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Life insurance companies, brokers and agents

Life insurance companies, brokers and agents must fulfill specific obligations as required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations, to help combat money laundering and terrorist activity financing in Canada.

For the purpose of the PCMLTFA and associated Regulations, a life insurance company is a life company or foreign life company to which the Insurance Companies Act applies or a life insurance company regulated by a provincial Act. A life insurance broker or agent is a person or entity that is authorized under provincial legislation to carry on the business of arranging contracts of life insurance.

If you are a life insurance company, or an entity that is a life insurance broker or agent, that offers loans or prepaid payment products to the public, or maintains related loan or prepaid payment product accounts, you are considered to be a financial entity for those activities. This does not include:

You can find more information about financial entity obligations on the main financial entity webpage.

Life insurance companies, brokers and agents, described above, are responsible for the following requirements under the PCMLTFA and associated Regulations.

If you are a life insurance broker or agent that is acting as a managing general agent (MGA), you are not subject to these requirements.

If you are a life insurance agent and an employee of a life insurance company or broker, these obligations are the responsibility of the life insurance company, except with respect to reporting suspicious transactions, which is applicable to both you and your employer.

Summary of requirements for life insurance companies, brokers and agents

Compliance program

Life insurance companies, brokers or agents must implement a compliance program. A strong compliance program will form the basis of meeting all your regulatory requirements.

Know your client

Life insurance companies, brokers or agents must verify the identity of persons and entities for certain activities and transactions, and carry out other customer due diligence activities, as described below:

When to verify the identity of persons and entities

Life insurance companies, brokers or agents must verify the identity of persons or entities for certain transactions and activities.

Methods to verify the identity of persons and entities

Life insurance companies, brokers or agents must verify the identity of persons and entities using the methods prescribed by the PCMLTFA and associated Regulations.


Business relationship requirements

Life insurance companies, brokers or agents enter into a business relationship with a client the second time they are required to verify the identity of that client.


Ongoing monitoring requirements

Life insurance companies, brokers or agents have ongoing monitoring requirements when they enter into a business relationship with a client.


Beneficial ownership requirements

Life insurance companies, brokers or agents must obtain and take reasonable measures to confirm the accuracy of beneficial ownership information for entities.


Third party determination requirements

Life insurance companies, brokers or agents have third party determination requirements when they are required to submit certain reports and keep certain records.


Politically exposed persons (PEP) and heads of international organizations (HIO) requirements

Life insurance companies, brokers or agents are required to take reasonable measures to make PEP and HIO determinations for certain activities or transactions. If a life insurance company, broker or agent determines that a person is a PEP or a HIO then they have additional related requirements.

Transaction reporting

Life insurance companies, brokers or agents must submit the following reports to FINTRAC:


Terrorist Property Reports


Large Cash Transaction Reports 


Large Virtual Currency Transaction Reports


24-hour rule

Life insurance companies, brokers or agents have 24-hour rule requirements for Large Cash Transaction Reports and Large Virtual Currency Transaction Reports.

Record keeping

Life insurance companies, brokers or agents must keep certain records, including records related to transactions and client identification.

Foreign branches, foreign subsidiaries and affiliates

Life insurance companies, brokers or agents have foreign branches, foreign subsidiary, and affiliate requirements.

Ministerial directives

Ministerial directive requirements apply to all reporting entity sectors.

Penalties for non-compliance

FINTRAC has the legislative authority to issue administrative monetary penalties (AMPs) to reporting entities that are found to be non-compliant with the PCMLTFA and associated Regulations. For more information, see Penalties for non-compliance.

Glossary

The FINTRAC Guidance glossary includes terminology defined in the PCMLTFA and associated Regulations, as well as terms used throughout the guidance. For more information, see FINTRAC's Guidance Glossary.

Date Modified: