1. The Law:
Proceeds of Crime (Money Laundering) & Terrorist Financing Act
The Proceeds of Crime (Money Laundering) Act was amended in December, 2001 to become the Proceeds of Crime (Money Laundering) & Terrorist Financing Act (PCMLTFA).
The object of the PCMLTFA is:
- To implement specific measures to detect and deter money laundering and the financing of terrorist activities to facilitate the investigation or prosecution of money laundering and terrorist financing offences, including:
- Establishing record keeping and client identification requirements for financial services providers and other persons that engage in businesses, professions or activities that are susceptible to being used for money laundering, and the financing of terrorist activities
(Obtain more information please read: Who Must Report to FINTRAC?)
- Requiring the reporting of suspicious financial transactions and of cross-border movements of currency and monetary instruments
- Establishing an agency that is responsible for dealing with reported and other information;
- To respond to the threat posed by organized crime by providing law enforcement officials with the information they need to investigate and prosecute money laundering or terrorist financing offences, while ensuring that appropriate safeguards are put in place to protect the privacy of persons with respect to personal information about themselves; and
- To assist in fulfilling Canada's international commitments to participate in the fight against transnational crime, particularly money laundering and the fight against terrorist activities.
- Amendments to the PCMLTFA received Royal Assent on December 14, 2006. The amending Bill C-25 can be consulted on the Parliament of Canada Web site.
- Some of those amendments are now in force. Those which came into force in February and June 2007 have been incorporated in the office consolidation mentioned below.
2. Policies & Procedures:
Universal Currency Exchange Inc. has developed anti-money laundering policies and procedures to ensure that company personnel comply with regulations set forth by our Canadian Government.
Universal Currency Exchange Inc. adheres to the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 and regulations based on that legislation. Our policies and procedures are designed to meet the requirements of the legislation by ensuring that we KNOW OUR CLIENT, their business activities and therefore reduce the potential for customers to engage in money laundering or terrorist financing by way of our services.
We require two forms of identification: Government Photo Identification, such as your passport or driver's license, with a utility bill such as Hydro Quebec or Bell Canada that indicates your current address.
3. Corporate Clients:
WE WILL REQUIRE A SIGNED LETTER BY THE COMPANY'S DIRECTOR (AUTHORIZED) WITH PROOF OF IDENTITY AUTHORIZING WHICH EMPLOYEES ARE AUTHORIZED TO CONDUCT FOREIGN EXCHANGE TRANSACTIONS.
- A list of employees authorized to order transactions under the agreement. For each employee listed, include their name, address and date of birth. You do not have to ID the employees on this list.
- A client information record about the organization. This has to show:
- your client's name, address and the nature of their main business.
- if the organization is a corporation, you may get a copy of the corporate records that show the provisions that relate to the power to bind the corporation regarding transactions, through the normal course of business. If you do get this in your normal course of business, keep it with the client information record.
- the name of each individual who signed the agreement on behalf of the organization.
- their address, date of birth, and job.
4. Personal Clients:
We require two forms of identification: Government Photo Identification, such as your passport or driver's license, with a utility bill such as Hydro Quebec or Bell Canada that indicates your current address. We are also required to know your profession.