Reporting large virtual currency transactions to FINTRAC
Overview
This guidance came into effect on June 1, 2021
Large virtual currency transaction reporting requirements under the Proceeds of Crime (Money laundering) and Terrorist Financing Act (PCMLFTA) and associated Regulations are applicable to all reporting entity sectors. If you are a person who is a reporting entity, and you are an employee of a reporting entity, your employer is responsible for meeting the Large Virtual Currency Transaction Reporting requirements associated to your activities as an employee.Footnote1
Similarly, if you are a reporting entity, and you are an agent of, or you are authorized to act on behalf of another reporting entity, it is the other reporting entity's responsibility to meet the Large Virtual Currency Transaction Report (LVCTR) requirements associated to the activities you conduct on its behalf. This does not apply if you are a life insurance broker or agent (unless you are an employee as explained above).Footnote2
A service provider can submit and correct LVCTRs on your behalf. However, as the reporting entity, you are ultimately responsible for meeting the requirements under the PCMLTFA and associated regulations, even if a service provider is reporting on your behalf. This legal responsibility cannot be delegated.
Who is this guidance for
- All reporting entity (RE) sectors
In this guidance
- What is virtual currency?
- When must I report large virtual currency transactions?
- How do I submit LVCTRs?
- What are the main considerations for completing an LVCTR?
- Do I have other requirements associated to large virtual currency transactions?
- What are the exceptions to reporting large virtual currency transactions?
You will also find field instructions to complete an LVCTR in Annex 1
Related guidance
If you are unsure about your large virtual currency transaction reporting obligations, please contact FINTRAC by email at guidelines-lignesdirectrices@fintrac-canafe.gc.ca.
**Note: Throughout this guidance, references to dollar amounts (such as $10,000) are in Canadian dollars (CAD) unless otherwise specified.
1. What is virtual currency?
Virtual currency is a digital representation of value, or the private key of a cryptographic system that enables access to a digital representation of value, that can be used for payment or investment purposes. It is not a fiat currency but it can be readily exchanged for funds, or another virtual currency that can be exchanged for funds.Footnote3
For greater clarity, this definition does not include certain digital currencies, such as those that can only be used within a self-contained virtual environment, or a digital currency that can be redeemed for goods and services, but not easily converted into funds. For example, such digital currencies include those used for online gaming, which are not exchangeable for funds or virtual currencies, or those that can only be redeemed for gift cards and loyalty programs.
2. When must I report large virtual currency transactions?
When you receive virtual currency in an amount equivalent to $10,000 or more in a single transaction, you must submit an LVCTR to FINTRAC.Footnote4
You must also submit an LVCTR to FINTRAC in accordance with the 24-hour rule when you receive two or more amounts of virtual currency, that total $10,000 or more within a consecutive 24-hour window, and you know that the transactions meet one of the following:Footnote5
- were conducted by the same person or entity;
- were conducted on behalf of the same person or entity (third party); or
- are for the same beneficiary.
For more information on reporting in accordance with the 24-hour rule, please see FINTRAC's 24-hour rule guidance.
To determine if a transaction is reportable, you must first determine when you are in receipt of virtual currency, and then determine if the amount of virtual currency received meets the reporting threshold of $10,000. You are in receipt of virtual currency when the transaction can no longer be reversed or cancelled.
As the Bank of Canada does not publish exchange rates for virtual currency, you must use the rate you establish in the normal course of your business to determine whether you have reached the reporting threshold amount. Your process for establishing an exchange rate must be outlined in your compliance policies and procedures.Footnote6
You must submit an LVCTR to FINTRAC within five working days after the day you receive the amount.Footnote7
When you submit an LVCTR to FINTRAC, you must keep a copy of it.Footnote8 For more information on your record keeping obligations, see your sector's record keeping guidance.
3. How do I submit LVCTRs?
You must submit LVCTRs to FINTRAC electronically if you have the technical capabilities to do so. If you do not have the technical capabilities to report electronically, you must submit paper reports.Footnote9
Electronic reporting
You must submit LVCTRs to FINTRAC using the following options:
FINTRAC web reporting system (FWR)
FWR (formerly F2R) provides for the secure encrypted transmission of reports you submit to FINTRAC, to ensure data confidentiality and integrity. FWR is geared towards reporting entities with lower reporting volumes. To access FWR, you must be enrolled for electronic reporting with FINTRAC.
You can submit new reports and make changes to previously submitted reports in FWR. FWR contains reporting screens with completion instructions for the manual entry of data, as well as the correction of those reports individually, if needed. Help text is available to assist you in submitting reports and making changes. The FWR user guide also provides detailed instructions and is available to reporting entities who have enrolled in FWR. If you would like to receive the FWR user guide, please send a request to f2r@fintrac-canafe.gc.ca.
FWR will provide you with an acknowledgement message when your report has been received electronically. The message will include the date and time your report was received and the report's identification number. For more information on notification messages, please see the notification messages section in the FINTRAC web reporting system overview.LVCTR upload
The LVCTR upload is a secure tool for submitting LVCTRs to FINTRAC and can be accessed in FWR. The LVCTR upload is geared towards REs with larger reporting volumes. If you have not already done so, enroll with FINTRAC to gain access to FWR. Afterwards, please see FINTRAC's LVCTR upload information page to set up large virtual currency transaction reporting.
There is no acknowledgement of receipt when you submit a report through the LVCTR upload. However, you can view a submitted report in your FWR account in "Reports submitted to FINTRAC". You can also change a previously submitted report using the LVCTR upload. To do so, you must include the full report you wish to change, and use the modified report with the original report's reporting entity report reference number to allow FINTRAC to link the two reports. In addition, you can delete a previously submitted report in the submitted reports page in FWR.
**Note: The technical specifications documents for the LVCTR are the JSON-LD and the JSON schema file. These can be accessed through FWR.
**Note: Batch reporting is not available for the submission of LVCTRs.
Paper reporting
FINTRAC's LVCTR paper reporting form can be printed from the reporting forms web page, or you can request a form to be faxed or mailed to you by calling FINTRAC at 1-866-346-8722.
There are two ways you can submit a paper LVCTR form to FINTRAC:
- by fax: 1-866-226-2346; or
- by mail:
Financial Transactions and Reports Analysis Centre of Canada
Section A
234 Laurier Avenue West, 24th floor
Ottawa, ON K1P 1H7
CANADA
There is no official acknowledgment of receipt when you submit a paper form to FINTRAC.
4. What are the main considerations for completing an LVCTR?
The following are important considerations when completing LVCTRs:
LVCTR structure
The LVCTR has four sections that you will need to provide information for, depending on the field category. Please see the Standardized field instructions in the Annex for more information. The sections are:
- General information – includes information about you, the reporting entity, and your 24-hour period for reviewing aggregate transactions
- Transaction information – includes information about each transaction being reported
- Starting action – includes information about how the transaction started
- Completing action – includes information about how the transaction was completed
A transaction may have multiple starting and completing actions. Further, within each starting action, you can include multiple conductors, sources of virtual currency and third parties, and within each completing action you can include multiple account holders, beneficiaries and other persons or entities involved in the disposition.
The LVCTR structure also allows you to enter the multiple transactions that occur within a 24-hour period into a single report, including transactions that occur at the same or different locations.
**Note: Each transaction must contain a location of receipt, as well as at least one starting action, one completing action, and one beneficiary. Each transaction must also contain a sending virtual currency address, a receiving virtual currency address, a transaction hash and a disposition where the virtual currency is added to a virtual currency wallet, exchanged to another virtual currency or an outgoing virtual currency transfer.
LVCTR submission limitations
Each LVCTR must include at least one transaction and may include up to 99 transactions. If there are more than 99 transactions, you will have to use more than one report for your transactions. You must include the reporting entity report reference number so that FINTRAC is aware of linked reports. The reporting entity report reference number is the unique number you assign each report. If 99 transactions are exceeded in a report, you may include a suffix (for example, -001, -002, etc.) to indicate the report is linked to another report. See below for more information on linking reports.
Every report transaction must include one starting and one completing action and may include up to 50 starting and 50 completing actions per transaction. If a transaction has more than 50 starting or completing actions, you must start a new report to continue reporting the starting or completing actions. You will use the original reporting entity transaction reference number from the transaction in the report with the first 50 starting or completing actions. You must repeat this transaction reference number to allow FINTRAC to identify and link the starting or completing actions across reports for a given transaction.
If you need to link transactions in multiple reports, you can continue counting transactions incrementally with each report. For example, 250 transactions detailed over three (3) reports could be submitted as:
Report 1 (LVCTR999-01) : Transactions 1 to 99;
Report 2 (LVCTR999-02) : Transactions 100 to 198; and
Report 3 (LVCTR999-03) : Transactions 199 to 250.
Review and validation of reports by FINTRAC
There are three types of validation rules used by FINTRAC to validate reports. They are described below.
- Presence – Is there an entry in the field?
- Format – Is the entry structured correctly?
- Content – Is the correct information entered in the appropriate field?
You should familiarize yourself with the LVCTR validation rules. These rules identify possible reporting problems and information gaps but do not cover all scenarios. While FINTRAC conducts a review of report submissions to assess the quality of reports, you should have your own proactive quality assurance practices in place.
5. Do I have other requirements associated to large virtual currency transactions?
Compliance program
Your compliance program's policies and procedures must include details on the processes you will use to calculate exchange rates, aggregate transactions, determine if the receipt of virtual currency is reportable and submit LVCTRs to FINTRAC. It is possible for your organization to have an automated or triggering system in place to help detect when the threshold amount is reached for reporting; however, the transaction(s) should still be assessed by a person to ensure that an LVCTR must be submitted. You must also establish a compliance program that includes training on the grounds of suspected money laundering (ML) and terrorist financing activities (TF) in relation to your business. For more information, see Compliance program requirements.
Suspicious transactions
In addition to reporting large virtual currency transactions, you may also be required to submit Suspicious Transaction Reports (STR) when you have reasonable grounds to suspect that a transaction is related to the commission or the attempted commission of an ML/TF offence. Therefore, you may be required to submit an LVCTR and an STR for the same transaction. For more information, see the following guidance:
- Reporting suspicious transactions to FINTRAC; and
- Money laundering and terrorist financing indicators – Virtual currency transactions
Record keeping requirements
Large virtual currency transactions have associated record keeping requirements. For more information on your requirements, please see your sector's record keeping requirements in FINTRAC's Record keeping requirements.
Verifying the identity of persons and entities
Large virtual currency transactions have client identification requirements. For specific information on when and how to verify the identity of a person or an entity, see your sector's guidance on When to verify the identity of persons and entities and the guidance on Methods to verify the identity of persons and entities.
Third party determination
For more information on your requirements for determining whether a person is acting on behalf of a third party for the receipt of a large virtual currency transaction, see the guidance on Third party determination requirements.
Ministerial directives
You must consider all requirements issued under a Ministerial directive along with your large virtual currency transaction reporting requirements. For more information, see FINTRAC's guidance on Ministerial directives and transaction restrictions.
Voluntary self-declaration of non-compliance
It is strongly encouraged that instances of non-compliance be reported to FINTRAC in a voluntary self-declaration of non-compliance. For more information, see Voluntary self-declaration of non-compliance.
6. What are the exceptions to reporting large virtual currency transactions?
The following exceptions refer to the initial receipt of virtual currency, but any further transaction or activity may have reporting obligations, in addition to other obligations.
You are not required to submit an LVCTR if you receive two or more amounts in virtual currency that are each individually equivalent to less than $10,000, but together total $10,000 or more within 24 consecutive hours, when you know the amounts are for a beneficiary that is:Footnote10
- a public body;
- a very large corporation or trust; or
- an administrator of a pension fund that is regulated under federal or provincial legislation.
You do not need to submit an LVCTR for the receipt of virtual currency in an amount equivalent to $10,000 or more in a single transaction if the virtual currency is received as:Footnote11
- compensation for the validation of a transaction that is recorded in a distributed ledger; or
- a nominal amount of virtual currency for the sole purpose of validating another transaction or a transfer of information.
You are not required to submit an LVCTR if you receive virtual currency for your own operational purposes. For example, you do not need to report the receipt of virtual currency when it is received or purchased as holdings for your business.
Annex 1: Field instructions to complete an LVCTR
The following instructions provide reporting entities with additional information on how to complete the report fields when submitting an LVCTR. This Annex details what is required in certain fields. Certain fields are dependent on the completion of other fields.
Standardized field instructions
This section includes standardized instructions for reporting. For more information on how to complete LVCTRs, see the field Instructions below.
All fields are categorized as either mandatory, mandatory for processing, mandatory if applicable, or reasonable measures.
- Mandatory:
- Mandatory fields must be completed.
- These fields will be indicated with an asterisk (*).
- Because an LVCTR can include multiple transactions conducted within 24 consecutive hours that total $10,000 or more, the information for some mandatory fields may not have been obtained at the time of the transaction. In this case, the fields become "reasonable measures" fields, and the instructions below must be applied.Footnote12
**Note: If an LVCTR contains multiple transactions conducted within 24 consecutive hours and one of these transactions is $10,000 CAD or more, then the mandatory fields will apply.
- Mandatory for processing:
- Mandatory for processing fields must be completed.
- These fields will be indicated with a double dagger (‡).
- Mandatory if applicable:
- Mandatory if applicable fields must be completed if they are applicable to you or the transaction being reported.
- These fields will be indicated with a dagger (†).
- Reasonable measures:Footnote13
- You must take reasonable measures to obtain the information for all non-mandatory fields in the report, if they are applicable.
- Reasonable measures are the steps that you must take, as outlined in your policies and procedures, to obtain the information which can include asking the person or entity involved in the transaction for the information. If the information is obtained, it must be reported. It also means that you must provide the information if it is contained within your systems or records.
**Note: Fields that are not applicable are to be left blank. When a field is not applicable, do not enter "Not applicable", "N/A" or "n/a" or substitute any other abbreviations, special characters ("x", "-' or "*") or words ("unknown") in these fields.
Failure to provide applicable reporting information will result in non-compliance and may lead to criminal or administrative penalties. To learn more about potential enforcement actions, please see Penalties for non-compliance.
Creating subjects
A subject is a person or entity involved in a transaction and must be included in the report. This includes conductors, third parties, beneficiaries, all sources of virtual currency, others involved in the transaction as well as account holders. FWR and LVCTR upload allows you to create subjects to help streamline the entry of their information in the report fields. You can create different subject types. "Create person name" or "Create entity name" allows you to create a subject that is a source of virtual currency, is involved in the completing action or is an account holder. "Create person details" or "Create entity details" allows you to create a subject for a conductor, third party or beneficiary. Once you have created a subject, you can select it as you navigate through each part of the report and the subject's information will auto populate the fields accordingly. A subject can be selected to populate fields for all transactions in the same report where it was created but will not be available for selection in other reports due to privacy considerations.
In this Annex, not all the report fields are defined. Defined fields that are used in multiple sections of the report are only defined once. Please search through the Annex to find out if a field has been defined.
General information
*Reporting entity number
You must enroll in FINTRAC's electronic reporting system to submit reports electronically. Provide the seven-digit identifier number assigned to you by FINTRAC at enrolment.
‡Reporting entity report reference number
A unique report reference number assigned by you or by the individual or institution submitting the report on your behalf.
Which one of the following types of reporting entities best describes you?
*Activity sector
Enter your business activity sector. If you are involved in more than one type of business activity, indicate the one applicable to the transaction being reported. If there is more than one activity for one or more transactions on the report, select only one box to indicate your principal type of activity.
Whom can FINTRAC contact about this report?
Enter the contact information of the person you would like FINTRAC to liaise with in the event that a follow up is required. You must ensure that all of your contacts' information is up to date in FWR prior to submitting your report(s).
Report information
Indicate whether the report is related to one or multiple transactions that occurred within a consecutive 24-hour period. When you provide a date and time, you must include the time zone. See below for formatting.
‡24-hour aggregation type
Indicate the type of aggregation (conductor, beneficiary, on behalf of (third party), or not applicable) used when multiple transactions occur within a consecutive 24-hour period. If the report is for one transaction only, or for a Ministerial directive, aggregating transactions does not apply and 'Not applicable (N/A)' should be selected.
†24-hour period start date/time
Provide the start date and time of the 24-hour period. You must include the time zone (that is, UTC offset) in the 24-hour period start time fields. The start time must be entered in the following format: HH:MM:SS±ZZ:ZZ. For example, 1:25:06 PM in Ottawa, ON would be reported as 13:25:06-05:00.
†24-hour period end date/time
Provide the end date and time of the 24-hour period. If your 24-hour period starts at 8:00 AM, it would end at 7:59 AM the following day. You must include the time zone (that is, UTC offset) in the 24-hour period start end time fields. See the above field for formatting.
**Note: The start date/time and end date/time that you provide will establish the 24-hour period in which you look for possible aggregate transactions, and report all applicable transactions within. Because you must aggregate on each party separately (e.g. conductor, on behalf of, or beneficiary), it is possible to have multiple 24-hour windows (e.g. a 24-hour window for conductors that is different than your 24-hour window for beneficiaries).
Ministerial directive
You must indicate whether the transaction being reported in your LVCTR is being submitted under a Ministerial directive. An LVCTR submitted under a Ministerial directive can contain only one transaction and it must be below threshold. Therefore, you must also select 'Not applicable (N/A)' in the '24-hour aggregation type' field. Leave this field blank if the transaction(s) are not part of a Ministerial directive.
**Note: Only ONE Ministerial Directive (IR2020) is available for an LVCTR report, which can contain only one transaction.
Transaction information
Information about the transaction
Provide information about each transaction being reported.
*Date/time virtual currency was received
The date and time that the virtual currency was received for the transaction(s) being reported. It must not be earlier than June 1, 2021.
If a transaction spans multiple time zones, select the time zone based on the location of the receipt of a large amount of virtual currency. You must determine the appropriate time zone for each transaction. For online transactions, you can centralize your reporting time zone (for example, to your main location or headquarters) even if you have multiple locations.
*Method of transaction
†If "Other", please specify
‡Threshold indicator
Indicate whether the value of the virtual currency received for the transaction was above or below $10,000 at the time of receipt. Select "above threshold" if the transaction is equal to $10,000 or more.
*Transaction identifier
This is a unique identifier; it is commonly represented by a hash consisting of mixed numerical and alphabetical characters.
‡Reporting entity transaction reference number
This is a unique reference number assigned to the transaction by you or your organization.
Purpose of transaction
This is the reason for the transaction. For example, the virtual currency received will be used for the purchase of a car through a private sale.
Information about where the virtual currency was received
Provide information about the physical location where the virtual currency was received. For example, if the virtual currency was received at a virtual currency ATM, provide the reporting entity location number of that ATM. If no physical location is applicable (for instance the transaction was conducted online), provide the location number of your main location, such as a head office or headquarters.
*Reporting entity location number
Starting action
Starting action details
Provide information about how the transaction was started, including the type and amount of virtual currency, where it came from, who the conductor of the transaction was and on any third party involved (if applicable).
*Amount
*Virtual currency type
Select the virtual currency type used in the transaction. If the virtual currency type is not in the list provided, you must select "Other" and provide the name of the virtual currency.
†If "Other", please specify
*Exchange rate used for the transaction
Provide the rate of exchange to Canadian dollars that you used for the transaction.
*Sending virtual currency address
Provide the sending virtual currency address(es) for every starting action for the transaction. The sending virtual currency address is made up of a number of alpha-numeric characters, its length is determined by the type of virtual currency used. The sending virtual currency address is associated with whoever is sending the virtual currency (typically the conductor).
How was the virtual currency obtained?
This field requires information on the source of the virtual currency. This is how the conductor initially obtained the virtual currency used for the transaction, and if you obtained this information in the ordinary course of business, you must report it. For example, the conductor originally obtained the virtual currency used in the transaction from the private sale of a car. This information must be reported if obtained in the ordinary course of business. This means the information must be reported if you obtained it for any reason related to the services you provide to clients.
‡Was information about the source of virtual currency obtained?
This field is a "Yes/No" question. If you have the name of any person or entity that is the source of the virtual currency involved in the transaction, their account number or policy number, or an identifying number if there is no account number or policy number, select "yes". Otherwise, select "no" to indicate you have no information.
Source of virtual currency
If you have information on any source of the virtual currency involved in the transaction, you must report it. This includes their name and the following:
- account number;
- policy number; or
- identifying number, if there is no account or policy number.
If there are multiple sources, you must provide information for each source.
This information must be reported if obtained in the ordinary course of business. This means the information must be reported if you obtained it for any reason related to the services you provide to clients.
Person details
†Surname
†Given name
Other/initial
Account number
Policy number
Identifying number
Entity details
†Name of entity
Account number
Policy number
Identifying number
Conductor indicator
‡Have you obtained any conductor information related to this transaction?
If the conductor is a client or if you have information about a conductor that is not your client, you must answer "Yes". "No" must only be selected if, despite taking reasonable measures to do so, you were not able to obtain any information on the conductor that was not your client.
Information about the person conducting the transaction
Provide all the information you have on one, or multiple persons specified as the conductors of the transaction.
Information about the person conducting the transaction
†Is the conductor a client of the reporting entity?
†Surname
†Given name
Other/Initial
Alias
The name a person uses or by which they are known, other than the name provided under surname or given name.
Username
A username is how a person or an entity refers to themselves online.
†Client number
A unique identifying number assigned by the reporting entity to the person or entity conducting the transaction.
Apt/Room/Suite/Unit number
House/Building number
†Street address
†City
District
†Country
†Province or state
Sub-province and/or sub-locality
Postal or zip code
Unstructured address details
If the address of the person or entity conducting the transaction is structured in a way that it can be parsed out, you must enter the information in the structured address fields. If you use the structured address fields, you cannot use the unstructured address fields to provide additional information.
Structured address details: Provide the street address, city, country, province or state, and postal code. For example, if a person lives at:
- #12-455 Main St., Ottawa, ON, Canada A1B 2C3
The apartment number is 12, the building or house number is 455, the street name is Main St., the city is Ottawa, the province is Ontario, the country is Canada, and the postal code is A1B 2C3.
FWR users should not be using the unstructured address field. This field is only present in FWR to allow for unstructured addresses that were provided in the upload feature to be viewable in FWR.
If you are unable to parse the address information into the structured address fields, you can enter the address details in this field. You should only use the unstructured address field when it is not possible to separate the address information—this typically occurs when you are uploading a large volume of reports. If possible, please provide unstructured address information in the following format:
- street address/city/province or state/postal code or zip code
Enter information about the country in the "Country" field.
Telephone number
Extension
Email address
†Date of birth
Country of residence
Enter the primary country of residence for the person, it can be the same or different from the country entered in the address section.
†Occupation
When entering occupation information, you should be as descriptive as possible. If the person is a manager, provide the area of management, such as "hotel reservations manager" or "retail clothing store manager". If the person is a consultant, provide the type of consulting, such as "IT consultant" or "forestry consultant". If the person is a professional, provide the type of profession, such as "petroleum engineer" or "family physician". If the person is a labourer, provide the type of labour performed, such as "road construction worker" or "landscape labourer". If the person is not working, you should still be as descriptive as possible, and indicate "student", "unemployed" or "retired" etc.
Name of employer
Enter the name of the person's employer. Do not provide the name of a supervisor or manager – this field is meant to capture the name of the business that employs the person. If the person has multiple employers, you only need to provide one. Providing the name of employer can augment the description of a person's occupation. For example, "retail clothing store manager for ABC high-end clothing store" and "retail clothing store manager for XYZ discount clothing store" are more descriptive than "retail clothing store manager" on its own.
Identification document or information of the person and associated number
†Identifier type
†If "Other", please specify
†Number associated with identifier type
This is the number indicated on the identifier type. For example, on a driver's licence, the licence number is the identification number. If a social insurance number is used, the number must not be submitted to FINTRAC.
†Jurisdiction of issue (country)
Provide the country, province, or state that issued the documentation used to identify the person or entity who conducted the transaction, or the third party or beneficiary. If the country of issue is Canada, Mexico or the United States (US), you must provide the province or state for the jurisdiction of issue. If the documentation was issued by a different country, enter the country as the jurisdiction of issue. If you obtained information on the province or state, you must provide it.
†Jurisdiction of issue (province or state)
See above for information.
Information about conducting the transaction online
Information for this section is required only when the transaction occurs online. The following fields apply:
- Type of device used – select which device was used to conduct the transaction online;
- If "Other", please specify – if the device used was not in the table, you must indicate the type of device;
- Device identifier number – see below; and
- Internet protocol address.
Type of device used
†If "Other", please specify
Device identifier number
The device identifier number is a number assigned to the device, such as a Media Access Control (MAC) address or International Mobile Equipment Identity (IMEI) number.
Internet protocol (IP) address
Date/time of online session in which request was made
This is the date and time the conductor accessed the online environment where the transaction was requested.
On behalf of indicator
Was this transaction conducted on behalf of another person or entity? The "on behalf of" party is also known as the "third party" or the party providing instructions for the transaction.
Information about the entity conducting the transaction
Provide all the information you have on one, or multiple entities specified as the conductors of the transaction.
†Is the conductor a client of the reporting entity?
†Name of entity
Username
†Client number
Apt/Room/Suite/Unit number
House/Building number
†Street address
†City
District
†Country
†Province or state
Sub-province and/or sub-locality
Postal or zip code
Unstructured address details
Telephone number
Extension
†Nature of entity's principal business
You should be as descriptive as possible when entering the entity's principal business. If the entity's principal business area is "sales", provide the type of sales, such as "pharmaceutical sales" or "retail sales".
†Is the entity registered or incorporated?
†Registration or incorporation number
Provide the registration or incorporation number of the entity conducting the transaction. You must provide the jurisdiction of issue if you provide a registration or incorporation number.
†Jurisdiction of issue (country)
†Jurisdiction of issue (province or state)
Identification document or information of the entity and associated number
†Identifier type
†If "Other", please specify
†Number associated with identifier type
†Jurisdiction of issue (country)
†Jurisdiction of issue (province or state)
Person(s) authorized to bind the entity or act with respect to the account (max. 3)
If the conductor is an entity, you must provide the information for up to three persons who are authorized to bind the entity or act with respect to the account.
†Surname
†Given name
Other/Initial
Information about conducting the transaction online
Type of device used
†If "Other", please specify
Device identifier number
Internet protocol address
Date/time of online session in which request was made
On behalf of indicator
†Was this transaction conducted on behalf of another person or entity?
Information about the person on whose behalf the transaction was conducted
If the transaction was conducted on behalf of another person or entity, you must include the relevant information.
†Surname
†Given name
Other/Initial
Alias
Client number
Apt/Room/Suite/Unit number
House/Building number
†Street address
†City
District
†Country
†Province or state
Sub-province and/or sub-locality
Postal or zip code
Unstructured address details
Telephone number
Extension
Email address
Date of birth
Country of residence
Occupation
Name of employer
Identification document or information of the person and associated number
Identifier type
†If "Other", please specify
Number associated with identifier type
Jurisdiction of issue (country)
Jurisdiction of issue (province or state)
Relationship of the person or entity conducting the transaction to the person named above
†Relationship
The relationship between the "on behalf of" party with the person or entity that conducted the transaction. The "on behalf of" party is understood to be the person or entity who gives the instructions for the transaction.
†If "Other", please specify
Information about the entity on whose behalf the transaction was conducted
†Name of entity
Client number
Apt/Room/Suite/Unit number
House/Building number
†Street address
†City
District
†Country
†Province or state
Sub-province and/or sub-locality
Postal or zip code
Unstructured address details
Telephone number
Extension
Email address
Nature of entity's principal business
Is the entity registered or incorporated?
Registration or incorporation number
Jurisdiction of issue (country)
Jurisdiction of issue (province or state)
Identification document or information of the entity and associated number
Identifier type
†If "Other", please specify
Number associated with identifier type
Jurisdiction of issue (country)
Jurisdiction of issue (province or state)
Person authorized to bind the entity or act with respect to the account (max. 3)
Surname
Given name
Other/Initial
Relationship of the person or entity conducting the transaction to the entity named above
†Relationship
†If "Other", please specify
Completing action
Provide information about how the transaction was completed, including the details of disposition, the amount, information on any other person or entity that may have been involved in the completing action and, on any person or entity that was the beneficiary of the transaction. The first completing action of each transaction in the report should indicate that the disposition is added to a virtual currency wallet.
*Details of disposition
This describes what happened to the virtual currency involved in the transaction. For example, if the disposition was an amount added to a virtual currency wallet at a money services business you would select "added to a virtual currency wallet" from the table. If the values provided do not adequately describe the disposition of the transaction, indicate "Other" and provide details in that field.
†If "Other", please specify
†Amount
†Virtual currency type
†If "Other", please specify
†Receiving virtual currency address
Provide the virtual currency address for the person or entity receiving the virtual currency. The first completing action of each transaction must have at least one receiving virtual currency address listed in the report. The receiving virtual currency address could be associated with the beneficiary of the virtual currency, or it could include the address in which you (the reporting entity) received the virtual currency, if that is how your business operates.
†Currency
†Value in Canadian dollars
Provide the Canadian dollar value of the disposition if it is not virtual currency. For example, the virtual currency was used to purchase jewellery.
†Reference number
If the transaction involved a reference number that is used as an equivalent to an account number, provide it, as well any other number connected to the reference number. Do not include account information in these fields.
†Other number related to reference number
†Financial institution number
†Branch number
†Account number
†Account type
†If "Other", please specify
†Account currency
†Account virtual currency type
†If "Other", please specify
†Date account opened
‡Was there any other person or entity involved in the completing action?
Name of person account holder
†Surname
†Given name
Other/Initial
†Username
Name of entity account holder
†Name of entity
†Username
Information about the person involved in the completing action
If you have information about other persons involved in the completing action, you must include it. These persons or entities cannot be the conductor, on behalf of party, or beneficiary to the transaction.
†Surname
†Given name
Other/Initial
Account number
Policy number
Identifying number
Information about the entity involved in the completing action
If you have information about other entities involved in the completing action, you must include it. These persons or entities cannot be the conductor, on behalf of party, or beneficiary to the transaction.
†Name of entity
Account number
Policy number
Identifying number
Beneficiary indicator
‡Was there a beneficiary for this completing action?
There must always be a minimum of one beneficiary per transaction.
Person beneficiary
†Surname
†Given name
Other/Initial
Alias
Username
Client number
Apt/Room/Suite/Unit number
House/Building number
†Street address
†City
District
†Country
†Province or state
Sub-province and/or sub-locality
Postal or zip code
Unstructured address details
Telephone number
Extension
Email address
Date of birth
Country of residence
Occupation
Name of employer
Identification document or information of the person and associated number
†Identifier type
†If "Other", please specify
†Number associated with identifier type
†Jurisdiction of issue (country)
†Jurisdiction of issue (province or state)
Entity beneficiary
†Name of entity
Username
Client number
Apt/Room/Suite/Unit number
House/Building number
†Street address
†City
District
†Country
†Province or state
Sub-province and/or sub-locality
Postal or zip code
Unstructured address details
Telephone number
Extension
Email address
Nature of entity's principal business
†Is the entity registered or incorporated?
†Registration or incorporation number
†Jurisdiction of issue (country)
†Jurisdiction of issue (province or state)
Identification document or information of the entity and associated number
†Identifier type
†If "Other", please specify
†Number associated with identifier type
†Jurisdiction of issue (country)
†Jurisdiction of issue (province or state)
Person authorized to bind the entity or act with respect to the account
†Surname
†Given name
Other/Initial
Details and history
Published: September 2021
For assistance
If you have questions about this guidance, please contact FINTRAC by email at guidelines-lignesdirectrices@fintrac-canafe.gc.ca.
Definitions
- Accountant
A chartered accountant, a certified general accountant, a certified management accountant or, if applicable, a chartered professional accountant. (comptable)
Reference:
Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR), SOR/2002-184, s. 1(2).- Accounting firm
An entity that is engaged in the business of providing accounting services to the public and has at least one partner, employee or administrator that is an accountant. (cabinet d'expertise comptable)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Act
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). (la Loi)
Reference:
Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations (PCMLTFAMPR), SOR/2007-292, s. 1, Proceeds of Crime (Money Laundering) and Terrorist Financing Registration Regulations (PCMLTFRR), SOR/2007-121, s. 1, PCMLTFR, SOR/2002-184, s. 1(2), and Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations (PCMLTFSTRR), SOR/2001-317, s. 1(2).- Administrative monetary penalties (AMPs)
Civil penalties that may be issued to reporting entities by FINTRAC for non-compliance with the PCMLTFA and associated Regulations. (pénalité administrative pécuniaire [PAP])
- Affiliate
An entity is affiliated with another entity if one of them is wholly owned by the other, if both are wholly owned by the same entity or if their financial statements are consolidated. (entité du même groupe)
Reference:
PCMLTFR, SOR/2002-184, s. 4.- Annuity
Has the same meaning as in subsection 248(1) of the Income Tax Act. (rente)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- As soon as practicable
A time period that falls in-between immediately and as soon as possible, within which a suspicious transaction report (STR) must be submitted to FINTRAC. The completion and submission of the STR should take priority over other tasks. In this context, the report must be completed promptly, taking into account the facts and circumstances of the situation. While some delay is permitted, it must have a reasonable explanation. (aussitôt que possible)
- Attempted transaction
Occurs when an individual or entity starts to conduct a transaction that is not completed. For example, a client or a potential client walks away from conducting a $10,000 cash deposit. (opération tentée)
- Authentic
In respect of verifying identity, means genuine and having the character of an original, credible, and reliable document or record. (authentique)
- Authorized person
A person who is authorized under subsection 45(2). (personne autorisée)
Reference:
Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), S.C. 2000, c 17, s. 2(1).- Authorized user
A person who is authorized by a holder of a prepaid payment product account to have electronic access to funds or virtual currency available in the account by means of a prepaid payment product that is connected to it. (utilisateur autorisé)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Beneficial Owner(s)
Beneficial owners are the individuals who are the trustees, and known beneficiaries and settlors of a trust, or who directly or indirectly own or control 25% or more of i) the shares of a corporation or ii) an entity other than a corporation or trust, such as a partnership. The ultimate beneficial owner(s) cannot be another corporation or entity; it must be the actual individual(s) who owns or controls the entity. (bénéficiaire effectif)
- Beneficiary
A beneficiary is the individual or entity that will benefit from a transaction or to which the final remittance is made. (bénéficiaire)
- Branch
A branch is a part of your business at a distinct location other than your main office. (succursale)
- British Columbia notary corporation
An entity that carries on the business of providing notary services to the public in British Columbia in accordance with the Notaries Act, R.S.B.C. 1996, c. 334. (société de notaires de la Colombie-Britannique)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- British Columbia notary public
A person who is a member of the Society of Notaries Public of British Columbia. (notaire public de la Colombie-Britannique)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Cash
Coins referred to in section 7 of the Currency Act, notes issued by the Bank of Canada under the Bank of Canada Act that are intended for circulation in Canada or coins or bank notes of countries other than Canada. (espèces)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2) and PCMLTFSTRR, SOR/2001-317, s. 1(2).- Casino
A government, organization, board or operator that is referred to in any of paragraphs 5(k) to (k.3) of the Act. (casino)
Reference:
PCMLTFR, SOR/2002-184, s 1(2) and PCMLTFSTRR, SOR/2001-317, s. 1(2).- Certified translator
An individual that holds the title of professional certified translator granted by a Canadian provincial or territorial association or body that is competent under Canadian provincial or territorial law to issue such certification. (traducteur agréé)
- Clarification request
A clarification request is a method used to communicate with money services businesses (MSBs) or foreign money services businesses (FMSBs) when FINTRAC needs more information about their registration form. This request is usually sent by email. (demande de précisions)
- Client
A person or entity that engages in a financial transaction with another person or entity. (client)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Client identification information
The identifying information that you have obtained on your clients, such as name, address, telephone number, occupation or nature of principal business, and date of birth for an individual. (renseignements d'identification du client)
- Competent authority
For the purpose of the criminal record check submitted with an application for registration, a competent authority is any person or organization that has the legally delegated or invested authority, capacity, or power to issue criminal record checks. (autorité compétente)
- Completed transaction
Is a transaction conducted by a person or entity, that is completed and results in the movement of funds, virtual currency, or the purchase or sale of an asset. (opération effectuée)
- Compliance officer
The individual, with the necessary authority, that you appoint to be responsible for the implementation of your compliance program. (agent de conformité)
- Compliance policies and procedures
Written methodology outlining the obligations applicable to your business under the PCMLTFA and its associated Regulations and the corresponding processes and controls you put in place to address your obligations. (politiques et procédures de conformité)
- Compliance program
All elements (compliance officer, policies and procedures, risk assessment, training program, effectiveness review) that you, as a reporting entity, are legally required to have under the PCMLTFA and its associated Regulations to ensure that you meet all your obligations. (programme de conformité)
- Context
Clarifies a set of circumstances or provides an explanation of a situation or financial transaction that can be understood and assessed. (contexte)
- Correspondent banking relationship
A relationship created by an agreement or arrangement under which an entity referred to in any of paragraphs 5(a), (b), (d),(e) and (e.1) or an entity that is referred to in section 5 and that is prescribed undertakes to provide to a prescribed foreign entity prescribed services or international electronic funds transfers, cash management or cheque clearing services. (relation de correspondant bancaire)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 9.4(3) and PCMLTFR, SOR/2002-184, s. 16(1)(b).- Country of residence
The country where an individual has lived continuously for 12 months or more. The individual must have a dwelling in the country concerned. For greater certainty, a person only has one country of residence no matter how many dwelling places they may have, inside or outside of that country. (pays de résidence)
- Credit card acquiring business
A credit card acquiring business is a financial entity that has an agreement with a merchant to provide the following services:
- enabling a merchant to accept credit card payments by cardholders for goods and services and to receive payments for credit card purchases;
- processing services, payment settlements and providing point-of-sale equipment (such as computer terminals); and
- providing other ancillary services to the merchant.
- Credit union central
A central cooperative credit society, as defined in section 2 of the Cooperative Credit Associations Act, or a credit union central or a federation of credit unions or caisses populaires that is regulated by a provincial Act other than one enacted by the legislature of Quebec. (centrale de caisses de crédit)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Crowdfunding platform
A website or an application or other software that is used to raise funds or virtual currency through donations. (plateforme de sociofinancement)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Crowdfunding platform services
The provision and maintenance of a crowdfunding platform for use by other persons or entities to raise funds or virtual currency for themselves or for persons or entities specified by them. (services de plateforme de sociofinancement)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Current
In respect of a document or source of information that is used to verify identity, is up to date, and, in the case of a government-issued photo identification document, must not have been expired when the ID was verified. (à jour)
- Dealer in precious metals and stones
A person or entity that, in the course of their business activities, buys or sells precious metals, precious stones or jewellery. It includes a department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province when the department or the agent or mandatary carries out the activity, referred to in subsection 65(1), of selling precious metals to the public. (négociant en métaux précieux et pierres précieuses)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Deferred profit sharing plan
Has the same meaning as in subsection 248(1) of the Income Tax Act. (régime de participation différée aux bénéfices)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Deposit slip
A record that sets out:
- (a) the date of the deposit;
- (b) the name of the person or entity that makes the deposit;
- (c) the amount of the deposit and of any part of it that is made in cash;
- (d) the method by which the deposit is made; and
- (e) the number of the account into which the deposit is made and the name of each account holder.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Directing Services
A business is directing services at persons or entities in Canada if at least one of the following applies:
- The business's marketing or advertising is directed at persons or entities located in Canada;
- The business operates a ".ca" domain name; or,
- The business is listed in a Canadian business directory.
Additional criteria may be considered, such as if the business describes its services being offered in Canada or actively seeks feedback from persons or entities in Canada. (diriger des services)
- Distributed ledger
For the purpose of section 151 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR), a digital ledger that is maintained by multiple persons or entities and that can only be modified by a consensus of those persons or entities. (registres distribués)
Reference:
PCMLTFR, SOR/2002-184, s. 151(2).- Disposition
With respect to a reportable transaction, the disposition is what the funds or virtual currency was used for. For example, an individual arrives at a bank with cash and purchases a bank draft. The disposition is the purchase of the bank draft. (répartition)
- Electronic funds transfer
The transmission—by any electronic, magnetic or optical means—of instructions for the transfer of funds, including a transmission of instructions that is initiated and finally received by the same person or entity. In the case of SWIFT messages, only SWIFT MT-103 messages and their equivalent are included. It does not include a transmission or instructions for the transfer of funds:
- (a) that involves the beneficiary withdrawing cash from their account;
- (b) that is carried out by means of a direct deposit or pre-authorized debit;
- (c) that is carried out by cheque imaging and presentment
- (d) that is both initiated and finally received by persons or entities that are acting to clear or settle payment obligations between themselves; or
- (e) that is initiated or finally received by a person or entity referred to in paragraphs 5(a) to (h.1) of the Act for the purpose of internal treasury management, including the management of their financial assets and liabilities, if one of the parties to the transaction is a subsidiary of the other or if they are subsidiaries of the same corporation.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Employees profit sharing plan
Has the same meaning as in subsection 248(1) of the Income Tax Act. (régime de participation des employés aux bénéfices)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Entity
A body corporate, a trust, a partnership, a fund or an unincorporated association or organization. (entité)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Facts
Actual events, actions, occurrences or elements that exist or are known to have happened or existed. Facts are not opinions. For example, facts surrounding a transaction or multiple transactions could include the date, time, location, amount or type of transaction or could include the account details, particular business lines, or the client's financial history. (faits)
- Family member
For the purposes of subsection 9.3(1) of the Act, a prescribed family member of a politically exposed foreign person, a politically exposed domestic person or a head of an international organization is:
- (a) their spouse or common-law partner;
- (b) their child;
- (c) their mother or father;
- (d) the mother or father of their spouse or common-law partner; or
- (e) a child of their mother or father.
Reference:
PCMLTFR, SOR/2002-184, s. 2(1).- Fiat currency
A currency that is issued by a country and is designated as legal tender in that country. (monnaie fiduciaire)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2) and PCMLTFSTRR, SOR/2001-317, s. 1(2).- Final receipt
In respect of an electronic funds transfer, means the receipt of the instructions by the person or entity that is to make the remittance to a beneficiary. (destinataire)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Financial entity
Means:
- (a) an entity that is referred to in any of paragraphs 5(a), (b) and (d) to (f) of the Act;
- (b) a financial services cooperative;
- (c) a life insurance company, or an entity that is a life insurance broker or agent, in respect of loans or prepaid payment products that it offers to the public and accounts that it maintains with respect to those loans or prepaid payment products, other than:
- (i) loans that are made by the insurer to a policy holder if the insured person has a terminal illness that significantly reduces their life expectancy and the loan is secured by the value of an insurance policy;
- (ii) loans that are made by the insurer to the policy holder for the sole purpose of funding the life insurance policy; and
- (iii) advance payments to which the policy holder is entitles that are made to them by the insurer;
- (d) a credit union central when it offers financial services to a person, or to an entity that is not a member of that credit union central; and
- (e) a department, or an entity that is an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province, when it carries out an activity referred to in section 76.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Financial Action Task Force
The Financial Action Task Force on Money Laundering established in 1989. (Groupe d'action financière)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Financial services cooperative
A financial services cooperative that is regulated by an Act respecting financial services cooperatives, CQLR, c. C-67.3, other than a caisse populaire. (coopérative de services financiers)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Foreign currency
A fiat currency that is issued by a country other than Canada. (devise)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Foreign currency exchange transaction
An exchange, at the request of another person or entity, of one fiat currency for another. (opération de change en devise)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Foreign currency exchange transaction ticket
A record respecting a foreign currency exchange transaction—including an entry in a transaction register—that sets out:
- (a) the date of the transaction;
- (b) in the case of a transaction of $3,000 or more, the name and address of the person or entity that requests the exchange, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
- (c) the type and amount of each of the fiat currencies involved in the payment made and received by the person or entity that requests the exchange;
- (d) the method by which the payment is made and received;
- (e) the exchange rates used and their source;
- (f) the number of every account that is affected by the transaction, the type of account and the name of each account holder; and
- (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Foreign money services business
Persons and entities that do not have a place of business in Canada, that are engaged in the business of providing at least one of the following services that is directed at persons or entities in Canada, and that provide those services to their clients in Canada:
- (i) foreign exchange dealing,
- (ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,
- (iii) issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments except for cheques payable to a named person or entity,
- (iv) dealing in virtual currencies, or
- (v) any prescribed service.
Reference:
PCMLTFA, S.C. 2000, c 17, s. 5(h.1), PCMLTFRR, SOR/2007-121, s. 1 and PCMLTFR, SOR/2002-184, s. 1(2).- Foreign state
Except for the purposes of Part 2, means a country other than Canada and includes any political subdivision or territory of a foreign state. (État étranger)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Funds
Means:
- (a) cash and other fiat currencies, and securities, negotiable instruments or other financial instruments that indicate a title or right to or interest in them; or
- (b) a private key of a cryptographic system that enables a person or entity to have access to a fiat currency other than cash.
For greater certainty, it does not include virtual currency. (fonds)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2) and PCMLTFSTRR, SOR/2001-317, s. 1(2).- Head of an international organization
A person who, at a given time, holds—or has held within a prescribed period before that time—the office or position of head of
- a) an international organization that is established by the governments of states;
- b) an institution of an organization referred to in paragraph (a); or
- c) an international sports organization.
Reference:
PCMLTFA, S.C. 2000, c 17, s. 9.3(3).- Immediately
In respect of submitting a Terrorist Property Report (TPR), the time period within which a TPR must be submitted, which does not allow for any delay prior to submission. (immédiatement)
- Information record
A record that sets out the name and address of a person or entity and:
- (a) in the case of a person, their date of birth and the nature of their principal business or their occupation; and
- (b) in the case of an entity, the nature of its principal business.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Initiation
In respect of an electronic funds transfer, means the first transmission of the instructions for the transfer of funds. (amorcer)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Institutional trust
For the purpose of section 15 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR), means a trust that is established by a corporation or other entity for a particular business purpose and includes a pension plan trust, a pension master trust, a supplemental pension plan trust, a mutual fund trust, a pooled fund trust, a registered retirement savings plan trust, a registered retirement income fund trust, a registered education savings plan trust, a group registered retirement savings plan trust, a deferred profit sharing plan trust, an employee profit sharing plan trust, a retirement compensation arrangement trust, an employee savings plan trust, a health and welfare trust, an unemployment benefit plan trust, a foreign insurance company trust, a foreign reinsurance trust, a reinsurance trust, a real estate investment trust, an environmental trust and a trust established in respect of endowment, a foundation or a registered charity. (fiducie institutionnelle)
Reference:
PCMLTFR, SOR/2002-184, s. 15(2).- International electronic funds transfer
An electronic funds transfer other than for the transfer of funds within Canada. (télévirement international)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Inter vivos trust
A personal trust, other than a trust created by will. (fiducie entre vifs)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Jewellery
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)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Large cash transaction record
A record that indicates the receipt of an amount of $10,000 or more in cash in a single transaction and that contains the following information:
- (a) the date of the receipt;
- (b) if the amount is received for deposit into an account, the number of the account, the name of each account holder and the time of the deposit or an indication that the deposit is made in a night deposit box outside the recipient's normal business hours;
- (c) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
- (d) the type and amount of each fiat currency involved in the receipt;
- (e) the method by which the cash is received;
- (f) if applicable, the exchange rates used and their source;
- (g) the number of every other account that is affected by the transaction, the type of account and the name of each account holder
- (h) every reference number that is connected to the transaction and has a function equivalent to that of an account number;
- (i) the purpose of the transaction;
- (j) the following details of the remittance of, or in exchange for, the cash received:
- (i) the method of remittance;
- (ii) if the remittance is in funds, the type and amount of each type of funds involved;
- (iii) if the remittance is not in funds, the type of remittance and its value, if different from the amount of cash received; and
- (iv) the name of every person or entity involved in the remittance and their account number or policy number or, if they have no account number or policy number, their identifying number; and
- (k) if the amount is received by a dealer in precious metals and precious stones for the sale of precious metals, precious stones or jewellery:
- (i) the type of precious metals, precious stones or jewellery;
- (ii) the value of the precious metals, precious stones or jewellery, if different from the amount of cash received, and
- (iii) the wholesale value of the precious metals, precious stones or jewellery.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Large virtual currency transaction record
A record that indicates the receipt of an amount of $10,000 or more in virtual currency in a single transaction and that contains the following information:
- (a) the date of the receipt;
- (b) if the amount is received for deposit into an account, the name of each account holder;
- (c) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
- (d) the type and amount of each virtual currency involved in the receipt;
- (e) the exchange rates used and their source;
- (f) the number of every other account that is affected by the transaction, the type of account and the name of each account holder;
- (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number;
- (h) every transaction identifier, including the sending and receiving addresses; and
- (i) if the amount is received by a dealer in precious metals and precious stones for the sale of precious metals, precious stones or jewellery:
- (i) the type of precious metals, precious stones or jewellery;
- (ii) the value of the precious metals, precious stones or jewellery, if different from the amount of virtual currency received; and
- (iii) the wholesale value of the precious metals, precious stones or jewellery.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Life insurance broker or agent:
A person or entity that is authorized under provincial legislation to carry on the business of arranging contracts of life insurance. (représentant d'assurance-vie)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Life insurance company
A life company or foreign life company to which the Insurance Companies Act applies or a life insurance company regulated by a provincial Act. (société d'assurance-vie)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Listed person
Has the same meaning as in section 1 of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism. (personne inscrite)
Reference:
PCMLTFSTRR, SOR/2001-317, s. 1(2).- Managing general agents (MGAs)
Life insurance brokers or agents that act as facilitators between other life insurance brokers or agents and life insurance companies. MGAs typically offer services to assist with insurance agents contracting and commission payments, facilitate the flow of information between insurer and agent, and provide training to, and compliance oversight of, insurance agents. (agent général de gestion)
- Mandatary
A person who acts, under a mandate or agreement, for another person or entity. (mandataire)
- Marketing or Advertising
When a person or entity uses promotional materials such as advertisements, graphics for websites or billboards, etc., with the intent to promote money services business (MSB) services and to acquire business from persons or entities in Canada. (marketing ou publicité)
- Minister
In relation to sections 24.1 to 39, the Minister of Public Safety and Emergency Preparedness and, in relation to any other provision of this Act, the Minister of Finance. (ministre)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Money laundering offence
An offence under subsection 462.31(1) of the Criminal Code. The United Nations defines money laundering as "any act or attempted act to disguise the source of money or assets derived from criminal activity." Essentially, money laundering is the process whereby "dirty money"—produced through criminal activity—is transformed into "clean money," the criminal origin of which is difficult to trace. (infraction de recyclage des produits de la criminalité)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1) and PCMLTFR, SOR/2002-184, s. 1(2).- Money laundering and terrorist financing indicators (ML/TF indicators)
Potential red flags that could initiate suspicion or indicate that something may be unusual in the absence of a reasonable explanation. [Indicateurs de blanchiment d'argent (BA) et de financement du terrorisme (FT) (indicateurs de BA/FT)]
- Money services business
A person or entity that has a place of business in Canada and that is engaged in the business of providing at least one of the following services:
- (i) foreign exchange dealing,
- (ii) remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network,
- (iii) issuing or redeeming money orders, traveller's cheques or other similar negotiable instruments except for cheques payable to a named person or entity,
- (iv) dealing in virtual currencies, or
- (v) any prescribed service.
Reference:
PCMLTFA, S.C. 2000, c 17, s. 5(h), PCMLTFRR, SOR/2007-121, s. 1 and PCMLTFR, SOR/2002-184, s. 1(2).- Money services business agent
An individual or entity authorized to deliver services on behalf of a money services business (MSB). It is not an MSB branch. (mandataire d'une entreprise de services monétaires)
- Nature of principal business
An entity's type or field of business. Also applies to an individual in the case of a sole proprietorship. (nature de l'entreprise principale)
- New developments
Changes to the structure or operations of a business when new services, activities, or locations are put in place. For example, changes to a business model or business restructuring. (nouveaux développements)
- New technologies
The adoption of a technology that is new to a business. For example, when a business adopts new systems or software such as transaction monitoring systems or client onboarding and identification tools. (nouvelles technologies)
- No apparent reason
There is no clear explanation to account for suspicious behaviour or information. (sans raison apparente)
- Occupation
The job or profession of an individual. (profession ou métier)
- Person
An individual. (personne)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Person authorized to give instructions
In respect of an account, means a person who is authorized to instruct on the account or make changes to the account, such as modifying the account type, updating the account contact details, and in the case of a credit card account, requesting a limit increase or decrease, or adding or removing card holders. A person who is only able to conduct transactions on the account is not considered a person authorized to give instructions. (personne habilitée à donner des instructions)
- Politically exposed domestic person
A person who, at a given time, holds—or has held within a prescribed period before that time—one of the offices or positions referred to in any of paragraphs (a) and (c) to (j) in or on behalf of the federal government or a provincial government or any of the offices or positions referred to in paragraphs (b) and (k):
- (a) Governor General, lieutenant governor or head of government;
- (b) member of the Senate or House of Commons or member of a legislature of a province;
- (c) deputy minister or equivalent rank;
- (d) ambassador, or attaché or counsellor of an ambassador;
- (e) military officer with a rank of general or above;
- (f) president of a corporation that is wholly owned directly by Her Majesty in right of Canada or a province;
- (g) head of a government agency;
- (h) judge of an appellate court in a province, the Federal Court of Appeal or the Supreme Court of Canada;
- (i) leader or president of a political party represented in a legislature;
- (j) holder of any prescribed office or position; or
- (k) mayor, reeve or other similar chief officer of a municipal or local government.
Reference:
PCMLTFA, S.C. 2000, c 17, s. 9.3(3).- Politically exposed foreign person
A person who holds or has held one of the following offices or positions in or on behalf of a foreign state:
- (a) head of state or head of government;
- (b) member of the executive council of government or member of a legislature;
- (c) deputy minister or equivalent rank;
- (d) ambassador, or attaché or counsellor of an ambassador;
- (e) military officer with a rank of general or above;
- (f) president of a state-owned company or a state-owned bank;
- (g) head of a government agency;
- (h) judge of a supreme court, constitutional court or other court of last resort;
- (i) leader or president of a political party represented in a legislature; or
- (j) holder of any prescribed office or position.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Possibility
In regards to completing a suspicious transaction report (STR), the likelihood that a transaction may be related to a money laundering/terrorist financing (ML/TF) offence. For example, based on your assessment of facts, context and ML/TF indicators you have reasonable grounds to suspect that a transaction is related to the commission or attempted commission of an ML/TF offence. (possibilité)
- Precious metal
Gold, silver, palladium or platinum in the form of coins, bars, ingots or granules or in any other similar form. (métal précieux)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Precious stones
Diamonds, sapphires, emeralds, tanzanite, rubies or alexandrite. (pierre précieuse)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Prepaid payment product
A product that is issued by a financial entity and that enables a person or entity to engage in a transaction by giving them electronic access to funds or virtual currency paid to a prepaid payment product account held with the financial entity in advance of the transaction. It excludes a product that:
- (a) enables a person or entity to access a credit or debit account or one that is issued for use only with particular merchants; or
- (b) is issued for single use for the purposes of a retail rebate program.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Prepaid payment product account
An account – other than an account to which only a public body or, if doing so for the purposes of humanitarian aid, a registered charity as defined in subsection 248(1) of the Income Tax Act, can add funds or virtual currency – that is connected to a prepaid payment product and that permits:
- (a) funds or virtual currency that total $1,000 or more to be added to the account within a 24-hour period; or
- (b) a balance of funds or virtual currency of $1,000 or more to be maintained.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Prescribed
Prescribed by regulations made by the Governor in Council. (Version anglaise seulement)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Probability
The likelihood in regards to completing a suspicious transaction report (STR) that a financial transaction is related to a money laundering/terrorist financing (ML/TF) offence. For example, based on facts, having reasonable grounds to believe that a transaction is probably related to the commission or attempted commission of an ML/TF offence. (probabilité)
- Production order
A judicial order that compels a person or entity to disclose records to peace officers or public officers. (ordonnance de communication)
- Public body
Means
- (a) a department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province;
- (b) an incorporated city or town, village, metropolitan authority, township, district, county, rural municipality or other incorporated municipal body in Canada or an agent or mandatary in Canada of any of them; and
- (c) an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority under the Excise Tax Act, or an agent or mandatary of such an organization.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Real estate broker or sales representative
A person or entity that is authorized under provincial legislation to act as an agent or mandatary for purchasers or vendors in respect of the purchase or sale of real property or immovables. (courtier ou agent immobilier)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Real estate developer
A person or entity that, in any calendar year after 2007, has sold to the public, other than in the capacity of a real estate broker or sales representative:
- (a) five or more new houses or condominium units;
- (b) one or more new commercial or industrial buildings; or
- (c) one or more new multi-unit residential buildings each of which contains five or more residential units, or two or more new multi-unit residential buildings that together contain five or more residential units.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Reasonable measures
Steps taken to achieve a desired outcome, even if they do not result in the desired outcome. For example, this can include doing one or more of the following:
- asking the client,
- conducting open source searches,
- retrieving information already available, including information held in non-digital formats, or
- consulting commercially available information.
- Receipt of funds record
A record that indicates the receipt of an amount of funds and that contains the following information:
- (a) the date of the receipt;
- (b) if the amount is received from a person, their name, address and date of birth and the nature of their principal business or their occupation;
- (c) if the amount is received from or on behalf of an entity, the entity's name and address and the nature of their principal business;
- (d) the amount of the funds received and of any part of the funds that is received in cash;
- (e) the method by which the amount is received;
- (f) the type and amount of each fiat currency involved in the receipt;
- (g) if applicable, the exchange rates used and their source;
- (h) the number of every account that is affected by the transaction in which the receipt occurs, the type of account and the name of each account holder;
- (i) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
- (j) every reference number that is connected to the transaction and has a function equivalent to that of an account number; and
- (k) the purpose of the transaction.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Registered pension plan
Has the same meaning as in subsection 248(1) of the Income Tax Act. (régime de pension agréé)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Registered retirement income fund
Has the same meaning as in subsection 248(1) of the Income Tax Act. (fonds enregistré de revenu de retraite)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Reliable
In respect of information that is used to verify identity, means that the source is well known, reputable, and is considered one that you trust to verify the identity of the client. (fiable)
- Representative for service
An individual in Canada that has been appointed by a person or entity that is a foreign money services business (FMSB), pursuant to the PCMLTFA, to receive notices and documents on behalf of the FMSB. (représentant du service)
- Risk assessment
The review and documentation of potential money laundering/terrorist financing risks in order to help a business establish policies, procedures and controls to detect and mitigate these risks and their impact. (évaluation des risques)
- Securities dealer
A person or entity that is referred to in paragraph 5(g) of the Act. (courtier en valeurs mobilières)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Senior officer
In respect of an entity, means:
- (a) a director of the entity who is one of its full-time employees;
- (b) the entity's chief executive officer, chief operating officer, president, secretary, treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary, or any person who performs any of those functions; or
- (c) any other officer who reports directly to the entity's board of directors, chief executive officer or chief operating officer.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Service agreement
An agreement between a money services business (MSB) and an organization according to which the MSB will provide any of the following MSB services on an ongoing basis:
- money transfers;
- foreign currency exchange;
- issuing or redeeming money orders, traveller's cheques or anything similar; or
- dealing in virtual currencies.
- Settlor
A settlor is an individual or entity that creates a trust with a written trust declaration. The settlor ensures that legal responsibility for the trust is given to a trustee and that the trustee is provided with a trust instrument document that explains how the trust is to be used for the beneficiaries. A settlor includes any individual or entity that contributes financially to that trust, either directly or indirectly. (constituant)
- Shell bank
A foreign financial institution that:
- (a) does not have a place of business that:
- (i) is located at a fixed address—where it employs one or more persons on a full-time basis and maintains operating records related to its banking activities—in a country in which it is authorized to conduct banking activities; and
- (ii) is subject to inspection by the regulatory authority that licensed it to conduct banking activities; and
- (b) is not controlled by, or under common control with, a depository institution, credit union or foreign financial institution that maintains a place of business referred to in paragraph (a) in Canada or in a foreign country.
Reference:
PCMLTFR, SOR/2002-184, s. 1(1).- (a) does not have a place of business that:
- Signature
Includes an electronic signature or other information in electronic form that is created or adopted by a client of a person or entity referred to in section 5 of the Act and that is accepted by the person or entity as being unique to that client. (signature)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Signature card
In respect of an account, means a document that is signed by a person who is authorized to give instructions in respect of the account, or electronic data that constitutes the signature of such a person. (fiche-signature)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Source
The issuer or provider of information or documents for verifying identification. (source)
- Source of funds or of virtual currency (VC)
The origin of the particular funds or VC used to carry out a specific transaction or to attempt to carry out a transaction. It is how the funds were acquired, not where the funds may have been transferred from. For example, the source of funds could originate from activities or occurrences such as employment income, gifts, the sale of a large asset, criminal activity, etc. (origine des fonds ou de la monnaie virtuelle (MV))
- Source of wealth
The origin of a person's total assets that can be reasonably explained, rather than what might be expected. For example, a person's wealth could originate from an accumulation of activities and occurrences such as business undertakings, family estates, previous and current employment income, investments, real estate, inheritance, lottery winnings, etc. (origine de la richesse)
- SWIFT
The Society for Worldwide Interbank Financial Telecommunication. (SWIFT)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Terrorist activity
Has the same meaning as in subsection 83.01(1) of the Criminal Code. (activité terroriste)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Terrorist activity financing offence
An offence under section 83.02, 83.03 or 83.04 of the Criminal Code or an offence under section 83.12 of the Criminal Code arising out of a contravention of section 83.08 of that Act.
A terrorist financing offence is knowingly collecting or giving property (such as money) to carry out terrorist activities. This includes the use and possession of any property to help carry out the terrorist activities. The money earned for terrorist financing can be from legal sources, such as personal donations and profits from a business or charitable organization or from criminal sources, such as the drug trade, the smuggling of weapons and other goods, fraud, kidnapping and extortion. (infraction de financement des activités terroristes)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Third party
Any individual or entity that instructs another individual or entity to act on their behalf for a financial activity or transaction. (tiers)
- Threats to the security of Canada
Has the same meaning as in section 2 of the Canadian Security Intelligence Service Act. (menaces envers la sécurité du Canada)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Training program
A written and implemented program outlining the ongoing training for your employees, agents or other individuals authorized to act on your behalf. It should contain information about all your obligations and requirements to be fulfilled under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. (programme de formation)
- Trust
A right of property held by one individual or entity (a trustee) for the benefit of another individual or entity (a beneficiary). (fiducie)
- Trust company
A company that is referred to in any of paragraphs 5(d) to (e.1) of the Act. (société de fiducie)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Trustee
A trustee is the individual or entity authorized to hold or administer the assets of a trust. (fiduciaire)
- Tutor
In the context of civil law, a person who has been lawfully appointed to the care of the person and property of a minor. (tuteur)
- Two year effectiveness review:
A review, conducted every two years (at a minimum), by an internal or external auditor to test the effectiveness of your policies and procedures, risk assessment, and training program. (examen bisannuel de l'efficacité)
- Valid
In respect of a document or information that is used to verify identity, appears legitimate or authentic and does not appear to have been altered or had any information redacted. The information must also be valid according to the issuer, for example if a passport is invalid because of a name change, it is not valid for FINTRAC purposes. (valide)
- Verify identity
To refer to certain information or documentation, in accordance with the prescribed methods, to identify a person or entity (client). (vérifier l'identité)
- Very large corporation or trust
A corporation or trust that has minimum net assets of $75 million CAD on its last audited balance sheet. The corporation's shares or units have to be traded on a Canadian stock exchange or on a stock exchange designated under subsection 262(1) of the Income Tax Act. The corporation or trust also has to operate in a country that is a member of the Financial Action Task Force (FATF). (personne morale ou fiducie dont l'actif est très important)
- Violation
A contravention of the Act or the regulations that is designated as a violation by regulations made under subsection 73.1(1). (violation)
Reference:
PCMLTFA, S.C. 2000, c 17, s. 2(1).- Virtual currency
Means:
- (a) a digital representation of value that can be used for payment or investment purposes that is not a fiat currency and that can be readily exchanged for funds or for another virtual currency that can be readily exchanged for funds; or
- (b) a private key of a cryptographic system that enables a person or entity to have access to a digital representation of value referred to in paragraph (a).
Reference:
PCMLTFR, SOR/2002-184, s. 1(2) and PCMLTFSTRR, SOR/2001-317, s. 1(2).- Virtual currency exchange transaction
An exchange, at the request of another person or entity, of virtual currency for funds, funds for virtual currency or one virtual currency for another. (opération de change en monnaie virtuelle)
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Virtual currency exchange transaction ticket
A record respecting a virtual currency exchange transaction—including an entry in a transaction register—that sets out:
- (a) the date of the transaction;
- (b) in the case of a transaction of $1,000 or more, the name and address of the person or entity that requests the exchange, the nature of their principal business or their occupation and, in the case of a person, their date of birth;
- (c) the type and amount of each type of funds and each of the virtual currencies involved in the payment made and received by the person or entity that requests the exchange;
- (d) the method by which the payment is made and received;
- (e) the exchange rates used and their source;
- (f) the number of every account that is affected by the transaction, the type of account and the name of each account holder;
- (g) every reference number that is connected to the transaction and has a function equivalent to that of an account number; and
- (h) every transaction identifier, including the sending and receiving addresses.
Reference:
PCMLTFR, SOR/2002-184, s. 1(2).- Working days
In respect of an electronic funds transfer (EFT) report or a large virtual currency transaction report, a working day is a day between and including Monday to Friday. It excludes Saturday, Sunday, and a public holiday. (jour ouvrable)
- Date Modified: