Canada Gazette, Part I, Volume 158, Number 27: Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Property Reporting, Title Insurers, Private Automated Banking Machines, Unrepresented Parties in Real Property or Immovables Transactions and Casino Disbursement Reporting)

July 6, 2024

Statutory authority
Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Sponsoring department
Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see the Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Money Services Business Registration).

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council proposes to make the annexed Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Property Reporting, Title Insurers, Private Automated Banking Machines, Unrepresented Parties in Real Property or Immovables Transactions and Casino Disbursement Reporting) under paragraph 5(j)^{footnote a}, subsection 11.12(1)^{footnote b} and paragraphs 73(1)(b)^{footnote c}, (c)^{footnote d} to (f)^{footnote c}, (j)^{footnote c} and (l)^{footnote c} of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act ^{footnote e}.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Erin Hunt, Director General, Financial Crimes and Security Division, Financial Sector Policy Branch, Department of Finance Canada, 90 Elgin Street, Ottawa, Ontario K1A 0G5 (email: erin.hunt@fin.gc.ca).

Ottawa, June 21, 2024

Wendy Nixon
Assistant Clerk of the Privy Council

Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Property Reporting, Title Insurers, Private Automated Banking Machines, Unrepresented Parties in Real Property or Immovables Transactions and Casino Disbursement Reporting)

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

1 (1) The definition listed person in section 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations ^{footnote 1} is replaced by the following:

listed person or entity

means

• (a) a terrorist group as defined in subsection 83.01(1) of the Criminal Code;
• (b) a person or entity that is the subject of an order or regulation made under the United Nations Act; or
• (c) a foreign state, as defined in section 2 of the Special Economic Measures Act, that is the subject of an order or regulation made under the United Nations Act. (personne ou entité inscrite)

(2) The definition listed person or entity in section 1 of the Regulations is amended by striking out “or” at the end of paragraph (b) and by replacing paragraph (c) with the following:

• (c) a person or entity that is the subject of an order or regulation made under the Special Economic Measures Act;
• (d) a foreign state, as defined in section 2 of the Special Economic Measures Act, that is the subject of an order or regulation made under that Act or the United Nations Act; or
• (e) a person who is the subject of an order or regulation made under section 4 of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). (personne ou entité inscrite)

2 (1) Subsection 10(1) of the Regulations is replaced by the following:

10 (1) Subject to section 11, a report made under paragraph 7.1(a) or (b) of the Act shall contain the information set out in Schedule 2.

(2) Subsection 10(1) of the Regulations is replaced by the following:

10 (1) Subject to section 11, a report made under section 7.1 of the Act shall contain the information set out in Schedule 2.

3 The heading of Schedule 2 to the Regulations is replaced by the following:

Listed Person or Entity Property Report

4 Items 2 to 11 of Part B of Schedule 2 to the Regulations are replaced by the following:

• 2* Indication of how reporting person or entity came to know that property in question is owned, held or controlled by or on behalf of listed person or entity
• 3* Indication of how reporting person or entity identified listed person or entity

5 Part C of Schedule 2 to the Regulations is amended by adding the following after item 5:

• 6* Name of any person or entity that owns, holds or controls property on behalf of listed person or entity
• 7 Name of any person or entity that has an interest or right in or is authorized to deal with property
• 8 Description of transactions involving property within previous six months
• 9 Identifying number of any report made under section 7 of the Act respecting property
• 10 Description of any measures taken by reporting person or entity with respect to property

6 Schedule 2 to the Regulations is amended by adding the following after Part C:

PART C.1

Information with Respect to Listed Person or Entity That Owns, Holds or Controls Property

• 1* Name of listed person or entity
• 2* Address of listed person or entity
• 3 Email address of listed person or entity
• 4 Telephone number of listed person or entity
• 5 URL of listed person or entity
• 6 Nature of principal business of listed person or entity or their occupation
• 7 Identification number assigned to listed person or entity by reporting person or entity
• 8 Type of document or other information used to identify listed person or entity, or to verify their identity under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, and number of document or number associated with information
• 9 Jurisdiction and country of issue of identification document or information
• 10 In the case of a person,
  • (a) their alias
  • (b) their date of birth
  • (c) their country of residence
  • (d) their country of citizenship
  • (e) their employer’s name
• 11 In the case of an entity, its registration or incorporation number and jurisdiction and country of issue of that number
• 12 With respect to a person or entity that owns, holds or controls property on behalf of listed person or entity,
  • (a) their name
  • (b) their address
  • (c) their email address
  • (d) their telephone number
  • (e) their URL

Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

7 Subsection 1(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations ^{footnote 2} is amended by adding the following in alphabetical order:

title insurer

means a person or entity that is engaged in the business of providing title insurance, as defined in the schedule to the Insurance Companies Act. (assureur de titres)

8 Paragraph 4.1(c) of the Regulations is replaced by the following:

• (c) if the person or entity is a real estate broker or sales representative, a real estate developer or a title insurer, the first time that the person or entity is required to verify the identity of the client under these Regulations,

9 Section 36 of the Regulations is amended by striking out “and” at the end of paragraph (i), by adding “and” at the end of paragraph (j) and by adding the following after paragraph (j):

• (k) if they provide acquirer services in respect of a private automated banking machine, a record of
  • (i) the name, address, email address and telephone number of the owner, the lessor and the operator of the private automated banking machine, the nature of their principal business or their occupation and, in the case of a person, their date of birth,
  • (ii) the name, address, email address and telephone number of the owner of the cash that is loaded into the private automated banking machine, as well as
    • (A) in the case of a person, their date of birth and the nature of their principal business or their occupation, and
    • (B) in the case of an entity, its registration or incorporation number, the jurisdiction and country of issue of that number and the nature of its principal business,
  • (iii) the number of the settlement account for the private automated banking machine and the name and address of each account holder, as well as
    • (A) in the case of a person, their date of birth and the nature of their principal business or their occupation, and
    • (B) in the case of an entity, its registration or incorporation number, the jurisdiction and country of issue of that number and the nature of its principal business,
  • (iv) the terminal identification number of the private automated banking machine,
  • (v) the brand, model and serial number of the private automated banking machine,
  • (vi) the number of bills that the private automated banking machine can contain,
  • (vii) the name and address of the place of business at which the private automated banking machine is located and the nature of the principal business of the place of business,
  • (viii) an indication of the business relationship between the owner of the cash, the owner, the lessor and the operator of the private automated banking machine and the owner of the place of business at which the machine is located,
  • (ix) the source of the cash that is loaded into the private automated banking machine, and
  • (x) the method used to transport the cash.

10 Paragraph 58(1)(b) of the Regulations is replaced by the following:

• (b) an information record in respect of every person or entity for which they act as an agent or mandatary in respect of the purchase or sale of real property or immovables and any party to the purchase or sale that is not represented by a real estate broker or sales representative; and

11 The Regulations are amended by adding the following after section 64.6:

Title Insurers

64.7 A title insurer is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when they provide a title insurance policy to the purchaser of real property or an immovable.

64.8 A title insurer must keep the following records in respect of every title insurance policy that they provide to the purchaser of real property or an immovable:

• (a) an information record in respect of the purchaser; and
• (b) a record of
  • (i) the legal description and address of the real property or immovable,
  • (ii) the date of the purchase of the real property or immovable,
  • (iii) the purchase price,
  • (iv) the source of the funds or virtual currency used for the purchase,
  • (v) if known, the amount and term of any loan secured by a mortgage on the real property or a hypothec on the immovable, and the name and address of the lender,
  • (vi) the name and address of any real estate broker or sales representative that represented the purchaser, if known, and
  • (vii) the name and address of the holder of any lien on the real property or legal hypothec or prior claim on the immovable, and the type and amount of the lien, legal hypothec or prior claim.

12 (1) Subsection 95(1) of the Regulations is amended by adding the following after paragraph (f):

• (f.1) owns, leases or operates a private automated banking machine in respect of which they provide acquirer services;
• (f.2) owns the cash that is loaded into a private automated banking machine in respect of which they provide acquirer services;
• (f.3) is an account holder of a settlement account for a private automated banking machine in respect of which they provide acquirer services;

(2) Subsection 95(3) of the Regulations is amended by adding by the following after paragraph (a):

• (a.01) that owns, leases or operates a private automated banking machine in respect of which they provide acquirer services;
• (a.02) that owns the cash that is loaded into a private automated banking machine in respect of which they provide acquirer services;
• (a.03) that is an account holder of a settlement account for a private automated banking machine in respect of which they provide acquirer services;

(3) Subsection 95(4) of the Regulations is amended by adding by the following after paragraph (a):

• (a.01) that owns, leases or operates a private automated banking machine in respect of which they provide acquirer services;
• (a.02) that owns the cash that is loaded into a private automated banking machine in respect of which they provide acquirer services;
• (a.03) that is an account holder of a settlement account for a private automated banking machine in respect of which they provide acquirer services;

13 Subsections 101(3) and (4) of the Regulations are replaced by the following:

(3) If one or more but not all of the parties to a transaction are represented by a real estate broker or sales representative, each real estate broker or sales representative shall verify the identity of the party or parties that are not represented.

14 The Regulations are amended by adding the following after section 102.1:

Title Insurers

102.2 A title insurer must

• (a) in accordance with section 105, verify the identity of a person in respect of which they are required to keep an information record under section 64.8;
• (b) in accordance with section 109, verify the identity of a corporation in respect of which they are required to keep an information record under section 64.8; and
• (c) in accordance with section 112, verify the identity of an entity, other than a corporation, in respect of which they are required to keep an information record under section 64.8.

15 (1) Subsection 105(7) of the Regulations is amended by adding the following after paragraph (h.01):

• (h.02) in the cases referred to in paragraphs 95(1)(f.1) to (f.3), before the acquirer services are provided;

(2) Paragraph 105(7)(h.1) of the Regulations is replaced by the following:

• (h.1) in the cases referred to in paragraphs 95(1)(g) and 102.2(a), at the time the information record is created;

16 (1) Subsection 109(4) of the Regulations is amended by adding the following after paragraph (h.01):

• (h.02) in the cases referred to in paragraphs 95(3)(a.01) to (a.03), before the acquirer services are provided;

(2) Paragraph 109(4)(h.1) of the Regulations is replaced by the following:

• (h.1) in the cases referred to in paragraphs 95(3)(a.1) and 102.2(b), at the time the information record is created;

17 The Regulations are amended by adding the following after section 110:

110.1 (1) A person or entity that is required to verify a corporation’s identity in accordance with subsection 109(1) may rely on an agent or mandatary to take the measures to do so.

(2) The person or entity may rely on measures that were previously taken by an agent or mandatary to verify the corporation’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 that was entered into, with another person or entity that is required to verify a corporation’s identity, for the purposes of verifying identity in accordance with subsection 109(1).

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

• (a) have entered into a written agreement or arrangement with the agent or mandatary for the purposes of verifying a corporation’s identity in accordance with subsection 109(1);
• (b) as soon as feasible, obtain from the agent or mandatary the information that the agent or mandatary referred to in order to verify the corporation’s identity and the information that the agent or mandatary confirmed as being that of the corporation; and
• (c) be satisfied that the information that the agent or mandatary confirmed as being that of the corporation is valid and current and that the agent or mandatary verified the corporation’s identity in the manner described in subsection 109(1).

18 (1) Subsection 112(3) of the Regulations is amended by adding the following after paragraph (h.01):

• (h.02) in the cases referred to in paragraphs 95(4)(a.01) to (a.03), before the acquirer services are provided;

(2) Paragraph 112(3)(h.1) of the Regulations is replaced by the following:

• (h.1) in the cases referred to in paragraphs 95(4)(a.1) and 102.2(c), at the time the information record is created;

19 Section 120.1 of the Regulations is replaced by the following:

120.1 (1) The following persons and entities must take reasonable measures to determine whether a person with whom they enter into a business relationship is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member — referred to in subsection 2(1) — of one of those persons or a person who is closely associated with a politically exposed foreign person:

• (a) a British Columbia notary public;
• (b) a British Columbia notary corporation;
• (c) an accountant;
• (d) an accounting firm;
• (e) a real estate broker or sales representative;
• (f) a real estate developer;
• (g) a mortgage administrator;
• (h) a mortgage broker;
• (i) a mortgage lender;
• (j) a title insurer;
• (k) a dealer in precious metals and precious stones; and
• (l) a department or an agent of His Majesty in right of Canada or an agent or mandatary of His Majesty in right of a province.

(2) A person or entity referred to in any of paragraphs (1)(a) to (l) must periodically take reasonable measures to determine whether a person with whom they have a business relationship is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member — referred to in subsection 2(1) — of one of those persons or a person who is closely associated with a politically exposed foreign person.

(3) A person or entity referred to in any of paragraphs (1)(a) to (i), (k) and (l) must take reasonable measures to determine whether a person from whom they receive an amount of $100,000 or more, in cash or in virtual currency, is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, one of those persons.

(4) If a person or entity referred to in any of paragraphs (1)(a) to (l) — or any of their employees or officers — detects a fact that constitutes reasonable grounds to suspect that a person with whom they have a business relationship is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, one of those persons, the person or entity must take reasonable measures to determine whether they are such a person.

20 The heading of Part G of Schedule 6 to the Regulations is replaced by the following:

Information with Respect to Person or Entity That Receives Disbursement

21 Schedule 6 to the Regulations is amended by adding the following after Part G:

PART H

Information with Respect to Person or Entity on Whose Behalf Disbursement is Received

• 1* Person’s or entity’s name
• 2* Person’s or entity’s address
• 3 Person’s or entity’s email address
• 4 Person’s or entity’s telephone number
• 5 Nature of person’s or entity’s principal business or their occupation
• 6 Identification number assigned to person or entity by casino
• 7 Type of document or other information used to identify person or entity, or to verify their identity, and number of document or number associated with information
• 8 Jurisdiction and country of issue of document or other information
• 9 Relationship of person or entity to person or entity that requests disbursement
• 10* Relationship of person or entity to person or entity that receives disbursement
• 11 In the case of a person,
  • (a) their alias
  • (b) their date of birth
  • (c) their country of residence
  • (d) their employer’s name
• 12 In the case of an entity,
  • (a) name of each person — up to three — who is authorized to bind entity or to act with respect to account
  • (b) its registration or incorporation number and jurisdiction and country of issue of that number

Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations

22 Schedule 1 to the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations ^{footnote 3} is amended by adding the following after Part C:

PART D

Information with Respect to Private Automated Banking Machines for Which Applicant Provides Acquirer Services

• 1 Name, address, email address and telephone number of owner, lessor and operator of private automated banking machine, as well as
  • (a) in the case of a person, their date of birth and nature of their principal business or their occupation
  • (b) in the case of an entity, its registration or incorporation number, jurisdiction and country of issue of that number and nature of its principal business
• 2 Name, address, email address and telephone number of owner of cash that is loaded into private automated banking machine, as well as
  • (a) in the case of a person, their date of birth and nature of their principal business or their occupation
  • (b) in the case of an entity, its registration or incorporation number, jurisdiction and country of issue of that number and nature of its principal business
• 3 Number of settlement account for private automated banking machine and name and address of each account holder, nature of their principal business or their occupation and, in the case of a person, their date of birth
• 4 Terminal identification number of private automated banking machine
• 5 Brand, model and serial number of private automated banking machine
• 6 Number of bills that private automated banking machine can contain
• 7 Name and address of place of business at which private automated banking machine is located and nature of principal business of place of business
• 8 Nature of business relationship between owner of cash, owner, lessor and operator of private automated banking machine and owner of place of business at which machine is located
• 9 Source of cash that is loaded into private automated banking machine
• 10 Method used to transport cash

Coming Into Force

23 (1) Subject to subsections (2) to (5), these Regulations come into force on the day on which they are registered.

(2) Subsections 1(1) and 2(1) and sections 3 to 6 come into force on the day on which section 181 of the Budget Implementation Act, 2023, No. 1, chapter 26 of the Statutes of Canada, 2023, comes into force, but if these Regulations are registered after that day, those provisions come into force on the day on which these Regulations are registered.

(3) Subsections 1(2) and 2(2) come into force on the day that, in the sixth month after the month in which section 181 of the Budget Implementation Act, 2023, No. 1, chapter 26 of the Statutes of Canada, 2023, comes into force, has the same calendar number as the day on which that section comes into force or, if that sixth month has no day with that number, the last day of that sixth month.

(4) Sections 7, 8, 10, 11 and 14, subsections 15(2) and 16(2), section 17, subsection 18(2) and section 19 come into force on October 1, 2025, but if these Regulations are registered after that day, those provisions come into force on the day on which these Regulations are registered.

(5) Sections 9 and 12, subsections 15(1), 16(1) and 18(1) and section 22 come into force on the day on which section 279 of the Fall Economic Statement Implementation Act, 2023, chapter 15 of the Statutes of Canada, 2024, comes into force, but if these Regulations are registered after that day, those provisions come into force on the day on which these Regulations are registered.

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