International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Thursday, July 7, 2016

Canada Updates Money Laundering and Terrorist Financing Act, 2016

P.C. 2016-569 June 17, 2016 see amendments here (excerpts below)

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 73(1) (see footnote a) and paragraphs 73.1(1)(a) and (b) (see Canada-revenue-agency footnote b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (see footnote c), makes the annexed Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2016.

Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2016

Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations

1 (1) Subsection 1(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations (see footnote 1) is repealed.

(2) The portion of subsection 1(2) of the English version of the Regulations before the first definition is replaced by the following:

(2) The following definitions apply in these Regulations.

(3) The definition money services business in subsection 1(2) of the Regulations is repealed.

(4) The definitions financial entity and funds in subsection 1(2) of the Regulations are replaced by the following:

financial entity means a bank that is regulated by the Bank Act, an authorized foreign bank, as defined in section 2 of that Act, in respect of its business in Canada, a cooperative credit society, savings and credit union or caisse populaire that is regulated by a provincial Act, an association that is regulated by the Cooperative Credit Associations Act, a financial services cooperative, a credit union central, a company that is regulated by the Trust and Loan Companies Act and a trust company or loan company that is regulated by a provincial Act. It includes a department or an entity that is an agent or mandatary of Her Majesty in right of Canada or of a province when it is carrying out an activity referred to in paragraph 8(a). (entité financière)

funds means either

  • (a) cash; or
  • (b) currency, securities, negotiable instruments or other financial instruments, in any form, that indicate a person’s or entity’s title or right to, or interest in, them. (fonds)

(5) The definitions dealer in precious metals and stones and financial services cooperative in subsection 1(2) of the English version of the Regulations are replaced by the following:

dealer in precious metals and stones means a person or entity that, in the course of their business activities, buys or sells precious metals, precious stones or jewellery. It includes a department or agent or mandatary of Her Majesty in right of Canada or of a province when the department or agent or mandatary is carrying out the activity, referred to in section 5, of selling precious metals to the public. (négociant en métaux précieux et pierres précieuses)

financial services cooperative means a financial services cooperative that is regulated by An Act respecting financial services cooperatives, CQLR, c. C-67.3, or An Act respecting the Mouvement Desjardins, S.Q. 2000, c. 77, other than a caisse populaire. (coopérative de services financiers)

(6) Subsection 1(2) of the Regulations is amended by adding the following in alphabetical order:

casino means a government, organization, board or operator that is referred to in any of paragraphs 5(k) to (k.3) of the Act. (casino)

2 Section 1.1 of the Regulations is replaced by the following:

1.1 If a registered charity, as defined in subsection 248(1) of the Income Tax Act, conducts and manages, in a permanent establishment of a casino, a lottery scheme that includes games of roulette or card games for a period of not more than two consecutive days at a time and, in doing so, acts under the supervision of the government of a province that is referred to in paragraph 5(k) of the Act, or of an organization that is referred to in paragraph 5(k.2) of the Act, that conducts and manages such a lottery scheme in the same establishment, the lottery scheme that is conducted and managed by the registered charity is considered to be conducted and managed by the supervising government or organization.

3 Subsection 7.1(2) of the Regulations is replaced by the following:

(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.

 

...

 

16 Section 1.1 of the Regulations is replaced by the following:

1.1 (1) For the purposes of subsection 9.3(1) of the Act, a prescribed family member of a politically exposed foreign person, a politically exposed domestic person or a head of an international organization is

  • (a) their spouse or common-law partner;
  • (b) their child;
  • (c) their mother or father;
  • (d) the mother or father of their spouse or common-law partner; or
  • (e) a child of their mother or father.

(2) For the purposes of the definition politically exposed domestic person in subsection 9.3(3) of the Act, the prescribed period is five years.

http://lawprofessors.typepad.com/intfinlaw/2016/07/canada-updates-money-laundering-and-terrorist-financing-act-2016.html

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