Guideline 5: Submitting Terrorist Property Reports to FINTRAC

December 24, 2003

To obtain a copy of the Terrorist Property Reports form click here. This replaces the previous version of Guideline 5: Submitting Terrorist Property Reports to FINTRAC issued in July 2003.

The changes made to this version are indicated in the right margin of the PDF version. 

Table of Contents

1. General
2. Terrorist Property Reporting Requirements

   2.1 When Does a Terrorist Property Report Have to  be Made under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act? 2.2 Other Criminal Code Requirements 2.3 Method of Reporting to FINTRAC 2.4 Information to be Contained in a Terrorist Property Report

3. Sending Terrorist Property Reports to FINTRAC

   3.1 How to Complete Paper Reports 3.2 How to Send a Terrorist Property Report to FINTRAC

4. Instructions for Completing a Terrorist Property Report

   Part A: Information about the person or entity filing this report Part B: Reason for filing this report Part C: Information about the property Part D: Account information (if the property involves an account) Part E1: Information about any transaction or proposed transaction (where applicable) Part E2: Information about the transaction or proposed transaction disposition(s) (where applicable) Part F: Information about the individual who conducted or proposed to conduct transaction(s) (where applicable) Part G: Information about the entity on whose behalf the transaction was conducted or proposed to be conducted (where applicable) Part H: Information about the individual on whose behalf the transaction was conducted or proposed to be conducted (where applicable)

5. Comments?
6. How to Contact FINTRAC

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1.  General

If you are a reporting person or entity, this guideline has been prepared to help you submit terrorist property reports. It explains reporting timelines, how reports have to be sent to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and what information has to be included in these reports.

You are a reporting person or entity if you are one of the following:

• a financial entity (such as a bank, credit union, caisse populaire, trust and loan company or an agent of the Crown that accepts deposit liabilities;
• a life insurance company, broker or agent;
• a securities dealer, portfolio manager or investment counsellor;
• an individual or entity engaged in the business of foreign exchange dealing;
• a money services business (including alternative remittance systems, such as Hawala, Hundi, Chitti, etc.);
• Canada Post for money orders;
• an accountant or accounting firm (when carrying out certain activities on behalf of your clients);
• a real estate broker or sales representative (when carrying out certain activities on behalf of your clients); and
• a casino (including those authorized to do business in Canada, with a slot machine or roulette or card games, but excluding certain temporary charity casinos).

This guideline uses plain language to explain the most common terrorist property reporting situations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the related Regulations. It is provided as general information only. It is not legal advice, and is not intended to replace the Act and Regulations. For more information about money laundering, terrorist financing or other requirements under the Act and Regulations, see the guidelines in this series:

• Guideline 1 : Backgrounder explains money laundering, terrorist financing, and their international nature. It also provides an outline of the legislative requirements as well as an overview of FINTRAC's mandate and responsibilities.
• Guideline 2 : Suspicious Transactions explains how to report a suspicious transaction. It also provides guidance on how to identify a suspicious transaction, including general and industry-specific indicators that may help when conducting or evaluating transactions.
• Guideline 3 : Submitting Suspicious Transaction Reports to FINTRAC explains when and how to submit suspicious transaction reports. There are two different versions of Guideline 3, by reporting method.
• Guideline 4 : Implementation of a Compliance Regime explains the requirement for reporting persons and entities to implement a regime to ensure compliance with their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.
• Guideline 5 : Submitting Terrorist Property Reports to FINTRAC explains when and how to submit terrorist property reports.
• Guideline 6 : Record Keeping and Client Identification explains the requirement for reporting persons and entities to identify their clients and keep records. There are eight different versions of Guideline 6, by sector.
• Guideline 7 : Submitting Large Cash Transaction Reports to FINTRAC explains when and how to submit large cash transaction reports. There are two different versions of Guideline 7, by reporting method.
• Guideline 8 : Submitting Electronic Funds Transfer Reports to FINTRAC explains when and how to submit EFT reports.
• Guideline 9 : Submitting Alternative to Large Cash Transaction Reports to FINTRAC explains when and how financial entities can choose the alternative to large cash transaction reports. This is only applicable to financial entities.

If you need more help after you read this or other guidelines, call FINTRACs national toll-free enquiries line at 1-866-346-8722.

Throughout these guidelines, several references are provided to additional information that may be available on external Web sites. FINTRAC is not responsible for the accuracy or reliability of the information contained on those external Web sites.

In addition to making a terrorist property report to FINTRAC, there is also a requirement under the Criminal Code for anyone in Canada and any Canadian outside Canada to disclose, to the Royal Canadian Mounted Police (RCMP) and the Canadian Security Intelligence Service (CSIS), the existence of property in their possession or control that they know is owned or controlled by or on behalf of a terrorist or a terrorist group. For more information about this, refer to Section 2.

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2. Terrorist Property Reporting Requirements

2.1 When Does a Terrorist Property Report Have to be Made under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act?

Since June 12, 2002, if you are a reporting person or entity (see Section 1), you have to send a terrorist property report to FINTRAC if you have property in your possession or control that you know is owned or controlled by or on behalf of a terrorist or a terrorist group. This includes information about any transaction or proposed transaction relating to that property.

In this context, property means any type of real or personal property in your possession or control. This includes any deed or instrument giving title or right to property, or giving right to money or goods. For example, cash, bank accounts, insurance policies, money orders, real estate, securities, and travellers cheques, among other types of assets, are considered property.

A terrorist or a terrorist group includes anyone that has as one of their purposes or activities facilitating or carrying out any terrorist activity. This can be an individual, a group, a trust, a partnership or a fund. It can also be an unincorporated association or organization. A terrorist group will also include anyone on a list published in Regulations issued under the Criminal Code. More information about this list is available from the following Web sites:

• http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?DetailID=525
  (This site contains a consolidated list of names subject to the Regulations Establishing a List of Entities made under the Criminal Code or the United Nations Suppression of Terrorism Regulations.)
• http://www.sgc.gc.ca/prg/ns/le/index-en.asp?lang_update=1  

Once you know that any property in your possession or control is owned or controlled by or on behalf of a terrorist or a terrorist group, or after any transaction is proposed for such a property, a terrorist property report must be sent to FINTRAC without delay.

If you do not know that you are dealing with a terrorist, but suspect that you might be, then a suspicious transaction report is required if a transaction was completed.

For more information about submitting reports to FINTRAC relating to suspicions of terrorist financing, terrorist-related offences or other Government of Canada efforts to combat terrorism and terrorist activities, refer to Guideline 1: Backgrounder, Guideline 2: Suspicious Transactions or the following Web sites:

• http://www.fintrac.gc.ca/reporting--declaration/
  1_e.asp 
• http://canada.justice.gc.ca/en/anti_terr/index.html 
• http://canada.gc.ca/wire/2001/09/110901-US_e.html 
• http://www.dfait-maeci.gc.ca/internationalcrime/terrorism-en.asp  

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2.2 Other Criminal Code Requirements

The following section provides information with respect to other Criminal Code requirements for reporting terrorist property. Although these requirements do not form part of the PCMLTFA, it may be a useful reference as part of this guideline.

In addition to making a terrorist property report to FINTRAC about this type of property, there is also a requirement under the Criminal Code that applies to anyone in Canada and any Canadian outside Canada. Whether or not you are a reporting person or entity (as described in Section 1), you must disclose to the RCMP and CSIS, the existence of property in your possession or control that you know is owned or controlled by or on behalf of a terrorist or a terrorist group. This includes information about any transaction or proposed transaction relating to that property. Information is to be provided to them, without delay, as follows:

• RCMP, Financial Intelligence Branch, unclassified fax: (613) 993-9474
• CSIS Financing Unit, unclassified fax: (613) 231-0266

It is an offence under the Criminal Code to deal with any property if you know that it is owned or controlled by or on behalf of a terrorist or a terrorist group. It is also an offence to be involved in any transactions in respect of such property.

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2.3 Method of Reporting to FINTRAC

Paper Reporting Only

Unlike other reports to FINTRAC, you must submit a terrorist property report on paper. You cannot send them electronically at this time. See Section 3 for more information.

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 2.4 Information to be Contained in a Terrorist Property Report

The terrorist property report has to contain information that describes the property. The report also has to provide information about the terrorist or terrorist group and anyone who owns or controls the property on their behalf. In addition, if there were any transactions or proposed transactions related to the property, the report also has to contain information about them. In the case of a transaction or a proposed transaction, the information to be contained in the terrorist property report is very similar to a suspicious transaction report.

As explained in Section 2.2,, it is an offence to deal with any property if you know that it is owned or controlled by or on behalf of a terrorist or a terrorist group. It is also an offence to be involved in any transactions in respect of such property.

See Section 4 for more information about what has to be included in a terrorist property report.

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3. Sending Terrorist Property Reports to FINTRAC

3.1 How to Complete Paper Reports

As explained above, you must submit paper terrorist property reports to FINTRAC. Forms are available as follows:

• A file can be accessed and printed from the Publications section of FINTRACs Web site (choose reporting forms from http://www.fintrac.gc.ca/publications/pub_e.asp ). If you do not have a computer or access to the Internet, you may be able to do this at your local library or any other public place with Internet access.
• Call 1-866-346-8722 for a copy to be faxed or mailed to you.

To ensure that the information provided is legible and to facilitate data entry, it would be preferable if the free-text areas of the paper report (such as, fields 1 and 2 of Part B) were completed using word-processing equipment or a typewriter. For the parts of the report that must be completed by hand, the use of black ink and CAPITAL LETTERS is recommended.

See Section 4 for completion instructions. It includes details of what each field must contain for a terrorist property report and indicates which parts of the form you may need to make copies of before you complete your report.

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3.2 How to Send a Terrorist Property Report to FINTRAC

There are two ways to send a terrorist property report to FINTRAC in such a way as to obtain an acknowledgement of receipt of a paper report:

• Fax: 1-866-226-2346; or
• Registered mail to the following address:

  Financial Transactions and Reports Analysis Centre of Canada Section A 234 Laurier Avenue West, 24th Floor Ottawa, ON Canada K1P 1H7

In addition, you may also send your report by mail to the FINTRAC address above. You should note that you will not receive any acknowledgement from FINTRAC when your paper report has been received.

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4. Instructions for Completing a Terrorist Property Report

5. Comments?

These guidelines will be reviewed on a periodic basis. If you have any comments or suggestions to help improve them, please send your comments to the mailing address provided below, or by email to guidelines@fintrac.gc.ca.

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6. How to Contact FINTRAC

For further information on FINTRAC and its activities, and report submission, please go to FINTRACs Web site ( http://www.fintrac.gc.ca  ) or contact FINTRAC:

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