Anti-Money Laundering
Consulting Services & Strategies

0 Items - Total: $0.00 CAD

Canada’s AML Rules for “Virtual Currency”

On June 9th, 2018, draft amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its enacted regulations (there are five separate regulations, that we’re going to collectively call regulations here for simplicity’s sake). While not all of the proposed amendments are related to virtual currency, many are (the term virtual currency comes up 304 times in about 200 pages). This article is intended to give a high-level summary of the proposed amendments as they relate to virtual currency for businesses in that industry (exchanges, brokerages, etc.).

This article should not be considered advice (legal, tax or otherwise). That said, any of the content shared here may be used and shared freely – you don’t need our permission. While we’d love for content that we’ve written to be attributed to us, we believe that it’s more important to get reliable information into the hands of community members (meaning that if you punk content that we wrote, we may think you’re a jerk but we’re not sending an army of lawyers).

Finally, we want to encourage the community to discuss the draft and submit meaningful feedback for policymakers. To this end, we’re going to be posting, hosting and attending community events. We’ve also set up a survey that can be completed without submitting any personal information (though you may choose to do so). If you would like one of our compliance nerds at your event, please get in touch. If you’re already having a related event that benefits the community, let us know or post it in the comments.

The comment period for this draft is 90 days. After this, the Department of Finance takes the feedback to the bat cave and drafts a final version of the amendments. From the time that the final version is published, the draft indicates that there will be 12 months of transition to comply with the new requirements.

What to expect when you’re expecting (to be regulated)?

While we acknowledge that our sample is biased (people that talk to compliance geeks), we know that many businesses such as brokerages and exchanges have expected to be regulated as money services businesses (MSBs) since Bill C-31 was passed in 2014. Many of these businesses already have in place the required elements of an anti-money laundering (AML) compliance regime, including:

  1. The appointment of a Compliance Officer;
  2. Written policies and procedures;
  3. A documented risk assessment;
  4. Training; and
  5. Effectiveness testing (like an audit, but for compliance).

In addition, many have been voluntarily reporting suspicious activity to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the body under which they expect to be regulated for AML.

The proposed amendments would formalize compliance program requirements, as well as create new requirements specific to businesses “dealing in virtual currency” (which would now be considered MSBs). While “dealing in virtual currency” itself is not defined, the text of the regulations implies that it will include exchanging, sending, and receiving virtual currency on behalf of other people or entities. Such entities would be required to register as MSBs if they are serving Canadian customers (whether or not they are located in Canada).

There are a number of thresholds that are proposed, including identification (at CAD 1,000) and reporting (at CAD 10,000). In each case, specific information must be collected and recorded. The identification methods that are available in these circumstances are relatively prescriptive, although the proposed amendments do make some headway towards supporting a broader array of identification methods by requiring that documents be considered “authentic” rather than requiring documents in their original format. Of course, as with any complex issue, guidance from FINTRAC will be required before we’re certain how this will be interpreted by the regulator (It’s good news; we’re just not sure how good, yet).

As always in compliance, the devil is in the details. What follows is a few of those key details, as well as some of the issues that we anticipate. We encourage you to conduct your own analysis and to join the conversation.

What’s In A Definition?

Definitions are generally not very interesting. When was the last time that you read the dictionary? (Sidenote: if you are a serious scrabble geek and do this on the regular, you will enjoy this section more than most)… In this case though, definitions matter. Definitions will make a difference in terms of the businesses and activities that are regulated, and how they are regulated. Fortunately, our community includes a number of engineers, debaters, and other individuals with a penchant for the precise – and your skills are needed here. We encourage you to carefully consider the following and to submit feedback on how they can be improved.

authorized user means a person who is authorized by a holder of a prepaid payment product account to have electronic access to funds or virtual currency available in the account by means of a prepaid payment product that is connected to it.

funds means

(a) cash and other fiat currencies, and securities, negotiable instruments or other financial instruments that indicate a title or right to or interest in them; or

(b) information that enables a person or entity to have access to a fiat currency other than cash.

For greater certainty, it does not include virtual currency. (fonds)

fiat currency means a currency that is issued by a country and is designated as legal tender in that country.

large virtual currency transaction record means a record that indicates the receipt of an amount of $10,000 or more in virtual currency in a single transaction and that contains the following information:

(a) the date of the receipt;

(b) if the amount is received for deposit into an account, the name of each account holder;

(c) the name, address and telephone number of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;

(d) the type and amount of each virtual currency involved in the receipt;

(e) the exchange rate used and the source of the exchange rate;

(f) the number of every other account that is affected by the transaction, the type of account and the name of each account holder;

(g) every reference number that is connected to the transaction;

(h) every other known detail that identifies the receipt; and

(i) if the amount is received by a dealer in precious metals and precious stones for the sale of precious metals, precious stones or jewellery,

(i) the type of precious metals, precious stones or jewellery,

(ii) the value of the precious metals, precious stones or jewellery, if different from the amount of virtual currency received, and

(iii) the wholesale value of the precious metals, precious stones or jewellery.

prepaid payment product means a product that is issued by a financial entity and that enables a person or entity to engage in a transaction by giving them electronic access to funds or virtual currency paid to a prepaid payment product account held with the financial entity in advance of the transaction. It excludes a product that enables a person or entity to access a credit or debit account or one that is issued for use only with particular merchants.

prepaid payment product account means an account that is connected to a prepaid payment product and that permits

(a) one or more transactions that total $1,000 or more to be conducted within a 24-hour period; or

(b) a balance of funds or virtual currency available of $1,000 or more to be maintained.

virtual currency means

(a) a digital currency that is not a fiat currency and that can be readily exchanged for funds or for another virtual currency that can be readily exchanged for funds; or

(b) information that enables a person or entity to have access to a digital currency referred to in paragraph (a).

virtual currency exchange transaction means an exchange, at the request of another person or entity, of virtual currency for funds, funds for virtual currency or one virtual currency for another.

virtual currency exchange transaction ticket means a record respecting a virtual currency exchange transaction — including an entry in a transaction register — that sets out

(a) the date of the transaction;

(b) in the case of a transaction of $1,000 or more, the name, address and telephone number of the person or entity that requests the exchange, the nature of their principal business or their occupation and, in the case of a person, their date of birth;

(c) the type and amount of each of the funds and virtual currencies involved in the payment made and received by the person or entity that requests the exchange;

(d) the method by which the payment is made and received;

(e) the exchange rate used and the source of the exchange rate;

(f) the number of every account that is affected by the transaction, the type of account and the name of each account holder;

(g) every reference number that is connected to the transaction; and

(h) every other known detail that identifies the transaction.

Diving Deeper – Obligations and Potential Issues

1 – Do the definitions capture unintended parties?

We were surprised to see that there were not specific carve-outs for certain types of tokens, including securities, and tokens intended specifically for gaming. The definition, as it’s currently written seems capable of encompassing both tokenized security offerings and gaming tokens.

In addition, the second part of the definition that includes “information that enables a person or entity to have access to a digital currency referred to in paragraph (a).” has the potential to open the definition even more broadly. For instance, if I have stored a copy of a seed phrase or a hardware device with a vault service – have they received virtual currency? Are they sending virtual currency to me if the contents of my vault are couriered to me?

 2 – What about peer-to-peer, decentralized applications, and smart contracts?

The amendments as they are presented appear to take the view that transactions have intermediaries. There are no specific carve-outs for peer-to-peer transactions (though we expect that previous guidance could be applied here), decentralized applications, and smart contracts. This may be a particularly contentious issue in the case of an exchange from one “virtual currency” to another – especially where such an exchange is initiated or completed without any human intervention. Similarly, questions arise for wallet service providers. For instance, what if a wallet provider does not have access to private keys, but connects to applications that permit users to initiate transactions that would be considered to be exchange transactions under the current definition?

That said, there are some astute exclusions, including the following activities which are explicitly not covered:

(a) a transfer or receipt of virtual currency as compensation for the validation of a transaction that is recorded in a distributed ledger; or

(b) an exchange, transfer or receipt of a nominal amount of virtual currency for the sole purpose of validating another transaction or a transfer of information.

Nonetheless, it is difficult to determine where the policymakers intended to draw the line, and where the regulator will later enforce it…

3 – Jurisdiction doesn’t matter; foreign money services businesses (MSBs) are covered.

While not specific to virtual currency, it is noteworthy that the proposed amendments expand the definition of an MSB to include any business that is providing prescribed services in Canada. As we’ve seen in the case of the NY BitLicense, badly drafted legislation can drive away business and lead to a lack of service providers willing to do business in a region.

While we’re not suggesting that the proposed amendments are nearly as ill-conceived as the NY BitLicense, it is important to consider whether or not these will affect Canadians’ ability to access services, and the attractiveness of the Canadian market generally for innovative international businesses. While we do not expect this particular amendment to be altered, we would encourage businesses located outside of Canada that serve Canadians to comment.

What Next?

If you’ve read this far, congratulations and thank you!

We hope that you will contribute your thoughts and comments. You can do this by contacting the Department of Finance directly. Their representative on this file is:

Lynn Hemmings

Acting Director General

Financial Systems Division

Financial Sector Policy Branch

Department of Finance

90 Elgin Street

Ottawa, Ontario

K1A 0G5

Email: fin.fc-cf.fin@canada.ca

If you would like assistance drafting a submission, or have questions that you would like Outlier to answer, please get in touch!

You can also answer specific questions in our survey, or join us at a community event.

Proposed AML Amendments & Credit Unions

Jon 1Today’s guest blogger is Jonathan Krumins, Vice-President, AML Risk & Compliance, at vCAMLO Solutions Inc. vCAMLO provides anti-money laundering (AML) and counter terrorist financing (CTF) support to Canadian credit unions. You can learn more about vCAMLO at www.vcamlo.ca.

Background

On July 4, 2015, draft amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR) were published in the Canada Gazette. These changes are not yet in force, and are open to public comment until September 4, 2015. The proposed changes are based on requirements set out by the Financial Action Task Force (FATF), an inter-governmental body that sets out international standards for combating money laundering and terrorist financing. For this reason, we expect the final version of these amendments to be similar to the draft text.

2015 Proposed PCMLTFR Amendments and Credit Union Specific Analysis (Line By Line)

Why Do These Changes Matter to Credit Unions?

The proposed changes will have a direct impact on a Credit Union’s AML obligations, including record keeping, member identification and ongoing monitoring requirements. Some of the more significant changes include new member identification methods, expanded definitions (and requirements) for Politically Exposed Persons, and new record keeping requirements for “reasonable measures” taken.

New Member Identification Methods          

IdentificationThe draft regulations will require identification documents to contain a member’s name and photograph. This will exclude SIN cards and birth certificates as acceptable identification documents, and may pose an issue when identifying seniors whose passport or driver’s license has long since expired.

The amendments also provide a number of new identification methods that can be used to identify members both face-to-face and non-face to face. These new methods are an improvement on existing rules, which are currently more restrictive.

For example, a Canadian credit file meeting certain criteria could now be used to identify a member. Many credit unions perform credit checks as part of their account opening process, so this could be used in place of government-issued identification in certain circumstances, or would allow simple non-face to face identification.

Also added is the ability to rely on information from “a reliable source” (yet to be determined, but likely online databases and other web-based resources), and information confirming that an individual has a deposit account, credit card or other loan account with another credit union, bank or caisse populaire. A credit union will also be able to accept identification performed by another credit union.

Politically Exposed Persons

PEFP silhouette 1The proposed regulations have added new categories of Politically Exposed Persons (PEPs), as follows:

  • Close associates of Politically Exposed Foreign Persons (PEFPs)
  • Politically Exposed Domestic Persons (PEDPs), their family members and close associates
  • Heads of International Organizations (HIOs), their family members and close associates

Given that the list (contained in bill C-31) of qualifying positions for PEDPs includes mayors, it is likely that many if not most credit unions will have members classified as PEDPs. The draft regulations mitigate this somewhat by adding a prescribed period of 20 years to the definition of a PEDP.

Additionally, required measures for PEPs such as determining the source of funds, obtaining senior management authorization to keep an account open, and performing enhanced monitoring will only apply to PEDPs and HIOs (and their family members and close associates) who have been determined to be high risk. Despite these exceptions, identifying and documenting these new categories of PEP will add to credit unions’ compliance obligations.

Reasonable Measures

Many AML record keeping, reporting and determination requirements rely on “reasonable measures” to be taken by financial institutions. For example, in a Large Cash Transaction Report, certain information about the conductor of the transaction, such as their country of residence, their home and business telephone numbers are not mandatory, but reasonable efforts must be made to obtain the information, and if you have it on file, it must be included in the report. The proposed changes will mean that whenever you take “reasonable measures”, and the measures taken are unsuccessful, you will then need to keep a record describing what the measures were and the reason they were unsuccessful. This will require additional work and record keeping for categories such as FINTRAC reporting, PEP determinations and correspondent banking relationships, among others.

Public Comments

Public comments about the proposed changes will be accepted by the Ministry of Finance until September 4, 2015. They must be submitted in writing, as follows:

Mail       Attention: Lisa Pezzack

Director, Financial Systems Division

Department of Finance

90 Elgin Street

Ottawa, Ontario, K1A 0G5

Email: fcs-scf@fin.gc.ca

Need a Hand?

If you would like someone to look over your submission before you make comments to the Department of Finance, you can get in touch with us free of charge. We will look over your submission and make suggestions, without any cost to you. If you need a hand, please feel free to contact vCAMLO or Outlier.

AML Regulation Updates & Digital Currency

Amber AML Program_2On July 4th, 2015, draft amendments to Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations were published in the Canada Gazette. These updates are intended to, among other things, strengthen Canada’s anti-money laundering (AML) regime and address certain technical issues. The draft does expand the definition of a money services business (MSB) to include “dealers in digital currency,” but digital currency businesses may still consider submitting comments related to the draft, as the consultation period of 60 days is open to the public.

This round of amendments didn’t include ‘dealers in digital currency’ – so why should you comment?

While dealers in digital currency are not yet regulated as MSBs, it is reasonable to expect that this is the direction Canada is taking based on Bill C-31, which was passed last year. This means that the regulations could apply to digital currency businesses in the near future. The 60-day comment period is likely to be the only public comment period before a final version of the amended regulations is published.

One of the most significant changes in the current draft relates to customer identification. The current customer identification methods for non-face-to-face customers (which apply to all online MSB customers) are complicated and heavily reliant on an individual having at least six months of Canadian credit history (you can learn more here). The proposed amendments have the potential to broaden the range of available sources to include sources other than credit reporting bureaus.

Digital currency businesses should consider commenting on these amendments. While we at Outlier consider the changes to be positive overall, we’re aware that there are many identification solutions on the market (many of which don’t meet the current Canadian identification requirements). This has caused more than a few headaches for businesses that operate online. While the proposed changes may alleviate some of the current pain points, businesses should consider how these fit with your business model and service providers.

Customer Identification Measures

In the text below, the text that is struck through includes proposed deletions, while the green text includes proposed additions. You can also see a full marked-up version of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations here.

MEASURES FOR ASCERTAINING IDENTITY

  1. (1) In the cases referred to in sections 53, 53.1, 54, paragraph 54.1(a) and sections 55, 56, 57, 59, 59.1, 59.2, 59.3, 59.4, 59.5, 60 and 61, a person’s the identity of a person shall is to be ascertained, at the time referred to in subsection (2) and in accordance with subsection (3), in the following manner:

(a) By referring to the person’s birth certificate, driver’s licence, provincial health insurance card (if such use of the card is not prohibited by the applicable provincial law), passport or other similar document; or

(a) By referring to identification document that contains their name and photograph and that is issued by the federal government or a provincial government or by a foreign government other than a municipal government, and by verifying that the name and photograph are those of the person;

(b) if the person is not physically present when the account is opened, the credit card application is submitted, the trust is established, the client information record is created or the transaction is conducted,

(i) by obtaining the person’s name, address and date of birth and

(A) confirming that one of the following entities has identified the person in accordance with paragraph (a), namely,

(I) an entity, referred to in any of paragraphs 5(a) to (g) of the Act, that is affiliated with the entity ascertaining the identity of the person,

(II) an entity that carries on activities outside Canada similar to the activities of a person or entity referred to in any of paragraphs 5(a) to (g) of the Act and that is affiliated with the entity ascertaining the identity of the person, or

(III) an entity that is subject to the Act and is a member of the same association as the entity ascertaining the identity of the person, and

(B) verifying that the name, address and date of birth in the record kept by that affiliated entity or that entity that is a member of the same association corresponds to the information provided in accordance with these Regulations by the person, or

(ii) subject to subsection (1.3), by using one of the following combinations of the identification methods set out in Part A of Schedule 7, namely,

(A) methods 1 and 3,

(B) methods 1 and 4,

(C) methods 1 and 5,

 (D) methods 2 and 3,

(E) methods 2 and 4,

 (F) methods 2 and 5,

(G) methods 3 and 4, or

(H) methods 3 and 5.

 (b) by referring to information concerning them that is received by the     person or entity that is ascertaining their identity on request from a federal or provincial government body — or a body that is acting as the agent or mandatary of such a body — that is authorized in Canada to ascertain the identity of persons, and by verifying that either the name and address or the name and date of birth contained in the information are those of the person;

(c) by referring to information that is contained in the person’s credit file — if that file is located in Canada and has been in existence for at least      three years — and by verifying that the name, address and date of birth   contained in the credit file are those of the person;

(d) by doing any two of the following:

(i) referring to information from a reliable source that contains their name and address, and verifying that the name and address are those of the person,

(ii) referring to information from a reliable source that contains their name and date of birth, and verifying that the name and date of birth are those of the person, or

(iii) referring to information that contains their name and confirms that they have a deposit account or a credit card or other loan account with a financial entity, and verifying that information; or

(e) by confirming that one of the following entities previously ascertained their identity in accordance with any of paragraphs (a) to (d), and by verifying that the name, address and date of birth contained in the entity’s record are those of the person:

(i) an entity that is referred to in any of paragraphs 5(a) to (g) of the Act and that is affiliated with the entity that is ascertaining the person’s identity, 

(ii) an entity that carries on activities outside Canada similar to the activities of a person or entity referred to in any of paragraphs 5(a) to (g) of the Act and that is affiliated with the entity that is ascertaining the person’s identity, or

(iii) a financial entity that is subject to the Act and that is a member of the same financial services cooperative or credit union central as the entity that is ascertaining the person’s identity.

(1.1) In the case referred to in paragraph 54.1(a), the identity of a person shall be ascertained by a person or entity, at the time referred to in subsection (2) and in accordance with subsection (3),

(a) by referring to the person’s birth certificate, driver’s licence, provincial health insurance card (if such use of the card is not prohibited by the applicable provincial law), passport or other similar document; or

(b) where the person is not physically present when the credit card application is submitted,

(i) by obtaining the person’s name, address and date of birth and

(A) confirming that one of the following entities has identified the person in accordance with paragraph (a), namely,

(I) an entity, referred to in any of paragraphs 5(a) to (g) of the Act, that is affiliated with the entity ascertaining the identity of the person,

(II) an entity that carries on activities outside Canada similar to the activities of a person or entity referred to in any of paragraphs 5(a) to(g) of the Act and that is affiliated with the entity ascertaining the identity of the person, or

(III) an entity that is subject to the Act and is a member of the same association as the entity ascertaining the identity of the person, and

(B) verifying that the name, address and date of birth in the record kept by that affiliated entity or that entity that is a member of the same association corresponds to the information provided in accordance with these Regulations by the person,

(ii) subject to subsection (1.3), by using a combination of any two identification methods referred to in either Part A or Part B of Schedule 7, or

(iii) subject to subsection (1.3), where the person has no credit history in Canada and the credit limit on the card is not more than $1,500, by using combination of any two identification methods referred to in any of Parts A, B and C of Schedule 7.

(1.1) For the purposes of subparagraphs (1)(d)(i) to (iii), the information that is referred to must be from different sources, and the person whose identity is being ascertained and the person or entity that is ascertaining their identity cannot be a source.

(1.2) for the purposes of paragraphs (1)(b)(i) and (1.1)(b)(i), an entity is affiliated with another entity if one of them is wholly owned by the other or both are wholly owned by the same entity.

(1.2) The person or entity that is ascertaining the identity of a person who is at least 12 years of age but not more than 15 years of age may refer under subparagraph (1)(d)(i) to information that contains the name and address of one of the person’s parents or their guardian or tutor in order to verify that the address is that of the person.

(1.21) For the purposes of subparagraphs (1)(b)(i) and (1.1)(b)(i),

(a) a financial services cooperative and each of its members that is a financial entity are considered to be members of the same association; and

(b) a credit union central and each of its members that is a financial entity are considered to be members of the same association.

(1.3) A combination of methods referred to in sub-paragraph (1)(b)(ii) or (1.1)(b)(ii) or (iii) shall not be relied on by a person or entity to ascertain the identity of a person unless

(a) the information obtained in respect of that person from each of the two applicable identification methods is determined by the person or entity to be consistent; and

(b) the information referred to in paragraph (a) is determined by the person or entity to be consistent with the information in respect of that person, if any, that is contained in a record kept by the person or entity under these Regulations.

(1.3) If a document is used to ascertain identity under subsection (1), it must be original, valid and current. Other information that is used for that purpose must be valid and current and must not include an electronic image of a document.

(2) The identity shall be ascertained

(a) in the cases referred to in paragraph 54(1)(a) and subsection 57(1), and paragraph 60(a), before any transaction other than an initial deposit is carried out on an account;

(b) in the cases referred to in section 53, paragraph 54(1)(b), subsection 59(1) and paragraphs 59.3(a), 59.4(1)(a), 59.5(a), 60(b) and 61(b), at the time of the transaction;

(b.1) in the case referred to in section 53.1, before the transaction is reported as required under section 7 of the Act;

(b.2) in the case referred to in paragraph 54.1 (a), before any credit card is activated;

(c) in the cases referred to in paragraphs 55(a), (d) and (e), within 15 days after the trust company becomes the trustee;

(d) in the cases referred to in subsection 56(1) and paragraph 61(a), within 30 days after the client information record is created;

(e) in the cases referred to in paragraphs 59.1(a) and 59.2(1)(a), at the time of the transaction; and

(e.1) in the case referred to in paragraph 60(a), before any funds are disbursed; and

(f) in the case referred to in subsection 62(3), at the time a contribution in respect of an individual member of the group plan is made to the plan, if

(i) the member’s contribution is not made as described in paragraph 62(3)(a), or

(ii) the existence of the plan sponsor has not been confirmed in accordance with section 65 or 66.

(3) Unless otherwise specified in these Regulations, only original documents that are valid and have not expired may be referred to for the purpose of ascertaining identity in accordance with paragraph (1)(a) or (1.1)(a).

64.1 (1) A person or entity that is required to take measures to ascertain a person’s identity under subsection 64(1) or (1.1) may rely on an agent or mandatary to take the identification those measures described in that subsection only if that person or entity has entered into an agreement or arrangement, in writing, with that agent or mandatary for the purposes of ascertaining identity.

(2) A person or entity that enters into an agreement or arrangement referred to in subsection (1) must obtain from the agent or mandatary the customer information obtained by the agent or mandatary under that agreement or arrangement.

(2) The person or entity may rely on measures that were previously taken by an agent or mandatary to ascertain the person’s identity if the agent or mandatary was, at the time they took the measures,

(a) acting in their own capacity, whether or not they were required to take the measures under these Regulations; or

(b) acting as an agent or mandatary under a written agreement or arrangement — entered into with another person or entity that is required to take measures to ascertain a person’s identity — for the purposes of ascertaining identity under subsection 64(1).

(3) In order to rely on measures taken by an agent or mandatary under subsection (1) or (2), the person or entity shall

(a) have entered into a written agreement or arrangement with the agent or mandatary for the purposes of ascertaining a person’s identity under subsection 64(1);

(b) obtain from the agent or mandatary all of the information that the agent or mandatary used to ascertain the person’s identity; and

(c) be satisfied that the information is valid and current and that the agent or mandatary ascertained the person’s identity in the manner described in any of paragraphs 64(1)(a) to (d).

64.2 Every person or entity that is required under these Regulations to ascertain a person’s identity in connection with a record that the person or entity has created and is required to keep under these Regulations — or in connection with a transaction that they have carried out and in respect of which they are required to keep a record under these Regulations or under section 12.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations — shall set out on or in, or include with, that record the person’s name and the following information:

(a) if the person or entity referred to an identification document under paragraph 64(1)(a), the type of document referred to, its reference number and the issuing authority and, if available, the place it was issued and its expiry date; 

(b) if the person or entity referred to information under paragraph 64(1)(b), the source of the information, the type of information referred to, a reference number associated with the information and the date on which the person or entity verified the information;

(c) if the person or entity referred to information under paragraph 64(1)(c), the source of the information, the reference number associated with the search of the credit file and the date on which the person or entity verified the information;

(d) if the person or entity referred to information under paragraph 64(1)(d), the source of the information, the type of information referred to and the account number contained in it — or if there is no account number contained in it, a reference number associated with the information — and the date on which the person or entity verified the information; or

(e) if the person or entity confirmed under paragraph 64(1)(e) that another entity had previously ascertained the person’s identity, the name   of that entity, the manner in which it previously ascertained the person’s identity under any of paragraphs 64(1)(a) to (d), the applicable information set out in one of paragraphs (a) to (d) of this section that is associated with that manner of ascertaining identity and the date on             which the person or entity verified the information.

Submit comments by September 12, 2015

Comments must be submitted in writing during the comment period, either by email or snail mail:

Snail Mail:

Lisa Pezzack, Director Financial Systems Division,

Financial Sector Policy Branch Department of Finance

90 Elgin Street Ottawa, Ontario K1A 0G5

Email:

fcs-scf@fin.gc.ca

Need a Hand?

At Outlier, we believe that it is important to participate in decisions that affect you and your business.  If you would like someone to look over your submission before you make comments to the Department of Finance, you can get in touch with us free of charge.  We will look over your submission and make suggestions, without any cost to you.  If you need a hand, please feel free to contact us.

 

Proposed PCMLTFR Updates

Screen Shot 2015-07-08 at 4.03.31 AM

We’ve created a marked-up version of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR) that reflects the draft amendments posted in the Canada Gazette on July 4th, 2015.

Here’s a printable and downloadable PDF file: PCMLTFR Mark-Up (July 4, 2015 Draft Amendments)

If you would like a copy of the file in Microsoft Word, please contact us.

Need A Hand?

At Outlier, we believe that it is important to participate in decisions that affect you and your business.  If you would like someone to look over your submission before you make comments to the Department of Finance, you can get in touch with us free of charge.  We will look over your submission and make suggestions, without any cost to you.  If you need a hand, please feel free to contact us.

Return to Blog Listing


PROCESSING...