Canada Gazette

Notice is hereby given that the Governor in Council, pursuant to subsection 73(1) (see footnote a) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (see footnote b), proposes to make the annexed Regulations Amending Certain Regulations Made Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (2007–2).

Interested persons may make representations concerning the proposed Regulations within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Chief, Financial Crimes Section – Domestic, Financial Sector Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, 20th Floor, East Tower, Ottawa, Ontario K1A 0G5 (tel.: 613-992-0553; facsimile: 613-943-8436; e-mail: fcs-scf@fin.gc.ca).

REGULATIONS AMENDING CERTAIN REGULATIONS MADE UNDER THE PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT (2007–2)

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING SUSPICIOUS TRANSACTION REPORTING REGULATIONS

1. Subsection 1(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations (see footnote 1) is amended by adding the following in alphabetical order:

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

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

"dealer in precious metals and stones" means a person or an entity that, in the course of its business activities, buys or sells precious metals, precious stones or jewellery. It includes a department or agent of Her Majesty in right of Canada or of a province when the department or agent is carrying out the activity, referred to in section 5, of selling precious metals to the public. (négociant en métaux précieux et pierres précieuses)

"jewellery" means 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)

"precious metal" means gold, silver, palladium or platinum in the form of coins, bars, ingots or granules or in any other similar form. (métal précieux)

"precious stones" means diamonds, sapphires, emeralds, tanzanite, rubies or alexandrite. (pierre précieuse)

1.2 The prescribed precious metals for the purpose of paragraph 5(l) of the Act are precious metals as defined in subsection 1(2).

4. (1) Subject to subsection (2), every British Columbia notary public and every British Columbia notary corporation is subject to Part 1 of the Act when they engage in any of the following activities on behalf of any person or entity, including the giving of instructions on behalf of any person or entity in respect of those activities:

(a) receiving or paying funds, other than those received or paid in respect of professional fees, disbursements, expenses or bail;

(b) purchasing or selling securities, real estate or business assets or entities; or

(2) Subsection (1) does not apply in respect of a British Columbia notary public when they engage in any of the activities referred to in that subsection on behalf of their employer.

5. Every dealer in precious metals and stones that engages in the purchase or sale of precious metals, precious stones or jewellery in an amount of $10,000 or more in a single transaction, other than such a purchase or sale that is carried out in the course of, in connection with or for the purpose of manufacturing jewellery, extracting precious metals or precious stones from a mine or polishing or cutting precious stones, is subject to Part 1 of the Act.

4. Subsection 1(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (see footnote 2) is amended by adding the following in alphabetical order:

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

"dealer in precious metals and stones" means a person or an entity that, in the course of its business activities, buys or sells precious metals, precious stones or jewellery. It includes a department or agent of Her Majesty in right of Canada or of a province when the department or agent is carrying out the activity, referred to in section 39.1, of selling precious metals to the public. (négociant en métaux précieux et pierres précieuses)

"jewellery" means 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)

"legal firm" means an entity that is engaged in the business of providing legal services to the public. (cabinet d'avocats)

"precious metal" means gold, silver, palladium or platinum in the form of coins, bars, ingots or granules or in any other similar form. (métal précieux)

"precious metals and stones transaction record" means, in respect of the purchase or sale of precious metals, precious stones or jewellery from or to a dealer in precious metals and stones, a record that contains the following information:

(a) the name of the person or entity who made that purchase or sale from or to the dealer and

(i) if the buyer or seller is a person, their address and date of birth and the nature of their principal business or their occupation, and

(ii) if the buyer or seller is an entity, their address and the nature of their principal business;

(d) the type of precious metals, precious stones or jewellery involved in the transaction;

(f) the wholesale value or Rapaport value of the transaction, as applicable; and

(g) the method of payment. (relevé d'opération relative aux métaux précieux et pierres précieuses)

"precious stones" means diamonds, sapphires, emeralds, tanzanite, rubies or alexandrite. (pierre précieuse)

"Rapaport value" means the value of a diamond as it appears in the most recent edition of the Rapaport Diamond Report published by Martin Rapaport in New York, N.Y. (valeur Rapaport)

1.3 The prescribed precious metals for the purpose of paragraph 5(l) of the Act are precious metals as defined in subsection 1(2).

6. The portion of subsection 11.1(1) of the Regulations before paragraph (a) is replaced by the following:

11.1 (1) Every financial entity or securities dealer that is required to confirm the existence of an entity in accordance with these Regulations when it opens an account in respect of that entity, every life insurance company, life insurance broker or agent or legal counsel or legal firm that is required to confirm the existence of an entity in accordance with these Regulations and every money services business that is required to confirm the existence of an entity in accordance with these Regulations when it enters into an ongoing electronic funds transfer, fund remittance or foreign exchange service agreement with that entity, or a service agreement for the issuance or redemption of money orders, traveller's cheques or other similar negotiable instruments, shall, at the time the existence of the entity is confirmed, take reasonable measures to obtain and, if obtained, keep a record of

33. (1) Subject to subsection (2), every British Columbia notary public and every British Columbia notary corporation is subject to Part 1 of the Act when they engage in any of the following activities on behalf of any person or entity, including the giving of instructions on behalf of any person or entity in respect of those activities:

(a) receiving or paying funds, other than those received or paid in respect of professional fees, disbursements, expenses or bail;

(b) purchasing or selling securities, real estate or business assets or entities; or

(2) Subsection (1) does not apply in respect of a British Columbia notary public when they engage in any of the activities referred to in that subsection on behalf of their employer.

33.1 Subject to subsection 52(1), every British Columbia notary public and every British Columbia notary corporation that, when engaging in an activity described in section 33, receives an amount in cash of $10,000 or more in the course of a single transaction shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the cash is received from a financial entity or a public body.

33.2 (1) Subject to subsection 62(2), every British Columbia notary public and every British Columbia notary corporation shall, when engaging in an activity described in section 33, keep the following records:

(a) a receipt of funds record in respect of every amount of $3,000 or more that they receive in the course of a single transaction, unless the amount is received from a financial entity or a public body; and

(b) where the receipt of funds record is in respect of a client that is a corporation, a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation in respect of transactions with the British Columbia notary public or British Columbia notary corporation.

(2) Subject to subsection 52(2), every British Columbia notary public and every British Columbia notary corporation shall, when engaging in an activity described in section 33, keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transaction, unless the cash is received from a financial entity or a public body.

(3) Subsection (1) does not apply in respect of a transaction if a large cash transaction record is required by subsection (2) to be kept in respect of that same transaction.

33.3 (1) Subject to subsection (2), every legal counsel and every legal firm is subject to Part 1 of the Act when they engage in any of the following activities on behalf of any person or entity:

(a) receiving or paying funds, other than those received or paid in respect of professional fees, disbursements, expenses or bail; or

(b) giving instructions in respect of any activity referred to in paragraph (a).

(2) Subsection (1) does not apply in respect of legal counsel when they engage in any of the activities referred to in that subsection on behalf of their employer.

33.4 Subsection to subsection 62(2), every legal counsel and every legal firm shall, when engaging in an activity described in section 33.3, keep the following records:

39.1 Every dealer in precious metals and stones that engages in the purchase or sale of precious metals, precious stones or jewellery in an amount of $10,000 or more in a single transaction, other than such a purchase or sale that is carried out in the course of, in connection with or for the purpose of manufacturing jewellery, extracting precious metals or precious stones from a mine or cutting or polishing precious stones, is subject to Part 1 of the Act.

39.2 Subject to subsection 52(1), every dealer in precious metals and stones who, when engaging in an activity referred to in section 39.1, receives an amount in cash of $10,000 or more in the course of a single transaction shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the cash is received from a financial entity or a public body.

39.3 (1) Subject to subsections (3) and 62(2), every dealer in precious metals and stones shall, when engaging in an activity referred to in section 39.1, keep a precious metals and stones transaction record in respect of any purchase or sale of $10,000 or more.

(2) Subject to subsection 52(2), every dealer in precious metals and stones shall, when engaging in an activity referred to in section 39.1, keep a large cash transaction record in respect of every amount in cash of $10,000 or more that they receive in the course of a single transaction, unless the cash is received from a financial entity or a public body.

(3) Subsection (1) does not apply in respect of a transaction if a large cash transaction record is required by subsection (2) to be kept in respect of that same transaction.

59.3 Subject to subsection 62(2) and section 63, every British Columbia notary public and every British Columbia notary corporation shall, in respect of a transaction for which a record is required to be kept under subsection 33.2(1),

(a) in accordance with subsection 64(1), ascertain the identity of every person who conducts the transaction;

(b) in accordance with section 65, confirm the existence of and ascertain the name and address of every corporation on whose behalf the transaction is conducted and the names of the corporation's directors; and

(c) in accordance with section 66, confirm the existence of every entity, other than a corporation, on whose behalf the transaction is conducted.

59.4 Subject to subsection 62(2) and section 63, every legal counsel and every legal firm shall, in respect of a transaction for which a record is required to be kept under section 33.4,

(a) in accordance with subsection 64(1), ascertain the identity of every person who conducts the transaction;

(c) in accordance with section 66, confirm the existence of every entity, other than a corporation, on whose behalf the transaction is conducted.

59.5 Subject to subsection 62(2) and section 63, every dealer in precious metals and stones shall, in respect of a transaction for which a record is required to be kept under subsection 39.3(1),

(a) in accordance with subsection 64(1), ascertain the identity of every person who conducts the transaction;

(c) in accordance with section 66, confirm the existence of every entity, other than a corporation, on whose behalf the transaction is conducted.

10. The portion of subsection 62(2) of the Regulations before paragraph (a) is replaced by the following:

(2) Sections 14, 14.1, 19, 23, 33.2 and 33.4, subsection 39.3(1) and sections 54, 54.1, 54.2, 55, 56, 56.1, 57, 57.1, 59.3, 59.4 and 59.5 do not apply in respect of

11. (1) The portion of subsection 64(1) of the Regulations before paragraph (a) is replaced by the following:

64. (1) In the cases referred to in sections 53, 53.1, 54, 55, 56, 57, 59, 59.1, 59.2, 59.3, 59.4, 59.5, 60 and 61, the identity of a person shall be ascertained, at the time referred to in subsection (2) and in accordance with subsection (3),

(b) in the cases referred to in section 53, paragraph 54(1)(b), subsection 59(1) and paragraphs 59.3(a), 59.4(a), 59.5(a), 60(b) and 61(b), at the time of the transaction;

(e) in the cases referred to in paragraphs 59.1(b), 59.2(1)(b), 59.3(b), 59.4(b) and 59.5(b), within 30 days after the transaction.

(e) in the cases referred to in paragraphs 59.1(c), 59.2(1)(c), 59.3(c), 59.4(c) and 59.5(c), within 30 days after the transaction.

14. The section references after the heading "SCHEDULE 1" in Schedule 1 to the Regulations are replaced by the following:

(Paragraph 12(1)(a), sections 17 and 21, paragraph 28(1)(a), sections 33.1, 35, 38 and 39.2, paragraph 40(1)(a), section 47 and subsections 52(1) and (3))

15. These Regulations come into force on the day on which they are registered.