Canada

TECHNICAL COMPLIANCE ANNEX
In addition, trust companies are required when acting as trustee of a trust (ss.55 (a)-(c)) to (i) of the
PCMLTFR) to ascertain the identity of every person who is the settlor of an inter vivos trust:
(ii) confirm the existence of, and ascertain the name and address of, every corporation that is the
settlor of an institutional trust; and (iii) confirm the existence of every entity, other than a
corporation, that is the settlor of an institutional trust. Under the Regulations (s.55 (d)), where an
entity is authorized to act as a co-trustee of any trust, the trust company must (i) confirm the
existence of the entity and ascertain its name and address; and (ii) ascertain the identity of all
persons—up to three—who are authorized to give instructions with respect to the entity’s activities
as co-trustee. Finally, under the Regulations (s.55 (e)), trust companies must ascertain the identity of
each person who is authorized to act as co-trustee of any trust. However, as natural persons who are
trustees are not REs under the PCMLTFA, they are not subject to CDD obligations.
PCMLTFR ss 11 (a)-(b) require trust companies, for inter vivos trusts, to (i) keep a record that sets
out the name and address of each of the beneficiaries that are known at the time that the trust
company becomes a trustee for the trust; (ii) if the beneficiary is a natural person, record their date
of birth and the nature of their principal business or their occupation; and (iii) if the beneficiary is an
entity, the nature of their principal business.
Technical compliance Annex
Criterion 10.10— The legal requirements for obtaining information on beneficial owners of
customers that are legal persons are set out under c.10.5 above.
REs must confirm the existence of a corporation or non-corporate legal entity at the opening of an
account or when conducting certain transactions. At the same time, they must obtain information
about the entity's beneficial ownership and confirm its accuracy. Beneficial ownership refers to the
identity of the individuals who ultimately control the corporation or entity, which extends beyond
another corporation or another entity. The PCMLTFR requirements for corporations and other
entities refer to “persons.” PCMLTFA, s.2 defines “person” to mean an individual, which therefore
requires the natural person to be identified. If the RE has doubts about whether the person with the
controlling ownership interest is the beneficial owner, then it is deemed to have been unable to
obtain the information referred to under PCMLTFR, s.11.1(1) or to have been unable to confirm that
information in accordance with PCMLTFR, s.11.1(2). In this case, the RE is required, under PCMLTFR
s.11.1(4), to: take reasonable measures to ascertain the identity of the most senior managing officer
of the entity; treat that entity as high risk for the purpose of PCMLTFA, s.9.6(3) and apply the
prescribed special measures set out in PMCLTFR, s.71.1. Where no individual ultimately owns or
controls 25% or more of an entity, directly or indirectly, REs must nevertheless record the measures
they took, and the information they obtained, in order to reach that conclusion. Also, REs must
comply with PCMLTFR, s.11.1(1)(d), which requires that information “establishing the ownership,
control and structure of the entity” be obtained.
Criterion 10.11— The legal requirements for collecting information on the identity of beneficial
owners of customers that are legal arrangements are set out under c.10.5 and 10.9 above. It is
unclear, in the case of trusts, what identification requirements apply to protectors. Beneficiaries of
trusts are covered by the ongoing monitoring provisions of s. 1(2) of the Regulations, which require
that client identification information and information be kept up to date.
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