Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations

Contents

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 73.1(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, hereby makes the annexed Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.^note^note

1 #

In these Regulations, Act means the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

2 #

[Repealed, SOR/2019-240, s. 106, as amended by SOR/2020-112, s. 19] (repealed)

3 #

The contravention of any of the following provisions is a violation that may be proceeded with under Part 4.1 of the Act:

(a)a provision of the Act set out in Column 1 of Part 1 of the schedule;

(b)a provision of the Act and a provision of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations set out in columns 1 and 2 of Part 2 of the schedule or, in the case of an item of Part 2 of the schedule where no provision of the Act is set out in column 1, a provision of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations set out in column 2 of Part 2 of the schedule; and

(c)a provision of the Act and a provision of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations set out in Columns 1 and 2 of Part 3 of the schedule.

(d)[Repealed, SOR/2019-240, s. 107] (repealed)

^note

Classification

4 #

In regulation 6(1)(a) (Competent Control Authority) there shall be added at the end the words “ and the requirements and standards set out in paragraph 9B of the Schedule ”.

(1)Each violation is classified as a minor, serious or very serious violation, as set out in column 2 of Part 1 of the schedule and in column 3 of Parts 2 and 3 of the schedule.

(2)A series of minor violations identified on a notice of violation shall be considered to be a serious violation for the purpose of section 73.21 of the Act if the total of the penalties for the violations set out in the notice is equal to or greater than $400,000.

Penalties

5 #

Subject to subsections 73.1(2) and (3) of the Act, the range of penalties in respect of a violation is

(a)$1 to $40,000 in the case of a minor violation;

(b)$1 to $4,000,000 in the case of a serious violation; and

(c)$1 to $20,000,000 in the case of a very serious violation.

^note

Additional Criteria

6 #

For the purposes of section 73.11 of the Act, the history of compliance by the person or entity with the Act, other than Part 2 of the Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations and the Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations are prescribed as criteria that are to be taken into account in determining the amount of a penalty.^note

Service of Documents

7 #

(1)Service of any document under Part 4.1 of the Act may be made

(a)in the case of a person, by

(i)personally serving the document on the person,

(ii)leaving the document with someone who appears to be an adult member of the same household at the last known address or usual place of residence of the person, or

(iii)sending the document by registered mail, courier, fax or other electronic means to the person’s last known address or usual place of residence; and

(b)in the case of an entity, by

(i)leaving the document at the entity’s head office or place of business, with an officer or other person who appears to be in control or management of the head office or place of business,

(ii)sending the document by registered mail, courier or fax to the head office or place of business of the entity, or

(iii)sending the document by electronic means other than by fax to any person referred to in subparagraph (i).

(2)[Repealed, SOR/2023-193, s. 41] (repealed)

8 #

In the absence of proof to the contrary, a document — other than a document that is personally served — is deemed to be served

(a)in the case of a document that is left with an adult referred to in subparagraph 7(1)(a)(ii), on the day the document is left with the adult;

(b)in the case of a document that is sent by registered mail or courier, on the tenth day after the date indicated in the receipt issued by the postal or courier service; and

(c)in the case of a document sent by fax or other electronic means, on the day of transmission.

Interest Rate Determination

9 #

(1)For the purposes of section 73.28 of the Act, the prescribed rate of interest at any time in a particular quarter is the total of:

(a)the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter; and

(b)four per cent.

(2)The interest referred to in subsection (1) is calculated and compounded monthly.

(3)For the purposes of subsection (1) quarter means a period of three consecutive months ending on March 31, June 30, September 30 or December 31.

10 #

[Repealed, SOR/2019-240, s. 110] (repealed)

(Sections 3 and 4)

| Column 1 | Column 2Item | Provision of Act | Classification of Violation1 | 7 | Very serious2 | 9(3) | Serious3 | 9.2 | Serious4 | 9.31(1) | Serious5 | 9.4(1)(c) | Serious6 | 9.4(1)(d) | Serious7 | 9.4(2) | Serious8 | 9.5(a) | Minor9 | 9.5(b) | Minor9.1 | 9.6(1.1) | Very serious10 | 9.6(3) | Serious11 | 9.7(1) | Serious12 | 9.7(2) | Serious13 | 9.7(4) | Minor14 | 9.8(1) | Serious14.1 | 9.91 | Serious14.2 | 9.92(a) | Serious14.3 | 9.92(b) | Serious14.4 | 9.93(1)(a) | Serious14.5 | 9.93(1)(b) | Serious14.6 | 9.93(3) | Serious14.7 | 9.93(4) | Minor15 | 11.1 | Serious16 | 11.12(1) | Serious16.1 | 11.12(1.1) | Serious17 | 11.13(1) | Serious18 | 11.14(1) | Serious19 | 11.17(1) | Serious20 | 11.19 | Serious21 | 11.2 | Serious22 | 11.43 | Very serious23 | 11.44(1) | Very serious24 | 11.44(2) | Serious25 | 62(2) | Serious26 | 63.1(2) | Serious | Column 1 | Column 2 | Column 3Item | Provision of Act | Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations | Classification of Violation1 | 9(1) | 7(1)(a) | Minor2 | 9(1) | 7(1)(b) | Minor3 | 9(1) | 7(1)(c) | Minor4 | 9(1) | 7(1)(d) | Minor5 | 9(1) | 8(3)(a) | Minor6 | 9(1) | 8(3)(b)(i) | Minor7 | 9(1) | 8(3)(b)(ii) | Minor8 | 9(1) | 8(3)(b)(iii) | Minor9 | 9(3) | 9(a) | Minor10 | 9(3) | 9(b) | Minor11 | 6 | 10 | Minor12 | 6 | 11 | Minor13 | 6 | 12 | Minor14 | 6 | 13 | Minor15 | 6 | 14(1) | Minor16 | 6 | 15(1) | Minor17 | 9.4(1)(a) | 16(2) | Minor18 | 9.4(1)(e) | 16(3) | Serious18.1 | 9.4(1)(e) | 16(3.1) | Serious19 | 9(1) | 18 | Minor20 | 9(1) | 19 | Minor21 | 6 | 20 | Minor22 | 6 | 21 | Minor23 | 6 | 22 | Minor24 | 6 | 23 | Minor24.1 | 9(1) | 24.11(1)(a) | Minor24.11 | 9(1) | 24.11(1)(b) | Minor24.12 | 6 | 24.12 | Minor24.13 | 6 | 24.13 | Minor24.14 | 6 | 24.14 | Minor24.15 | 9(1) | 24.16 | Minor24.16 | 9(1) | 24.17 | Minor24.17 | 6 | 24.18 | Minor24.18 | 6 | 24.19 | Minor24.19 | 6 | 24.2 | Minor25 | 9(1) | 25 | Minor26 | 9(1) | 26 | Minor27 | 6 | 27 | Minor28 | 6 | 28 | Minor29 | 6 | 29 | Minor30 | 9(1) | 30(1)(a) | Minor31 | 9(1) | 30(1)(b) | Minor32 | 9(1) | 30(1)(c) | Minor33 | 9(1) | 30(1)(d) | Minor34 | 9(1) | 30(1)(e) | Minor35 | 9(1) | 30(1)(f) | Minor36 | 6 | 31 | Minor37 | 6 | 32 | Minor38 | 9(1) | 33(1)(a) | Minor39 | 9(1) | 33(1)(b) | Minor40 | 9(1) | 33(1)(c) | Minor41 | 9(1) | 33(1)(d) | Minor42 | 9(1) | 33(1)(e) | Minor43 | 9(1) | 33(1)(f) | Minor44 | 6 | 34 | Minor45 | 6 | 35 | Minor46 | 6 | 36 | Minor46.1 | 6 | 36.1 | Minor47 | 6 | 37 | Minor48 | 9(1) | 39 | Minor49 | 9(1) | 40 | Minor50 | 6 | 41 | Minor51 | 6 | 42 | Minor52 | 6 | 43 | Minor53 | 9(1) | 48 | Minor54 | 9(1) | 49 | Minor55 | 6 | 50 | Minor56 | 6 | 51 | Minor57 | 6 | 52 | Minor58 | 9(1) | 54 | Minor59 | 9(1) | 55 | Minor60 | 6 | 56 | Minor61 | 6 | 57 | Minor62 | 6 | 58(1) | Minor63 | 9(1) | 60 | Minor64 | 9(1) | 61 | Minor65 | 6 | 62 | Minor66 | 6 | 63 | Minor67 | 6 | 64 | Minor67.1 | 9(1) | 64.2 | Minor67.2 | 9(1) | 64.3 | Minor67.3 | 6 | 64.4 | Minor67.4 | 6 | 64.5 | Minor67.5 | 6 | 64.6 | Minor67.6 | 6 | 64.8 | Minor68 | 9(1) | 66 | Minor69 | 9(1) | 67 | Minor70 | 6 | 68 | Minor71 | 6 | 69 | Minor72 | 9(1) | 70(1)(a) | Minor73 | 9(1) | 70(1)(b) | Minor74 | 9(1) | 70(1)(c) | Minor75 | 9(1) | 70(1)(d) | Minor76 | 9(1) | 71 | Minor77 | 6 | 72(1) | Minor78 | 6 | 73 | Minor79 | 6 | 74 | Minor80 | 9(1) | 78 | Minor81 | 9(1) | 79 | Minor82 | 6 | 80 | Minor83 | 6 | 81 | Minor84 | 6 | 82 | Minor85 | 6.1 | 84 | Minor86 | 6.1 | 85(1) | Minor87 | 6.1 | 86 | Minor88 | 6.1 | 87 | Minor89 | 6.1 | 88 | Minor90 | 6.1 | 89 | Minor91 | 9.4(1)(a) | 90(a) | Minor92 | 9.4(1)(a) | 90(b)(i) | Minor92.1 | 9.4(1)(a) | 90(b)(ii) | Minor92.2 | 9.4(1)(e) | 90(b)(iii) | Minor92.3 | 9.4(1)(e) | 90(c) | Minor93 | 9.4(1)(a) | 91(a) | Minor94 | 9.4(1)(a) | 91(b) | Minor95 | 6.1 | 92 | Minor95.1 | | 93.1 | Minor95.2 | | 93.2 | Minor96 | 6.1 | 94 | Minor97 | 6.1 | 95(1), (3) or (4) | Minor98 | 6.1 | 96 | Minor99 | 6.1 | 100 | Minor100 | 6.1 | 101(1) | Minor101 | 6.1 | 101(3) | Minor102 | [Repealed, SOR/2024-267, s. 25]103 | 6.1 | 102 | Minor103.1 | 6.1 | 102.1 | Minor103.2 | 6.1 | 102.2 | Minor104 | 6.1 | 103 | Minor105 | 6.1 | 104 | Minor106 | 6 | 108 | Minor107 | 6 | 109(5) | Minor108 | 6.1 | 111(2) | Minor109 | 6 | 112(4) | Minor110 | 6.1 | 114(2) | Minor111 | 9.3(1) | 116(1)(a) | Minor112 | 9.3(1) | 116(1)(b) | Minor113 | 9.3(1) | 116(2) | Minor114 | 9.3(1) | 116(3) | Minor115 | 9.3(1) | 117 | Minor116 | 9.3(1) | 119(1) | Minor117 | 9.3(1) | 119(2) | Minor118 | 9.3(1) | 119(3) | Minor119 | 9.3(1) | 120(1) | Minor120 | 9.3(1) | 120(2) | Minor121 | 9.3(1) | 120(3) | Minor122 | 9.3(1) | 120(4) | Minor123 | 9.3(1) | 120(5) | Minor124 | 9.3(1) | 120.1(1) | Minor125 | 9.3(1) | 120.1(2) | Minor126 | 9.3(1) | 120.1(3) | Minor127 | 9.3(1) | 120.1(4) | Minor128 | 9.3(1) | 120.2(1) | Minor129 | 9.3(1) | 120.2(2) | Minor130 | 9.3(1) | 120.2(3) | Minor131 | 9.3(1) | 120.2(4) | Minor132 | 9.3(2) | 121(1)(a) | Minor133 | 9.3(2) | 121(1)(b) | Minor134 | 9.3(2) | 121(1)(c) | Minor135 | 9.3(2.1) | 121(2) | Minor136 | 9.3 | 121(3) | Minor137 | 9.3(2) | 122(1)(a) | Minor138 | 9.3(2) | 122(1)(b) | Minor139 | 9.3(2) | 122(2)(a) | Minor140 | 9.3(2) | 122(2)(b) | Minor141 | 9.3(2) | 122(3) | Minor142 | 9.3(2) | 122(4)(a) | Minor143 | 9.3(2) | 122(4)(b) | Minor144 | 9.3(2.1) | 122(5) | Minor145 | 9.3(2.1) | 122(6) | Minor146 | 9.3(2.1) | 122(7) | Minor147 | 9.3(2.1) | 122(8) | Minor148 | 9.3 | 122(9) | Minor149 | 9.3 | 122(10) | Minor150 | 9.3(2) | 122.1(1)(a) | Minor151 | 9.3(2) | 122.1(1)(b) | Minor152 | 9.3(2) | 122.1(2)(a) | Minor153 | 9.3(2) | 122.1(2)(b) | Minor154 | 9.3(2.1) | 122.1(3) | Minor155 | 9.3(2.1) | 122.1(4) | Minor156 | 9.3(2.1) | 122.1(5) | Minor157 | 9.3(2.1) | 122.1(6) | Minor158 | 6 | 123(1) | Minor159 | 6 | 123(2) | Minor160 | 6 | 123(3) | Minor161 | 6 | 123(4) | Minor162 | 6 | 123(5) | Minor163 | | 123.1 | Minor164 | | 124.1(1) | Minor165 | | 124.1(2) | Minor166 | 9(1) | 125 | Minor167 | 9(1) | 131(1) | Minor168 | 9(1) | 131(2) | Minor169 | 9(1) | 132(1) | Minor170 | 9(1) | 132(2) | Minor171 | 9(1) | 132(3) | Minor172 | 6.1 | 134(1) | Minor173 | 6 | 134(2) | Minor174 | 6 | 134(3) | Minor174.1 | 6 | 134(4) | Minor175 | 6.1 | 135(1) | Minor176 | 6 | 135(2) | Minor177 | 6 | 135(3) | Minor178 | 6.1 | 136(1) | Minor179 | 6 | 136(2) | Minor180 | 6 | 136(3) | Minor181 | 6.1 | 137(1) | Minor182 | 6 | 137(2) | Minor183 | 6 | 137(3) | Minor184 | 6.1 | 138(1) | Minor185 | 6.1 | 138(2) | Minor186 | 6 | 138(3) | Minor187 | 6.1 | 138(4)(a) | Serious188 | 9.6(3) | 138(4)(b) | Serious189 | 6 | 138(5) | Minor189.1 | | 138.1(1)(a) | Minor189.2 | | 138.1(1)(b) | Minor190 | 6 | 139 | Minor191 | 6 | 144 | Minor192 | 6 | 145 | Minor193 | 6 | 146(1) | Minor194 | 6 | 148(1) | Minor195 | 6 | 149 | Minor196 | 9.6(1) | 156(1)(a) | Very serious197 | 9.6(1) | 156(1)(b) | Very serious198 | 9.6(1) | 156(1)(c) and (2) | Very serious199 | 9.6(1) | 156(1)(d) and (e) | Very serious200 | 9.6(1) | 156(1)(f) and (3) | Very serious201 | 9.6(1) | 156(4) | Very serious | Column 1 | Column 2 | Column 3Item | Provision of Act | Provision of Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations | Classification of Violation1 | 7 | 9(1) | Serious2 | 7 | 9(2) | Serious3 | 7.1 | 10 | Very serious4 | 7 and 7.1 | 12 | Serious5 | 6 | 12.1(1) | Minor

Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.