or French, a translation of it into one of those languages attested to by a person who is recognized as a certified translator by a provincial organization or body that is competent under provincial law to issue such certifications;
(c) if the applicant is an entity referred to in paragraph 5(h.1)
(i) the name and address for service of an individual who resides in Canada and who is authorized to accept, on behalf of the entity, notices that are served or caused to be served by the Centre under this Act, and
(ii) for each of the chief executive officer, the president and the directors of the entity and for each person who owns or controls, directly or indirectly, 20% or more of the entity or the shares of the entity, a document that sets out the person’s record of criminal convictions, or states that the person does not have one, and that is issued by a competent authority of the foreign state in which the person resides, and, if the document is made in a language other than English or French, a translation of it into one of those languages attested to by a person who is recognized as a certified translator by a provincial organization or body that is competent under provincial law to issue such certifications; and
(d) any prescribed information.
Marginal note:2006, c. 12, s. 11
264. Section 11.13 of the Act is renumbered as subsection 11.13(1) and is amended by adding the following:
Marginal note:Denial or revocation
(2) If the name or address for service of a person referred to in subparagraph 11.12(1)(b)(i) or (c)(i) changes, and an applicant or registered person or entity who is or was required to provide the information described in paragraph 11.12(1)(b) or (c) does not, within the period provided in subsection (1), provide the Centre with the new name or address for service, the Centre shall without delay after becoming aware of that fact deny the application, or revoke the registration, as the case may be, and shall, without delay, inform the applicant or registered person or entity of the denial or revocation.
Marginal note:2006, c. 12, s. 11
265. Subsection 11.14(1) of the Act is replaced by the following:
Marginal note:Clarifications — applicant
11.14 (1) An applicant shall provide the Centre, in the prescribed form and manner, with any clarifications that the Centre may request in respect of the information described in subsection 11.12(1) within 30 days after the day on which the request is made.
Marginal note:2006, c. 12, s. 11
266. Subsection 11.17(1) of the Act is replaced by the following:
Marginal note:Clarifications — registrant
11.17 (1) A registered person or entity shall provide the Centre, in the prescribed form and manner, with any clarifications that the Centre may request in respect of the information described in subsection 11.12(1) within 30 days after the day on which the request is made.
Marginal note:2010, c. 12, s. 1869
267. Section 11.41 of the Act is replaced by the following:
Marginal note:Definitions
11.41 The following definitions apply in this Part.
“foreign entity”
« entité étrangère »
“foreign entity” means an entity, other than an entity referred to in section 5, that is incorporated or formed by or under the laws of a country other than Canada, including its subsidiaries, if any, and that does not carry on business in Canada, if it carries out activities similar to those of entities referred to in any of paragraphs 5(a) to (g) or activities referred to in paragraph 5(h) or (h.1).
“foreign state”
« État étranger »
“foreign state” means a country other than Canada and includes any political subdivision or territory of a foreign state.
Marginal note:2010, c. 12, s. 1869
268. (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 or foreign entity, 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) Section 11.42 of the Act is amended by adding the following after subsection (2):
Marginal note:Non-application to legal counsel
(2.1) A requirement in a directive to take a reporting measure as contemplated by paragraph (2)(e) does not apply to persons or entities referred to in paragraph 5(i) or (j) who are, as the case may be, legal counsel or legal firms, when they are providing legal services.
Marginal note:2010, c. 12, s. 1869
269. Sections 11.44 and 11.45 of the Act are replaced by the following:
Marginal note:Foreign branches and subsidiaries
11.44 (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 section 2 of the Insurance Companies Act, shall ensure that its foreign branches, and that 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, comply with any directive issued under this Part, except with respect to any reporting measure as contemplated by paragraph 11.42(2)(e), to the extent it is permitted by, and does not conflict with, the laws of the country in which the branch or subsidiary is located.
Marginal note:Records and reporting
(2) If compliance with a directive by a branch or a subsidiary is not permitted by or would conflict with the laws of the country in which the branch or subsidiary is located, the entity shall keep and retain, 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.
Marginal note:2010, c. 12, s. 1869
270. Section 11.6 of the Act is replaced by the following:
Marginal note:Foreign branches
11.6 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 section 2 of the Insurance Companies Act, shall ensure that its foreign branches comply with any regulation made under subsection 11.49(1) to the extent it is permitted by, and does not conflict with, the laws of the country in which the branch is located.
271. The Act is amended by adding the following before the heading “Reporting” before section 12:
Interpretation
Definition of “officer”
11.8 In this Part, “officer” has the same meaning as in subsection 2(1) of the Customs Act.
272. Subsections 12(4) and (5) of the Act are replaced by the following:
Marginal note:Duty to answer and comply
(4) Every person arriving in or departing from Canada shall
(a) answer truthfully any questions asked by the officer in the performance of the officer’s duties and functions under this Part; and
(b) if the person is arriving in or departing from Canada with any currency or monetary instruments in respect of which a report is made, on request of an officer, present the currency or monetary instruments that they are carrying or transporting, unload any conveyance or part of a conveyance or baggage and open or unpack any package or container that the officer wishes to examine.
Marginal note:Sending reports to Centre
(5) The Canada Border Services Agency shall send the reports they receive under subsection (1) to the Centre. It shall also create an electronic version of the information contained in each report, in the format specified by the Centre, and send it to the Centre by the electronic means specified by the Centre.
Marginal note:2006, c. 12, s. 14
273. The portion of subsection 24.1(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Corrective measures
24.1 (1) The Minister, or any officer delegated by the President for the purposes of this section, may, within 90 days after a seizure made under subsection 18(1) or an assessment of a penalty referred to in subsection 18(2),
Page Details
- Date modified: