Securities dealers

Your Obligations

The following summary of the legislative requirements under the PCMLTFA applies to you if you are a securities dealer. A securities dealer is an individual or entity authorized under provincial legislation to engage in the business of dealing in securities or any other financial instruments or to provide portfolio management or investment advising services.

Additional Information for Securities Dealers

Reporting

Record Keeping

You must keep the following records:

See Guideline 6E: Record Keeping and Client Identification for Securities Dealers

Ascertaining Identity

You must take specific measures to identify the following individuals or entities:

See Guideline 6E: Record Keeping and Client Identification for Securities Dealers

Use of personal information

The use of personal information in Canadian commercial activities is protected by the Personal Information Protection and Electronic Documents Act (PIPEDA), or by substantially similar provincial legislation. You have to inform individuals concerning the collection of personal information about them. However, you do not have to inform individuals when you include personal information about them in any of the reports that you are required to make to FINTRAC. You can get more information about your responsibilities in this area from the following:

Business Relationship

You are in a business relationship when a client holds an account with you.

You enter into a business relationship when a client opens an account with you; or when you conduct two or more transactions in which you have to:

See Guideline 6E: Record Keeping and Client Identification for Securities Dealers

Politically Exposed Foreign Person

You have to take reasonable measures to determine whether you are dealing with a politically exposed foreign person for new or existing accounts. You also have to keep records and take additional measures.

See Guideline 6E: Record Keeping and Client Identification for Securities Dealers

Third Party Determination

Where a large cash transaction record is required, you must take reasonable measures to determine whether the individual is acting on behalf of a third party. When an account is opened, you must take reasonable measures to determine whether it is to be used by or on behalf of a third party.

In cases where a third party is involved, you must obtain specific information about the third party and their relationship with the individual providing the cash or account holder.

See Guideline 6E: Record Keeping and Client Identification for Securities Dealers

Compliance Regime

The following five elements must be included in a compliance regime:

See Guideline 4: Implementation of a Compliance Regime

Penalties for Non-compliance

Non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) Terrorist Financing Act may result in criminal or administrative penalties.

FINTRAC Interpretation Notice

FINTRAC issues FINTRAC interpretation notices (FINs) to provide technical interpretations and positions regarding certain provisions contained in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

For more information on your obligations and on FINTRAC, you can also consult our Frequently Asked Questions.

Compliance Assessment Report

Part of FINTRAC's mandate is to ensure compliance by financial intermediaries and other reporting entities with their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and regulations. To do this, we can inquire into your business and examine records, including those relating to your compliance regime.

The compliance assessment report is one of the ways that FINTRAC can inquire into your business. FINTRAC will advise you in writing when you are required to complete it.

If you have received a request from FINTRAC, you need the access code provided in that request to be able to log on to the secure Compliance Assessment Report System ( https://www22.fintrac-canafe.gc.ca/cars-srec/).

For any questions about this, please contact us by e-mail at CARS-SREC@fintrac-canafe.gc.ca. If you do so, be sure to indicate your company/organization name as well as your reporting entity sector.

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