The following is a summary of the legislative requirements under the PCMLTFA applicable to financial entities. This includes banks, savings and credit unions, caisses populaires, cooperative credit societies, and trust and loan companies.

• Obligation to report
  • Suspicious transactions
  • Terrorist property
  • Electronic Funds Transfer
  • Large cash transactions
• Record keeping
• Ascertaining identification
• Third-party determination
• Compliance regime
• Credit Union / Caisse Populaire Compliance Questionnaire

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
  
  
• Electronic Funds Transfer
  An Electronic Funds Transfer includes the transmission of instructions at the request of a client involving the international transfer of $10,000 or more through any electronic, magnetic or optical device, telephone instrument or computer.
  
  See Guideline 8: Submitting Electronic Funds Transfer Reports to FINTRAC
  
  
• Large cash transactions
  Large cash transactions involving amounts of $10,000 or more received in cash, must be reported. Exceptions are applicable to certain corporate clients.
  
  See Guideline7: Submitting Large Cash Transaction Reports to FINTRAC; and see Guideline 9: Alternative to Large Cash Transaction Reports to FINTRAC

Record Keeping

The following records must be kept:

• Large cash transactions records
• Signature cards
• A copy of official corporate records (binding provisions)
• Account holder information
• Account operating agreements
• Deposit slips
• Debit and credit memos
• Account statements
• Cleared cheques drawn on or deposited to an account
• Client credit files
• Foreign currency exchange transaction tickets
• A copy of the trust deed and settlor's identification (trust companies)

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 signs a signature card or conducts a large cash transaction
• Any individual who requests an electronic funds transfer of $3,000 or more, or who conducts a foreign exchange transaction of $3,000 or more unless a signed signature card exists
• Any corporation or other entity for which you open an account
• Any settlor or co-trustee of a trust

See Guideline 6: Record Keeping and Client Identification

Third-Party Determination

Where a large cash transaction record is required, or when a signature card is created, you must take reasonable measures to determine whether the individual 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

Compliance Questionnaire

Part of FINTRAC's mandate is to ensure compliance by financial intermediaries and other reporting entities with their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and regulations. To do this, we can inquire into your business and examine records, including those relating to your compliance regime.

We have developed a credit union / caisse populaire questionnaire for you to provide information concerning your organization’s compliance regime. A copy is posted here for you to consult and to provide you with examples of questions FINTRAC may ask in relation to your compliance regime. If you have been selected to complete this questionnaire you will be advised in writing by FINTRAC.