Reporting suspicious transactions to FINTRAC

August 2019

Suspicious transaction reporting requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations are applicable to all reporting entity sectors.

It is recommended that this guidance be read in conjunction with other STR guidance, including:

**Note: All references to financial transactions should be read to include attempted or completed financial transactions.

This guidance provides information on the following topics:

  1. When must a suspicious transaction be reported?
  2. Service provider agreements
  3. How to submit STRs
  4. Review and validation of reports by FINTRAC
  5. Completing the STR form
  6. Field completion instructions

Exclusions

Accountants and accounting firms

If you are an accountant or an accounting firm, the suspicious transaction reporting requirement does not apply to the receipt of professional fees.

British Columbia notaries

If you are a British Columbia notary, the suspicious transaction reporting requirement does not apply to the receipt or payment of professional fees, disbursements, expenses or bail.

Dealers in precious metals and stones

If you are a dealer in precious metals and stones, the suspicious transaction reporting requirement does not apply if you engage in a purchase or sale carried out for, in connection with, or for the purpose of manufacturing jewellery, extracting precious metals or precious stones from a mine or cutting or polishing precious stones.

Financial entities

If you are a financial entity and you have foreign subsidiaries or foreign branches, the suspicious transaction reporting requirement does not apply to the operations of these subsidiaries or branches outside Canada.

Life insurance companies, brokers and agents

If you are a life insurance company and you have foreign subsidiaries or foreign branches, the suspicious transaction reporting requirement does not apply to the operations of these subsidiaries or branches outside Canada.

Real estate brokers or sales representatives

If you are a real estate broker or sales representative, the suspicious transaction reporting requirement does not apply to your activities related to property management.

Securities dealers

If you are a securities dealer and you have foreign subsidiaries or foreign branches, the suspicious transaction reporting requirement does not apply to the operations of these subsidiaries or branches outside Canada.

1. When must a suspicious transaction be reported?

Pursuant to section 9(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations, “the report shall be sent to the Centre within 30 days after the day on which the person or entity or any of their employees or officers detects a fact respecting a financial transaction or an attempted financial transaction that constitutes reasonable grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence or a terrorist financing offence.” In other words, an STR must be submitted to FINTRAC when you detect a fact that leads you to determine that you have reasonable grounds to suspect that a transaction is related to the commission or attempted commission of a money laundering or terrorist financing offence.

You must submit an STR to FINTRAC within 30 days of reaching that determination. Unlike all other reporting obligations, there is no monetary threshold associated with the reporting of a suspicious transaction.

STRs are unique under the Canadian anti-money laundering and anti-terrorist financing (AML/ATF) regime as they may also contain transactions that must be submitted to FINTRAC in other types of reports. For example, if a completed transaction reported in an STR involved the receipt of cash from a client of 10,000 Canadian Dollars (CAD) or more, you would also be required to report this transaction to FINTRAC in a large cash transaction report.

2. Service provider agreements

A service provider can submit and correct STRs on your behalf. However, as the reporting entity, you are ultimately responsible for meeting your obligations under the PCMLTFA and associated Regulations, even if a service provider is reporting on your behalf. This legal responsibility cannot be delegated.

3. How to submit STRs

If you have a computer and an internet connection, you must submit STRs to FINTRAC electronically. You must submit by paper if you do not have the technological capacity to send an STR electronically.

There are two options for electronic reporting that provide for secure encrypted transmission that ensures your data’s confidentiality and integrity. These two electronic reporting options are listed below.

For more information about FINTRAC’s electronic reporting system enrolment, see our electronic reporting page.

FINTRAC web reporting

FINTRAC web reporting is a secure application accessed through the internet that allows you to manually submit individual reports, as well as correct them if needed. It is geared towards reporting entities with lower reporting volumes. To report STRs electronically, you must be enrolled and logged in to the FINTRAC web reporting system. For more information on FINTRAC web reporting, see the following document:

Batch reporting

Batch reporting is a secure process that allows for the submission and correction of multiple reports (up to 10,000) in ‘Batch files’ that are formatted according to FINTRAC’s specifications. To use the Batch reporting system, FINTRAC will provide you with Batch transmission software but you will also need to enroll in FINTRAC web reporting and apply for a public key infrastructure (PKI) certificate. For more information on Batch reporting, see the following links and documents.

Paper reporting

FINTRAC’s STR paper reporting form can be printed from the reporting forms webpage or you can request a form to be faxed or mailed to you by calling FINTRAC at 1-866-346-8722.

To ensure that the information provided is legible and to facilitate data entry, it would be preferable if the free-text areas of the STR (Parts G and H) were completed using word-processing equipment. For reports completed by hand, please use black ink and CAPITAL LETTERS.

There are two ways you can send a completed paper STR form to FINTRAC:

There is no official acknowledgement of receipt when you send a completed paper STR form to FINTRAC. However, FINTRAC will contact you and request that you resubmit electronically if you have the capability to do so.

4. Review and validation of reports by FINTRAC

FINTRAC reviews each report that is submitted to ensure that mandatory information is provided as per the PCMLTFA and associated Regulations. There are three types of validation rules that FINTRAC uses to validate reports and these rules are described below.

FINTRAC validation rules identify possible reporting problems or 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 independent of FINTRAC’s review and validation of reports.

The report validation processes for FINTRAC web reporting and Batch are different. Each report validation process is described in more detail below.

FINTRAC web reporting report validation

Reports submitted through FINTRAC web reporting are immediately validated by the application. FINTRAC web reporting will indicate where information is missing, incorrect, or improperly formatted. You must correct all errors for mandatory fields before you can submit a report.

Batch report validation

Once a Batch file has been submitted, FINTRAC validates the Batch file against the validation rules. If there is an error with the structure or format of the file then you will receive a “Rejected” message and the Batch file and reports within it will not be processed any further. You must correct and resubmit the entire Batch file. Once you resubmit a Batch file, it is revalidated against all validation rules.

If there is a potential issue in a reporting field then you may also receive a “Warning” message. If you receive a “Warning” message, the report has been accepted by FINTRAC but you should review the information submitted for accuracy and completeness.

Once your Batch file has been accepted and validated, FINTRAC will send you a Batch “Acknowledgement” message that will include the validation rule number(s) for any report(s) that require further action and any warning messages.

See FINTRAC’s Standard Batch Reporting Instructions and Specifications for more information.

5. Completing the STR form

FINTRAC’s expectations for completing an STR

It is your responsibility to ensure that the information provided in an STR is complete and accurate. Your policies and procedures must include details on the process for how you identify, assess and submit STRs to FINTRAC. It is possible that your organization has an automated or triggering system that detects unusual or suspicious transactions that would require assessment by a person to determine if you must submit an STR. A person with the appropriate knowledge and training is expected to be able to determine whether a transaction is related to the commission or attempted commission of an ML/TF offence. It is also important to note that the value of the transaction is not always the most important aspect of an STR. Training employees to perform this function is considered to be part of your compliance program obligations.

Please note, an employee of a reporting entity can be considered a ‘reporting entity’ and report a completed or attempted suspicious transaction to FINTRAC when:

This stipulation is in place to cover the rare instances where an individual suspects that the threshold to report has been reached and their employer did not or will not send an STR. No individual or entity will be prosecuted for sending an STR in good faith or for providing FINTRAC with information about suspicions of money laundering or terrorist financing. To submit an STR in this scenario, you may use the paper report form. For more information, please see field completion instructions to submit STRs by paper.

It is important to FINTRAC’s analysis process and disclosure recipients that the STRs you submit are comprehensive and of high quality. In Part G or H of the STR, it is important to avoid jargon or non-public references, such as terms and acronyms that are specific to your organization. Please consider an outside reader and use simple, clear and concise language.

A variety of information is often collected as part of an assessment to determine if you are required to submit an STR and this information is valuable to include in your report to FINTRAC. A well-completed STR should consider the following questions.

  1. Who are the parties to the transaction?
    • List the conductor, beneficiary and holders of all accounts involved in the transaction.
    • Take reasonable measures to identify the conductor of the transaction. This means that you are expected to ask the client for this information unless you think doing so will tip them off to your suspicion.
    • Provide identifying information on the parties involved in the transaction. This could include the information you recorded to identify the conductor, as well as any information you have on the other parties to the transaction or its recipients.
    • List owners, directors, officers and those with signing authority, when possible. If the transaction involves a business, you could include information on the ownership, control and structure of the business in the STR.
    • Provide clear information about each individual or entity’s role in each of the financial transactions described. It is important to know who is sending and receiving the funds and this may be relevant in Part G of the STR.
    • Explain the relationships among the individuals or entities (if known). This is very helpful to FINTRAC when trying to establish networks of individuals or entities suspected of being involved in the commission or attempted commission of an ML/TF offence.
  2. When was the transaction(s) completed/attempted? If it was not completed, why not?
  3. What are the financial instruments or mechanisms used to conduct the transaction?
  4. Where did this transaction take place?
  5. Why the transaction(s) or attempted transaction(s) are related to the commission or attempted commission of an ML/TF offence?
    • State the ML/TF indicators used to support your suspicion.
    • State the suspected criminal offence related to ML/TF, if known.
  6. How did the transaction take place?

Once you have reached reasonable grounds to suspect, you must keep reporting as long as the suspicion remains. You are expected to periodically re-assess the client to verify that the level of suspicion has not changed. This process may be part of your documented risk based approach or ongoing monitoring. If you continue to report STRs(s) on the same person or entity, you can reference a previous STR in Part G by:

If you are reporting STRs because the assessment has changed due to new facts, context and/or ML/TF indicators, you are expected to provide them. For example, through the course of your assessment, you may have identified new ML/TF indicators or new parties transacting with your client. You may choose to include that information under a separate heading in Part G so that it is properly labeled as new information.

You must keep a copy of all STRs submitted to FINTRAC. For more information on your record keeping obligations related to STRs, see your sector specific record keeping guidance.

STR submission limitations

Each STR must include at least one transaction and may include up to 99 transactions as long as all the transactions:

For example, someone brings a money order for $6,000 CAD and successfully sends an electronic funds transfer for $6,000 CAD (first completed transaction). Later that day, the same person returns to the same location and brings $5,000 CAD cash and receives a money order (second completed transaction). In this case, if there are reasonable grounds to suspect that the two completed transactions, conducted at the same location, are related to the commission or attempted commission of an ML/TF offence, you should provide the transaction details for the two transactions in the same STR. While the transactions may be referenced in Part G as part of the facts, context and/or ML/TF indicators, the transaction details themselves must be entered in Parts B1 through F.

In a situation where related suspicious transactions took place at different locations, an STR must be submitted for each location and only detail the transactions that occurred at that specific location. In addition, all transactions should have the same status as either completed or attempted to be included in a single report.

If you have more than 99 transactions to report at one time, you must submit the additional transaction(s) in a separate STR. You cannot insert a spreadsheet or include the additional transactions in Part G of the STR. If the information is available, you can reference related STRs in Part G by entering the FINTRAC STR number and date of submission.

Common STR deficiencies to avoid

The following are examples of deficiencies that FINTRAC has identified through its assessments and other compliance activities. FINTRAC is sharing these examples to illustrate common errors that you can avoid.

  1. Using a higher threshold as your basis for reporting: You are required to submit an STR when you have determined that there are reasonable grounds to suspect that a transaction is related to the commission or attempted commission of an ML/TF offence. In some cases, it is possible that you have determined that there are reasonable grounds to believe that the transaction is related to the commission or attempted commission of an ML/TF offence. In those cases, you should still submit an STR. However, it is important to note that you do not need to reach the threshold of reasonable grounds to believe in order to submit an STR.
  2. Failing to list all the transactions and accounts relevant to your suspicion in Parts B through F: You are required to report all the transactions and accounts in Parts B through F that led to your determination that there are reasonable grounds to suspect that the transaction is related to the commission or attempted commission of an ML/TF offence. Providing a summary of the transactions in Part G is not enough.
  3. Not listing or naming all parties to the transactions when the information is available: All parties to the transaction must be listed, including third parties. You should also specify whether the parties are known or unknown. This has been observed in transactions involving multiple parties such as wire transfers. For example, if you are reporting a wire transfer, you should include any information you have regarding both the ordering client and beneficiary. This could include (but is not limited to) their names, their account number and institution, their relationship, and any known identifiers. FINTRAC acknowledges that this information may not always be at your disposal, but when you know it, it should be provided.
  4. Part G does not elaborate on your grounds for suspicion or link them to the transactions reported in Parts B through F: You are required to articulate the reasons for your determination that there are reasonable grounds to suspect that the transaction is related to the commission or attempted commission of an ML/TF offence in an STR. This includes providing all of the relevant facts, context and ML/TF indicators related to the transactions reported in Parts B through F that support your suspicion in Part G. This deficiency has been observed when a reporting entity does not articulate the reasons for their suspicion or does not explain how or why certain information is relevant to their suspicion.

6. Field completion instructions

**Note: Unless otherwise stated, this section details specific instructions that apply to both electronic and paper reporting.

Parts of a suspicious transaction report

STRs contain eight specific parts:

Standardized field instructions

This section includes standardized instructions for the level of effort that is required for certain fields as well as standard instructions for completing fields for identification, addresses, telephone numbers and occupation.

  1. Each field within an STR is categorized as either mandatory, mandatory if applicable, or reasonable measures.
    1. Mandatory:
      • Mandatory fields require you to obtain the information to complete the STR and will be marked with an asterisk (*).
      • However, in the case of an attempted transaction, you are to take reasonable measures to obtain the information for any mandatory field.
    2. Mandatory, if applicable:
      • Mandatory if applicable fields must be completed if they are applicable to you or the transaction being reported. If applicable, you must provide the information if you obtained it at the time of the transaction, or if it is contained within your institution.
      • These fields will be indicated with both an asterisk (*) and “(if applicable)” next to them.
    3. Reasonable measures:
      • For all other fields that do not have an asterisk, you must take reasonable measures to obtain the information.
      • Reasonable measures can include asking for the information as long as you don’t think it will tip off the person that you are submitting an STR.
      • Reasonable measures also means that you must provide the information if you obtained it at the time of the transaction, or if it is contained within your institution.

      **Note: In certain circumstances a required report field may not be applicable. Do not enter “N/A” or “n/a” or substitute any other abbreviations, special characters (e.g., “x”, “-“ or “*”) or words (e.g., unknown) in these fields. They are to be left blank.

  2. Client identification

    If you used the dual process method to identify an individual, you only need to provide the details of one of the identifiers. You can use your judgement to determine which identifier would be most advantageous to FINTRAC analysis. Please note that a Social Insurance Number (SIN) must not be reported to FINTRAC.

    The record keeping requirement for the dual process method includes the source of the information, so FINTRAC expects the issuing jurisdiction and country to align with the source of the information, but would only expect, as per the validation rules, that the reporting entity include the country of issue for the dual process method.

    In addition, you cannot use a provincial health card for identification purposes where it is prohibited by provincial legislation.

    For more information on how to identify individuals and examples of acceptable photo identification documents, refer to FINTRAC’s guidance on methods to identify individuals and confirm the existence of entities.

  3. On behalf of indicator

    Applies to Part B2 of an STR.

    You are required to take reasonable measures to determine if there is a third party instructing your client to conduct an activity or a transaction. Reasonable measures include asking your client if they are acting on someone else’s instructions or retrieving the information that may already be contained in your records.

    When determining whether an individual has conducted or attempted a suspicious transaction on anyone else’s behalf, it is not about who owns or benefits from the money, or who is carrying out the transaction or activity, but rather about who gives the instructions to handle the money or conduct the transaction or particular activity. Refer to FINTRAC’s guidance on third party determination requirements for more information including the record keeping requirements.

    If you determine that a third party was instructing your client, then you must indicate if the transaction was conducted on behalf of an entity or on behalf of another individual.

    When an individual is acting on behalf of their employer, the employer is considered to be the third party, unless the individual is conducting a cash deposit to the employer’s business account. If there is no third party, or you were not able to determine whether there is a third party, then indicate that this part is not applicable.

  4. Address fields

    Applies to the following fields of an STR:

    • A3* – A6* (mandatory)
    • D5 – D9
    • D20 – D24
    • E3 – E7
    • F4 – F8
    • F19 – F23

    The complete physical address includes the street number, street name, the city, province, and country. If there is no province or state applicable to the address, leave this field blank.

    Please note that the following are not valid addresses and should not be provided:

    • a post office box without a complete physical address (e.g., PO Box 333);
    • a general delivery address; or
    • only a suite number (e.g., Suite 256) without additional address information.

    It is possible that some of the examples above may be included in Part G of the STR because they are relevant but they are not considered a valid address in terms of the client identification.

    In cases where the individual or entity resides in an area where there is no street address, provide a detailed description which clearly describes the physical location. For example, in these unique cases you could enter “the third house to the right after the community center” as the street address where an individual lives.

    A legal land description can be acceptable so long as the legal land description is specific enough to pinpoint the physical location of where the client lives. If the legal land description refers to an area or a parcel of land on which multiple properties are located, the legal land description would not be sufficient.

    For individuals who are transient (e.g., travelling in a recreational vehicle, temporarily working in a camp, etc.) and have no fixed address, you are required to provide the following:

    • for Canadian residents, their permanent address is required, even if that is not where they are currently residing;
    • for non-Canadian residents travelling in Canada for a short period of time, their foreign residential address is required; and
    • for non-Canadian residents living in Canada for a longer period of time (e.g., a student), then the individual’s temporary Canadian address should be provided.
  5. Telephone number fields

    Applies to the following fields of an STR:

    • A10* – A10A
    • D11
    • D18 – D18A
    • D25 – D25A
    • E8 – E8A
    • F9
    • F10 – F10A
    • F24 – F24A

    If the telephone number is from Canada or the United States, enter the area code and local number (e.g., 999-999-9999).

    If the telephone number is from outside Canada or the United States, enter the country code, city code and local number using a dash (-) to separate each one. For example, "99-999-9999-9999" would indicate a two-digit country code, a three-digit city code and an eight digit local number.

  6. Occupation fields

    Applies to the following fields of an STR:

    • D17
    • F17

    When entering an individual’s occupation information, you must be as descriptive as possible. For example:

    • If the individual is a manager, the occupation provided should reflect the area of management, such as “hotel reservations manager” or “retail clothing store manager.”
    • If the individual is a consultant, the occupation provided should reflect the type of consulting, such as “IT consultant” or “forestry consultant”.
    • If the individual is a professional, the occupation provided should reflect the type of profession, such as “petroleum engineer” or “family physician”.
    • If the individual is a labourer, the occupation provided should reflect the type of labour performed, such as “road construction worker” or “landscape labourer”.
    • If the individual is not working, the occupation provided should still be as descriptive as possible, such as "student", "unemployed" or "retired".

Definitions

Administrative monetary penalties (AMPs)

Civil penalties that may be issued to reporting entities by FINTRAC for non-compliance with the PCMLTFA and related 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)

Attempted transaction

Occurs when an individual initiates a transaction and it does not result in the movement of funds or purchase of an asset because the transaction is not completed. For example, a potential client walks away from conducting a $10,000 cash deposit because they do not want to provide their identification. (opération tentée)

Beneficial Owner(s)

Beneficial owners are the actual 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 a corporation or an entity other than a corporation or trust, such as a partnership. The ultimate beneficial owners cannot be another corporation or entity; they must be the actual individuals who are the owners or controllers of the entity. (bénéficiaire effectif)

Beneficiary

A beneficiary is the individual or entity who will ultimately benefit from a transaction and be the final recipient of the funds. (bénéficiaire)

Branch

A branch is a part of your own business at a distinct location other than your main office. (succursale)

Clarification request

A clarification request is a method used to communicate with money services businesses when we need more information about their registration form. This request is usually sent by email. If they do not reply to a clarification request, their registration can be denied or revoked. (demande de précisions)

Client/customer

A person or entity that engages in financial transactions through your business. (client)

Completed transaction

Is a transaction initiated by a person or entity that results in the movement of funds or purchase of an asset. (opération effectuée)

Compliance officer

The individual you appoint to be responsible for the implementation of your compliance program. Your compliance officer should have the authority and the resources necessary to discharge his or her responsibilities effectively. (agent de conformité)

Compliance policies and procedures

Written methodology outlining all of your obligations applicable to your business under the PCMLTFA and associated Regulations and the corresponding processes and controls you have put in place to address your obligations. (politiques et procédures de conformité)

Compliance program

All elements that you, as a reporting entity, are legally required to have under the PCMLTFA and associated Regulations to ensure that you meet all of your reporting, record keeping, client identification, and know-your-client requirements. (programme de conformité)

Context

Clarifying a set of circumstances or providing an explanation of a situation or financial transaction that can be understood and assessed. (contexte)

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 payment 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. (entreprise d’acquisition de cartes de crédit)
Current

A document or information that is up to date and must not have been expired when the ID was verified. (document ou renseignement à jour)

Disposition

With respect to a financial transaction, the disposition is what the funds were used for. For example, an individual arrives at a bank with cash and purchases a bank draft. The purchase of the bank draft is the disposition. (répartition de fonds)

Electronic funds transfer (EFT)

An electronic funds transfer (money transfer) means the transmission of instructions for the transfer of funds to or from Canada. An electronic funds transfer does not include the instructions for the transfer of funds from one place in Canada to another in Canada. (télévirement)

Entity

Can be a corporation, trust, partnership, fund, or an unincorporated association or organization. (entité)

Facts

Actual events, actions, occurrences or elements that exist or are known to have happened or existed. Facts cannot be 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)

Financial account

Refers to deposit, credit card or other loan accounts held by a financial entity. This does not include investment accounts such as Registered Retirement Savings Plans (RRSPs). (compte financier)

Financial entity

A financial entity includes:

  • a bank that is regulated by the Bank Act;
  • an authorized foreign bank, as defined in section 2 of that Act, in respect of its business in Canada;
  • a cooperative credit society, savings and credit union or caisse populaire that is regulated by a provincial Act;
  • an association that is regulated by the Cooperative Credit Associations Act;
  • a financial services cooperative, a credit union central, a company that is regulated by the Trust and Loan Companies Act;
  • a trust company or loan company that is regulated by a provincial Act; and
  • a department or an entity that is an agent or mandatary of Her Majesty in right of Canada or of a province when it is carrying out an activity referred to in section 45 of the PCMLTFR. (entité financière)
Independent

For the purposes of ascertaining client identity, the term "independent" means that the sources must be different; the information cannot be derived from the same source. (source indépendante)

Individual or person

A human being. (individu ou personne)

Institutional trust

An institutional trust is a trust that is established by a corporation, partnership or other entity for a particular business purpose and includes pension plan trusts, pension master trusts, supplemental pension plan trusts, mutual fund trusts, pooled fund trusts, registered retirement savings plan trusts, registered retirement income fund trusts, registered education savings plan trusts, group registered retirement savings plan trusts, deferred profit sharing plan trusts, employee profit sharing plan trusts, retirement compensation arrangement trusts, employee savings plan trusts, health and welfare trusts, unemployment benefit plan trusts, foreign insurance company trusts, foreign reinsurance trusts, reinsurance trusts, real estate investment trusts, environmental trusts and trusts established in respect of endowments, foundations and registered charities. (fiducie institutionnelle)

Inter vivos trust

Also known as a living trust, this is a trust that is not created by a will. This type of trust is established by a living individual for the benefit of another individual, such as a trust created by a parent for a child. Its assets can be distributed to the beneficiary during or after a settlor’s lifetime. (fiducie entre vifs)

Listed person

A listed person means anyone on a list published in the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism issued under the United Nations Act. You can consult that list of names on the Office of the Superintendent of Financial Institutions' Web site: http://www.osfi-bsif.gc.ca/Eng/fi-if/amlc-clrpc/atf-fat/Pages/default.aspx.

A listed person includes an individual, a corporation, a trust, a partnership or fund or an unincorporated association or organization that is believed to:

  • have carried out, attempted to carry out, participated in or facilitated a terrorist activity; or
  • be controlled directly or indirectly by, be acting on behalf of, at the direction of, or in association with any individual or entity conducting any of the above activities.(personne inscrite)
Minute book

A record that contains the corporate documents of a company. It can include documents such as the articles of incorporation, general operating by-laws, first director resolution, registers, forms, share certificates and minutes of shareholders and directors meetings. (registre des procès-verbaux)

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 laundering

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. (recyclage des produits de la criminalité [blanchiment d’argent])

Money service business agent

An individual or organization that you have authorized to act on a money service business’s (MSB's) behalf. Do not mistake an MSB agent with a branch. If you are an MSB, an agent is a separate individual or organization that you authorize to deliver your services. (mandataire d’une entreprise de services monétaires)

No apparent reason

There is no clear explanation to account for suspicious behaviour or information. (sans raison apparente)

Occupation

The job or profession of a client. For example, in the case of a person who is a sales representative, the occupation recorded would reflect sales, but should also reflect the area of sales such as "insurance sales representative". (profession ou métier)

Organization

An organization is an entity such as a corporation, a trust, a partnership, or an association. It does not include an individual. (organisation)

Original

Original refers to any paper or electronic document as it is sent from the issuer directly to the client. (document original)

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 possibly related to the commission or attempted commission of an ML/TF offence. (possibilité)

Principal business

The nature of the primary business of an entity. For example, in the case of an entity in the field of insurance, the nature of the principal business should specify the type of insurance, such as "health insurance". (entreprise principale)

Probability

The likelihood in regards to completing an suspicious transaction report (STR) that a financial transaction is related to a money laundering/terrorist financing (ML/TF) offence. For example, based on facts you have 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
  1. any department or agent or mandatary of Her Majesty in right of Canada or of a province;
  2. 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
  3. 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. (organisme public)
Purpose and intended nature (PIN) record

Record that documents the purpose and intended nature of a business relationship, and includes information that could help you anticipate the types of transactions and activities your client may conduct. (document sur l’objet et la nature projetée de la relation)

Reasonable measures

Reasonable measures means that you must take steps to collect certain information but it is not mandatory. For example, this can include doing one or more of the following:

  • asking the client,
  • conducting open source searches, or
  • consulting commercially available information. (mesures raisonnables).
Reliable

In reference to a source, the term "reliable" means that the source is well known, reputable, and is considered one that you trust to verify the identity of the client. (source fiable)

Risk Assessment

A risk assessment is an analysis of potential risks and vulnerabilities that could expose your business to money laundering/terrorist financing (ML/TF) activities. This assessment will allow you to identify your inherent risk and will assist you and those authorized to act on your behalf in developing mitigation measures to deal with these risks. (évaluation des risques)

Senior officer

A senior officer of an organization can be:

  • a director who is also a full time employee;
  • a chief executive officer, chief operating officer, president, secretary treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary, or any individual who performs these similar duties; or
  • any other officer who reports directly to the board of directors, chief executive officer or chief operating officer. (cadre dirigeant)
Service agreement

With respect to money services businesses (MSBs), a service agreement is an agreement between you and another organization for you to provide any of the following MSB services:

  • money transfers;
  • foreign currency exchange; or
  • issuing or redeeming money orders, traveller's cheques or anything similar. (accord de relation commerciale)
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 then 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)

Source

The issuer or provider of information or documents for verifying identification. (source)

SWIFT

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) network is a global member-owned cooperative and an international provider of secure financial messaging services. (SWIFT)

Terrorist activity financing offence

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)

Third party

Any individual or entity that instructs someone to act on their behalf for a financial activity or transaction. The third party is not the person who owns or benefits from the money, or who is carrying out the activity, but rather the entity or individual who gives the instructions to handle the money or conduct a particular activity. For example, a third party may instruct someone to deposit cash into an account. (tiers)

Training program

A written and implemented program for employees, agents or other individuals authorized to act on your behalf which outlines the ongoing training on your obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and 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)

Trustee

A trustee is the individual or entity authorized to hold or administer the assets of a trust. (fiduciaire)

Two year effectiveness review

A review of your compliance policies and procedures, risk assessment, and training program, conducted a minimum of every two years, to ensure that these are effective and that you are meeting all of your obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations. (examen bisannuel de l'efficacité)

Valid

Refers to a document or information that 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. (document ou renseignement valide)

Verify client identity

To refer to certain information or documentation to identify a client and ensure that their information matches what you know about them. (vérifier l’identité d’un client)

Very large corporation

Has minimum net assets of $75 million CAD on its last audited balance sheet. The corporation's shares have to be traded on a Canadian stock exchange or on a stock exchange outside Canada that is designated by the Minister of Finance. The corporation also has to operate in a country that is a member of the Financial Action Task Force (FATF). (personne morale dont l’actif est très important)

Working days

A working day is a day between and including Monday to Friday. It excludes Saturday, Sunday, and a public holiday. (jour ouvrable)

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