Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

138 (1) Every person or entity that is required to verify an entity’s identity in accordance with these Regulations shall, at the time the entity’s identity is verified, obtain the following information:

• (a) in the case of a corporation, the names of all directors of the corporation and the names and addresses of all persons who own or control, directly or indirectly, 25% or more of the shares of the corporation;

• (a.1) in the case of a widely held or publicly traded trust, the names of all trustees of the trust and the names and addresses of all persons who own or control, directly or indirectly, 25% or more of the units of the trust;

• (b) in the case of a trust, the names and addresses of all trustees and all known beneficiaries and settlors of the trust;

• (c) in the case of an entity other than a corporation or trust, the names and addresses of all persons who own or control, directly or indirectly, 25% or more of the entity; and

• (d) in all cases, information establishing the ownership, control and structure of the entity.

(2) Every person and entity that is subject to subsection (1) shall take reasonable measures to confirm the accuracy of the information when it is first obtained under that subsection and in the course of ongoing monitoring of business relationships.

(3) The person or entity shall keep a record that sets out the information and the measures taken to confirm the accuracy of the information.

(4) If the person or entity is not able to obtain the information, to keep it up to date in the course of ongoing monitoring of business relationships or to confirm its accuracy, the person or entity shall take

• (a) reasonable measures to verify the identity of the entity’s chief executive officer or the person who performs that function; and

• (b) the special measures referred to in section 157.

(5) If the entity whose identity is being verified under subsection (1) is a not-for-profit organization, the person or entity shall determine and keep a record that sets out whether that entity is

• (a) a charity registered with the Canada Revenue Agency under the Income Tax Act; or

• (b) an organization, other than one referred to in paragraph (a), that solicits charitable donations from the public.

(6) This section does not apply in respect of a group plan account held within a dividend reinvestment plan or a distribution reinvestment plan, including a plan that permits purchases of additional shares or units by the member with contributions other than the dividends or distributions paid by the sponsor of the plan, if the sponsor of the plan is an entity whose shares or units are traded on a Canadian stock exchange, and that operates in a country that is a member of the Financial Action Task Force.