PART 4

2000, c. 17

PROCEEDS OF CRIME (MONEY LAUNDERING) ACT

47. The long title of the Proceeds of Crime (Money Laundering) Act is replaced by the following:

An Act to facilitate combatting the laundering of proceeds of crime and combatting the financing of terrorist activities, to establish the Financial Transactions and Reports Analysis Centre of Canada and to amend and repeal certain Acts in consequence

48. Section 1 of the Act is replaced by the following:

Short title

1. This Act may be cited as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

49. (1) The definitions ``client'' and ``courier'' in section 2 of the Act are replaced by the following:

``client''
« client »

``client'' means a person or an entity that engages in a financial transaction or activity with a person or an entity referred to in section 5, and includes a person or an entity on whose behalf the person or the entity that engages in the transaction or activity is acting.

``courier''
« messager »

``courier'' means a courier as defined by regulation.

(2) Section 2 of the Act is amended by adding the following in alphabetical order:

``entity''
« entité »

``entity'' means a body corporate, a trust, a partnership, a fund or an unincorporated association or organization.

``person''
« personne »

``person'' means an individual.

``terrorist activity''
« activité terroriste »

``terrorist activity'' has the same meaning as in subsection 83.01(1) of the Criminal Code.

``terrorist activity financing offence''
« infraction de financement des activités terroristes »

``terrorist activity financing offence'' means an offence under section 83.02, 83.03 or 83.04 of the Criminal Code or an offence under section 83.12 of the Criminal Code arising out of a contravention of section 83.08 of that Act.

``threats to the security of Canada''
« menaces envers la sécurité du Canada »

``threats to the security of Canada'' has the same meaning as in section 2 of the Canadian Security Intelligence Service Act.

50. (1) The portion of paragraph 3(a) of the Act before subparagraph (ii) is replaced by the following:

    (a) to implement specific measures to detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of money laundering offences and terrorist activity financing offences, including

      (i) establishing record keeping and client identification requirements for financial services providers and other persons or entities that engage in businesses, professions or activities that are susceptible to being used for money laundering or the financing of terrorist activities,

(2) Paragraph 3(c) of the Act is replaced by the following:

    (c) to assist in fulfilling Canada's international commitments to participate in the fight against transnational crime, particularly money laundering, and the fight against terrorist activity.

51. (1) Paragraphs 5(g) to (j) of the Act are replaced by the following:

    (g) persons and entities authorized under provincial legislation to engage in the business of dealing in securities, or to provide portfolio management or investment counselling services;

    (h) persons and entities engaged in the business of foreign exchange dealing;

    (i) persons and entities engaged in a business, profession or activity described in regulations made under paragraph 73(1)(a);

    (j) persons and entities engaged in a business or profession described in regulations made under paragraph 73(1)(b), while carrying out the activities described in the regulations;

(2) Paragraph 5(m) of the Act is replaced by the following:

    (m) for the purposes of section 7, employees of a person or entity referred to in any of paragraphs (a) to (l).

52. Section 7 of the Act is replaced by the following:

Transactions if reasonable grounds to suspect

7. In addition to the requirements of subsection 9(1), every person or entity shall report to the Centre, in the prescribed form and manner, every financial transaction that occurs in the course of their activities and in respect of which there are reasonable grounds to suspect that the transaction is related to the commission of a money laundering offence or a terrorist activity financing offence.

Disclosure

7.1 (1) In addition to the requirements of section 7 and subsection 9(1), every person or entity that is required to make a disclosure under section 83.1 of the Criminal Code shall also make a report on it to the Centre, in the prescribed form and manner.

Limitation

(2) Subsection (1) does not apply to prescribed persons or entities, or prescribed classes of persons or entities, in respect of prescribed transactions or property, or classes of transactions or property, if the prescribed conditions are met.

53. Section 10 of the Act is replaced by the following:

Reports under other Acts

9.1 Subject to section 9, every person or entity that is required to make a report to the Centre under an Act of Parliament or any regulations under it shall make it in the form and manner prescribed under this Act for a report under that Act.

Immunity

10. No criminal or civil proceedings lie against a person or an entity for making a report in good faith under section 7, 7.1 or 9, or for providing the Centre with information about suspicions of money laundering or of the financing of terrorist activities.

54. (1) Subsection 12(1) of the Act is replaced by the following:

Currency and monetary instruments

12. (1) Every person or entity referred to in subsection (3) shall report to an officer, in accordance with the regulations, the importation or exportation of currency or monetary instruments of a value equal to or greater than the prescribed amount.

(2) Paragraph 12(3)(a) of the Act is replaced by the following:

    (a) in the case of currency or monetary instruments in the actual possession of a person arriving in or departing from Canada, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, by that person or, in prescribed circumstances, by the person in charge of the conveyance;

55. The portion of subsection 15(1) of the Act after paragraph (c) is replaced by the following:

if the officer suspects on reasonable grounds that the person has secreted on or about their person currency or monetary instruments that are of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1) and that have not been reported in accordance with that subsection.

56. Section 16 of the Act is replaced by the following:

Search of conveyance

16. (1) If an officer suspects on reasonable grounds that there are, on or about a conveyance, currency or monetary instruments of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1) and that have not been reported in accordance with that subsection, the officer may stop, board and search the conveyance, examine anything in or on it and open or cause to be opened any package or container in or on it and direct that the conveyance be moved to a customs office or other suitable place for the search, examination or opening.

Search of baggage

(2) If an officer suspects on reasonable grounds that there are, in baggage, currency or monetary instruments that are of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1) and that have not been reported in accordance with that subsection, the officer may search the baggage, examine anything in it and open or cause to be opened any package or container in it and direct that the baggage be moved to a customs office or other suitable place for the search, examination or opening.

57. Subsection 17(1) of the Act is replaced by the following:

Examination and opening of mail

17. (1) An officer may examine any mail that is being imported or exported and open or cause to be opened any such mail that the officer suspects on reasonable grounds contains currency or monetary instruments of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1).

58. Subsection 18(2) of the Act is replaced by the following:

Return of seized currency or monetary instruments

(2) The officer shall, on payment of a penalty in the prescribed amount, return the seized currency or monetary instruments to the person from whom they were seized or to the lawful owner unless the officer has reasonable grounds to suspect that the currency or monetary instruments are proceeds of crime within the meaning of section 462.3 of the Criminal Code or funds for use in the financing of terrorist activities.

59. Subsection 21(1) of the Act is replaced by the following:

Mail to be made available to an officer

21. (1) On request of an officer, any mail that is being sent from a place in Canada to a place in a foreign country and that contains or is suspected to contain currency or monetary instruments that are of a value equal to or greater than the amount prescribed for the purpose of subsection 12(1) shall be submitted by the Canada Post Corporation to an officer.

60. Section 22 of the Act is replaced by the following:

When forfeiture under s. 14(5)

22. (1) An officer who retains currency or monetary instruments forfeited under subsection 14(5) shall send the currency or monetary instruments to the Minister of Public Works and Government Services.

When seizure or payment of a penalty

(2) An officer who seizes currency or monetary instruments or is paid a penalty under subsection 18(2) shall send the currency or monetary instruments or the penalty, as the case may be, to the Minister of Public Works and Government Services.

61. Section 25 of the Act is replaced by the following:

Request for Minister's decision

25. A person from whom currency or monetary instruments were seized under section 18, or the lawful owner of the currency or monetary instruments, may within 90 days after the date of the seizure request a decision of the Minister as to whether subsection 12(1) was contravened, by giving notice in writing to the officer who seized the currency or monetary instruments or to an officer at the customs office closest to the place where the seizure took place.

62. Subsection 27(2) of the Act is replaced by the following:

Deferral of decision

(2) If charges are laid with respect to a money laundering offence or a terrorist activity financing offence in respect of the currency or monetary instruments seized, the Minister may defer making a decision but shall make it in any case no later than 30 days after the conclusion of all court proceedings in respect of those charges.

63. Subsection 32(1) of the Act is replaced by the following:

Interest as owner

32. (1) If currency or monetary instruments have been seized as forfeit under this Part, any person, other than the person in whose possession the currency or monetary instruments were when seized, who claims an interest in the currency or monetary instruments as owner may, within 90 days after the seizure, apply by notice in writing to the court for an order under section 33.

64. Subsections 36(2) and (3) of the Act are replaced by the following:

Disclosure of information to a police force

(2) An officer who has reasonable grounds to suspect that information referred to in subsection (1) would be relevant to investigating or prosecuting a money laundering offence or a terrorist activity financing offence may disclose the information to the appropriate police force.

Disclosure of information to the Centre

(3) An officer may disclose to the Centre information referred to in subsection (1) if the officer has reasonable grounds to suspect that it would be of assistance to the Centre in the detection, prevention or deterrence of money laundering or of the financing of terrorist activities.

65. Paragraph 40(b) of the Act is replaced by the following:

    (b) collects, analyses, assesses and discloses information in order to assist in the detection, prevention and deterrence of money laundering and of the financing of terrorist activities;

66. Paragraphs 54(a) and (b) of the Act are replaced by the following:

    (a) shall receive reports made under section 7, 7.1, 9, 12 or 20, incomplete reports sent under subsection 14(5), reports referred to in section 9.1, information provided to the Centre by any agency of another country that has powers and duties similar to those of the Centre, information provided to the Centre by law enforcement agencies or government institutions or agencies, and other information voluntarily provided to the Centre about suspicions of money laundering or of the financing of terrorist activities;

    (b) may collect information that the Centre considers relevant to money laundering activities or the financing of terrorist activities and that is publicly available, including commercially available databases, or that is stored in databases maintained by the federal or provincial governments for purposes related to law enforcement and in respect of which an agreement was entered into under subsection 66(1);

67. (1) The portion of subsection 55(1) of the Act before paragraph (a) is replaced by the following:

Disclosure by Centre prohibited

55. (1) Subject to subsection (3), sections 52, 55.1 and 56.1, subsection 58(1) and section 65 and to subsection 12(1) of the Privacy Act, the Centre shall not disclose the following:

(2) Subsection 55(1) of the Act is amended by adding the following after paragraph (a):

    (a.1) information set out in a report made under section 7.1;

(3) Subsection 55(1) of the Act is amended by adding the following after paragraph (b):

    (b.1) information set out in a report referred to in section 9.1;

(4) Paragraph 55(1)(d) of the Act is replaced by the following:

    (d) information voluntarily provided to the Centre about suspicions of money laundering or of the financing of terrorist activities;

(5) The portion of subsection 55(3) of the Act before paragraph (a) is replaced by the following:

Disclosure of designated information

(3) If the Centre, on the basis of its analysis and assessment under paragraph 54(c), has reasonable grounds to suspect that designated information would be relevant to investigating or prosecuting a money laundering offence or a terrorist activity financing offence, the Centre shall disclose the information to

(6) Subsection 55(3) of the Act is amended by adding the word ``and'' at the end of paragraph (b) and by repealing paragraph (c).

(7) Subsections 55(4) to (5.1) of the Act are replaced by the following:

Recording of reasons for decision

(5.1) The Centre shall record in writing the reasons for all decisions to disclose information made under subsection (3).

(8) The portion of subsection 55(7) of the Act before paragraph (a) is replaced by the following:

Definition of ``designated information''

(7) For the purposes of subsection (3), ``designated information'' means, in respect of a financial transaction or an importation or exportation of currency or monetary instruments,

2001, c. 12, s. 2

(9) Paragraph 55(7)(e) of the Act is replaced by the following:

    (e) any other similar identifying information that may be prescribed for the purposes of this section.

68. Section 56 of the Act is replaced by the following: