Record keeping requirements for casinos

June 2017 

June 2017

This guidance on record keeping is applicable to casinos that are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations.

In order to comply with your record keeping requirements, you are required to keep records in a manner in which they can be provided to FINTRAC within 30 days upon request. These records may also be requested through a judicial order, by law enforcement to support an investigation of money laundering or terrorist activity financing. A record (or a copy) may be kept in a machine-readable or electronic form, so long as a paper copy can easily be produced.

Employees who keep records for you are not required to keep them after the end of their employment with you. The same is true for individuals in a contractual relationship with you, after the end of that contractual relationship. This means that you have to obtain and keep the records that were kept for you by any employee or contractor before the end of that individual's employment or contract with you.

There may be situations where you are required to keep records for purposes other than your requirements under the PCMLTFA. For example, a federal or provincial regulator for your sector may require you to keep records in addition to those described in this guidance. If this is the case, you must still meet the requirements described in this guidance. For example, the retention period for your records can be longer than what is described, but it cannot be shorter.

Please note that as a casino, you have record keeping requirements in addition to those described in this guidance. These additional requirements are detailed in the following Know your client guidance documents:

As a casino you must keep the following records:

  1. Suspicious transaction report records
  2. Large cash transaction records
  3. Casino disbursement records
  4. Records of remitting or transmitting funds of $1,000 or more
  5. Foreign currency exchange transaction ticket records
  6. Account records
    1. Signature cards
    2. Accounts for individuals or entities other than corporations
    3. Accounts for corporations
    4. Account operating agreements
    5. Deposit slips
    6. Debit and credit memos
  7. Records of credit extension of $3,000 or more
  8. Reasonable measures records

**Note: Exceptions to your record keeping requirements are listed in the last section of this guidance.

**Note: When recording the nature of the principal business or occupation of a client, you must be as descriptive as possible in order to be able to determine whether a transaction or activity is consistent with what would be expected for that client. For example, in the case of a person who is a manager, the occupation recorded should reflect the area of management, such as “hotel reservations manager” or “retail clothing store manager.” The same is true when recording the nature of the principal business of an entity. For example, in the case of an entity in the field of sales, the nature of the principal business should specify the type of sales, such as “pharmaceutical sales” or “retail sales”.

1. Suspicious transaction report records

If you submit a suspicious transaction report (STR) to FINTRAC, you must keep a copy of it. This includes STRs for completed and attempted transactions.

Retention: You must keep an STR record for at least five years from the date the report was submitted.

2. Large cash transaction records

You must keep a record of every large cash transaction. A large cash transaction occurs when you receive $10,000 or more in cash from a client in a single transaction. A large cash transaction also occurs when there are multiple cash transactions of less than $10,000 each that total $10,000 or more within a 24-hour period, when you know they are conducted by, or on behalf of, the same individual or entity.

You must keep a large cash transaction record for the following transactions:

  • the sale of chips, tokens or plaques;
  • front cash deposits;
  • safekeeping deposits;
  • the repayment of any form of credit, including repayment by markers or counter cheques;
  • bets of currency; and
  • sales of your casino's cheques.

When a client conducts a large cash transaction, your record must indicate the receipt of an amount of $10,000 or more in cash, along with the following:

  • the name, date of birth and address of the individual from whom you received the cash, and the nature of their principal business or occupation;
  • the amount and currency of the cash received;
  • the date of the transaction;
  • the purpose and details of the transaction, including:
    • the type of transaction (for example, the cash was used to buy chips, etc.); and
    • whether any other individuals or entities were involved in the transaction;
  • how the cash was received (for example, in person, by mail, by armoured car, or any other way); and
  • if an account was affected by the transaction, include:
    • the account number and type of account;
    • the full name of the account holder; and
    • the currency in which the account's transactions are conducted.

Retention: You must keep large cash transaction records for at least five years from the date the record was created.

3. Casino disbursement records

You must keep a copy of every casino disbursement report (CDR) that you submit to FINTRAC.

A casino disbursement is any payout, whether in cash or another form, of $10,000 or more for the following transactions:

  • redemption of chips, tokens or plaques;
  • front cash withdrawals;
  • safekeeping withdrawals;
  • advances on any form of credit, including advances by markers or counter cheques;
  • payments on bets, including slot jackpots;
  • payments to clients of funds received for credit to that client or any other client;
  • cashing of cheques or other negotiable instruments; and
  • reimbursements to clients of travel and entertainment expenses.

A casino disbursement also includes two or more disbursements of less than $10,000 each that total $10,000 or more within a 24-hour period, when you know that the disbursements are received by, or on behalf of, the same individual or entity.

Retention: You must keep casino disbursement records for at least five years from the date the record was created.

4. Records of remitting or transmitting funds of $1,000 or more

When you remit or transmit $1,000 or more, whether internationally or domestically, you must record:

  • if the client is an individual, their name, address, date of birth, telephone number and the nature of their principal business or their occupation;
  • if the client is an entity, the name, address, date of birth and telephone number of the individual who requested the transaction on behalf of the entity and the nature of that individual’s principal business or their occupation;
  • the relevant account number and/or reference number of the transaction (if applicable);
  • the date of the transaction;
  • the name and, if applicable, the account number of the beneficiary to whom the funds are remitted or transmitted; and
  • the amount and currency of the transaction.

If you transmit funds as an EFT of any amount at the request of a client, including an EFT sent within Canada that is a SWIFT MT 103 message, you must include originator information.

If you receive an EFT of any amount, including an EFT sent within Canada that is a SWIFT MT 103 message, you must take reasonable measures to ensure it includes originator information. In this context, reasonable measures could include contacting the institution that sent the payment instructions.

Retention: You must keep these records for at least five years from the date the record was created.

5. Foreign currency exchange transaction ticket records      

You must keep a transaction ticket for every foreign currency exchange transaction you conduct, regardless of the amount. Each ticket should include:

  • the date, amount, and currency of the purchase or sale;
  • the method, amount, and currency of the payment made or received; and
  • if the transaction was $3,000 or more, the name, address and date of birth of the individual who carried out the transaction.

Retention: You must keep foreign currency exchange tickets for at least five years from the date they were created.

6. Account records

Every time you open an account for a client, you must keep the following records:  

a. Signature cards

You must keep a signature card record for each account holder of that account. A signature card is a document signed by an individual authorized to give instructions on an account. It can include the handwritten signature of an individual or an electronic signature that is created or adopted by an individual. The electronic signature can be numeric, character-based, or biometric, so long as it is unique to the individual and a record can be kept.

An electronic signature can be encrypted. For example, a client’s personal identification number (PIN) can be used as an electronic signature. FINTRAC’s expectation is that it will be able to review a document during an examination, but the ‘electronic signature” does not need to unencrypted.

You can keep a single signature card record for a client with multiple accounts; you do not need to create a new signature card record every time the client opens a subsequent account.

Retention: You must keep signature card records for at least five years from the day an account is closed.

b. Accounts for individuals or entities other than corporations

When you open an account for an individual, you must keep a record of their name, address, date of birth and the nature of their principal business or occupation.

When you open an account for an entity other than a corporation, you must keep a record of its name, address and the nature of its principal business.

Retention: You must keep these records for at least five years from the date they were created.

c. Accounts for corporations

When you open an account for a corporation, you must keep a copy of the part of official corporate records that contains any provision relating to the power to bind the corporation regarding the account.

  • This could be a certificate of incumbency, the articles of incorporate or the bylaws of the corporation that set out the officers duly authorized to sign on behalf of the corporation, such as the president, treasurer, vice-president, comptroller, etc.
  • If there were changes subsequent to the articles or bylaws that relate to the power to bind the corporation regarding the account and these changes were applicable at the time the account was opened, then the board resolution stating the change would be included in this type of record.

Retention: You must keep these records for at least five years from the date they were created.

d. Account operating agreements

You must keep a record of every account operating agreement that is received or created in the normal course of business.

Retention: You must keep all account operating agreements for at least five years from the day the account is closed.

e. Deposit slips

You must keep a deposit slip for every deposit to an account. A deposit slip means a record that includes:

  • the date of the deposit;
  • the holder of the account in whose name the deposit is made;
  • the account number; and
  • the amount of the deposit, and any part of the deposit that was made in cash.

Retention: You must keep all deposit slips for at least five years from the date they were created.

f. Debit and credit memos

You must keep every debit and credit memo that is received or created in relation to an account in the normal course of business.

Retention: You must keep every debit and credit memo for at least five years from the date they were created.

7. Records of credit extension of $3,000 or more

If you extend credit to a client for $3,000 or more, you must keep a record of the following:

  • If the client is an entity - its name, address and the nature of its principal business;
  • if the client is an individual - their name, date of birth, address and the nature of their principal business or their occupation;
  • the terms and conditions of the extension of credit; and
  • the date and amount of the extension of credit.

Retention: You must keep extension of credit records for at least five years from the date the record was created.

8. Reasonable measures records

The term “reasonable measures” refers to activities you must undertake in order to meet certain obligations. The PCMLTFA and associated Regulations explicitly state when you must take reasonable measures to meet an obligation.

As of June 17, 2017, the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations have been changed to require that a record be kept when reasonable measures were taken, but were unsuccessful. A reasonable measure is unsuccessful when you do not obtain a response, such as a yes or no, and you are unable to make a conclusive determination. Refer to section 67.3 of the Regulations for every activity where you are required to keep records when reasonable measures were unsuccessful.

When reasonable measures are unsuccessful, you must record the following information:

  • the measures taken;
  • the date on which each measure was taken; and
  • the reasons why the measures were unsuccessful.

You must outline the reasonable measures that you take in your compliance policies and procedures. This can form part of your unsuccessful reasonable measures record, or you could document, on a case-by-case basis, the measure taken in each record for unsuccessful reasonable measures.

For example, if you ask a client if they are conducting a large cash transaction on behalf of a third party and they refuse to answer the question— your record should indicate that you asked, the date you asked and the fact that the client refused to answer yes or no.

Should you take a measure that is not included in your policies and procedures, you would have to include details of that measure taken in your record of unsuccessful reasonable measures.

Retention: You must keep records of your unsuccessful reasonable measures for at least five years following the date they were created.

Exceptions to record keeping requirements

If you are required to keep a record about information that is readily available in other records that you have kept, you do not have to record the same information again. This means that if you keep the required information and can produce it during a FINTRAC examination you do not need to create a new record to meet your obligations.

You do not have to keep records if you undertake the following activities for a public body or a very large corporation:

  • open an account;
  • extend credit of more than $3,000 to a client;
  • conduct a foreign currency exchange of $3,000 or more; or
  • remit or transmit $1,000 or more.

The same is true regarding a subsidiary of either of those types of entities, if the financial statements of the subsidiary are consolidated with those of the public body or very large corporation.

You are not required to keep a large cash transaction record if the cash is received from a financial entity or a public body.

March 2021 

March 2021

This guidance comes into effect on June 1, 2021.

Casinos have record keeping requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations.

This guidance outlines certain record keeping requirements for casinos. You have additional record keeping requirements that are detailed in the following guidance:

This guidance answers the following questions:

  1. What records must I keep and what must they contain?
  2. What are my responsibilities when maintaining records?
  3. What are the exceptions to the record keeping requirements?

**Note: Throughout this guidance, all references to dollar amounts (such as $10,000) are in Canadian dollars.

1. What records must I keep and what must they contain?

You must keep the following records:

  1. Reports — a copy of every report sent to FINTRAC
    • Suspicious Transaction Reports
    • Terrorist Property Reports
    • Large Cash Transaction Reports
    • Large Virtual Currency Transaction Reports
    • Casino Disbursement Reports
    • Electronic Funds Transfer Reports
  2. Large cash transaction records
  3. Large virtual currency transaction records
  4. Records of electronic funds transfers of $1,000 or more
  5. Receipt of funds records of $3,000 or more
  6. Foreign currency exchange transaction tickets
  7. Records of credit extension of $3,000 or more
  8. Account records
    • Records for account holders and persons authorized to give instructions
    • Signature cards
    • Intended use of an account
    • Applications
    • Account operating agreements
    • Deposit slips
    • Debit and credit memos

**Note: When you are required to keep records about clients, you should be as descriptive as possible. Being descriptive when recording the nature of the principal business or occupation of a client will help determine whether a transaction or activity is consistent with what would be expected for that client. For example, when the client's occupation is "manager", the record should reflect the area of management, such as "hotel reservations manager" or "retail clothing store manager". When an entity's principal business area is "sales", the record should specify the type of sales, such as "pharmaceutical sales" or "retail sales".

a. Reports — a copy of every report sent to FINTRAC

You must keep a copy of every report that you submit to FINTRAC as a record.

Suspicious Transaction Reports

When you submit a Suspicious Transaction Report (STR) to FINTRAC, you must keep a copy of it.Footnote 1

Retention: At least five years after the day the STR was submitted.Footnote 2

Terrorist Property Reports

When you submit a Terrorist Property Report (TPR) to FINTRAC, you must keep a copy of it.Footnote 3

Retention: At least five years after the day the TPR was submitted.Footnote 4

Large Cash Transaction Reports

When you submit a Large Cash Transaction Report (LCTR) to FINTRAC, you must keep a copy of it.Footnote 5

Retention: At least five years from the date the LCTR was created.Footnote 6

Large Virtual Currency Transaction Reports

When you submit a Large Virtual Currency Transaction Report (LVCTR) to FINTRAC, you must keep a copy of it.Footnote 7

Retention: At least five years from the date the LVCTR was created.Footnote 8

Casino Disbursement Reports

When you submit a Casino Disbursement Report (CDR) to FINTRAC, you must keep a copy of it.Footnote 9

Retention: At least five years from the date the CDR was created.Footnote 10

Electronic Funds Transfer Reports

When you submit an Electronic Funds Transfer Report (EFTR) to FINTRAC, you must keep a copy of it.Footnote 11

Retention: At least five years from the date the EFTR was created.Footnote 12

b. Large cash transaction records

You must keep a large cash transaction record when you receive $10,000 or more in cash.Footnote 13

Large cash transactions include the receipt of $10,000 or more in cash for the following transactions:Footnote 14

  • the sale of chips, tokens or plaques;
  • a front cash deposit;
  • a safekeeping deposit;
  • the repayment of any form of credit, including repayment by markers or a counter cheque;
  • a bet of fiat currency; and
  • the sale of casino cheques.

If you authorize a person or an entity to receive funds on your behalf, and that person or entity receives $10,000 or more in cash in accordance with the authorization, you are deemed to have received the amount when it is received by the person or entity, and you must keep a large cash transaction record.Footnote 15

**Note: This obligation is subject to the 24-hour rule.Footnote 16

A large cash transaction record must include:Footnote 17

  • the date you received the cash;
  • if the amount is received for deposit into an account:
    • the account number(s);
    • the name of each account holder—if the cash was deposited into more than one client account, all names must be included in the record; and
    • the time of the deposit, if it was made during your normal business hours, or an indication of "night deposit" if the deposit was made outside of your normal business hours;
  • for any person involved in the transaction (including the person from whom you received the cash), their name, address, date of birth, and occupation, or in the case of a sole proprietor, the nature of their principal business;
  • for any entity involved in the transaction (including the entity from which you received the cash), their name, address and nature of their principal business;
  • the type and amount of each fiat currency received;
  • the purpose of the transaction (for example, the cash was used to buy chips, etc.);
  • the method by which you received the cash (for example, in person, by mail, by armoured car, etc.);
  • the exchange rates used and their source (if applicable);
  • if other accounts are affected by the transaction, include:
    • the account number and type of account; and
    • the name of each account holder;
  • every reference number connected to the transaction that is meant to be similar to an account number;
  • the following details about the remittance (i.e. the disposition) of, or exchange for, the cash received:
    • the method of remittance (for example, cheque, money order, etc.);
    • if the remittance is in funds, the type and amount of each type of funds involved;
    • if the remittance is not in funds, the type of remittance (for example, virtual currency, etc.) and value if different from the amount received in cash; and
    • the name of every person or entity involved in the remittance, their account number or policy number or, if there is no account or policy number, their identifying number.

Retention: At least five years from the date the large cash transaction record was created.Footnote 18

c. Large virtual currency transaction records

You must keep a large virtual currency (VC) transaction record when you receive VC in an amount equivalent to $10,000 or more.Footnote 19

If you authorize a person or an entity to receive VC on your behalf, and that person or entity receives VC in an amount equivalent to $10,000 or more in accordance with the authorization, you are deemed to have received the VC when it is received by the person or entity, and you must keep a large VC transaction record.Footnote 20

**Note: This obligation is subject to the 24-hour rule.Footnote 21

A large VC transaction record must include:Footnote 22

  • the date you received the VC;
  • if you received the amount for deposit into an account, the name of each account holder;
  • for any person involved in the transaction (including the person from whom you received the VC), their name, address, date of birth, and occupation, or in the case of a sole proprietor, the nature of their principal business;
  • if any other entities are involved in the transaction (including the entity from which you received the VC), their name, address and the nature of their principal business;
  • the type and amount of each VC involved in the receipt;
  • the exchange rates used and their source;
  • if other accounts are affected by the transaction, include:
    • the account number and type of account; and
    • the name of each account holder;
  • every reference number connected to the transaction that is meant to be similar to an account number; and
  • every transaction identifier (this may include a transaction hash or a similar identifier, if applicable), and every sending and receiving address.

Retention: At least five years from the date the large virtual currency transaction record was created.Footnote 23

d. Records of electronic funds transfers of $1,000 or more

Initiating an EFT of $1,000 or more

When you initiate, at the request of a person or entity, an electronic funds transfer (EFT) of $1,000 or more, you must record:Footnote 24

  • the date the EFT was initiated;
  • the type and amount of each type of funds that is involved in the initiation;
  • if the client is a person, their name, address, date of birth, telephone number, and their occupation, or in the case of a sole proprietor, the nature of their principal business;
  • if the client is an entity, its name, address, telephone number, and nature of its principal business;
  • the exchange rates used and their source;
  • the name and address of each beneficiary;
  • if an account is affected by the initiation:
    • the account number and account type; and
    • the name of each account holder;
  • the number of every account that is affected by the EFT, other than those affected by the initiation; and
  • every reference number that is connected to the EFT and is meant to be similar to an account number.

Sending an international EFT of $1,000 or more

When you send, as an intermediary, an international EFT of $1,000 or more that was initiated by another reporting entity, you must record:Footnote 25

  • the date the EFT was sent;
  • if fiat currencies are exchanged in the course of sending the EFT, the type and amount of each fiat currency involved in the exchange;
  • the exchange rates used and their source;
  • for every account affected by the sending:
    • the account number and account type; and
    • the name of each account holder;
  • every reference number connected to sending the EFT that is meant to be similar to an account number;
  • the name, address, and telephone number of the person or entity who requested the initiation of the EFT, unless after taking reasonable measures that information was not included with the transfer and it is not otherwise known; and
  • the name and address of each beneficiary, unless after taking reasonable measures that information was not included with the transfer and it is not otherwise known.

Final receipt of an international EFT of $1,000 or more

When you are the final recipient of an international EFT of $1,000 or more, you must record:Footnote 26

  • the date the EFT was finally received;
  • the type and amount of each type of funds that is involved in the final receipt;
  • the name, address, telephone number, date of birth and occupation, or in the case of a sole proprietor, the nature of their principal business, of each person who is a beneficiary;
  • the name, address, telephone number, and nature of the principal business of each entity that is a beneficiary;
  • the date of the remittance;
  • the exchange rates used for the remittance and their source;
  • if the remittance is in funds, the type and amount of each type of funds involved in the remittance;
  • if the remittance is not in funds, the type of remittance and its value, if different from the amount of funds finally received;
  • for every account affected by the final receipt or remittance:
    • the account number and account type; and 
    • name of each account holder;
  • every reference number connected to the EFT that is meant to be similar to an account number;
  • the name and address of the person or entity that requested the initiation of the EFT, unless after taking reasonable measures, that information was not included with the transfer or it is not otherwise known; and
  • the number of every account that is affected by the EFT, other than those affected by the final receipt or remittance.

**Note: International EFTs and EFTs within Canada sent via a SWIFT MT-103 message or equivalent are subject to the travel rule.Footnote 27 Please see FINTRAC's Travel rule guidance for more information.

Retention: At least five years from the date the EFT record was created.Footnote 28

e. Receipt of funds record of $3,000 or more

When you receive $3,000 or more in funds in a single transaction, you must keep a record that indicates the receipt of funds and includes:Footnote 29

  • the date you received the funds;
  • if the client is a person, their name, address, date of birth and occupation, or in the case of a sole proprietor, the nature of their principal business;
  • if the client is an entity, its name, address and the nature of their principal business;
  • if other persons are involved in the transaction, their name, address, date of birth, and occupation, or in the case of a sole proprietor, the nature of their principal business;
  • if other entities are involved in the transaction, their name, address and the nature of their principal business;
  • the amount of funds received and the amount of any part of the funds that is received in cash;
  • the method by which the amount is received (for example, in person, by mail, by armoured car, etc.);
  • the type and amount of each fiat currency involved;
  • the purpose of the transaction (for example, the funds were used to purchase chips)
  • the exchange rates used and their source (if applicable);
  • if other accounts are affected by the transaction, include:
    • the account number and type of account; and
    • the name of each account holder; and
  • every reference number connected to the transaction that is meant to be similar to an account number.

Retention: At least five years from the date the receipt of funds record was created.Footnote 30

f. Foreign currency exchange transaction tickets

You must keep a foreign currency exchange transaction ticket, which may take the form of an entry in a transaction register, for every foreign currency exchange transaction you conduct, regardless of the amount.Footnote 31 Each transaction ticket must include:Footnote 32

  • the date of the transaction;
  • if the transaction was of $3,000 or more and requested by a person, their name, address, date of birth, and occupation, or in the case of a sole proprietor, the nature of their principal business;
  • if the transaction was of $3,000 or more and requested by an entity, its name, address, and the nature of its principal business;
  • type and amount of each fiat currency received from the client and the type and amount of each fiat currency given to the client;
  • the method by which the payment was made and received;
  • the exchange rates used and their source;
  • for every account affected by the transaction:
    • the account number and account type; and
    • the name of each account holder;
  • every reference number that is connected to the transaction that is meant to be similar to that of an account number.

Retention: At least five years from the date the foreign exchange transaction record was created.Footnote 33

g. Records of credit extension of $3,000 or more

When you extend credit to a client for $3,000 or more, you must keep a record of:Footnote 34

  • the date the credit was extended;
  • the amount of credit extended;
  • if the client is a person, their name, address, date of birth, and occupation, or in the case of a sole proprietor, the nature of their principal business;
  • if the client is an entity, its name, address and the nature of its principal business; and
  • the terms of the extension of credit.

Retention: At least five years from the date the record of credit extension was created.Footnote 35

h. Account records

For every account opened for a client, you must keep the following records: 

Records for account holders and persons authorized to give instructions

You must keep a record for every account holder (person, corporation or other entity) and for every other person who is authorized to give instructions in respect of the account.

For a person, the record must include their name, address, telephone number, date of birth, and their occupation, or in the case of a sole proprietor, the nature of their principal business.Footnote 36

For an account holder that is a corporation or an entity other than a corporation, the record must include its name, address, telephone number, and the nature of its principal business.Footnote 37

For a corporation, you must also keep a copy of the part of its official corporate records that contains any provision relating to the power to bind the corporation regarding the account or a transaction.Footnote 38 This could be found in, for example:

  • the articles of incorporation; or
  • the bylaws of the corporation that set out the officers duly authorized to sign on behalf of the corporation, such as the president, treasurer, vice-president, comptroller, etc.

Retention: At least five years from the date the record was created. However, if this information is kept in one of the other account records, then the retention of that other record applies – at least five years from the date the account is closed.Footnote 39

Signature cards

You must keep a signature card for every person authorized to give instructions on an account you open.Footnote 40 It can include a person's handwritten signature or an electronic signature that was created or adopted by the person.Footnote 41

An electronic signature can be numeric, character-based, or biometric, so long as it is unique to the person and a record can be kept. An electronic signature may also be encrypted. For example, a client's personal identification number (PIN) can be used as an electronic signature. FINTRAC's expectation is that it will be able to review a signature card record during an examination, but the electronic signature does not need to be unencrypted.

You can keep a single signature card for a client that holds multiple accounts. You do not need to create a new signature card every time they open a subsequent account.

Retention: At least five years from the date the account was closed.Footnote 42

Intended use of an account

You must keep a record of the intended use of an account.Footnote 43

Retention: At least five years from the date the account was closed.Footnote 44

Applications

You must keep a record of every application in respect of an account.Footnote 45

Retention: At least five years from the date the account was closed.Footnote 46

Account operating agreements

You must keep a record of every account operating agreement that you create or receive in respect of an account.Footnote 47 An account operating agreement is a document that outlines the agreement between you and your client about the account's operation.

Retention: At least five years from the date the account was closed.Footnote 48

Deposit slips

You must keep a deposit slip for every deposit to an account.Footnote 49 A deposit slip means a record that includes:Footnote 50

  • the date of the deposit;
  • the name of the person or entity that makes the deposit;
  • the amount of the deposit, and any part of the deposit that is made in cash;
  • the method by which the deposit was made; and
  • the number of the account the deposit went into and the name of each account holder.

Retention: At least five years from the date the deposit slip was created.Footnote 51

Debit and credit memos

You must keep every debit and credit memo that you create or receive regarding an account.Footnote 52

Retention: At least five years from the date the debit or credit memo was created.Footnote 53

2. What are my responsibilities when maintaining records?

In order to comply with your record keeping requirements, you must keep records in such a manner that they can be provided to FINTRAC within 30 days of a request.Footnote 54 The records may also be requested through a judicial order by law enforcement to support an investigation of money laundering or terrorist activity financing. A record (or a copy) may be kept in a machine-readable or electronic form, so long as a paper copy can easily be produced.Footnote 55

Employees who keep records for you are not required to keep them after their employment ends. The same is true for persons in a contractual relationship with you, when the contractual relationship ends, they no longer have to keep records for you.Footnote 56 You have to obtain and keep the records that were kept for you by an employee or a contractor before the end of the person's employment or contract.

There may be situations where you are required to keep records for purposes other than complying with your obligations under the PCMLTFA. For example, a federal or provincial regulator may require you to keep records in addition to those described in this guidance. If this is the case, you must still meet the requirements described in this guidance. For example, the retention period for your records can be longer than what is described, but it cannot be shorter.

3. What are the exceptions to the record keeping requirements?

If you are required to keep a record with information that is readily available in other records, you do not have to record the information again.Footnote 57

For example, when you keep a copy of a large cash transaction report (LCTR) you may choose to use this as your large cash transaction record for the same transaction, so long as all of the information that would otherwise be kept in the large cash transaction record is captured within the report. Any requirement related to keeping the large cash transaction record would still apply, such as verifying identity.

Financial entities, public bodies, and very large corporations or trusts

You are not required to keep a receipt of funds record, a large cash transaction record, or a large VC transaction record if the funds, cash or VC is received from a client that is a financial entity (FE) or a public body, or from a person who is acting on behalf of a client that is an FE or public body.Footnote 58

You are not required to keep the records identified in this guidance for EFTs, foreign currency exchange transactions, extensions of credit, receipt of funds, and account records, when you open an account for, or a transaction is conducted by: Footnote 59

  • a public body;
  • a very large corporation or trust; or
  • a subsidiary of those entities, if the financial statements of the subsidiary are consolidated with those of the public body, or very large corporation or trust.

Virtual currency

When you receive VC as compensation for the validation of a transaction that is recorded in a distributed ledger or you receive a nominal amount of VC for the sole purpose of validating a different transaction or a transfer of information, you are not required to keep a large VC transaction record.Footnote 60

Date Modified: