Canada, like many other countries, has adopted various laws and regulations to combat terrorist financing or restrict transactions that may be carried out with or on behalf of certain individuals or entities subject to economic sanctions. In this regard, the individuals or entities associated with terrorism or subject to sanctions imposed by Canada who are designated under those laws and regulations are included in some consolidated sanctions lists (“listed” or “designated” individuals or entities).
Obligations of institutions
In general, the AMF expects financial institutions to follow sound and prudent management practices and sound commercial practices. Such practices should, among other things, enable financial institutions to comply with the laws, regulations and guidelines that apply to their activities. The AMF reminds financial institutions that it is up to their boards of directors and senior management, in view of their respective roles and responsibilities, to ensure that the relevant reports and documents are completed and submitted to the AMF and to the other competent authorities in the form and within the time specified.
Determine whether financial institutions are in possession or control of property owned by listed individuals or entities
Specifically, financial services cooperatives, insurance companies, trust companies, deposit institutions, securities dealers and portfolio managers (“financial institutions”) must determine on a continuing basis whether they are in possession or control of property owned by listed individuals or entities. This requirement stems in particular from the Criminal Code (R.S.C., 1985, c. C-46), the United Nations Act (R.S.C., 1985, c. U-2), the Special Economic Measures Act (S.C. 1992, c. 17), the Justice for Victims of Corrupt Foreign Officials Act (S.C. 2017, c. 21) and their regulations.
In order to assist financial institutions subject to the duties to determine in matters of anti-terrorist financing and economic sanctions, some federal organizations have created consolidated lists of designated individuals and entities:
- Public Safety Canada maintains a list of entities listed under the Criminal CodeThis link will open in a new window;
- Global Affairs Canada maintains a list of individuals and entities listed in the schedules of the regulations This link will open in a new window adopted under the Special Economic Measures Act (S.C. 1992, c. 17) and the Justice for Victims of Corrupt Foreign Officials Act (S.C. 2017, c. 21).
Financial institutions can also access the United Nations Security Council Consolidated List This link will open in a new window established in accordance with the United Nations Act (R.S.C., 1985, c. U-2) and its regulations.
The AMF points out, however, that these lists have no official status. Therefore, financial institutions should ensure that their activities comply with the Acts of Parliament and the official regulations published respectively in Part III and Part II of the Canada Gazette.
Monthly report on the existence of property in the possession of financial institutions
The conclusions determined by financial institutions regarding whether or not they are in possession or control of property owned by listed individuals or entities must be reported monthly to the AMF. To meet this obligation, financial institutions must submit a monthly report—duly signed by a senior officer—no later than the 14th day of each month.
The monthly report This link will open in a new window can be downloaded to a workstation and filled out directly on screen.
However, it should be noted that since March 4, 2019, financial institutions have no longer been required to report to the AMF under the following regulations adopted in accordance with the United Nations Act (R.S.C., 1985, c. U-2) and the Special Economic Measures Act (S.C. 1992, c. 17):
- United Nations Al-Qaida and Taliban Regulations, SOR/99-444
- Regulations Implementing the United Nations Resolutions on Iran, SOR/2007-44
- Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism, SOR/2001-360
- Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK), SOR/2006-287
- Special Economic Measures (Venezuela) Regulations, SOR/2017-204.
The monthly report must be filed with the AMF:
- by e-mail; or
- by fax to 418-647-4396.
The AMF also reminds financial institutions of their duty to disclose the required information without delay to the Commissioner of the Royal Canadian Mounted Police (RCMP) or to the Director of the Canadian Security Intelligence Service (CSIS) in the circumstances set out in the relevant laws and regulations. Moreover, the AMF reminds financial institutions that under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17), they are required to, among other things, report any suspicious financial transactions that occurred or were attempted in the course of their activities to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
For more information
Should you have any questions concerning the information on this page, please contact our Information Centre:
Québec City: 418-525-0337
E-mail: Request for information This link will open in a new window