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.

• Reporting
  • Suspicious Transactions
  • Terrorist Property
  • Large Cash Transactions
• Record Keeping
• Ascertaining Identity
• Use of personal information
• Politically Exposed Foreign Person
• Third Party Determination
• Compliance Regime

Printable summary for securities dealers (PDF version, 57 kb)

Additional Information for Securities Dealers

• Penalties for Non-compliance
• FINTRAC Interpretation Notices
• Compliance Assessment Report

Reporting

• Suspicious transactions
  You must report where there are reasonable grounds to suspect that a transaction or an attempted transaction is related to the commission or attempted commission of a money laundering offence or a terrorist activity financing offence.
  
  See Guideline 2: Suspicious Transactions and Guideline 3: Submitting Suspicious Transaction Reports to FINTRAC
  
  
• Terrorist property
  You must report where you know that there is property in your possession or control that is owned or controlled by or on behalf of a terrorist or a terrorist group.
  
  See Guideline 5: Submitting Terrorist Property Reports to FINTRAC
  
  
• Large cash transactions
  You must report large cash transactions involving amounts of $10,000 or more received in cash.
  
  See Guideline 7: Submitting Large Cash Transaction Reports to FINTRAC
  
  

Record Keeping

You must keep the following records:

• Large cash transaction records
• Signature cards, account operating agreements or accounts applications
• Copies of official corporate records (binding provisions)
• Account holder information
• New account applications
• Confirmations or purchase or sale
• Guarantees
• Trade authorizations
• Powers of attorney
• Joint account agreements
• Correspondence pertaining to the operation of accounts
• Account statements
• Intended use of an account
• Copies of suspicious transaction reports
• Beneficial ownership 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:

• Any individual who conducts a large cash transaction
• Any individual who signs a signature card
• Any individual who is authorized to give instructions for an account
• Any corporation or other entity for which you open an account (including reasonable measures to obtain beneficial ownership information)
• Any individual for whom you have to send a suspicious transaction report (reasonable measures and exceptions apply)
• Any individual member of a group plan account when contributions to the plan are not made by payroll deductions or by the plan's sponsor

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:

• Industry Canada (Privacy For Business); or
• The Office of the Privacy Commissioner of Canada (http://www.priv.gc.ca).
  • The Office of the Privacy Commissioner of Canada has on its Web site information about how to comply with PIPEDA and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (http://www.priv.gc.ca/resource/io_pr_8_e.asp) that will help you in understanding your responsibilities under both federal laws.

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

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.

• The 24-hour Rule

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