The following is a summary of the legislative requirements under the PCMLTFA applicable to life insurance companies, brokers or independent agents. When a life insurance agent is an employee of a life insurance company or broker, these requirements are the responsibility of the life insurance company except with respect to reporting suspicious transactions and terrorist property, which is applicable to both.

• Obligation to report
  • Suspicious transactions
  • Terrorist property
  • Large cash transactions
• Record keeping
• Ascertaining identification
• Third-party determination
• Compliance regime

FINTRAC Interpretation Notices

• Large Cash Transaction and Electronic Funds Transfer Reporting Requirements: Two or More Transactions in a 24-Hour Period (The '24-Hour Rule')

Obligation to Report

• Suspicious transactions
  You must report where there are reasonable grounds to suspect that a transaction is related to the commission of a money laundering offence or to the financing of a terrorist activity.
  
  See Guideline 2: Suspicious Transactions and Guideline 3: Submitting Suspicious Transaction Reports to FINTRAC.
  
  
• Terrorist property
  You must report where you know that there is property in your possession or control that is owned or controlled by or on behalf of a terrorist or a terrorist group.
  
  See Guideline 5 : Submitting Terrorist Property Reports to FINTRAC
  
  
• Large cash transactions
  Large cash transactions involving amounts of $10,000 or more received in cash, must be reported.
  
  See Guideline 7: Submitting Large Cash Transaction Reports to FINTRAC
  
  

Record Keeping

The following records must be kept:

• Large cash transaction records
• Client information records
• Copy of official corporate records (binding provisions)

See Guideline 6: Record Keeping and Client Identification

Ascertaining Identification

Specific measures must be taken to identify the following individuals or entities:

• Any individual who conducts a large cash transaction
• Any individual or entity that purchases an annuity or life insurance policy for which it may pay $10,000 or more

See Guideline 6: Record Keeping and Client Identification

Third-Party Determination

Where a large cash transaction record is required, you must take reasonable measures to determine whether the individual is acting on behalf of a third party. In addition, where an annuity or life insurance policy is purchased and the client is required to pay $10,000 or more over the duration of the policy, you must take reasonable measures to determine whether the client is acting on behalf of a third party.

In cases where a third party is involved, specific information about the third party and the relationship with the individual providing the cash or account holder must be obtained.

See Guideline 6: Record Keeping and Client Identification

Compliance Regime

The following four elements must be included in a compliance regime:

• The appointment of a compliance officer
• The development and application of compliance policies and procedures
• Periodic review of the effectiveness of policies and procedures
• Implementation of an ongoing compliance training program

See Guideline 4: Implementation of a Compliance Regime