Backgrounder on Bill C-25

Bill C-25, which received Royal Assent on December 14, 2006, amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). These are comprehensive amendments that expand the coverage of the law, strengthen its deterrence provisions, and broaden the range of information that FINTRAC may disclose to law enforcement and national security agencies.

Certain of these amended provisions came into force in February and June 2007. The remaining provisions are expected to come into force in 2008.

Highlights

The amendments to the PCMLTFA and its regulations will:

• enhance client identification, record-keeping and reporting requirements
• establish a registry for money services businesses and create a new offence for not registering
• bring four additional business and professional sectors within the ambit of the legislation and regulations:
  • Dealers in precious metals and stones
  • Notaries in British Columbia
  • Real estate developers
  • Lawyers (subject to certain compliance requirements only)
• create a system of graduated administrative monetary penalties for non-compliance
• allow FINTRAC to disclose additional information to law enforcement agencies and other recipients
• authorize the disclosure of relevant information to the Communications Security Establishment Canada
• authorize the disclosure of relevant information to the Charities Directorate of the Canada Revenue Agency
• authorize the disclosure to the Canada Border Services Agency of information relating to the suspected smuggling of controlled or prohibited goods
• enable FINTRAC to exchange compliance-related information with its foreign counterparts
• provide for a review every two years by the Office of the Privacy Commissioner of Canada of the measures taken by FINTRAC to protect the information it receives or collects.

Expanded Designated Information

Under Bill C-25 and related regulations, the designated information that FINTRAC can provide in a case disclosure is to be expanded to include the following:

• Attempted transactions;
• Any person or entity involved in importation or exportation transactions or any person or entity acting on their behalf;
• The name, address, electronic mail address and telephone number of each partner, director or officer of an entity involved in transactions or of an entity acting on their behalf;
• The fact that any persons or entities involved in transactions or a person or entity acting on their behalf have relevant criminal records or have had any relevant criminal charges laid against them;
• Relationships between any persons or entities suspected on reasonable grounds to be involved in transactions or persons or entities acting on their behalf and any other persons or entities;
• The fact that any persons or entities involved in transactions or persons or entities acting on their behalf have a financial interest in the entity on whose behalf the transaction was made;
• The person who FINTRAC suspects on reasonable grounds of directing the suspected money laundering or terrorist financing;
• The grounds on which a person or entity made a suspicious transaction report;
• The number and types of reports on which a disclosure is based;
• The number and categories of persons or entities that made the reports;
• The indicators relied upon by FINTRAC to justify a disclosure;
• The telephone number and electronic mail address of any persons or entities involved in transactions or any person or entity acting on their behalf;
• The telephone number of the place of business where the transaction occurred;
• The type of account involved in a financial transaction; and
• The name and address of all persons authorized to act in respect of the account (signing authority, power of attorney, etc.)