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Vol. 136, No. 25 — June 22, 2002 Cross-border Currency and Monetary Instruments Reporting RegulationsStatutory Authority Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sponsoring Department Department of Finance REGULATORY IMPACT ANALYSIS STATEMENT Description Domestic law enforcement agencies and the international community have called on Canada to implement strong measures to detect, deter and prevent money laundering and terrorist financing. Since the events of September 11 in the United States, it has become increasingly important that Canada's domestic actions in this area contribute to preventing abuses of the financial system. The federal government passed the Proceeds of Crime (Money Laundering) Act (PCMLA) on June 29, 2000. The PCMLA, which was subsequently re-named as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), sets out a regulation making authority for carrying out the purposes and provisions of the PCMLTFA, including the implementation of the record-keeping and client identification requirements and the requirements to report suspicious and prescribed transactions and the cross-border movement of large amounts of currency and monetary instruments. Accordingly, the Proceeds of Crime (Money Laundering) Suspicious Transaction Reporting Regulations were brought into force on November 8, 2001. The Regulations Amending the Proceeds of Crime (Money Laundering) Suspicious Transaction Reporting Regulations, which address terrorist financing activities, were published in the Canada Gazette, Part II, on May 14, 2002 (published as an Extra), and will come into force on June 12, 2002. The Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, which implement record-keeping, client identification and internal compliance requirements and the reporting of large cash transactions and international electronic fund transfers, were also published in the Canada Gazette, Part II, on May 14, 2002. These Regulations will be phased in on two separate dates: (published as an Extra) most of the provisions in the regulatory package come into effect on June 12, 2002, while the remainder will be implemented on November 30, 2002. The proposed Cross-border Currency and Monetary Instrument Reporting Regulations implement Part II of the PCMLTFA, which requires persons to report to Canada Customs and Revenue Agency (CCRA) customs officers the importation or exportation of large amounts of currency and monetary instruments. The requirements apply whether the currency or monetary instruments are brought across the border by the importer/exporter himself or herself (e.g., carried in baggage) or they are imported or exported by mail, courier or by any other means. An individual carrying a large amount of currency or monetary instruments will therefore have to file a report to Canadian customs when he or she enters or leaves Canada. The proposed Regulations define the term "monetary instruments" which includes, among other things, stocks, bonds, bank drafts and traveller's cheques. They prescribe the reporting threshold, which is set at $10,000, and the form and manner for reporting to CCRA. They also provide for exceptions from reporting (e.g., where currency or monetary instruments are brought into Canada, but Canada is a transit point rather than the final destination). The proposed Regulations also set at up to 30 days the period for which a customs officer is authorized to retain currency or monetary instruments that a person has declared, but in respect of which a report has not yet been completed. They also prescribe administrative penalties from $250 to $5,000 payable to retrieve seized currency or monetary instruments, provided they are not suspected of being linked to money laundering or terrorist financing. Technical Amendments The proposed Regulations also include technical amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, which were recently published in the Canada Gazette, Part II. The amendments would eliminate duplicate provisions and thereby clarify the coming into force date of certain provisions of these Regulations. Use of Information CCRA has primary responsibility for administering these Regulations. Customs officers must send the reports submitted to them to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Furthermore, if a customs officer has reasonable grounds to suspect that information obtained while enforcing the PCMLTFA would be of assistance in the detection, prevention or deterrence of money laundering or of the financing of terrorist activities, he or she may disclose it to FINTRAC or law enforcement authorities. Alternatives The Department of Finance December 1999 Consultation Paper proposed setting the threshold for reporting the cross-border movement of currency or monetary instruments at $15,000. Some stakeholders, notably the Canadian Bankers Association, indicated a strong preference for uniform thresholds for all reporting requirements — large cash transactions, international electronic funds transfers and cross-border movement of currency or monetary instruments. They indicated that uniform thresholds would facilitate training and compliance. As such, the proposed Regulations require reporting of all importations and exportations of currency and monetary instruments of $10,000 or more, which is consistent with these other reporting requirements. The proposed regulatory regime is similar to the cross-border reporting requirements in the United States, and will complement current Canadian and US efforts to detect and deter money laundering and terrorist financing. Benefits and Costs The proposed Regulations will contribute to the Government's objective of detecting, preventing and deterring money laundering and terrorist financing. Based on the US experience, CCRA estimates that it will receive some 40 000 currency and monetary instruments reports each year. As a result of CCRA enforcement activities under the PCMLTFA, it is anticipated that approximately 150 seizures of non-reported currency and monetary instruments suspected to be proceeds of crime will be made each year, resulting in forfeitures of approximately $15 million. The reporting requirements will parallel and, to the extent possible, be integrated into existing customs procedures. In light of existing customs reporting requirements for the importation and exportation of goods, it is not anticipated that these regulations will place an undue compliance burden on those required to report. Consultation In December 1999, the Department of Finance issued a Consultation Paper on the Regulations to the PCMLA for public comment. Further consultations relative to the proposed Regulations were held with a number of stakeholders in the fall of 2001, including the Canadian Bankers Association, Brinks Canada Inc., Securicor, the Canadian Couriers Association and Canada Post Corporation. Other stakeholders, including Canada Bank Note, B.A. Banknote, the Canadian Mint, the Canadian Society of Customs Brokers and the Privacy Commissioner of Canada were also consulted. Aside from the reporting threshold issue, which is addressed in the proposed Regulations, stakeholders did not raise any major concerns. Compliance and Enforcement CCRA is responsible for administering the cross-border currency reporting regime, including monitoring compliance. Part II of the PCMLTFA provides that non-reported currency or monetary instruments are forfeited to the Crown. Where there is no suspicion that the funds are linked to money laundering or terrorist financing, the owner may choose to retrieve the forfeited funds after payment of penalties from $250 to $5,000 set out in the proposed Regulations. The PCMLTFA provides for a maximum fine of $500,000 and a maximum jail term of five years for failure to cooperate with the customs officer when a report is submitted, such as answering truthfully any questions that the customs officer asks or opening any package or container that the officer wishes to examine. Penalty provisions under Part II of the PCMLTFA and its regulations are consistent with the administrative penalty mechanisms under the Customs Act. CCRA will provide information and guidance on the reporting obligations and the penalties for non compliance via fact sheets, press releases, brochures, posters, and postings on the CCRA Web site. Contact Chief, Financial Crimes Section, Financial Sector Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, 20th Floor, East Tower, Ottawa, Ontario K1A 0G5, (613) 995-1814 (Telephone), (613) 943-8436 (Facsimile), fcs-scf@fin. gc.ca (Electronic mail). PROPOSED REGULATORY TEXT 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 Cross-border Currency and Monetary Instruments Reporting Regulations. Interested persons may make representations with respect to the proposed Regulations within 30 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, Financial Sector Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, 20th Floor, East Tower, Ottawa, Ontario, K1A 0G5 (Tel.: (613) 995-1814; fax: (613) 943-8436; E-mail: fcs-scf@fin.gc.ca). Ottawa, June 20, 2002 EILEEN BOYD Assistant Clerk of the Privy Council CROSS-BORDER CURRENCY AND MONETARY INSTRUMENTS REPORTING REGULATIONS INTERPRETATION 1. (1) The following definitions apply in the Act and these Regulations. "courier" means a commercial carrier that is engaged in scheduled international transportation of shipments of goods other than goods imported or exported as mail. (messager) "monetary instruments" means the following instruments in bearer form or in such other form as title to them passes on delivery, namely,
(b) negotiable instruments, including bank drafts, cheques, promissory notes, travellers' cheques and money orders, other than
(ii) negotiable instruments that bear restrictive endorsements or a stamp for the purposes of clearing or are made payable to a named person and have not been endorsed. (effets) (2) The following definitions apply in these Regulations. "Act" means the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. (Loi) "commercial passenger conveyance" means a conveyance that is used to carry passengers who have paid for passage. (moyen de transport commercial de passagers) "conveyance" means any vehicle, aircraft or water-borne craft, or other contrivance that is used to move persons, goods, currency or monetary instruments. (moyen de transport) "emergency" means a medical emergency, fire, flood or other disaster that threatens life, property or the environment. (urgence) "non-commercial passenger conveyance" means a conveyance that does not have aboard any person who has paid for passage and includes corporate aircraft, private aircraft and marine pleasure craft. (moyen de transport non commercial de passagers) REPORTING OF IMPORTATIONS AND EXPORTATIONS Minimum Value of Currency or Monetary Instruments 2. (1) For the purposes of reporting the importation or exportation of currency or monetary instruments of a certain value under subsection 12(1) of the Act, the prescribed amount is $10,000. (2) The prescribed amount is in Canadian dollars or its equivalent in a foreign currency, based on
(b) if no official conversion rate is set out in that publication for that currency, the conversion rate that the person or entity would use for that currency in the normal course of business at the time of the importation or exportation. General Manner of Reporting 3. Subject to subsections 4(4) and section 9, a report with respect to the importation or exportation of currency or monetary instruments shall
(b) be made substantially in the form set out
(ii) in any other case, in Schedule 2; (d) be signed by the person or entity who is responsible under subsection 12(3) of the Act for making the report. Importation Reporting 4. (1) A report with respect to the importation of currency or monetary instruments that are in the actual possession of a person arriving in Canada other than by means of a conveyance shall be submitted without delay by the person at the customs office located at the place of importation or, if it is not open for business at the time of importation, at the nearest customs office that is open for business at that time. (2) Subject to subsections (3) to (5) and 10(1), a report with respect to the importation of currency or monetary instruments that are in the actual possession of a person arriving in Canada on board a conveyance, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, shall be submitted without delay by the person at the customs office located at the place of importation or, if it is not open for business at the time of importation, at the nearest customs office that is open for business at that time. (3) A report with respect to the importation of currency or monetary instruments that are in the actual possession of a person who is arriving in Canada on board a commercial passenger conveyance and whose destination is another place in Canada at which there is a customs office, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, may be submitted without delay by the person at that customs office or, if it is not open for business at the time of importation, at the nearest customs office that is open for business at that time, on condition that
(b) if the person and currency or monetary instruments are transferred under customs control directly to a designated holding area, the person does not leave and the currency or monetary instruments are not removed from that area, other than to board or to be loaded on board a commercial passenger conveyance for departure to the other place in Canada. (4) A report with respect to the importation of currency or monetary instruments that are in the actual possession of a person arriving in Canada on board a non-commercial passenger conveyance at a customs office where, under the Customs Act, customs reporting may be done by radio or telephone, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, may be submitted by radio or telephone to an officer by that person or the person in charge of the conveyance at that location, on condition that
(b) on the officer's request, they present themselves and make available for examination the currency or monetary instruments at the time and place specified by the officer. (5) A report with respect to the importation of currency or monetary instruments that are in the actual possession or that form part of the baggage of a freight train crew member arriving in Canada on board a freight train shall be submitted without delay by the crew member at the customs office specified by the officer when the crew member presents himself or herself in accordance with section 11 of the Customs Act. 5. (1) A report with respect to the importation by courier of currency or monetary instruments shall, if the currency or monetary instruments are transported into Canada other than by means of a conveyance, be submitted without delay by the courier at the customs office located at the place of importation or, if it is not open for business at the time of importation, at the nearest customs office that is open for business at that time. (2) Subject to subsections (3) and 10(2), the reports with respect to the importation by courier of currency or monetary instruments that are transported into Canada on board a conveyance, namely the report that is made by the exporter and the report that is made by the person in charge of the conveyance, shall be submitted without delay by the person in charge of the conveyance at the customs office located at the place of importation or, if it is not open for business at the time of importation, at the nearest customs office that is open for business at that time. (3) A report with respect to the importation by courier of currency or monetary instruments that are transported into Canada on board an aircraft and that have a destination that is another place in Canada at which there is a customs office, shall be submitted at the customs office located at the airport of destination shown on the air waybill, on condition that
(b) if the currency or monetary instruments are transferred under customs control directly to a designated holding area, they are not removed from that area, other than to be loaded on board an aircraft for departure to the other place in Canada. 6. Subject to section 11, a report made by an exporter with respect to the importation of currency or monetary instruments by mail shall be made by
(b) affixing the customs declaration form required by the Universal Postal Convention, as amended from time to time, to the outside of the mail item and indicating that it contains currency or monetary instruments. 7. A report made with respect to the importation of currency or monetary instruments that have been retained under section 14 of the Act shall be submitted by the person or entity to whom the notice was given at the customs office indicated on the notice. 8. A report with respect to the importation of currency or monetary instruments, other than those referred to in sections 4 to 7, shall be submitted without delay at the customs office that is open for business at the time of the importation and that is nearest to the place of importation. 9. In an emergency, the person in charge of a conveyance who must unload currency or monetary instruments from the conveyance before being able to make or submit an importation report in accordance with these Regulations may submit the importation report by telephone or other expedient means and, as soon as possible after that, shall make or submit a report in accordance with these Regulations. Exceptions to Importation Reporting 10. (1) Currency or monetary instruments that are in the actual possession of a person arriving in Canada on board a commercial passenger conveyance who has as their destination a place outside Canada, or that form part of the baggage of and are carried on board the same commercial passenger conveyance as the person, are not required to be reported by that person under subsection 12(1) of the Act, on condition that
(b) if the person and currency or monetary instruments are transferred under customs control directly to a designated holding area, the person does not leave and the currency or monetary instruments are not removed from that area other than to board or be loaded on board a commercial passenger conveyance for departure to the place outside Canada. (2) A person or entity is not required to make a report under subsection 12(1) of the Act with respect to currency or monetary instruments that are imported by courier on board a conveyance and that have as their destination a place outside Canada, on condition that
(b) if the currency or monetary instruments are transferred under customs control directly to a designated holding area, they are not removed from that area, other than to be loaded on board a conveyance for departure to the place outside Canada. 11. A person or entity is not required to make a report under subsection 12(1) of the Act with respect to the importation of currency or monetary instruments that are mailed from a location outside Canada to a destination outside Canada but that transit through Canada in the course of post, on condition that they will not leave the course of post until after they have left Canada. Exportation Reporting 12. (1) A report with respect to the exportation of currency or monetary instruments that are in the actual possession of a person departing from Canada other than by means of a conveyance shall be submitted without delay by the person at the customs office located at the place of exportation or, if it is not open for business at the time of exportation, at the nearest customs office that is open for business at that time. (2) A report with respect to the exportation of currency or monetary instruments that are in the actual possession of a person departing from Canada on board a conveyance, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, shall be submitted without delay by the person at the customs office located at the place of exportation or, if it is not open for business at the time of exportation, at the nearest customs office that is open for business at that time. 13. (1) A report with respect to the exportation by courier of currency or monetary instruments shall, if the currency or monetary instruments are transported out of Canada other than by means of a conveyance, be submitted without delay by the courier at the customs office located at the place of exportation or, if it is not open for business at the time of exportation, at the nearest customs office that is open for business at that time. (2) The reports with respect to the exportation by courier of currency or monetary instruments that are transported out of Canada on board a conveyance, namely the report that is made by the exporter and the report that is made by the person in charge of the conveyance, shall be submitted without delay by the person in charge of the conveyance at the customs office located at the place of exportation or, if it is not open for business at the time of exportation, at the nearest customs office that is open for business at that time. 14. A report required to be made by an exporter with respect to the exportation by mail of currency or monetary instruments shall be made by
(b) mailing or submitting, at or before the time when the currency or monetary instruments are mailed, a copy of the exportation report to the customs office that is located nearest to the point at which the item was mailed. 15. A report made with respect to the exportation of currency or monetary instruments that have been retained under section 14 of the Act shall be submitted by the person or entity to whom the notice was given at the customs office indicated on the notice. 16. A report with respect to the exportation of currency or monetary instruments, other than one referred to in sections 12 to 15, shall be submitted without delay at the customs office that is open for business at the time of exportation and that is nearest to the place of exportation. EXCEPTION APPLICABLE TO THE BANK OF CANADA 17. A person or entity is not required to make a report under subsection 12(1) of the Act with respect to the importation or exportation of currency by or on behalf of the Bank of Canada for the purposes of the distribution, processing, or testing of banknotes intended for circulation in Canada. RETENTION 18. (1) For the purposes of subsection 14(1) of the Act, an officer shall give the person or entity written notice in person or, if the person is not present, shall send the notice by registered mail to the person's latest known address. (2) For the purposes of subsection 14(2) of the Act, the notice is to be given within 60 days after the day on which the currency or monetary instruments are imported or exported, as the case may be. 19. The prescribed retention period, for the purposes of subsection 14(1) of Act, is
(b) in any other case, seven days after the day on which the retention notice is given or sent. PENALTIES 20. For the purposes of subsection 18(2) of the Act, the prescribed amount of the penalty is
(ii) has made a full disclosure of the facts concerning the currency or monetary instruments on their discovery, and (iii) has no previous seizures under the Act;
(ii) has a previous seizure under the Act, other than in respect of any type of concealment or for making false statements with respect to the currency or monetary instruments; and
(ii) has a previous seizure under the Act for any type of concealment or for making a false statement with respect to the currency or monetary instruments. AMENDMENTS TO THESE REGULATIONS 21. The portion of section 3 of the Regulations before paragraph (a) is replaced by the following: 3. Subject to subsections 4(4) and (4.1) and section 9, a report with respect to the importation or exportation of currency or monetary instruments shall 22. Section 4 of the Regulations is amended by adding the following after subsection (4): (4.1) A report with respect to the importation of currency or monetary instruments that are in the actual possession of a person arriving in Canada on board a non-commercial passenger conveyance, at a customs office where the person is authorized in accordance with the Presentation of Persons Regulations, 2002 to present in an alternative manner, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, may be submitted to an officer by telephone, by that person or the person in charge of the conveyance before arriving in Canada, on condition that
(b) on the officer's request, they present themselves and make available for examination the currency or monetary instruments on arrival in Canada at the time and place specified by the officer. 23. Schedule 2 to the Regulations is amended by replacing the references "(Section 3 and paragraph 4(4)(a))" after the heading "SCHEDULE 1" with the references "(Section 3, paragraphs 4(4)(a), (4.1)(a))". COMING INTO FORCE 24. (1) Subject to subsection (2), these Regulations come into force on a day to be fixed by the Governor in Council by order published in Part II of the Canada Gazette. (2) Sections 21 to 23 come into force on the day on which the Presentation of Persons Regulations, 2002 come into force. SCHEDULE 1 (Section 3) REPORT ON IMPORTATION OR EXPORTATION — MADE BY PERSON IN CHARGE OF CONVEYANCE Date of Report Date of Importation or Exportation PART A — Information on Courier Who Is a Person 1. Person's full name 2. Person's full permanent address 3. Person's citizenship 4. Person's date of birth 5. Person's personal telephone number 6. Person's type of identifier (e.g., driver's licence, birth certificate, certificate of Indian status, passport, Record of Landing or permanent resident card) and identifier number 7. Place of issue of person's identifier (province or state, country) PART B — Information on Courier That Is an Entity 1. Full name of company 2. Full permanent address of company 3. Telephone number of person or business on whose behalf the shipments were conducted 4. Name and title of contact person PART C — Information on Shipments of Currency or Monetary Instruments 1. Name of exporter or importer 2. Total value of currency or monetary instruments I, __________________ , hereby declare that the information given by me in this report is true, accurate and complete.
__________________ CCRA Reference Number (if applicable) Data elements appearing on the CCRA date stamp SCHEDULE 2 (Section 3 and paragraph 4(4)(a)) REPORT ON IMPORTATION OR EXPORTATION — GENERAL Date of Report Date of Importation or Exportation PART A — Information on Person Importing or Exporting Currency or Monetary Instruments 1. Person's full name 2. Person's full permanent address 3. Person's citizenship 4. Person's date of birth 5. Person's personal telephone number 6. Person's type of identifier (e.g., driver's licence, birth certificate, certificate of Indian status, passport, Record of Landing or permanent resident card) and identifier number 7. Place of issue of person's identifier (province or state, country) PART B — Information on Person or Entity on Whose Behalf Currency or Monetary Instruments Are Being Shipped (if different from Part A) 1. Full name of persons or entities on whose behalf the shipments were conducted 2. Full permanent address of persons or entities on whose behalf the shipments were conducted 3. Telephone number of persons or entities on whose behalf the shipments were conducted 4. Type of activity, occupation or profession PART C — Information on Importation or Exportation, If Currency or Monetary Instruments Are in the Actual Possession of the Person (same person as in Part A) 1. Person's departure point (country, city) 2. Person's arrival point (country, city) 3. Date of importation or exportation PART D — Information on Importation or Exportation, If Currency or Monetary Instruments Are Shipped by Courier or Mailed 1. Date of shipment (if applicable) 2. Method of shipment (mail or courier) 3. Full name and permanent address of person or entity shipped to 4. Full name and permanent address of shipper PART E — Information on Courier Who Is a Person 1. Person's full name 2. Person's full permanent address 3. Person's citizenship 4. Person's date of birth 5. Person's personal telephone number 6. Person's type of identifier (e.g., driver's licence, birth certificate, certificate of Indian status, passport, Record of Landing or permanent resident card) and identifier number 7. Place of issue of person's identifier (province or state, country) PART F — Information on Courier That Is an Entity 1. Full name of company 2. Full permanent address of company 3. Telephone number of person or business on whose behalf the shipments were conducted 4. Name and title of contact person PART G — Information on Currency or Monetary Instruments Being Imported or Exported 1. Currency name 2. Country 3. Amount 4. Monetary instruments (type, amount, issuer, date, serial or other identifying number) I, _______________ , hereby declare that the information given by me in this report is true, accurate and complete.
__________________ CCRA Reference Number (if applicable) Data elements appearing on the CCRA date stamp [25-1-o] Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing RegulationsStatutory Authority Proceeds of Crime (Money Laundering) and Terrorist Financing Act Sponsoring Department Department of Finance REGULATORY IMPACT ANALYSIS STATEMENT For the Regulatory Impact Analysis Statement, see Cross-border Currency and Monetary Instruments Reporting Regulations. PROPOSED REGULATORY TEXT Notice is hereby given that the Governor in Council, pursuant to subsection 73(1) (see footnote c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (see footnote d) , proposes to make the annexed Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. Interested persons may make representations with respect to the proposed Regulations within 30 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, Financial Sector Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, 20th Floor, East Tower, Ottawa, Ontario, K1A 0G5 (Tel.: (613) 995-1814; fax: (613) 943-8436; E-mail: fcs-scf@fin.gc.ca). Ottawa, June 20, 2002 EILEEN BOYD Assistant Clerk of the Privy Council REGULATIONS AMENDING THE PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING REGULATIONS AMENDMENTS 1. (1) The portion of subsection 12(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (see footnote 1) before paragraph (a) is replaced by the following: 12. (1) Subject to subsection 52(1), every financial entity shall report the following transactions to the Centre: (2) Paragraph 12(1)(a) of the Regulations is repealed. 2. Section 24 of the Regulations is replaced by the following: 24. (1) Subject to subsection 52(1), every person or entity engaged in the business of foreign exchange dealing shall report the following transactions and information to the Centre:
(b) the sending out of Canada, at the request of a client, of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the information referred to in Schedule 5; (c) the receipt from outside Canada of an electronic funds transfer, sent at the request of a client, of $10,000 or more in the course of a single transaction, together with the information referred to in Schedule 6. (2) For greater certainty, paragraph (1)(b) does not apply when the person or entity engaged in the business of foreign exchange dealing sends an electronic funds transfer to a person or an entity in Canada, even if the final recipient is outside Canada. (3) Paragraph (1)(b) applies in respect of a person or entity engaged in the business of foreign exchange dealing that orders a financial entity to send an electronic funds transfer out of Canada, at the request of a client, unless the person or entity provides the financial entity with the name and address of that client. (4) For greater certainty, paragraph (1)(c) does not apply when the person or entity engaged in the business of foreign exchange dealing receives an electronic funds transfer from a person or an entity in Canada, even if the initial sender is outside Canada. 3. Section 28 of the Regulations is replaced by the following: 28. (1) Subject to subsection 52(1), every money services business shall report the following transactions and information to the Centre:
(b) the sending out of Canada, at the request of a client, of an electronic funds transfer of $10,000 or more in the course of a single transaction, together with the information referred to in Schedule 5; and (c) the receipt from outside Canada of an electronic funds transfer, sent at the request of a client, of $10,000 or more in the course of a single transaction, together with the information referred to in Schedule 6. (2) For greater certainty, paragraph (1)(b) does not apply when the money services business sends an electronic funds transfer to a person or an entity in Canada, even if the final recipient is outside Canada. (3) Paragraph (1)(b) applies in respect of a money services business that orders a financial entity to send an electronic funds transfer out of Canada, at the request of a client, unless it provides the financial entity with the name and address of that client. (4) For greater certainty, paragraph (1)(c) does not apply when the money services business receives an electronic funds transfer from a person or an entity in Canada, even if the initial sender is outside Canada. 4. Sections 74 to 76 of the Regulations are repealed. 5. Subsection 78(2) of the Regulations is replaced by the following: (2) Sections 17, 21, 24, 28, 32, 35, 38, 40, 47, 50, 51, 72 and 73 and Schedules 1 and 4 to 6 come into force on November 30, 2002. 6. Schedule 1 to the Regulations is amended by replacing the references "(Paragraph 12(1)(a), sections 17, 21, 24, 28, 32, 35, 38, 40 and 47 and subsection 52(1))" after the heading "SCHEDULE 1" with the references "(Paragraph 12(1)(a), sections 17 and 21, paragraphs 24(1)(a) and 28(1)(a), sections 32, 35, 38, 40 and 47 and subsection 52(1))". COMING INTO FORCE 7. These Regulations come into force on the day on which they are registered. [25-1-o] Regulations Amending the Public Service Superannuation RegulationsStatutory Authority Public Service Superannuation Act and Financial Administration Act Sponsoring Agency Treasury Board REGULATORY IMPACT ANALYSIS STATEMENT Description In order to receive special tax treatment, an employer- sponsored pension plan must limit benefits in accordance with the provisions of the Income Tax Act (ITA) and Regulations. The proposed amendments to the Public Service Superannuation Regulations will limit pensionable service accruals and transfers beyond age 69 and modify the ITA limitation already in place under the Public Service Superannuation Act that prohibits pensionable service accruals beyond age 71. Alternatives The provisions of the pension arrangements for persons covered by the Public Service Superannuation Act have been specified in statute or regulations. Without a change in the enabling legislation, there is no alternative to the regulatory route. Benefits and Costs There is no cost to these amendments. Consultation As these amendments reflect a change to a previous requirement imposed by the Income Tax Act and Regulations, publication in the Canada Gazette, Part I, is the only additional consultation on these amendments. Compliance and Enforcement The normal legislative, regulatory and administrative compliance structures will apply, including internal audits, the usual reports to Parliament, and responses to inquiries received from Members of Parliament and affected plan members. Contact Joan M. Arnold, Director, Pension Legislation Development, Pensions Division, Treasury Board Secretariat, Ottawa, Ontario K1A 0R5, (613) 952-3119. PROPOSED REGULATORY TEXT Notice is hereby given that the Treasury Board, pursuant to subsection 42(1) and section 71 of the Public Service Superannuation Act and paragraph 7(2)(a) of the Financial Administration Act proposes to make the annexed Regulations Amending the Public Service Superannuation Regulations. Interested persons may make representations with respect to the proposed Regulations within 30 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 Phil Charko, Assistant Secretary, Pensions Division, Treasury Board Secretariat, L'Esplanade Laurier, 300 Laurier Avenue West, 5th Floor, Ottawa, Ontario K1A 0R5. LUCIENNE ROBILLARD President of the Treasury Board REGULATIONS AMENDING THE PUBLIC SERVICE SUPERANNUATION REGULATIONS AMENDMENT 1. The definition "Act" in section 2 of the Public Service Superannuation Regulations (see footnote 2) is replaced by the following: "Act" means the Public Service Superannuation Act. (Loi) 2. Section 12.1 of the Regulations is replaced by the following: 12.1 (1) Notwithstanding section 5 of the Act, a person who attained 71 years of age on or before December 31, 2002 is not required to contribute to the Superannuation Account or the Public Service Pension Fund under that provision in respect of any employment in the Public Service after December 31 of the year in which he or she attained that age or, in the case of a person who attained 71 years of age on or before December 31, 1995, after March 31, 1996. (2) Notwithstanding section 5 of the Act, a person who attains 69 years of age on or after January 1, 2003 is not required to contribute to the Superannuation Account or the Public Service Pension Fund under that provision in respect of any employment in the Public Service after December 31 of the year in which he or she attains that age. (3) Notwithstanding section 5 of the Act, a person who attains 70 or 71 years of age during the year 2003 is not required to contribute to the Superannuation Account or the Public Service Pension Fund under that provision in respect of any employment in the Public Service after December 31, 2003. (4) A person who would be required to contribute to the Superannuation Account or the Public Service Pension Fund but for the application of subsection (1), (2) or (3) is
(b) a participant within the meaning of subsection 47(1) of the Act. (5) Notwithstanding subsection 69(3) of the Act and subject to subsection 69(6) of the Act, for the purposes of section 69 of the Act, the retirement year or retirement month of a person referred to in subsection (1), (2) or (3) to whom, in respect of whom or in respect of whose service a pension is payable is the year or month, as the case may be, in which, pursuant to subsection (1), (2) or (3), he or she ceases to be required to contribute to the Superannuation Account or the Public Service Pension Fund. COMING INTO FORCE 3. These Regulations come into force on January 1, 2003. [25-1-o] S.C. 2001, c. 41, s. 73 S.C. 2000, c. 17; S.C. 2001,c. 41, s. 48 S.C. 2001, c. 41, s. 73 S.C. 2000, c. 17; S.c. 2001, c. 41, s. 48 SOR/2002-184 C.R.C., c. 1358, SOR/93-450 |
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