Archived - What is a suspicious transaction report?

The guidance Reporting suspicious transactions to FINTRAC replaces this content, which has been archived on April 8, 2024. Archived information is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact FINTRAC to request a format other than those available.

Archived

As of June 1, 2021, FINTRAC no longer has the authority to receive the information from Part B1, Field 8, and Part B2, Field 15 of this report. The fields will still be available in the system for data entry, but FINTRAC will mask the data once it is received. Reporting entities do not need to implement a system change at this time. The fields have been removed from the paper reporting form.

Overview

• Reporting suspicious transactions to FINTRAC; and
• Money laundering (ML) and terrorist financing (TF) indicators (ML/TF indicators)

Who is this guidance for

• All reporting entities (REs) and employees of Res

In this guidance

1. What is a suspicious transaction report (STR)?
2. What measures do I need to take to submit STRs to FINTRAC?
3. What are reasonable grounds to suspect (RGS)?
4. When do I submit an STR to FINTRAC?
5. How does FINTRAC assess my compliance with the obligation to submit STRs?
6. How can I assess my compliance with the obligation to submit STRs?

**Note: All references to transactions should be read to include both attempted transactions and completed transactions. All references to the commission of an ML/TF offence also include the attempted commission of an ML/TF offence.

Related guidance

• Reporting suspicious transactions to FINTRAC
• Money laundering and terrorist financing indicators—Accountants
• Money laundering and terrorist financing indicators—Agents of the Crown
• Money laundering and terrorist financing indicators—British Columbia notaries
• Money laundering and terrorist financing indicators—Casinos
• Money laundering and terrorist financing indicators—Dealers in precious metals and precious stones
• Money laundering and terrorist financing indicators—Financial entities
• Money laundering and terrorist financing indicators—Life insurance companies, brokers and agents
• Money laundering and terrorist financing indicators—Money services businesses
• Money laundering and terrorist financing indicators—Real estate
• Money laundering and terrorist financing indicators—Securities dealers
• Money laundering and terrorist financing indicators—Virtual currency transactions

1. What is a suspicious transaction report (STR)?

A suspicious transaction report (STR) is a type of report that must be submitted to FINTRAC by an RE if there are reasonable grounds to suspect that a financial transaction that occurs or is attempted in the course of their activities is related to the commission or the attempted commission of an ML/TF offence. Footnote 1

FINTRAC operates within the legislative authority of the PCMLTFA and associated Regulations. Its mandate is to prevent, detect and deter ML/TF activities, while ensuring the protection of the information under its control.

For FINTRAC to achieve its mandate, regulated persons and entities (commonly referred to as reporting entities—REs) must implement the legislated requirements and set out specific measures in their compliance programs, including developing and implementing compliance policies and procedures for verifying the identity of clients, keeping records and submitting reports to FINTRAC. FINTRAC assesses and analyzes the data from these reports and creates a picture that serves to uncover financial relationships and networks that will:

• assist law enforcement in investigating or prosecuting offences related to ML/TF, as well as threats to the security of Canada;
• detect trends and patterns related to ML/TF risks;
• uncover vulnerabilities of Canada's financial system; and
• enhance public awareness of ML/TF matters.

The STR is one of the most valuable and unique report types submitted to FINTRAC. In addition to the prescribed information, STRs allow for an expansion on the descriptive details surrounding a transaction that is derived from your assessment of what you are seeing through your business interactions and activities. Additional information, such as nicknames, secondary names, beneficial ownership information, IP addresses, additional account numbers, email addresses, virtual currency transaction addresses and their details, details of purchases or e-transfers, locations, relationships, and background information are all additional details that FINTRAC uses in its analysis and production of financial intelligence disclosures.

Because of the importance of FINTRAC's financial intelligence to the overall safety and security of Canadians and Canada's financial system, FINTRAC reviews and assesses every STR it receives. When warranted, such as in the case of STRs related to threats to the security of Canada, FINTRAC expedites its analysis in order to disclose financial intelligence to law enforcement and other intelligence partners within 24 hours.

For more information on ML/TF, see ML and TF guidance.

2. What measures do I need to take to submit STRs to FINTRAC?

In order to submit an STR to FINTRAC, you will need to ensure that you have completed the measures that enable you to establish there are reasonable grounds to suspect the transaction is related to the commission of an ML/TF offence. These measures include:

• screening for and identifying suspicious transactions;
• assessing the facts and context surrounding the suspicious transaction;
• linking ML/TF indicators to your assessment of the facts and context; and
• explaining your grounds for suspicion in an STR, where you articulate how the facts, context and ML/TF indicators allowed you to reach your reasonable grounds for suspicion.

What is a fact?

A fact, for the purpose of completing an STR, is defined as an event, action, occurrence or element that exists or is known to have happened or existed — it cannot be an opinion. For example, facts about a transaction could include the date, time, location, amount or type. Facts known to the RE could also include account details, particular business lines, the client's financial history or information about the person or entity (for example, that the person has been convicted of a designated offence or is the subject of a production order, or that an entity is being investigated for fraud or any other indictable offence).

What is context?

Context, for the purpose of completing an STR, is defined as information that clarifies the circumstances or explains a situation or transaction. This type of information is essential to differentiate between what may be suspicious and what may be reasonable in a given scenario.

You may observe or understand the context of a transaction through:

• a general awareness of the events occurring in a person or entity's business environment or community;
• your knowledge of the typical financial activities found within your business;
• regular know your client (KYC) activities (for example, verifying the identity of persons and entities, their occupation or business, how they generate their wealth, their typical or expected transactional behaviours, etc.);
• the information obtained through the application of your risk assessment; and
• illustrative client details (for example, the background, behaviour and actions of your client).

A transaction may not appear suspicious in and of itself. However, a review of additional contextual elements surrounding the transaction may create suspicion. Conversely, the context of a particular transaction, which may have seemed unusual or suspicious from the onset, could lead you to reassess your client's current and past transactions and conclude that they are reasonable in that circumstance.

Your suspicion of ML/TF will likely materialize from your assessment of multiple elements (transactions, facts, context, and any other related information that may or may not be an indicator of ML/TF). When these elements are viewed together, they create a picture that will either support or negate your suspicion of the commission of an ML/TF offence. Below are some examples of how suspicion may arise:

1. A person:
   • asks several questions about your reporting obligations to FINTRAC (context)
   • wants to know how they can avoid their transaction being reported to FINTRAC (context)
   • structures their amounts to avoid client identification or reporting thresholds (fact)
   • keeps changing their explanation for conducting a transaction or knows few details about its purpose (context)
2. Transactions constantly being made on behalf of another person or entity:
   • a client conducts a transaction while accompanied, overseen or directed by another party (fact)
   • payments to or from unrelated parties (foreign or domestic) (fact)
   • client appears to be or states that they are acting on behalf of another party (context)

For RE sectors that deal with accounts:

1. A person making a deposit to a personal account, where the person:
   • has an income or job that is not consistent with the deposit amounts (fact)
   • keeps changing their reason for the deposit, and cannot or will not provide a reason (context)
   • exhibits nervous behaviour (context)
2. Transactions to a business account with the following additional elements:
   • deposits to the account are made by numerous parties that are not signing authorities or employees (fact)
   • the account activity involves wire transfers in and out of the country (fact), which do not fit the expected pattern for that business (context)
3. Transactions frequently being made on behalf of another person or entity:
   • multiple payments made to an account by non-account holders (fact)
   • account is linked to seemingly unconnected parties (context)

What is an ML/TF indicator?

ML/TF indicators are potential red flags that can initiate suspicion and indicate that something may be unusual without a reasonable explanation. Red flags typically stem from one or more facts, behaviours, patterns or other factors that identify irregularities related to a client's transactions. These transactions often present inconsistencies with what is expected or considered normal based on the facts and context you know about your client and their transactional activities.

FINTRAC published ML/TF indicators for each RE sector. These were developed through a three-year review of ML/TF cases, a review of high-quality STRs, and literature published by international organizations such as the Financial Action Task Force (FATF) and the Egmont Group, and in consultation with RE sectors. These ML/TF indicators do not cover every possible situation; they are meant to provide all RE sectors with a general understanding of what is or could be considered unusual or suspicious. FINTRAC also publishes operational alerts and briefs that offer additional information on the identification of ML/TF related methods, techniques, and vulnerabilities.

On its own, an indicator may not initially appear suspicious. However, it could lead you to question the legitimacy of a transaction, which may prompt you to assess the transaction to determine whether there are further facts, contextual elements or additional ML/TF indicators that would increase your suspicion to the point where submitting an STR to FINTRAC would be required.

Criminal organizations often try to avoid the detection of ML/TF by using multiple concealment methods. Indicators of ML/TF can bring to light suspicious transactional activity, but it is your holistic assessment of facts, context and ML/TF indicators that will enable you to determine whether you have reached RGS that a transaction is related to the commission of an ML/TF offence. Indicators are also helpful to articulate your rationale for RGS in an STR. The explanation of how you reached your grounds for suspicion is extremely important for FINTRAC's development and disclosure of financial intelligence.

3. What are reasonable grounds to suspect (RGS)?

Understanding the differences between the thresholds can help clarify what RGS means for your organization and how it can be operationalized within your compliance program. See diagram 1: Threshold for suspicion, an overview of the different thresholds.

Simple suspicion is a lower threshold than RGS and is synonymous with a "gut feeling" or "hunch". In other words, simple suspicion means that you have a feeling that something is unusual or suspicious, but do not have any facts, context or ML/TF indicators to support that feeling or to reasonably conclude that an ML/TF offence has occurred. Simple suspicion could prompt you to assess related transactions to see if there is any additional information that would support or confirm your suspicion.

Reasonable grounds to suspect (RGS) is the required threshold to submit an STR to FINTRAC and is a step above simple suspicion, meaning that there is a possibility that an ML/TF offence has occurred. You do not have to verify the facts, context or ML/TF indicators that led to your suspicion, nor do you have to prove that an ML/TF offence has occurred in order to reach RGS. Your suspicion must be reasonable and therefore, not biased or prejudiced.

Reaching RGS means that you considered the facts, context and ML/TF indicators related to a financial transaction and, after having reviewed this information, you concluded that there are RGS that this particular financial transaction is related to the commission of an ML/TF offence. You must be able to demonstrate and articulate your suspicion of ML/TF in such a way that another individual reviewing the same material with similar knowledge, experience, or training would likely reach the same conclusion.

The explanation of your assessment should be included in the narrative portion, Part G, of the STR. Many factors will support your assessment and conclusion that an ML/TF offence has possibly occurred; they should all be included in your STR.

Reasonable grounds to believe is a higher threshold than RGS and is beyond what is required to submit an STR. Reasonable grounds to believe means that there are verified facts that support the probability that an ML/TF offence has occurred. In other words, there is enough evidence to support a reasonable and trained person to believe, not just suspect, that an ML/TF offence has occurred. For example, law enforcement must reach reasonable grounds to believe that criminal activity has occurred before they can obtain judicial authorizations, such as a production order.

If you are in receipt of a production order, by law enforcement, you must perform an assessment of the facts, context, and ML/TF indicators to determine whether you have RGS that a particular transaction is related to the commission of an ML/TF offence.

If you identify a transaction whereby you reach reasonable grounds to believe that an ML/TF offence has occurred, you must begin an assessment of the related transactions immediately as you have surpassed the RGS threshold. If assessed by FINTRAC and there are reasonable grounds to believe that a transaction is related to the commission of an ML/TF offence, and you have not begun an assessment of the facts, context or ML/TF indicators, you may be cited for a missed STR. In situations involving time-sensitive information, such as suspected terrorist financing and threats to national security, you are encouraged, as a best practice, to expedite the submission of your STRs. We recommend that this be included in your compliance policies and procedures.

Diagram 1: Threshold for suspicion

4. When do I submit an STR to FINTRAC?

You must submit an STR as soon as practicable Footnote 2 after completing the measures (described above in section 2) required to establish RGS that a transaction is related to the commission of an ML/TF offence.

Therefore, the measures you complete enable you to prepare the STR to the best of your ability; the STR will include the relevant facts, context and ML/TF indicators that enabled you to conclude that you had RGS that the transaction is related to the commission of an ML/TF offence. Once you have completed the measures, you must submit the STR to FINTRAC as soon as practicable.

As soon as practicable is interpreted to mean that you have completed the measures that have allowed you to determine that you reached the RGS threshold and as such the development and submission of that STR must be treated as a priority. FINTRAC expects that you are not giving unreasonable priority to other transaction monitoring tasks and may question delayed reports. The greater the delay, the greater the need for a suitable explanation. STRs can be complex, yet you must treat them as a priority and ensure they are timely; you must also complete the measures that enabled you to conclude that you have RGS that the transaction is related to the commission of an ML/TF offence before you submit the report to FINTRAC.

Failing to submit an STR, or not submitting an STR in a timely manner, may directly affect FINTRAC's ability to carry out its mandate. Therefore, FINTRAC expects that when you have completed your measures and determined that you have reached reasonable grounds to suspect that a transaction is related to the commission of an ML/TF offence, you will prioritize the submission of that STR.

5. How does FINTRAC assess my compliance with the obligation to submit STRs?

FINTRAC uses a variety of assessment methods to ensure that you are detecting suspicious transactions and submitting complete reports in a timely manner. During an assessment, FINTRAC expects that you will be able to:

• confirm that you have an ongoing monitoring process, and have measures described in your compliance policies and procedures and risk assessment (that is, enhanced measures and special measures for high-risk activities and clients) that are operationalized to enable the timely detection, assessment and, when required, reporting of suspicious transactions;
• demonstrate your process for identifying relevant transactions;
• explain how your process for detecting and assessing suspicious transactions is effective, reasonable and consistent with your risk assessment, and applied across all your business lines; and
• demonstrate that you have a risk-based process and that it's incorporated in your decision-making processes for the submission of STRs.

In assessing what constitutes a practicable timeframe to complete the measures that precede submitting an STR, FINTRAC may review:

• your previously submitted STRs, including their quality, timing and volume;
• the nature of the original transaction;
• the size of your business and your business model;
• your internal processes and procedures;
• the complexity of the transactions;
• the number of relevant transactions identified in the STR;
• the nature of the indicators and grounds for suspicion;
• the facts of the case;
• the overall number of transactions in your assessment; and
• other relevant considerations.

For more information on how FINTRAC assesses STRs, see FINTRAC's assessment manual.

6. How can I assess my compliance with the obligation to submit STRs?

Under the PCMLTFA and associated Regulations, you are required to assess the effectiveness of your compliance program as a part of your two-year effectiveness review. Footnote 3 To help you with this review, you will find examples of how to assess your compliance program in relation to detecting and assessing suspicious transactions and submitting your STRs below. It is not mandatory to apply all the examples when conducting your review.

1. You could review previously submitted STRs to ensure that you are consistent in the detection, assessment and submission of STRs. For example, if certain ML/TF indicators have supported your suspicions of ML/TF, you assess whether these indicators apply to other situations to ensure that you are not missing suspicious transactions that should be or should have been reported to FINTRAC. This approach can help you build consistency within your organization.
2. If an STR was submitted to FINTRAC in respect of a transaction conducted by a person or entity, you should continue to submit reports on that client's transactions as long as they remain suspicious. That being said, a periodic re-assessment of your grounds for suspicion should be done. How often you perform this assessment should be documented as part of your policies and procedures. For instructions on submitting multiple STRs on a given client, refer to Reporting suspicious transactions to FINTRAC.
3. You can work with others in your business sector to learn how others are detecting, assessing and reaching the RGS threshold and to establish common ideas of what could be considered unusual or suspicious. Please consult FINTRAC's operational briefs and alerts for more information on ML/TF risks and vulnerabilities that have been observed within certain RE sectors or that relate to specific forms of criminality (for example, human trafficking, romance fraud, fentanyl and other synthetic drug trafficking).
4. RGS means that you can articulate your suspicion in such a way that another individual with similar knowledge, experience and training would, based on the same information, likely reach the same conclusion. Applying this logic can help you direct your attention to those transactions that may fit some of the ML/TF indicators identified by FINTRAC. This will also help you determine if there are transactions that should be considered for further assessment and potential submission to FINTRAC.
5. To assess the timeliness of your reporting of suspicious transactions, you may wish to conduct a sample review. You can review the measures you took to identify the relevant information in the STRs (facts, context and ML/TF indicators) and when this information became known to ensure that you are reporting as soon as practicable from the date you reached the RGS threshold.
6. To assess the quality of your STRs, it is important that you consider the consistency and integrity of your Know your client (KYC) information and provide all relevant information that led to your determination of the RGS threshold being met.
7. The STR structure is intended to encourage reporting even in situations where you may not have information because the client did not provide any or asking for details might "tip off" the client to your suspicions. Double-checking the quality of the STRs before submitting them is important and it is FINTRAC's expectation that if you have the information within your institution, that it be reported.

Details and history

Published: June 2021

For assistance

If you have questions about this guidance, please contact FINTRAC by email at guidelines-lignesdirectrices@fintrac-canafe.gc.ca.

Proceeds of Crime (Money Laundering) and Terrorist Financing Act, S.C. 2000, c. 17, ss. 7(a) and 7(b).

Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations, SOR/2001-317, s. 9(2).

Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, SOR/2002-184, s. 71(1)(e).

Definitions

A chartered accountant, a certified general accountant, a certified management accountant or, if applicable, a chartered professional accountant. ( comptable )

Reference:
Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR), SOR/2002-184, s. 1(2).

An entity that is engaged in the business of providing accounting services to the public and has at least one partner, employee or administrator that is an accountant. ( cabinet d'expertise comptable )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). ( la Loi )

Reference:
Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations (PCMLTFAMPR), SOR/2007-292, s. 1, Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations (PCMLTFRR), SOR/2007-121, s. 1, PCMLTFR, SOR/2002-184, s. 1(2), and Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations (PCMLTFSTRR), SOR/2001-317, s. 1(2).

Administrative monetary penalties (AMPs)

Civil penalties that may be issued to reporting entities by FINTRAC for non-compliance with the PCMLTFA and associated Regulations. ( pénalité administrative pécuniaire [PAP] )

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. ( entité du même groupe )

Reference:
PCMLTFR, SOR/2002-184, s. 4.

Has the same meaning as in subsection 248(1) of the Income Tax Act. ( rente )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

Persons or entities that are engaged in the business of transporting currency, money orders, traveller’s cheques or other similar negotiable instruments. ( Véhicules blindés )

As soon as practicable

A time period that falls in-between immediately and as soon as possible, within which a suspicious transaction report (STR) must be submitted to FINTRAC. The completion and submission of the STR should take priority over other tasks. In this context, the report must be completed promptly, taking into account the facts and circumstances of the situation. While some delay is permitted, it must have a reasonable explanation. ( aussitôt que possible )

Occurs when an individual or entity starts to conduct a transaction that is not completed. For example, a client or a potential client walks away from conducting a $10,000 cash deposit. ( opération tentée )

In respect of verifying identity, means genuine and having the character of an original, credible, and reliable document or record. ( authentique )

A person who is authorized under subsection 45(2). ( personne autorisée )

Reference:
Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), S.C. 2000, c 17, s. 2(1).

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. ( utilisateur autorisé )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

Beneficial owners are the individuals who are the trustees, and known beneficiaries and settlors of a trust, or who directly or indirectly own or control 25% or more of i) the shares of a corporation or ii) an entity other than a corporation or trust, such as a partnership. The ultimate beneficial owner(s) cannot be another corporation or entity; it must be the actual individual(s) who owns or controls the entity. ( bénéficiaire effectif )

A beneficiary is the individual or entity that will benefit from a transaction or to which the final remittance is made. ( bénéficiaire )

A branch is a part of your business at a distinct location other than your main office. ( succursale )

British Columbia notary corporation

An entity that carries on the business of providing notary services to the public in British Columbia in accordance with the Notaries Act, R.S.B.C. 1996, c. 334. ( société de notaires de la Colombie-Britannique )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

British Columbia notary public

A person who is a member of the Society of Notaries Public of British Columbia. ( notaire public de la Colombie-Britannique )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

Coins referred to in section 7 of the Currency Act, notes issued by the Bank of Canada under the Bank of Canada Act that are intended for circulation in Canada or coins or bank notes of countries other than Canada. ( espèces )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2) and PCMLTFSTRR, SOR/2001-317, s. 1(2).

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

Reference:
PCMLTFR, SOR/2002-184, s 1(2) and PCMLTFSTRR, SOR/2001-317, s. 1(2).

An individual that holds the title of professional certified translator granted by a Canadian provincial or territorial association or body that is competent under Canadian provincial or territorial law to issue such certification. ( traducteur agréé )

A clarification request is a method used to communicate with money services businesses (MSBs) or foreign money services businesses (FMSBs) when FINTRAC needs more information about their registration form. This request is usually sent by email. ( demande de précisions )

A person or entity that engages in a financial transaction with another person or entity. ( client )

Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).

Client identification information

The identifying information that you have obtained on your clients, such as name, address, telephone number, occupation or nature of principal business, and date of birth for an individual. ( renseignements d'identification du client )

For the purpose of the criminal record check submitted with an application for registration, a competent authority is any person or organization that has the legally delegated or invested authority, capacity, or power to issue criminal record checks. ( autorité compétente )

Is a transaction conducted by a person or entity, that is completed and results in the movement of funds, virtual currency, or the purchase or sale of an asset. ( opération effectuée )

With respect to a reportable transaction, information related to the instructions provided by the person or entity making the request to the reporting entity to complete a transaction. For example, an individual arrives at a bank and requests to purchase a bank draft. The completing action is the details of how the reporting entity fulfilled the person or entity’s instructions which led to the transaction being completed. This includes what the funds or virtual currency initially brought to the reporting entity was used for (see “disposition”). A transaction may have one or more completing actions depending on the instructions provided by the person or entity. ( action d’achèvement )

The individual, with the necessary authority, that you appoint to be responsible for the implementation of your compliance program. ( agent de conformité )

Compliance policies and procedures

Written methodology outlining the obligations applicable to your business under the PCMLTFA and its associated Regulations and the corresponding processes and controls you put in place to address your obligations. ( politiques et procédures de conformité )

All elements (compliance officer, policies and procedures, risk assessment, training program, effectiveness review) that you, as a reporting entity, are legally required to have under the PCMLTFA and its associated Regulations to ensure that you meet all your obligations. ( programme de conformité )

Clarifies a set of circumstances or provides an explanation of a situation or financial transaction that can be understood and assessed. ( contexte )

Correspondent banking relationship

A relationship created by an agreement or arrangement under which an entity referred to in any of paragraphs 5(a), (b), (d),(e) and (e.1) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a prescribed foreign entity prescribed services or international electronic funds transfers, cash management or cheque clearing services. ( relation de correspondant bancaire )

Reference:
PCMLTFA, S.C. 2000, c 17, s. 9.4(3) and PCMLTFR, SOR/2002-184, s. 16(1)(b).

Country of residence

The country where an individual has lived continuously for 12 months or more. The individual must have a dwelling in the country concerned. For greater certainty, a person only has one country of residence no matter how many dwelling places they may have, inside or outside of that country. ( pays de résidence )

Credit card acquiring business

A credit card acquiring business is a financial entity that has an agreement with a merchant to provide the following services:

• enabling a merchant to accept credit card payments by cardholders for goods and services and to receive payments for credit card purchases;
• processing services, payment settlements and providing point-of-sale equipment (such as computer terminals); and
• providing other ancillary services to the merchant.

A central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act, or a credit union central or a federation of credit unions or caisses populaires that is regulated by a provincial Act other than one enacted by the legislature of Quebec. ( centrale de caisses de crédit )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

A website or an application or other software that is used to raise funds or virtual currency through donations. ( plateforme de sociofinancement )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

Crowdfunding platform services

The provision and maintenance of a crowdfunding platform for use by other persons or entities to raise funds or virtual currency for themselves or for persons or entities specified by them. ( services de plateforme de sociofinancement )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

In respect of a document or source of information that is used to verify identity, is up to date, and, in the case of a government-issued photo identification document, must not have been expired when the ID was verified. ( à jour )

Dealer in precious metals and stones

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 an agent of His Majesty in right of Canada or an agent or mandatary of His Majesty in right of a province when the department or the agent or mandatary carries out the activity, referred to in subsection 65(1), of selling precious metals to the public. ( négociant en métaux précieux et pierres précieuses )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

Deferred profit sharing plan

Has the same meaning as in subsection 248(1) of the Income Tax Act. ( régime de participation différée aux bénéfices )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

A record that sets out:

1. (a) the date of the deposit;
2. (b) the name of the person or entity that makes the deposit;
3. (c) the amount of the deposit and of any part of it that is made in cash;
4. (d) the method by which the deposit is made; and
5. (e) the number of the account into which the deposit is made and the name of each account holder.

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

A business is directing services at persons or entities in Canada if at least one of the following applies:

• The business's marketing or advertising is directed at persons or entities located in Canada;
• The business operates a ".ca" domain name; or,
• The business is listed in a Canadian business directory.

Additional criteria may be considered, such as if the business describes its services being offered in Canada or actively seeks feedback from persons or entities in Canada. ( diriger des services )

For the purpose of section 151 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR), a digital ledger that is maintained by multiple persons or entities and that can only be modified by a consensus of those persons or entities. ( registres distribués )

Reference:
PCMLTFR, SOR/2002-184, s. 151(2).

With respect to a reportable transaction, the disposition is what the funds or virtual currency was used for. For example, an individual arrives at a bank with cash and purchases a bank draft. The disposition is the purchase of the bank draft. ( répartition )

Electronic funds transfer

The transmission—by any electronic, magnetic or optical means—of instructions for the transfer of funds, including a transmission of instructions that is initiated and finally received by the same person or entity. In the case of SWIFT messages, only SWIFT MT-103 messages and their equivalent are included. It does not include a transmission or instructions for the transfer of funds:

1. (a) that involves the beneficiary withdrawing cash from their account;
2. (b) that is carried out by means of a direct deposit or pre-authorized debit;
3. (c) that is carried out by cheque imaging and presentment
4. (d) that is both initiated and finally received by persons or entities that are acting to clear or settle payment obligations between themselves; or
5. (e) that is initiated or finally received by a person or entity referred to in paragraphs 5(a) to (h.1) of the Act for the purpose of internal treasury management, including the management of their financial assets and liabilities, if one of the parties to the transaction is a subsidiary of the other or if they are subsidiaries of the same corporation.

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

Employees profit sharing plan

Has the same meaning as in subsection 248(1) of the Income Tax Act. ( régime de participation des employés aux bénéfices )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

A body corporate, a trust, a partnership, a fund or an unincorporated association or organization. ( entité )

Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).

Actual events, actions, occurrences or elements that exist or are known to have happened or existed. Facts are not opinions. For example, facts surrounding a transaction or multiple transactions could include the date, time, location, amount or type of transaction or could include the account details, particular business lines, or the client's financial history. ( faits )

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:

1. (a) their spouse or common-law partner;
2. (b) their child;
3. (c) their mother or father;
4. (d) the mother or father of their spouse or common-law partner; or
5. (e) a child of their mother or father.

Reference:
PCMLTFR, SOR/2002-184, s. 2(1).

A currency that is issued by a country and is designated as legal tender in that country. ( monnaie fiduciaire )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2) and PCMLTFSTRR, SOR/2001-317, s. 1(2).

In respect of an electronic funds transfer, means the receipt of the instructions by the person or entity that is to make the remittance to a beneficiary. ( destinataire )

Reference:
PCMLTFR, SOR/2002-184, s. 1(2).

1. (a) an entity that is referred to in any of paragraphs 5(a), (b) and (d) to (f) of the Act;
2. (b) a financial services cooperative;
3. (c) a life insurance company, or an entity that is a life insurance broker or agent, in respect of loans or prepaid payment products that it offers to the public and accounts that it maintains with respect to those loans or prepaid payment products, other than:
   1. (i) loans that are made by the insurer to a policy holder if the insured person has a terminal illness that significantly reduces their life expectancy and the loan is secured by the value of an insurance policy;
   2. (ii) loans that are made by the insurer to the policy holder for the sole purpose of funding the life insurance policy; and
   3. (iii) advance payments to which the policy holder is entitles that are made to them by the insurer;

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2).

   Financial Action Task Force

   The Financial Action Task Force on Money Laundering established in 1989. ( Groupe d'action financière )

   Reference:
   PCMLTFA, S.C. 2000, c 17, s. 2(1).

   Financial services cooperative

   A financial services cooperative that is regulated by an Act respecting financial services cooperatives, CQLR, c. C-67.3, other than a caisse populaire. ( coopérative de services financiers )

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2).

   A fiat currency that is issued by a country other than Canada. ( devise )

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2).

   Foreign currency exchange transaction

   An exchange, at the request of another person or entity, of one fiat currency for another. ( opération de change en devise )

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2).

   Foreign currency exchange transaction ticket

   A record respecting a foreign currency exchange transaction—including an entry in a transaction register—that sets out:

   1. (a) the date of the transaction;
   2. (b) in the case of a transaction of $3,000 or more, the name and address 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;
   3. (c) the type and amount of each of the fiat currencies involved in the payment made and received by the person or entity that requests the exchange;
   4. (d) the method by which the payment is made and received;
   5. (e) the exchange rates used and their source;
   6. (f) the number of every account that is affected by the transaction, the type of account and the name of each account holder; and
   7. (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number.

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2).

   Foreign money services business

   Persons and entities that do not have a place of business in Canada, that are engaged in the business of providing at least one of the following services that is directed at persons or entities in Canada, and that provide those services to their clients in Canada:

   1. (i) foreign exchange dealing,
   2. (ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,
   3. (iii) issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments except for cheques payable to a named person or entity,
   4. (iv) dealing in virtual currencies, or
   5. (v) any prescribed service.

   Reference:
   PCMLTFA, S.C. 2000, c 17, s. 5(h.1), PCMLTFRR, SOR/2007-121, s. 1 and PCMLTFR, SOR/2002-184, s. 1(2).

   Except for the purposes of Part 2, means a country other than Canada and includes any political subdivision or territory of a foreign state. ( État étranger )

   Reference:
   PCMLTFA, S.C. 2000, c 17, s. 2(1).

   1. (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
   2. (b) a private key of a cryptographic system 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 )

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2) and PCMLTFSTRR, SOR/2001-317, s. 1(2).

   Head of an international organization

   A person who, at a given time, holds—or has held within a prescribed period before that time—the office or position of head of

   1. a) an international organization that is established by the governments of states;
   2. b) an institution of an organization referred to in paragraph (a); or
   3. c) an international sports organization.

   Reference:
   PCMLTFA, S.C. 2000, c 17, s. 9.3(3).

   In respect of submitting a Terrorist Property Report (TPR), the time period within which a TPR must be submitted, which does not allow for any delay prior to submission. ( immédiatement )

   A record that sets out the name and address of a person or entity and:

   1. (a) in the case of a person, their date of birth and the nature of their principal business or their occupation; and
   2. (b) in the case of an entity, the nature of its principal business.

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2).

   In respect of an electronic funds transfer, means the first transmission of the instructions for the transfer of funds. ( amorcer )

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2).

   For the purpose of section 15 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR), means a trust that is established by a corporation or other entity for a particular business purpose and includes a pension plan trust, a pension master trust, a supplemental pension plan trust, a mutual fund trust, a pooled fund trust, a registered retirement savings plan trust, a registered retirement income fund trust, a registered education savings plan trust, a group registered retirement savings plan trust, a deferred profit sharing plan trust, an employee profit sharing plan trust, a retirement compensation arrangement trust, an employee savings plan trust, a health and welfare trust, an unemployment benefit plan trust, a foreign insurance company trust, a foreign reinsurance trust, a reinsurance trust, a real estate investment trust, an environmental trust and a trust established in respect of endowment, a foundation or a registered charity. ( fiducie institutionnelle )

   Reference:
   PCMLTFR, SOR/2002-184, s. 15(2).

   International electronic funds transfer

   An electronic funds transfer other than for the transfer of funds within Canada. ( télévirement international )

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2).

   Inter vivos trust

   A personal trust, other than a trust created by will. ( fiducie entre vifs )

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2).

   Objects that are made of gold, silver, palladium, platinum, pearls or precious stones and that are intended to be worn as a personal adornment. ( bijou )

   Reference:
   PCMLTFR, SOR/2002-184, s. 1(2).

   Large cash transaction record

   A record that indicates the receipt of an amount of $10,000 or more in cash in a single transaction and that contains the following information:

   1. (a) the date of the receipt;
   2. (b) if the amount is received for deposit into an account, the number of the account, the name of each account holder and the time of the deposit or an indication that the deposit is made in a night deposit box outside the recipient's normal business hours;
   3. (c) the name and address 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;
   4. (d) the type and amount of each fiat currency involved in the receipt;
   5. (e) the method by which the cash is received;
   6. (f) if applicable, the exchange rates used and their source;
   7. (g) the number of every other account that is affected by the transaction, the type of account and the name of each account holder
   8. (h) every reference number that is connected to the transaction and has a function equivalent to that of an account number;
   9. (i) the purpose of the transaction;
   10. (j) the following details of the remittance of, or in exchange for, the cash received:
       1. (i) the method of remittance;
       2. (ii) if the remittance is in funds, the type and amount of each type of funds involved;
       3. (iii) if the remittance is not in funds, the type of remittance and its value, if different from the amount of cash received; and
       4. (iv) the name of every person or entity involved in the remittance and their account number or policy number or, if they have no account number or policy number, their identifying number; and
       1. (i) the type of precious metals, precious stones or jewellery;
       2. (ii) the value of the precious metals, precious stones or jewellery, if different from the amount of cash received, and
       3. (iii) the wholesale value of the precious metals, precious stones or jewellery.

       Reference:
       PCMLTFR, SOR/2002-184, s. 1(2).

       Large virtual currency transaction record

       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:

       1. (a) the date of the receipt;
       2. (b) if the amount is received for deposit into an account, the name of each account holder;
       3. (c) the name and address 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;
       4. (d) the type and amount of each virtual currency involved in the receipt;
       5. (e) the exchange rates used and their source;
       6. (f) the number of every other account that is affected by the transaction, the type of account and the name of each account holder;
       7. (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number;
       8. (h) every transaction identifier, including the sending and receiving addresses; and
       9. (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:
          1. (i) the type of precious metals, precious stones or jewellery;
          2. (ii) the value of the precious metals, precious stones or jewellery, if different from the amount of virtual currency received; and
          3. (iii) the wholesale value of the precious metals, precious stones or jewellery.

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Life insurance broker or agent

          A person or entity that is authorized under provincial legislation to carry on the business of arranging contracts of life insurance. ( représentant d'assurance-vie )

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Life insurance company

          A life company or foreign life company to which the Insurance Companies Act applies or a life insurance company regulated by a provincial Act. ( société d'assurance-vie )

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Reference:
          PCMLTFSTRR, SOR/2001-317, s. 1(2).

          Managing general agents (MGAs)

          Life insurance brokers or agents that act as facilitators between other life insurance brokers or agents and life insurance companies. MGAs typically offer services to assist with insurance agents contracting and commission payments, facilitate the flow of information between insurer and agent, and provide training to, and compliance oversight of, insurance agents. ( agent général de gestion )

          A person who acts, under a mandate or agreement, for another person or entity. ( mandataire )

          Marketing or advertising

          When a person or entity uses promotional materials such as advertisements, graphics for websites or billboards, etc., with the intent to promote money services business (MSB) services and to acquire business from persons or entities in Canada. ( marketing ou publicité )

          In relation to sections 24.1 to 39, the Minister of Public Safety and Emergency Preparedness and, in relation to any other provision of this Act, the Minister of Finance. ( ministre )

          Reference:
          PCMLTFA, S.C. 2000, c 17, s. 2(1).

          Money laundering offence

          An offence under subsection 462.31(1) of the Criminal Code. The United Nations defines money laundering as "any act or attempted act to disguise the source of money or assets derived from criminal activity." Essentially, money laundering is the process whereby "dirty money"—produced through criminal activity—is transformed into "clean money," the criminal origin of which is difficult to trace. ( infraction de recyclage des produits de la criminalité )

          Reference:
          PCMLTFA, S.C. 2000, c 17, s. 2(1).

          Money laundering and terrorist financing indicators (ML/TF indicators)

          Potential red flags that could initiate suspicion or indicate that something may be unusual in the absence of a reasonable explanation. [Indicateurs de blanchiment d'argent (BA) et de financement du terrorisme (FT) (indicateurs de BA/FT)]

          Money services business

          A person or entity that has a place of business in Canada and that is engaged in the business of providing at least one of the following services:

          1. (i) foreign exchange dealing,
          2. (ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,
          3. (iii) issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments except for cheques payable to a named person or entity,
          4. (iv) dealing in virtual currencies, or
          5. (v) any prescribed service.

          Reference:
          PCMLTFA, S.C. 2000, c 17, s. 5(h), PCMLTFRR, SOR/2007-121, s. 1 and PCMLTFR, SOR/2002-184, s. 1(2).

          Money services business agent

          An individual or entity authorized to deliver services on behalf of a money services business (MSB). It is not an MSB branch. ( mandataire d'une entreprise de services monétaires )

          Nature of principal business

          An entity's type or field of business. Also applies to an individual in the case of a sole proprietorship. ( nature de l'entreprise principale )

          Changes to the structure or operations of a business when new services, activities, or locations are put in place. For example, changes to a business model or business restructuring. ( nouveaux développements )

          The adoption of a technology that is new to a business. For example, when a business adopts new systems or software such as transaction monitoring systems or client onboarding and identification tools. ( nouvelles technologies )

          No apparent reason

          There is no clear explanation to account for suspicious behaviour or information. ( sans raison apparente )

          The job or profession of an individual. ( profession ou métier )

          An individual. ( personne )

          Reference:
          PCMLTFA, S.C. 2000, c 17, s. 2(1).

          Person authorized to give instructions

          In respect of an account, means a person who is authorized to instruct on the account or make changes to the account, such as modifying the account type, updating the account contact details, and in the case of a credit card account, requesting a limit increase or decrease, or adding or removing card holders. A person who is only able to conduct transactions on the account is not considered a person authorized to give instructions. ( personne habilitée à donner des instructions )

          Politically exposed domestic person

          A person who, at a given time, holds—or has held within a prescribed period before that time—one of the offices or positions referred to in any of paragraphs (a) and (c) to (j) in or on behalf of the federal government or a provincial government or any of the offices or positions referred to in paragraphs (b) and (k):

          1. (a) Governor General, lieutenant governor or head of government;
          2. (b) member of the Senate or House of Commons or member of a legislature of a province;
          3. (c) deputy minister or equivalent rank;
          4. (d) ambassador, or attaché or counsellor of an ambassador;
          5. (e) military officer with a rank of general or above;
          6. (f) president of a corporation that is wholly owned directly by His Majesty in right of Canada or a province;
          7. (g) head of a government agency;
          8. (h) judge of an appellate court in a province, the Federal Court of Appeal or the Supreme Court of Canada;
          9. (i) leader or president of a political party represented in a legislature;
          10. (j) holder of any prescribed office or position; or
          11. (k) mayor, reeve or other similar chief officer of a municipal or local government.

          Reference:
          PCMLTFA, S.C. 2000, c 17, s. 9.3(3).

          Politically exposed foreign person

          A person who holds or has held one of the following offices or positions in or on behalf of a foreign state:

          1. (a) head of state or head of government;
          2. (b) member of the executive council of government or member of a legislature;
          3. (c) deputy minister or equivalent rank;
          4. (d) ambassador, or attaché or counsellor of an ambassador;
          5. (e) military officer with a rank of general or above;
          6. (f) president of a state-owned company or a state-owned bank;
          7. (g) head of a government agency;
          8. (h) judge of a supreme court, constitutional court or other court of last resort;
          9. (i) leader or president of a political party represented in a legislature; or
          10. (j) holder of any prescribed office or position.

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          In regards to completing a suspicious transaction report (STR), the likelihood that a transaction may be related to a money laundering/terrorist financing (ML/TF) offence. For example, based on your assessment of facts, context and ML/TF indicators you have reasonable grounds to suspect that a transaction is related to the commission or attempted commission of an ML/TF offence. ( possibilité )

          Gold, silver, palladium or platinum in the form of coins, bars, ingots or granules or in any other similar form. ( métal précieux )

          Reference:
          PCMLTFA, S.C. 2000, c 17, s. 2(1).

          Diamonds, sapphires, emeralds, tanzanite, rubies or alexandrite. ( pierre précieuse )

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Prepaid payment product

          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:

          1. (a) enables a person or entity to access a credit or debit account or one that is issued for use only with particular merchants; or
          2. (b) is issued for single use for the purposes of a retail rebate program.

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Prepaid payment product account

          An account – other than an account to which only a public body or, if doing so for the purposes of humanitarian aid, a registered charity as defined in subsection 248(1) of the Income Tax Act, can add funds or virtual currency – that is connected to a prepaid payment product and that permits:

          1. (a) funds or virtual currency that total $1,000 or more to be added to the account within a 24-hour period; or
          2. (b) a balance of funds or virtual currency of $1,000 or more to be maintained.

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Prescribed by regulations made by the Governor in Council. ( Version anglaise seulement )

          Reference:
          PCMLTFA, S.C. 2000, c 17, s. 2(1).

          The likelihood in regards to completing a suspicious transaction report (STR) that a financial transaction is related to a money laundering/terrorist financing (ML/TF) offence. For example, based on facts, having reasonable grounds to believe that a transaction is probably related to the commission or attempted commission of an ML/TF offence. ( probabilité )

          A judicial order that compels a person or entity to disclose records to peace officers or public officers. ( ordonnance de communication )

          1. (a) 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. (b) an incorporated city or town, village, metropolitan authority, township, district, county, rural municipality or other incorporated municipal body in Canada or an agent or mandatary in Canada of any of them; and
          3. (c) an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority under the Excise Tax Act, or an agent or mandatary of such an organization.

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Real estate broker or sales representative

          A person or entity that is authorized under provincial legislation to act as an agent or mandatary for purchasers or vendors in respect of the purchase or sale of real property or immovables. ( courtier ou agent immobilier )

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Real estate developer

          A person or entity that, in any calendar year after 2007, has sold to the public, other than in the capacity of a real estate broker or sales representative:

          1. (a) five or more new houses or condominium units;
          2. (b) one or more new commercial or industrial buildings; or
          3. (c) one or more new multi-unit residential buildings each of which contains five or more residential units, or two or more new multi-unit residential buildings that together contain five or more residential units.

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Steps taken to achieve a desired outcome, even if they do not result in the desired outcome. For example, this can include doing one or more of the following:

          • asking the client,
          • conducting open source searches,
          • retrieving information already available, including information held in non-digital formats, or
          • consulting commercially available information.

          A record that indicates the receipt of an amount of funds and that contains the following information:

          1. (a) the date of the receipt;
          2. (b) if the amount is received from a person, their name, address and date of birth and the nature of their principal business or their occupation;
          3. (c) if the amount is received from or on behalf of an entity, the entity's name and address and the nature of their principal business;
          4. (d) the amount of the funds received and of any part of the funds that is received in cash;
          5. (e) the method by which the amount is received;
          6. (f) the type and amount of each fiat currency involved in the receipt;
          7. (g) if applicable, the exchange rates used and their source;
          8. (h) the number of every account that is affected by the transaction in which the receipt occurs, the type of account and the name of each account holder;
          9. (i) the name and address 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;
          10. (j) every reference number that is connected to the transaction and has a function equivalent to that of an account number; and
          11. (k) the purpose of the transaction.

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Registered pension plan

          Has the same meaning as in subsection 248(1) of the Income Tax Act. ( régime de pension agréé )

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          Registered retirement income fund

          Has the same meaning as in subsection 248(1) of the Income Tax Act. ( fonds enregistré de revenu de retraite )

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          In respect of information that is used to verify identity, means that the source is well known, reputable, and is considered one that you trust to verify the identity of the client. ( fiable )

          Representative for service

          An individual in Canada that has been appointed by a person or entity that is a foreign money services business (FMSB), pursuant to the PCMLTFA, to receive notices and documents on behalf of the FMSB. ( représentant du service )

          The review and documentation of potential money laundering/terrorist financing risks in order to help a business establish policies, procedures and controls to detect and mitigate these risks and their impact. ( évaluation des risques )

          Sanctions evasion offence means an offence arising from the contravention of a restriction or prohibition established by an order or a regulation made under the United Nations Act, the Special Economic Measures Act or the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law).

          A person or entity that is referred to in paragraph 5(g) of the Act. ( courtier en valeurs mobilières )

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          In respect of an entity, means:

          1. (a) a director of the entity who is one of its full-time employees;
          2. (b) the entity's chief executive officer, chief operating officer, president, secretary, treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary, or any person who performs any of those functions; or
          3. (c) any other officer who reports directly to the entity's board of directors, chief executive officer or chief operating officer.

          Reference:
          PCMLTFR, SOR/2002-184, s. 1(2).

          An agreement between a money services business (MSB) and an organization according to which the MSB will provide any of the following MSB services on an ongoing basis:

          • money transfers;
          • foreign currency exchange;
          • issuing or redeeming money orders, traveller's cheques or anything similar; or
          • dealing in virtual currencies.

          A settlor is an individual or entity that creates a trust with a written trust declaration. The settlor ensures that legal responsibility for the trust is given to a trustee and that the trustee is provided with a trust instrument document that explains how the trust is to be used for the beneficiaries. A settlor includes any individual or entity that contributes financially to that trust, either directly or indirectly. ( constituant )

          A foreign financial institution that:

          1. (a) does not have a place of business that:
             1. (i) is located at a fixed address—where it employs one or more persons on a full-time basis and maintains operating records related to its banking activities—in a country in which it is authorized to conduct banking activities; and
             2. (ii) is subject to inspection by the regulatory authority that licensed it to conduct banking activities; and

             Reference:
             PCMLTFR, SOR/2002-184, s. 1(1).

             Includes an electronic signature or other information in electronic form that is created or adopted by a client of a person or entity referred to in section 5 of the Act and that is accepted by the person or entity as being unique to that client. ( signature )

             Reference:
             PCMLTFR, SOR/2002-184, s. 1(2).

             In respect of an account, means a document that is signed by a person who is authorized to give instructions in respect of the account, or electronic data that constitutes the signature of such a person. ( fiche-signature )

             Reference:
             PCMLTFR, SOR/2002-184, s. 1(2).

             The issuer or provider of information or documents for verifying identification. ( source )

             Source of funds or of virtual currency (VC)

             The origin of the particular funds or VC used to carry out a specific transaction or to attempt to carry out a transaction. It is how the funds were acquired, not where the funds may have been transferred from. For example, the source of funds could originate from activities or occurrences such as employment income, gifts, the sale of a large asset, criminal activity, etc. ( origine des fonds ou de la monnaie virtuelle (MV) )

             Source of wealth

             The origin of a person's total assets that can be reasonably explained, rather than what might be expected. For example, a person's wealth could originate from an accumulation of activities and occurrences such as business undertakings, family estates, previous and current employment income, investments, real estate, inheritance, lottery winnings, etc. ( origine de la richesse )

             With respect to a reportable transaction, information related to the instructions provided by the person or entity making the request to the reporting entity to start a transaction. For example, an individual arrives at a bank and requests to purchase a bank draft. The starting action is the details of the instructions for the purchase which includes the funds or virtual currency that the requesting person or entity brought to the reporting entity. A transaction must have at least one starting action. ( action d’amorce )

             The Society for Worldwide Interbank Financial Telecommunication. ( SWIFT )

             Reference:
             PCMLTFR, SOR/2002-184, s. 1(2).

             Has the same meaning as in subsection 83.01(1) of the Criminal Code. ( activité terroriste )

             Reference:
             PCMLTFA, S.C. 2000, c 17, s. 2(1).

             Terrorist activity financing offence

             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.

             A terrorist financing offence is knowingly collecting or giving property (such as money) to carry out terrorist activities. This includes the use and possession of any property to help carry out the terrorist activities. The money earned for terrorist financing can be from legal sources, such as personal donations and profits from a business or charitable organization or from criminal sources, such as the drug trade, the smuggling of weapons and other goods, fraud, kidnapping and extortion. ( infraction de financement des activités terroristes )

             Reference:
             PCMLTFA, S.C. 2000, c 17, s. 2(1).

             Any individual or entity that instructs another individual or entity to act on their behalf for a financial activity or transaction. ( tiers )

             Threats to the security of Canada

             Has the same meaning as in section 2 of the Canadian Security Intelligence Service Act. ( menaces envers la sécurité du Canada )

             Reference:
             PCMLTFA, S.C. 2000, c 17, s. 2(1).

             A written and implemented program outlining the ongoing training for your employees, agents or other individuals authorized to act on your behalf. It should contain information about all your obligations and requirements to be fulfilled under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. ( programme de formation )

             A right of property held by one individual or entity (a trustee) for the benefit of another individual or entity (a beneficiary). ( fiducie )

             A company that is referred to in any of paragraphs 5(d) to (e.1) of the Act. ( société de fiducie )

             Reference:
             PCMLTFR, SOR/2002-184, s. 1(2).

             A trustee is the individual or entity authorized to hold or administer the assets of a trust. ( fiduciaire )

             In the context of civil law, a person who has been lawfully appointed to the care of the person and property of a minor. ( tuteur )

             Two year effectiveness review

             A review, conducted every two years (at a minimum), by an internal or external auditor to test the effectiveness of your policies and procedures, risk assessment, and training program. ( examen bisannuel de l'efficacité )

             In respect of a document or information that is used to verify identity, appears legitimate or authentic and does not appear to have been altered or had any information redacted. The information must also be valid according to the issuer, for example if a passport is invalid because of a name change, it is not valid for FINTRAC purposes. ( valide )

             To refer to certain information or documentation, in accordance with the prescribed methods, to identify a person or entity (client). ( vérifier l'identité )

             Very large corporation or trust

             A corporation or trust that has minimum net assets of $75 million CAD on its last audited balance sheet. The corporation's shares or units have to be traded on a Canadian stock exchange or on a stock exchange designated under subsection 262(1) of the Income Tax Act. The corporation or trust also has to operate in a country that is a member of the Financial Action Task Force (FATF). ( personne morale ou fiducie dont l'actif est très important )

             A contravention of the Act or the regulations that is designated as a violation by regulations made under subsection 73.1(1). ( violation )

             Reference:
             PCMLTFA, S.C. 2000, c 17, s. 2(1).

             1. (a) a digital representation of value that can be used for payment or investment purposes 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
             2. (b) a private key of a cryptographic system that enables a person or entity to have access to a digital representation of value referred to in paragraph (a).

             Reference:
             PCMLTFR, SOR/2002-184, s. 1(2) and PCMLTFSTRR, SOR/2001-317, s. 1(2).

             Virtual currency exchange transaction

             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. ( opération de change en monnaie virtuelle )

             Reference:
             PCMLTFR, SOR/2002-184, s. 1(2).

             Virtual currency exchange transaction ticket

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

             1. (a) the date of the transaction;
             2. (b) in the case of a transaction of $1,000 or more, the name and address 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;
             3. (c) the type and amount of each type of funds and each of the virtual currencies involved in the payment made and received by the person or entity that requests the exchange;
             4. (d) the method by which the payment is made and received;
             5. (e) the exchange rates used and their source;
             6. (f) the number of every account that is affected by the transaction, the type of account and the name of each account holder;
             7. (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number; and
             8. (h) every transaction identifier, including the sending and receiving addresses.

             Reference:
             PCMLTFR, SOR/2002-184, s. 1(2).

             In respect of an electronic funds transfer (EFT) report or a large virtual currency transaction report, a working day is a day between and including Monday to Friday. It excludes Saturday, Sunday, and a public holiday. ( jour ouvrable )