Life insurance

Your Obligations

The following summary of the legislative requirements under the PCMLTFA applicable to life insurance companies, brokers or independent agents. If you are a life insurance agent and an employee of a life insurance company or broker, these requirements are the responsibility of the life insurance company except with respect to reporting suspicious transactions and terrorist property, which is applicable to both.

Additional Information for Life Insurance Companies, Brokers, and Independent Agents

Reporting

Record Keeping

You must keep the following records:

See Guideline 6A: Record Keeping and Client Identification for Life Insurance Companies, Brokers, and Agents

Ascertaining Identity

You must take specific measures to identify the following individuals or entities:

See Guideline 6A: Record Keeping and Client Identification for Life Insurance Companies, Brokers, and Agents

Use of personal information

The use of personal information in Canadian commercial activities is protected by the Personal Information Protection and Electronic Documents Act (PIPEDA), or by substantially similar provincial legislation. You have to inform individuals concerning the collection of personal information about them. However, you do not have to inform individuals when you include personal information about them in any of the reports that you are required to make to FINTRAC. You can get more information about your responsibilities in this area from the following:

Business Relationship

You enter into a business relationship when you conduct two or more transactions in which you have to:

See Guideline 6A: Record Keeping and Client Identification for Life Insurance Companies, Brokers, and Agents

Politically Exposed Foreign Person

If you receive a lump-sum payment of $100,000 from an individual for an annuity or a life insurance policy, you have to take reasonable measures to determine whether you are dealing with a politically exposed foreign person. You also have to keep records and take additional measures.

See Guideline 6A: Record Keeping and Client Identification for Life Insurance Companies, Brokers, and Agents

Third Party Determination

Where a large cash transaction record is required, you must take reasonable measures to determine whether the individual is acting on behalf of a third party. In addition, where an annuity or life insurance policy is purchased and the client is required to pay $10,000 or more over the duration of the policy, you must take reasonable measures to determine whether the client is acting on behalf of a third party.

In cases where a third party is involved, you must obtain specific information about the third party and their relationship with the individual providing the cash or the client.

See Guideline 6A: Record Keeping and Client Identification for Life Insurance Companies, Brokers, and Agents

Compliance Regime

The following five elements must be included in a compliance regime:

See Guideline 4: Implementation of a Compliance Regime

Penalties for Non-compliance

Non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) Terrorist Financing Act may result in criminal or administrative penalties.

FINTRAC Interpretation Notices

FINTRAC issues FINTRAC interpretation notices (FINs) to provide technical interpretations and positions regarding certain provisions contained in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

For more information on your obligations and on FINTRAC, you can also consult our Frequently Asked Questions.

Compliance Assessment Report

Part of FINTRAC's mandate is to ensure compliance by financial intermediaries and other reporting entities with their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and regulations. To do this, we can inquire into your business and examine records, including those relating to your compliance regime.

The compliance assessment report is one of the ways that FINTRAC can inquire into your business. FINTRAC will advise you in writing when you are required to complete it.

If you have received a request from FINTRAC, you need the access code provided in that request to be able to log on to the secure Compliance Assessment Report System ( https://www22.fintrac-canafe.gc.ca/cars-srec/).

For any questions about this, please contact us by e-mail at CARS-SREC@fintrac-canafe.gc.ca. If you do so, be sure to indicate your company/organization name as well as your reporting entity sector.

Date Modified: