7. Other relevant matters

a. Anti-money laundering rules

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act 2000 (PCMLTFA) implements specific measures to detect and deter money laundering and the financing of terrorist activities while facilitating the investigation and prosecution of such offences. It places obligations on financial services providers and ‘other persons or entities that engage in businesses, professions or activities that are susceptible to being used for money laundering or the financing of terrorist activities’ to meet record-keeping and client identification requirements and to report suspicious financial transactions to an agency responsible for dealing with such information.

December 2006 amendments to the PCMLTFA, made in recognition of the constitutional significance of solicitor-client privilege, provide a limited exemption from the reporting requirements for the legal profession and for communication subject to solicitor-client privilege. Regulations coming into effect on 23 June 2008 and 30 December 2008 outline obligations with respect to reporting, record keeping, client identification and implementing a compliance regime, and set out administrative monetary penalties. Various provincial law societies have also established by-laws with regard to these matters based on a model rule developed by the Federation of Law Societies of Canada (the umbrella organisation for Canada’s law societies).

The PCMLTFA established the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which refers to itself as ‘Canada’s financial intelligence unit’. It functions as a receptacle for data collected under the PCMLTFA from reporting entities and analyses these reports and other relevant information (e.g. account-holder, transaction amount and date) to Canadian law enforcement agencies, other Canadian agencies such as the Canada Border Services Agency, CRA, and the Canadian Security Intelligence Service, and foreign intelligence agencies.

© 2012 Society of Trust & Estate Practitioners