Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations: SOR/2025-68
Canada Gazette, Part II, Volume 159, Number 7
Registration
SOR/2025-68 March 4, 2025
PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT
P.C. 2025-268 March 4, 2025
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations under subsections 73(1)footnote a and 73.1(1)footnote b of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act footnote c.
Regulations Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations
Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
1 Subsection 1(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations footnote 1 is amended by adding the following in alphabetical order:
- factor
- means a person or entity that is engaged in the business of factoring, with or without recourse against the assignor. (affactureur)
- financing or leasing entity
- means a person or entity that is engaged in the business of financing or leasing. (entité de financement ou de bail)
- passenger vehicle
- means a motor vehicle — other than an ambulance, a hearse, a motor vehicle that is clearly marked for policing activities, a motor vehicle that is clearly marked and equipped for emergency medical response activities or emergency fire response activities or a utility truck — that is designed or adapted primarily to carry no more than 10 individuals on highways and streets. (véhicule de tourisme)
2 Section 4.1 of the Regulations is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e):
- (f) if the person or entity is a financing or leasing entity, the time when the person or entity enters into a financing or leasing arrangement with the client in connection with an activity referred to in section 24.15;
3 The Regulations are amended by adding the following after section 24:
Factors
24.1 A factor is engaged in a business or profession for the purposes of paragraph 5(i) of the Act.
24.11 (1) A factor shall report the following transactions and information to the Centre:
- (a) the receipt from a person or entity of an amount of $10,000 or more in cash in a single transaction, together with the information set out in Schedule 1; and
- (b) the receipt from a person or entity of an amount of $10,000 or more in virtual currency in a single transaction, together with the information set out in Schedule 4.
(2) A factor is not required to report the transaction and information under paragraph (1)(a) if the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.
24.12 A factor shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that it receives from a person or entity in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.
24.13 A factor shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that it receives from a person or entity in a single transaction, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.
24.14 A factor shall keep the following records in respect of every factoring agreement that it enters into:
- (a) an information record in respect of the person or entity with whom it enters into the agreement;
- (b) if the information record is in respect of an entity, a record of the name, address and date of birth of every person who enters into the agreement on behalf of the entity and the nature of the person’s principal business or their occupation;
- (c) if the information record is in respect of 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 factor;
- (d) a record of the financial capacity of the person or entity with which it enters into the agreement and the terms of the agreement;
- (e) for any payment it makes, a record of
- (i) the date of the payment,
- (ii) if the payment is in funds, the type and amount of each type of funds involved,
- (iii) if the payment is not in funds, the type of payment and its value,
- (iv) the method by which the payment is made,
- (v) the name of every person or entity involved in the payment, and
- (vi) every account number or other equivalent reference number connected to the payment; and
- (f) a receipt of funds record in respect of every amount of $3,000 or more that it receives, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.
Financing or Leasing Entities
24.15 A financing or leasing entity is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when it is financing or leasing
- (a) property, other than real property or immovables, for business purposes;
- (b) passenger vehicles in Canada; or
- (c) property, other than real property or immovables, that is valued at $100,000 or more.
24.16 A financing or leasing entity that receives an amount of $10,000 or more in cash in a single transaction in connection with an activity referred to in section 24.15 shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.
24.17 A financing or leasing entity that receives an amount of $10,000 or more in virtual currency in a single transaction in connection with an activity referred to in section 24.15 shall report the transaction to the Centre, together with the information set out in Schedule 4.
24.18 A financing or leasing entity shall keep a large cash transaction record in respect of every amount of $10,000 or more in cash that it receives in a single transaction in connection with an activity referred to in section 24.15, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.
24.19 A financing or leasing entity shall keep a large virtual currency transaction record in respect of every amount of $10,000 or more in virtual currency that it receives in a single transaction in connection with an activity referred to in section 24.15, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.
24.2 A financing or leasing entity shall keep the following records in connection with an activity referred to in section 24.15 in respect of every financing or leasing arrangement that it enters into:
- (a) an information record in respect of the person or entity with which it enters into the arrangement;
- (b) if the information record is in respect of an entity, a record of the name, address and date of birth of every person who enters into the arrangement on behalf of the entity and the nature of the person’s principal business or their occupation;
- (c) if the information record is in respect of 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 financial or leasing entity;
- (d) a record of the financial capacity of the person or entity with which it enters into the arrangement and the terms of the arrangement; and
- (e) in respect of every payment that it receives under the arrangement, other than a payment received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body, a record of
- (i) the date of the payment,
- (ii) the name of the person or entity that makes the payment,
- (iii) the amount of the payment and of any part of it that is made in cash, and
- (iv) the method by which the payment is made.
4 Section 29.1 of the Regulations is replaced by the following:
29.1 For the purposes of subparagraphs 5(h)(v) and (h.1)(v) of the Act, crowdfunding platform services and cheque-cashing services are prescribed services.
5 Section 36 of the Regulations is amended by adding the following after paragraph (b):
- (b.1) if they cash one or more cheques that total $3,000 or more at the request of a person or entity, a record of
- (i) the date when each cheque is cashed,
- (ii) the person’s or entity’s name and address, the nature of their principal business or their occupation and, in the case of a person, their date of birth,
- (iii) the total amount of the cheque or cheques,
- (iv) the name of the issuer of each cheque,
- (v) the number of every account that is affected by the cashing of the cheque or cheques, the type of account and the name of each account holder,
- (vi) every reference number that is connected to the cashing of the cheque or cheques and that has a function equivalent to that of an account number, and
- (vii) if the cashing of the cheque or cheques involves virtual currency, every transaction identifier, including the sending and receiving addresses;
6 The Regulations are amended by adding the following after section 93:
Factors
93.1 (1) A factor shall verify,
- (a) in accordance with section 105, the identity of a person in respect of whom it is required to keep a record under section 24.14;
- (b) in accordance with section 109, the identity of a corporation in respect of which it is required to keep a record under section 24.14; and
- (c) in accordance with section 112, the identity of an entity, other than a corporation, in respect of which it is required to keep a record under section 24.14.
(2) Paragraphs (1)(b) and (c) do not apply if the entity is
- (a) a public body;
- (b) a corporation or trust that has minimum net assets of $75 million on its last audited balance sheet, whose shares or units are traded on a Canadian stock exchange or a stock exchange designated under subsection 262(1) of the Income Tax Act and that operates in a country that is a member of the Financial Action Task Force; or
- (c) a subsidiary of a public body referred to in paragraph (a) or a corporation or trust referred to in paragraph (b), whose financial statements are consolidated with the financial statements of the public body, corporation or trust.
Financing or Leasing Entity
93.2 (1) A financing or leasing entity shall verify
- (a) in accordance with section 105, the identity of a person in respect of whom it is required to keep a record under section 24.2;
- (b) in accordance with section 109, the identity of a corporation in respect of which it is required to keep a record under section 24.2; and
- (c) in accordance with section 112, the identity of an entity, other than a corporation, in respect of which it is required to keep a record under section 24.2.
(2) Paragraphs (1)(b) and (c) do not apply if the entity is
- (a) a public body;
- (b) a corporation or trust that has minimum net assets of $75 million on its last audited balance sheet, whose shares or units are traded on a Canadian stock exchange or a stock exchange designated under subsection 262(1) of the Income Tax Act and that operates in a country that is a member of the Financial Action Task Force; or
- (c) a subsidiary of a public body referred to in paragraph (a) or a corporation or trust referred to in paragraph (b), whose financial statements are consolidated with the financial statements of the public body, corporation or trust.
7 (1) Subsection 95(1) of the Regulations is amended by adding the following after paragraph (a.1):
- (a.2) requests that they cash one or more cheques that total $3,000 or more;
(2) Subsection 95(3) of the Regulations is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):
- (d) that requests that they cash one or more cheques that total $3,000 or more.
(3) Subsection 95(4) of the Regulations is amended by striking out “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):
- (d) that requests that they cash one or more cheques that total $3,000 or more.
8 Subsection 105(7) of the Regulations is amended by adding following after paragraph (h):
- (h.001) in the cases referred to in paragraphs 93.1(1)(a) and 93.2(1)(a), at the time the record is created;
9 (1) Paragraph 109(4)(a) of the Regulations is replaced by the following:
- (a) in the cases referred to in section 84, subparagraph 88(b)(ii) and paragraph 95(3)(d), at the time of the transaction;
(2) Subsection 109(4) of the Regulations is amended by adding the following after paragraph (g):
- (g.1) in the cases referred to in paragraphs 93.1(1)(b) and 93.2(1)(b), at the time the record is created;
10 (1) Paragraph 112(3)(a) of the Regulations is replaced by the following:
- (a) in the cases referred to in section 84, subparagraph 88(c)(ii) and paragraph 95(4)(d), at the time of the transaction;
(2) Subsection 112(3) of the Regulations is amended by adding the following after paragraph (g):
- (g.1) in the cases referred to in paragraphs 93.1(1)(c) and 93.2(1)(c), at the time the record is created;
11 Section 120.1 of the Regulations is replaced by the following:
120.1 (1) The following persons and entities shall take reasonable measures to determine whether a person with whom they enter into a business relationship is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member — referred to in subsection 2(1) — of one of those persons or a person who is closely associated with a politically exposed foreign person:
- (a) a factor;
- (b) a financing or leasing entity;
- (c) a British Columbia notary public;
- (d) a British Columbia notary corporation;
- (e) an accountant;
- (f) an accounting firm;
- (g) a real estate broker or sales representative;
- (h) a real estate developer;
- (i) a mortgage administrator;
- (j) a mortgage broker;
- (k) a mortgage lender;
- (l) a dealer in precious metals and precious stones; and
- (m) a department or an agent of His Majesty in right of Canada or an agent or mandatary of His Majesty in right of a province.
(2) A person or entity referred to in any of paragraphs (1)(a) to (m) shall periodically take reasonable measures to determine whether a person with whom they have a business relationship is a politically exposed foreign person, a politically exposed domestic person, a head of an international organization, a family member — referred to in subsection 2(1) — of one of those persons or a person who is closely associated with a politically exposed foreign person.
(3) A person or entity referred to in any of paragraphs (1)(a) to (m) shall take reasonable measures to determine whether a person from whom they receive an amount of $100,000 or more, in cash or in virtual currency, is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, one of those persons.
(4) If a person or entity referred to in any of paragraphs (1)(a) to (m) — or any of their employees or officers — detects a fact that constitutes reasonable grounds to suspect that a person with whom they have a business relationship is a politically exposed foreign person, a politically exposed domestic person or a head of an international organization, or a family member — referred to in subsection 2(1) — of, or a person who is closely associated with, one of those persons, the person or entity shall take reasonable measures to determine whether they are such a person.
12 Subsection 131(3) of the Regulations is replaced by the following:
(3) For greater certainty, although items in Schedules 1 to 7 are described in the singular, a person or entity shall report all known information that falls within an item.
13 Subsection 138(2) of the Regulations is replaced by the following:
(2) Every person or entity that is subject to subsection (1) shall take reasonable measures to confirm the accuracy of the information when it is first obtained under that subsection and in the course of ongoing monitoring of business relationships. In the case of information that is related to a corporation incorporated under the Canada Business Corporations Act, the person or entity shall consult information that is made available to the public under section 21.303 of that Act if they consider, based on a risk assessment referred to in subsection 9.6(2) of the Act, that there is a high risk of a money laundering offence or terrorist activity financing offence.
14 The Regulations are amended by adding the following after section 138:
138.1 (1) Every person or entity that identifies a material discrepancy between the information that they obtain under paragraphs 138(1)(a) and (d) and the information that they consult in accordance with subsection 138(2) shall
- (a) report the discrepancy to the Director appointed under section 260 of the Canada Business Corporations Act within 30 days after the day on which the discrepancy is identified, together with the information set out in Schedule 7; and
- (b) keep a copy of any acknowledgement of receipt of the report.
(2) A person or entity is not required to report under paragraph (1)(a) if the material discrepancy is resolved within 30 days after the day on which it is identified.
(3) For the purposes of this section, a material discrepancy does not include a discrepancy that arises from
- (a) an error in spelling or a minor variation in a name or address;
- (b) the use of a service address in one information source and a residential address in another;
- (c) the fact that information is not available to the public due to an exception or exemption under subsection 21.303(2) or (3) of the Canada Business Corporations Act; or
- (d) the fact that information that is made available to the public under section 21.303 of the Canada Business Corporations Act is about persons who are not referred to in paragraph 138(1)(a) of these Regulations, or vice versa.
15 (1) Subsection 152(1) of the Regulations is replaced by the following:
152 (1) The requirement to report information set out in any of Schedules 1 to 7 does not apply in respect of information set out in an item of that Schedule that is not marked with an asterisk if, after taking reasonable measures to do so, the person or entity is unable to obtain the information.
(2) Subsection 152(3) of the Regulations is replaced by the following:
(3) For greater certainty, a person or entity is not required to report information set out in any item of Schedules 1 to 7 that is not applicable in the circumstances.
16 The portion of subsection 154(2) of the Regulations before paragraph (a) is replaced by the following:
(2) Sections 12 to 14, 22, 24.14, 24.2, 29, 43, 45 and 52, subsection 58(1), sections 64, 74, 82, 86 to 89, 92, 94, 96, 97 and 100, subsection 101(1) and sections 102 to 104, 116, 117, 119 to 120.2 and 123 do not apply in respect of
17 The Regulations are amended by adding the following after Part 7:
PART 8
Disclosure, Collection and Use of Personal Information
Definition of Commissioner
158 In this Part, Commissioner means the Privacy Commissioner appointed under section 53 of the Privacy Act.
Code of practice
159 For the purposes of section 11.01 of the Act, a person or entity referred to in that section shall
- (a) establish and implement a code of practice for the disclosure, collection and use of personal information that has been approved by the Commissioner under section 163; and
- (b) ensure that the disclosure, collection and use of personal information is carried out in accordance with the approved code of practice.
Requirements
160 A code of practice shall meet the following requirements:
- (a) it identifies the persons or entities referred to in section 5 of the Act that are subject to the code;
- (b) it describes the personal information of an individual that may be disclosed, collected or used without their knowledge or consent;
- (c) it describes the purposes for which an individual’s personal information may be disclosed, collected or used without their knowledge or consent;
- (d) it describes the manner in which an individual’s personal information may be disclosed, collected or used without their knowledge or consent;
- (e) it describes the measures to be taken to ensure the protection of personal information, including measures concerning the retention of such information and the keeping of records; and
- (f) it includes information demonstrating that the code complies with the requirements of the Act and provides for substantially the same or greater protection of personal information as that provided under the Personal Information Protection and Electronic Documents Act.
Application for approval
161 (1) Any person or entity referred to in section 5 of the Act, or any person or entity acting on behalf of persons or entities referred to in that section, may apply to the Commissioner for approval of a code of practice.
Acknowledgement
(2) If the application for approval is made by or on behalf of two or more persons or entities, it shall include an acknowledgement that each of those persons or entities has approved the code and has consented to its submission to the Commissioner.
Additional information
(3) If the information provided by the applicant is insufficient to permit the Commissioner to decide whether the code of practice meets the requirements set out in section 160, the Commissioner may request from the applicant any additional information necessary to make that decision and may suspend the processing of the application until that information is provided.
Code provided to Centre
(4) The applicant shall, no later than the day on which the application for approval is made, notify the Centre of the application and provide it with a copy of the code of practice.
Comments from Centre
(5) The Centre may provide comments on the code of practice to the applicant or the Commissioner, or to both.
Time limit for comments
(6) The Commissioner shall consider the comments provided by the Centre in making a decision with respect to the code of practice, unless the comments are provided more than 60 days after the day on which the application for approval is made.
Time limit for decision
162 (1) The Commissioner shall notify the applicant of their decision no later than 120 days after the day on which an application for approval of a code of practice is made under section 161 and, if the application is refused, shall provide their reasons in writing.
Extension of time limit
(2) The Commissioner may extend the period referred to in subsection (1) by no more than 15 days and, in that case, the Commissioner shall notify the applicant of the extension.
Excluded period
(3) The calculation of the periods referred to in subsections (1) and (2) shall exclude any period during which the processing of the application is suspended by the Commissioner under subsection 161(3).
Approval
163 (1) The Commissioner shall approve the code of practice if the Commissioner is satisfied that it meets the requirements set out in section 160.
Deemed approval
(2) If the Commissioner does not notify the applicant of their decision before the end of the period referred to in subsection 162(1) or, in the case of an extension, the extended period referred to in subsection 162(2), the code of practice is deemed to be approved as of the end of that period.
Notice to Centre
164 The Commissioner shall notify the Centre of any decision to approve a code of practice or refuse an application for approval and of any deemed approval of a code.
Revision to code
165 (1) A person or entity referred to in section 5 of the Act that makes any revision to an approved code of practice shall, as soon as feasible, notify the Commissioner and the Centre of the revision and provide them with a copy of the revised code of practice.
Revision considered significant
(2) The Commissioner may, no later than 30 days after receiving notice of a revision to a code of practice, notify the person or entity that the Commissioner considers the revision to be significant and direct the person or entity to apply for approval of the revised code under section 161.
No revision notice
(3) If the Commissioner has reasonable grounds to believe that a person or entity has revised an approved code of practice but has failed to notify the Commissioner, the Commissioner may direct the person or entity to apply for approval of the revised code under section 161.
Suspension
(4) If a person or entity fails to comply with the Commissioner’s direction, the Commissioner may suspend the approval previously given under section 163 with respect to the code of practice.
Code of practice in effect
166 A person or entity that has revised an approved code of practice shall continue to follow the code as it read when it was previously approved by the Commissioner until
- (a) the Commissioner notifies the person or entity that the revised code meets the requirements set out in section 160, if the person or entity has been directed by the Commissioner to apply for approval of the revised code; or
- (b) the 30-day period referred to in subsection 165(2) ends, if the Commissioner has not notified the person or entity that the revision is considered to be significant.
Renewal of approval every five years
167 A person or entity referred to in section 5 of the Act with respect to whom a code of practice has been approved shall, every five years after the day of the most recent approval of the code, reapply for approval of the code under section 161.
18 Schedule 1 to the Regulations is amended by replacing the references after the heading “SCHEDULE 1” with the following:
(Paragraph 7(1)(a), section 18, paragraph 24.11(1)(a), sections 24.16 and 25, paragraphs 30(1)(a) and 33(1)(a), sections 39, 48, 54, 60, 64.2 and 66, paragraph 70(1)(a), section 78, subsection 131(3) and section 152)
19 Schedule 4 to the Regulations is amended by replacing the references after the heading “SCHEDULE 4” with the following:
(Paragraph 7(1)(d), section 19, paragraph 24.11(1)(b), sections 24.17 and 26, paragraphs 30(1)(f) and 33(1)(f), sections 40, 49, 55, 61, 64.3 and 67, paragraph 70(1)(d), section 79, subsection 131(3) and section 152)
20 The Regulations are amended by adding, after Schedule 6, the Schedule 7 set out in the schedule to these Regulations.
Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations
| Item | Column 1 Provision |
Column 2 Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations |
Column 3 Classification of Violation |
|---|---|---|---|
| 24.1 | 9(1) | 24.11(1)(a) | Minor |
| 24.11 | 9(1) | 24.11(1)(b) | Minor |
| 24.12 | 6 | 24.12 | Minor |
| 24.13 | 6 | 24.13 | Minor |
| 24.14 | 6 | 24.14 | Minor |
| 24.15 | 9(1) | 24.16 | Minor |
| 24.16 | 9(1) | 24.17 | Minor |
| 24.17 | 6 | 24.18 | Minor |
| 24.18 | 6 | 24.19 | Minor |
| 24.19 | 6 | 24.2 | Minor |
| Item | Column 1 Provision of Act |
Column 2 Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations |
Column 3 Classification of Violation |
|---|---|---|---|
| 95.1 | 93.1 | Minor | |
| 95.2 | 93.2 | Minor |
| Item | Column 1 Provision of Act |
Column 2 Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations |
Column 3 Classification of Violation |
|---|---|---|---|
| 189.1 | 138.1(1)(a) | Minor | |
| 189.2 | 138.1(1)(b) | Minor |
Coming into Force
24 (1) Subject to subsections (2) and (3), these Regulations come into force on April 1, 2025, but if they are registered after that day, they come into force on the day on which they are registered.
(2) Sections 12 to 15, 20 and 23 come into force on October 1, 2025.
(3) Section 17 comes into force on the day on which section 344 of the Budget Implementation Act, 2024, No. 1, chapter 17 of the Statutes of Canada, 2024, comes into force, but if these Regulations are registered after that day, section 17 comes into force on the day on which these Regulations are registered.
SCHEDULE
(section 20)
SCHEDULE 7
(subsection 131(3), paragraph 138.1(1)(a) and subsections 152(1) and (3))
Report with Respect to Discrepancies in Information on Beneficial Ownership or Control
PART A
Information with Respect to Reporting Person or Entity and Place of Business Where Material Discrepancy Is Identified
- 1* Person’s or entity’s name
- 2* Type of person or entity, as described in any of paragraphs 5(a) to (h.1) and (k) of the Act, or, if person or entity is referred to in paragraph 5(i), (j) or (l) of the Act, type of prescribed business, profession or activity referred to in that paragraph
- 3* Identification number assigned to person or entity by Centre
- 4* Number that identifies place of business
- 5* Address of place of business
- 6* Contact person’s name
- 7 Contact person’s email address
- 8* Contact person’s telephone number
PART B
Information with Respect to Material Discrepancy
- 1* Name of reported company and identifying number on its certificate of incorporation, amalgamation or continuance
- 2* Date on which discrepancy was identified
- 3* Description of discrepancy
N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2025-67, Proceeds of Crime (Money Laundering) and Terrorist Financing Reporting of Goods Regulations.