On July 4, 2015, proposed amendments to various regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PC Act) were published in the Canada Gazette.
Some of the key proposed amendments provide for the following:
- New, less prescriptive methods for verification of identity. These proposed amendments are particularly relevant for entities that transact when the individual is not physically present. Such transactions are referred to in the industry as “non-face-to-face” and abbreviated as “NFTF” in this update.
- An update to the definitions of “signature” and “signature card” to more broadly include electronic signatures. This change is intended to facilitate NFTF account openings.
- New requirements regarding domestic politically exposed persons and heads of international organizations.
- An update to the recordkeeping requirement applicable to financial entities in respect of credit arrangements entered into with clients.
- Additional criteria to be considered in risk assessments conducted as part of compliance programs.
The proposals are open for comment for 90 days until October 2nd.
For a more detailed description of the proposals, please see our client alert by clicking here.