Canada

TECHNICAL COMPLIANCE ANNEX
birth certificate, driver’s license, passport, or other similar document. For corporations, the
corporation’s existence is confirmed, and the names and addresses of its directors ascertained, by
reference to its certificate of corporate status. However, other methods are acceptable, e.g. a record
that it is required to file annually under applicable provincial securities legislation, or any other
record that validates its existence as a corporation. The existence of an entity other than a
corporation must be confirmed by reference to a partnership agreement, articles of association, or
other similar record that ascertains its existence. These legal provisions meet the FATF standard.
Criterion 10.4— The “Third Party Determination” provisions of the PCMLTFR require FIs to
determine whether their customers are acting on behalf of another person or entity. Where an
account is to be used by or on behalf of a third party, the FI must collect CDD information on that
third party and establish the nature of the relationship between third party and account holder.
Criterion 10.5— PCMLTFR s.11.1(1) requires FIs, at the time the entity’s existence is confirmed, to
obtain the following information:
Technical compliance Annex
For corporations, the name of all directors of the corporation and the name and address of all
persons who own or control, directly or indirectly, 25% or more of the shares of the corporation;
For trusts, the names and addresses of all trustees and all known beneficiaries and settlors of the
trust;
For entities other than corporations or trusts (typically, a partnership fund or unincorporated
association or organization), the name and address of all persons who own, directly or indirectly,
25% or more of the shares of the entity; and
In all cases, information establishing the ownership, control, and structure of the entity.
Under the PCMLTFR, s.11.1(2), REs further need to “take reasonable measures to confirm the
accuracy of the information obtained” on beneficial ownership. This requirement implies the need to
use reliable sources to obtain the requisite information and the FATF standard 108 allows
identification data to be obtained “from a public register, from the customer, or from other reliable
sources.” Also, OSFI Guideline B-8 usefully indicates that “reasonable measures” to identify ultimate
beneficial owners could include not only requesting relevant information from the entity concerned,
but also consulting a credible public or other database or a combination of both. This Guideline also
makes clear that the measures applied should be “commensurate with the level of assessed risk.”
No specific legal provisions cover beneficial ownership of personal accounts. However, the
PCMLTFR, in effect, establish beneficial ownership of personal accounts: in particular, s.9 requires
REs to determine whether personal accounts are being used on behalf of a third party and, for
personal accounts in joint names, all authorized signatories are subject to CDD measures.
108 FATF (2013), Methodology for assessing technical compliance with the FATF Recommendations and the
effectiveness of AML/CFT systems, p. 147,
www.fatf-gafi.org/media/fatf/documents/methodology/FATF%20Methodology%2022%20Feb%202013.pdf
140
Anti-money laundering and counter-terrorist financing measures in Canada - 2016 © FATF and APG 2016