Canada

TECHNICAL COMPLIANCE ANNEX
Criterion 24.1— Federal legal persons: Innovation, Science and Economic Development Canada
(ISED), formerly Industry Canada, provides a comprehensive overview and comparison on its
internet homepage of the various legal entities available and their forms and basic features. All legal
entities established at the federal level are subject to registration. Given that corporations are by far
the most utilized type of legal entity in Canada, particular emphasis is put on information pertaining
to federal corporations under CBCA and their incorporation and registration process, which can be
initiated online or by sending all required documents to the competent registrar via email, fax, or
mail. 125 ISED also offers a search tool, which makes some basic information of federal companies
publicly available. The search function also indicates the legislation the corporation is incorporated
under, which in turn clarifies basic regulating powers. Provincial legal persons: Similar information
and services are provided through the homepages of all provincial governments except that of New
Brunswick. The relevant web links are easy to find through ISED’s homepage and provide public
access to the relevant provincial laws that describe the various legal entities available; the name and
contact information for the relevant authority competent for registration; and the procedures to be
followed to establish a legal entity or to register a corporation. Partnerships and foreign entities:
Partnerships and foreign entities operating in any of Canada’s provinces or territories are subject to
registration at the provincial level. The Canada Business Network maintains a homepage that
provides links to the various provincial and territorial business registries.
Criterion 24.2— The NRA identified privately held corporations as being highly vulnerable to
misuse for ML/TF purposes. The conclusion was reached based on the understanding that such
corporations can easily be established and be used to conceal beneficial ownership. The risk
assessment determines the inherent risks involved with legal persons based on factors such as the
products and services offered by legal entities, the types of persons that may establish or control a
legal person, the possible geographic reach of a Canadian legal entity, and taking into account
FINTRAC statistics on typologies involving legal entities in Canada.
Technical compliance Annex
Basic Information
Criterion 24.3— Both federal and provincial corporations, NPOs with legal personality and
cooperatives are established through incorporation by the relevant incorporating department or
agency. Federal legal persons: On the federal level, ISED, as part of the incorporation and annual filing
process, collects and publishes information comprising the corporation’s name, type, status,
corporation number, registered office address in Canada, name and address of all directors, and
governing legislation. The regulating powers for federal corporations are set out in the legislation or
in the corporation’s articles, which are approved by the Director appointed under the relevant Act.
Provincial legal persons: Company information including the corporate name, type, status, registered
office in Canada, and name and address of directors is collected through the same process as on the
federal level, which is through annual filing procedures. Partnerships and foreign entities: Business
registration requirements vary between the different provinces and territories, but usually require
the provision of the name, registered office, mailing address, place of business in the
province/territory, the date and jurisdiction of incorporation (for extraterritorial companies) or type
125 www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs04843.html#articles.
Anti-money laundering and counter-terrorist financing measures in Canada - 2016 © FATF and APG 2016
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