E-12.000001 - Money-Services Businesses Act

À jour au 13 juillet 2018

Ce document a valeur officielle.

chapter E-12.000001

Money-Services Businesses Act

CHAPTER I SCOPE AND INTERPRETATION

1. This Act applies to any person or entity who operates a money-services business for remuneration.

The following services are considered to be money services:

(1)  currency exchange;

(2)  funds transfer;

(3)  the issue or redemption of traveller’s cheques, money orders or bank drafts;

(4)  cheque cashing; and

(5)  the operation of automated teller machines, including the leasing of a commercial space intended as a location for an automated teller machine if the lessor is responsible for keeping the machine supplied with cash.

2010, c. 40, Sch. I, s. 1.

2. This Act does not apply to the National Assembly, to the Gouvernement du Québec or any other government in Canada, to a department or an agency of those governments or to a municipality or a metropolitan community or an agency of a municipality or a metropolitan community.

Nor does it apply to persons or entities who, whether as money-services businesses or mandataries of such businesses, offer money services as part of their activities if those activities are governed by the Act respecting insurance (chapter A-32), the Act respecting financial services cooperatives (chapter C-67.3), the Derivatives Act (chapter I-14.01), the Act respecting trust companies and savings companies (chapter S-29.01), the Securities Act (chapter V-1.1), except persons or entities who are subject to that Act only as reporting issuers, the Bank Act (S.C. 1991, c. 46), the Cooperative Credit Associations Act (S.C. 1991, c. 48), the Canadian Payments Act (R.S.C. 1985, c. C-21) or the Payment Clearing and Settlement Act (S.C. 1996, c. 6, s. 162, Sch.).

2010, c. 40, Sch. I, s. 2.

CHAPTER II LICENCES

DIVISION I ISSUE

3. A person or entity operating a money-services business for remuneration must hold a licence of the appropriate class.

2010, c. 40, Sch. I, s. 3.

4. Licences of one or more of the following classes are issued by the Autorité des marchés financiers (the Authority):

(1)  currency exchange;

(2)  funds transfer;

(3)  the issue or redemption of traveller’s cheques, money orders or bank drafts;

(4)  cheque cashing; and

(5)  the operation of automated teller machines.

The lessor of a commercial space intended as a location for an automated teller machine must be licensed to operate automated teller machines if the lessor is responsible for keeping the machine supplied with cash.

2010, c. 40, Sch. I, s. 4.

5. A licence application must be filed together with the fee determined by regulation and filed by a person acting as the business’s respondent for the purposes of this Act.

The respondent must

(0.1)  be a director, officer or partner of the money-services business;

(1)  be 18 years of age or over;

(2)  not be under tutorship, curatorship or advisership;

(3)  be domiciled in Québec or have a place of business or a place of work in Québec; and

(4)  meet any other condition set by regulation.

The money-services business must give the respondent access, at the business’s head office and in all its establishments, to the information and documents needed to exercise the respondent’s functions.

The respondent for a money-services business that is not constituted under the laws of Québec and does not have its head office or an establishment in Québec need not be a director, officer or partner of the business but must be able to properly exercise a respondent’s functions with the Authority.

2010, c. 40, Sch. I, s. 5; 2013, c. 18, s. 67.

6. When filing a licence application, a money-services business must provide

(1)  a document describing its legal structure together with a list containing the name, date of birth, if applicable, domiciliary address and telephone number of each of its officers, directors or partners and branch managers, of any person or entity who directly or indirectly owns or controls the money-services business, of each of its employees working in Québec, stating the employee’s functions, and of any other person specified by regulation;

(2)  a list containing the name, date of birth, if applicable, domiciliary address and telephone number of each of its mandataries and of each of the officers of its mandataries who are responsible for the money services offered on behalf of the money-services business;

(3)  a list of the financial institutions with which it deals;

(4)  a list containing the name, date of birth, if applicable, domiciliary address and telephone number of each of its lenders other than the financial institutions referred to in subparagraph 3 and, if a lender is not a natural person, of each of its officers, directors or partners, along with the documents evidencing the loans;

(5)  its business plan, its financial statements for the last fiscal year, a list of its establishments and, if applicable, the name of its subsidiaries and the names of its parent company and all subsidiaries of its parent company; and

(6)  any other document with respect to any person specified by regulation.

The money-services business must also, for every natural person mentioned in the first paragraph, provide a copy of photo identification issued by a government or a government department or agency and showing the person’s name and date of birth.

A money-services business applying for a licence only for the class relating to the operation of automated teller machines must, for the purposes of subparagraph 1 of the first paragraph, provide information concerning only those of its employees whose functions are related to the operation of automated teller machines. The business need not provide the business plan or financial statements required under subparagraph 5 of the first paragraph.

2010, c. 40, Sch. I, s. 6.

7. When a money-services business files a licence application, the Authority sends a notice to the Sûreté du Québec and the police force in the local municipal territory where the money-services business plans to offer money services and encloses the information obtained so that the notified police forces may make such checks as they consider necessary for the purposes set out in sections 8 and 9.

2010, c. 40, Sch. I, s. 7; 2013, c. 18, s. 68.

8. Within 30 days after receiving the notice from the Authority, the Sûreté du Québec sends the Authority a security clearance report for the money-services business and for each of the persons referred to in subparagraphs 1 and 2 of the first paragraph of section 6 who exercise their functions in Québec, except employees of the money-services business whose functions are not related to the money services offered. Only one security clearance report is required for a person or entity referred to in both subparagraphs 1 and 2 of the first paragraph of section 6.

A security clearance report must also be issued for each of the lenders of the money-services business other than the financial institutions referred to in subparagraph 3 of the first paragraph of section 6, and for any other person specified by the Authority.

The security clearance report must state the grounds on which, if such is the case, a recommendation is made to refuse to issue a licence under paragraph 1 of section 11 that relate to the applicant’s moral character, or under paragraph 4 or 5 of that section or under section 13 or section 16 to the extent that those provisions do not refer to paragraph 6 of section 11 or to paragraph 1 of section 12.

2010, c. 40, Sch. I, s. 8; 2013, c. 18, s. 69.

9. Within 30 days after receiving the notice sent by the Authority, a police force may send a notice to the Authority stating the grounds on which it recommends the refusal of a licence under sections 11 to 17. The Authority sends this notice to the Sûreté du Québec.

2010, c. 40, Sch. I, s. 9; 2013, c. 18, s. 70.

10. (Repealed).

2010, c. 40, Sch. I, s. 10; 2013, c. 18, s. 71.

DIVISION II DECISIONS REGARDING LICENCES

11. The Authority refuses to issue a licence to a money-services business if it

(1)  does not meet the requirements of this Act and, in particular, is not of good moral character as determined under section 23;

(2)  has made an assignment of property or is insolvent or bankrupt;

(3)  has had its right to operate revoked by a Canadian or foreign money-services regulator in the last 10 years;

(4)  has, in the last 10 years, been convicted of an offence under Part II.1, IV, IX, X, XII or XII.2 or any of sections 467.11 to 467.13 of the Criminal Code (R.S.C. 1985, c. C-46), or an offence under the Controlled Drugs and Substances Act (S.C., 1996, c. 19), other than an offence under subsection 1 of section 4 of that Act, or an attempt or conspiracy to commit such an offence, or counselling the commission of such an offence, unless a pardon has been obtained;

(5)  has entered into a contract for the loan of money with a lender, other than a financial institution referred to in subparagraph 3 of the first paragraph of section 6, who or one of whose officers, directors or partners has, in the last 10 years, been convicted of an indictable offence in connection with the activities carried on by the lender, or an indictable offence under sections 467.11 to 467.13 of the Criminal Code, unless a pardon has been obtained; or

(6)  has, in the last 10 years, been convicted by a foreign court of an offence which, if committed in Canada, could have resulted in criminal or penal proceedings under any Part of the Criminal Code or of the Act referred to in paragraph 4, unless a pardon has been obtained.

2010, c. 40, Sch. I, s. 11; 2013, c. 18, s. 72.

12. The Authority may refuse to issue a licence to a money-services business, if the money-services business

(1)  has been convicted of an offence under this Act or an offence under any of the Acts referred to in section 7 of the Act respecting the regulation of the financial sector (chapter E-6.1) or any similar legislation of a Canadian province or territory or of another jurisdiction, a fiscal law, the Corruption of Foreign Public Officials Act (S.C. 1998, c. 34), the Excise Act, 2001 (S.C. 2002, c. 22), subsection 1 of section 4 of the Controlled Drugs and Substances Act (S.C. 1996, c. 19) or the Export and Import Permits Act (R.S.C. 1985, c. E-19), unless a pardon has been obtained;

(2)  has been refused the right to operate or has had its right to operate revoked, suspended or conditions or restrictions imposed on it by a Canadian or foreign money-services regulator; or

(3)  has entered into a contract for the loan of money with a lender, other than a financial institution referred to in subparagraph 3 of the first paragraph of section 6, who or one of whose officers, directors or partners has, in the last 10 years, been convicted of an indictable offence under a fiscal law.

2010, c. 40, Sch. I, s. 12; 2013, c. 18, s. 73; 2018, c. 23, s. 811.

13. The Authority refuses to issue a licence to a money-services business if one of its officers, directors, partners or branch managers, a person or entity who directly or indirectly owns or controls the money-services business or any other person specified by regulation, is in any of the situations described in paragraphs 1 to 4 and 6 of section 11.

2010, c. 40, Sch. I, s. 13.

14. The Authority may refuse to issue a licence to a money-services business if one of its officers, directors, partners, branch managers or any other person specified by regulation

(1)  has made an assignment of property or is an undischarged bankrupt;

(2)  is under tutorship, curatorship or advisership;

(3)  is not 18 years of age or over;

(4)  has been convicted of an offence under any of the Acts referred to in paragraph 1 of section 12, unless a pardon has been obtained;

(5)  served in any of those capacities with a money-services business in the 12 months preceding its bankruptcy and the bankruptcy occurred less than three years before the person’s appointment;

(6)  served in any of those capacities with a money-services business which, in the last three years, has been refused the right to operate or whose right to operate has, in the last three years, been revoked, suspended or made subject to conditions or restrictions by a Canadian or foreign money-services regulator; or

(7)  has served in any of those capacities with a money-services business in the 12 months preceding the cessation of its activities if, in the Authority’s opinion, the cessation is attributable to unlawful acts or practices.

2010, c. 40, Sch. I, s. 14; 2013, c. 18, s. 74, s. 84.

15. The Authority may refuse to issue a licence to a money-services business if a person or an entity who directly or indirectly owns or controls the money-services business has been convicted of an offence under any of the Acts referred to in paragraph 1 of section 12, unless a pardon has been obtained.

The same applies if that person or entity has directly or indirectly owned or controlled another money-services business in any situation described in paragraphs 5 to 7 of section 14.

2010, c. 40, Sch. I, s. 15; 2013, c. 18, s. 84.

16. The Authority may refuse to issue a licence to a money-services business if any of the following persons or mandataries is in a situation described in paragraph 4 or 6 of section 11 or in paragraph 1 of section 12:

(1)  employees of the business who work in Québec and whose functions are related to the offer of money services;

(2)  mandataries of the business;

(3)  officers of a mandatary described in subparagraph 2 who are responsible for money services offered on behalf of the business.

The Authority refuses to issue a licence if a person or a mandatary described in the first paragraph is in any of the situations described in paragraph 1 of section 11.

2010, c. 40, Sch. I, s. 16; 2013, c. 18, s. 75.

17. The Authority suspends or revokes the licence of a money-services business on a ground specified in section 11 or 13, or if a person or entity described in the first paragraph of section 16 is in any of the situations described in paragraph 1 of section 11.

Based on any other grounds specified in this Act, the Authority requests the Financial Markets Administrative Tribunal established by section 92 of the Act respecting the regulation of the financial sector (chapter E-6.1) to suspend or revoke the licence of a money-services business. The Authority may also request the Tribunal to impose an administrative penalty on the money-services business, which may not exceed $200,000 for each offence.

2010, c. 40, Sch. I, s. 17; 2013, c. 18, s. 76; 2016, c. 7, s. 179; 2018, c. 23, s. 811.

18. Before suspending or revoking a licence, the Authority may order the money-services business concerned to take the necessary corrective measures within the time the Authority specifies.

2010, c. 40, Sch. I, s. 18.

19. Before refusing to issue a licence or suspending or cancelling a licence, the Authority must notify the money-services business concerned in writing as prescribed by section 5 of the Act respecting administrative justice (chapter J-3) and allow the business at least 10 days to submit observations and provide additional documents to complete the file.

The Authority may make a decision without complying with that prior obligation if urgent action is required or to prevent irreparable harm. In such a case, the money-services business concerned may, within the time specified in the decision, submit written observations and provide additional documents to the Authority for the purposes of a review of the decision.

2010, c. 40, Sch. I, s. 19.

20. Notice of a decision relating to a licence must be given to the Agence du revenu du Québec, the Sûreté du Québec and the police force in the local municipal territory where the money-services business concerned operates.

2010, c. 40, Sch. I, s. 20; 2010, c. 31, s. 175.

21. A money-services business whose licence has been suspended by the Authority may have the suspension lifted if it takes the necessary corrective measures within the time specified by the Authority.

If the money-services business fails to take the necessary corrective measures within the time specified, the Authority must revoke the licence.

2010, c. 40, Sch. I, s. 21.

21.1. A money-services business whose licence was revoked must return the licence, and any copy of it, to the Authority within 15 days of the decision.

If a licence to operate automatic teller machines is revoked, the money-services business must remove and destroy the copy of the licence that is displayed on each of the machines it operates.

The Authority may, in cases where the licence is suspended, require that the licence and any copies be returned, or withdrawn from display.

2013, c. 18, s. 77.

CHAPTER III OBLIGATIONS OF MONEY-SERVICES BUSINESSES

DIVISION I GENERAL OBLIGATIONS

22. A money-services business must pay the fees determined by regulation.

2010, c. 40, Sch. I, s. 22.

22.1. Licence holders must display their licence or a copy of the licence so that it is clearly legible, in a conspicuous place in each establishment in which they offer money services, even through a mandatary and, in the case of licence holders licensed to operate automated teller machines, on each of the automated teller machines they operate.

2013, c. 18, s. 78.

23. A money-services business, and the persons or entities referred to in subparagraph 1, 2 or 4 of the first paragraph of section 6, must be of good moral character and show the integrity needed to carry on their activities and perform their functions.

A lack of good moral character is determined in light of such factors as the connections the persons or entities referred to in the first paragraph maintain with a criminal organization within the meaning of subsection 1 of section 467.1 of the Criminal Code (R.S.C. 1985, c. C-46) or with any other person or entity who engages in money laundering for criminal activities or in trafficking in a substance included in any of Schedules I to IV to the Controlled Drugs and Substances Act (S.C. 1996, c. 19). It is also determined in light of any other event of such a nature as to affect the validity of the licence or give the Authority cause to act under any of sections 11 to 17.

2010, c. 40, Sch. I, s. 23.

24. A money-services business must ensure that its officers, directors, partners and employees comply with this Act.

2010, c. 40, Sch. I, s. 24.

25. A money-services business must notify the Authority without delay of any change likely to affect the validity of its licence or give the Authority cause to act under any of sections 11 to 17.

2010, c. 40, Sch. I, s. 25.

26. A money-services business must inform the Authority in writing, within the time prescribed by regulation, of any change in the information that it has filed with the Authority, including any change in the lists required under section 6.

2010, c. 40, Sch. I, s. 26.

27. When informed of a fact likely to affect the validity of a money-services business’s licence or to render any of sections 11 to 17 applicable, the Authority notifies the Sûreté du Québec and the police force of the local municipality in which the business offers money services.

The Sûreté du Québec must then carry out further checks so as to provide the Authority with new security clearance reports stating the grounds on which a licence should be suspended or revoked, if that is the case.

The police force of the local municipality in which the business offers money services may also send a notice to the Authority stating the grounds for which it recommends that a licence be suspended or revoked. The Authority sends this notice to the Sûreté du Québec.

2010, c. 40, Sch. I, s. 27; 2013, c. 18, s. 79.

28. A money-services business must verify the identity of its customers and, as part of its business dealings, the identity of its other co-contracting parties, in the cases and in the manner prescribed by regulation.

2010, c. 40, Sch. I, s. 28.

29. A money-services business must maintain and update the following records and registers:

(1)  a register of the transactions it has conducted containing, among other things, customer identification information;

(2)  the records needed to identify its sources of liquidity;

(3)  an accounting register containing a balance sheet and an income statement;

(4)  a register of accounts and bank reconciliation reports;

(5)  a record containing the name, domiciliary address and telephone number, and function of each of its officers, directors, partners and employees; and

(6)  any other record or register prescribed by regulation.

The records and registers must be kept in Québec and be readily available to the Authority. If they are kept by another person, such as a mandatary or a goods or services provider, who provides a service to the money-services business, they must be available to the Authority as if they were kept at the head office or an establishment of the money-services business.

However, a money-services business whose head office is situated outside Québec may keep its records and registers outside Québec, but the information they contain must be available for inspection, in an appropriate medium, at an establishment of the money-services business in Québec or in any other place designated by the Authority, and the money-services business must provide technical assistance to facilitate inspection of the information.

The records and registers must be maintained in such a manner so as to allow auditing.

2010, c. 40, Sch. I, s. 29.

30. A money-services business must keep the customer information it has on file for six years after the information is gathered.

2010, c. 40, Sch. I, s. 30.

31. A money-services business must, in the manner prescribed by regulation, notify the Authority of a financial transaction if there is reasonable cause to believe that the transaction or its purpose constitutes an offence under this Act or may give the Authority cause to act under any of sections 11 to 16.

A money-services business who notifies the Authority under the first paragraph does not incur any civil liability as a result.

2010, c. 40, Sch. I, s. 31.

32. A money-services business or any person or entity who provides a money-services business with goods or services related to the design or operation of systems providing access to funds through automated teller machines or point-of-sale terminals for the purposes of the money-services business’s activities must, on the Authority’s request and within the time the Authority specifies, provide any information or document the Authority considers relevant for the purposes of this Act.

2010, c. 40, Sch. I, s. 32.

33. A money-services business must file with the Authority the reports, documents and statements prescribed by this Act, in the form and within the time specified by regulation.

2010, c. 40, Sch. I, s. 33.

DIVISION II CESSATION OF ACTIVITIES

34. A money-services business wishing to cease its activities must, 15 days before the projected cessation date, apply to the Authority for the withdrawal of its licence.

The Authority may impose such conditions as it may determine on the withdrawal of the licence.

2010, c. 40, Sch. I, s. 34.

35. A money-services business that ceases its activities or whose licence is revoked must hand its records, books and registers over to the Authority, which determines how it will dispose of them.

However, the records, books and registers may be disposed of otherwise with the authorization of the Authority.

The Authority notifies the Agence du revenu du Québec, the Sûreté du Québec and the police force in the local municipal territory concerned that the money-services business has ceased its activities. It must also notify them before the money-services business’s records, books and registers are disposed of.

2010, c. 40, Sch. I, s. 35; 2010, c. 31, s. 175.

CHAPTER IV FUNCTIONS AND POWERS OF AUTORITÉ DES MARCHÉS FINANCIERS

DIVISION I GENERAL PROVISIONS

36. The Authority established under section 1 of the Act respecting the regulation of the financial sector (chapter E-6.1) exercises the functions and powers assigned to it by this Act.

2010, c. 40, Sch. I, s. 36; 2018, c. 23, s. 811.

37. The Authority may, by an agreement entered into under section 33 of the Act respecting the regulation of the financial sector (chapter E-6.1), allow the communication of any personal information to facilitate the administration or enforcement of this Act, of fiscal, criminal or penal legislation or of any similar legislation outside Québec.

2010, c. 40, Sch. I, s. 37; 2018, c. 23, s. 811.

38. The Authority may, without the consent of the money-services business or the person or entity concerned, communicate any information, including personal information, to a police force if there is reasonable cause to believe that the money-services business, person or entity has committed or is about to commit a criminal or penal offence under an Act enforceable in or outside Québec in relation to this Act or against the Authority or one of its employees, and that the information is required for the purposes of the investigation.

The Authority may also, without the consent of the money-services business or the person or entity concerned, communicate any information, including personal information, to the Minister of Revenue if there is reasonable cause to believe that the money-services business, person or entity has committed or is about to commit an offence that may have an impact on the administration or enforcement of a fiscal law.

2010, c. 40, Sch. I, s. 38.

39. In a case not provided for in section 38, the Authority may, with the authorization of a judge of the Court of Québec, communicate any information, including personal information, to a police force without the consent of the person concerned.

The application for authorization must be made in writing and contain an affidavit that there is reasonable cause to believe that the information may serve to prevent, detect or repress the commission of an indictable offence that has been or is about to be committed against an Act applicable in or outside Québec.

The application and the record pertaining to the hearing are confidential. The clerk of the Court of Québec must take the necessary measures to preserve their confidentiality.

The judge to whom the application for authorization is made shall hear the application outside the presence of the person concerned and in camera. The judge may make any order to preserve the confidentiality of the application, the record and personal information. The record must be sealed and kept in a place not open to the public.

2010, c. 40, Sch. I, s. 39; I.N. 2016-01-01 (NCCP).

40. In addition to the situations described in section 41.2 or 59 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1), a police force may communicate any information to the Authority for the purposes of this Act without the consent of the money-services business, person or entity concerned if the money-services business, person or entity is a member of a criminal organization within the meaning of subsection 1 of section 467.1 of the Criminal Code (R.S.C. 1985, c. C-46) or participates or has participated in the activities of such a criminal organization, whether or not the money-services business, person or entity has been convicted in relation to such participation.

2010, c. 40, Sch. I, s. 40.

41. The Authority may apply to a judge of the Superior Court for an injunction in respect of any matter relating to this Act.

The application for an injunction is a proceeding in itself.

The procedure prescribed in the Code of Civil Procedure (chapter C-25.01) applies, except that the Authority cannot be required to give security.

2010, c. 40, Sch. I, s. 41; I.N. 2016-01-01 (NCCP).

42. The Authority may, on its own initiative and without notice, intervene in any proceeding relating to a provision of this Act.

An application by the Authority under this section is filed in the district in which the residence or principal establishment of the person or entity concerned is situated or, if the person or entity has no residence or establishment in Québec, in the district of Montréal.

2010, c. 40, Sch. I, s. 42; I.N. 2016-01-01 (NCCP).

43. The Authority may, on its own initiative or on the request of an interested person, take any steps to ensure compliance with this Act.

It may, in particular, require that the respondent of a money-services business be replaced or require changes to any document prepared under this Act.

2010, c. 40, Sch. I, s. 43.

44. The Authority may make policy statements relating to the administration of this Act.

The policy statements set out how the Authority intends to exercise its discretionary powers for the purposes of this Act.

2010, c. 40, Sch. I, s. 44.

DIVISION II INSPECTIONS AND INVESTIGATIONS

45. The Authority may, in accordance with Chapter III of Title I of the Act respecting the regulation of the financial sector (chapter E-6.1), inspect the affairs of a money-services business in order to verify compliance with this Act, or conduct an investigation into any matter relating to this Act.

In addition, the Authority may, on its own initiative or on request, conduct an investigation

(1)  to repress any contravention of the legislation adopted by another legislative authority to regulate money services; and

(2)  within the scope of an agreement entered into under the second paragraph of section 33 of the Act respecting the regulation of the financial sector.

2010, c. 40, Sch. I, s. 45; 2018, c. 23, s. 811.

46. The Authority or its appointed agent may require any person or entity or the officers, directors, partners or employees of a person or entity to submit to examination under oath.

2010, c. 40, Sch. I, s. 46.

47. No person called on to testify in the course of an investigation or being examined under oath may refuse to answer or refuse to produce a document on the grounds that the person might, by doing so, be incriminated or exposed to a penalty or to civil proceedings, subject to the Canada Evidence Act (R.S.C. 1985, c. C-5).

2010, c. 40, Sch. I, s. 47.

48. The Authority may require the communication or delivery of any document that is relevant to an investigation. It may return documents to those who provided them or otherwise decide how documents are to be disposed of.

A person who has provided documents to the Authority may inspect them or copy them at the person’s own expense, by arrangement with the Authority.

2010, c. 40, Sch. I, s. 48.

49. The Sûreté du Québec or any police force may at any reasonable hour enter an establishment of a money-services business or of one of its mandataries to verify whether the business holds a licence or to verify any other thing that may affect the validity of the licence or give the Authority cause to act under any of sections 11 to 17.

2010, c. 40, Sch. I, s. 49; 2013, c. 18, s. 81.

DIVISION III CONSERVATORY MEASURES

50. The Authority may, for the purposes or in the course of an investigation, request the Financial Markets Administrative Tribunal

(1)  to order a person or entity not to dispose of funds, securities or other property in their possession; and

(2)  to order the person or entity to refrain from withdrawing funds, securities or other property on deposit with or under the control or in the safekeeping of any other person.

Such an order is effective from the time the person or entity concerned is notified and, unless otherwise provided, remains binding for a renewable period of 12 months; it may be revoked or otherwise amended during that period.

2010, c. 40, Sch. I, s. 50; 2016, c. 7, s. 179; 2018, c. 23, s. 658.

51. The person or entity concerned must be notified at least 15 days before any hearing during which the Financial Markets Administrative Tribunal is to consider an application for the renewal of an order under this division. The Tribunal may grant the application if the person or entity concerned has not requested to be heard or has failed to establish that the reasons for the initial order have ceased to exist.

2010, c. 40, Sch. I, s. 51; 2016, c. 7, s. 179.

52. A person or entity named in an order made under this division who has put a safety deposit box at the disposal of a third person or has allowed a third person to use a safety deposit box must immediately notify the Authority.

On the Authority’s request, the person or entity must open the safety deposit box in the presence of an agent of the Authority, draw up an inventory of the contents in triplicate, and give one copy to the Authority and another to the person or entity actually or potentially under investigation.

2010, c. 40, Sch. I, s. 52.

53. An order made under this division that names a bank or financial institution applies only to the agencies or branches specified.

2010, c. 40, Sch. I, s. 53; 2013, c. 18, s. 82.

54. A person or entity directly affected by an order made under this division, if in doubt as to the application of the order to particular funds, securities or other property, may apply to the Financial Markets Administrative Tribunal for clarification; the person or entity may also apply for an amendment to or the revocation of the order.

A written notice stating the grounds for the application for amendment or revocation must be filed with the Tribunal. The notice must be served on the Authority at least 15 days before the hearing set to hear the application.

2010, c. 40, Sch. I, s. 54; 2016, c. 7, s. 179; 2018, c. 23, s. 659.

55. The Authority may publish an order made under this division in the register of personal and movable real rights.

2010, c. 40, Sch. I, s. 55.

56. In addition to any measure imposed in an order made under this division, the Financial Markets Administrative Tribunal may require the person or entity named in the order to repay to the Authority the costs incurred in connection with the inspection or investigation that established non-compliance with a provision of this Act, according to the tariff set by regulation.

2010, c. 40, Sch. I, s. 56; 2016, c. 7, s. 179.

57. The Financial Markets Administrative Tribunal may prohibit a person from acting as a director or officer of a money-services business on the grounds set out in article 329 of the Civil Code or if a penalty has been imposed on the person under this Act.

The prohibition imposed by the Financial Markets Administrative Tribunal may not exceed five years.

The Financial Markets Administrative Tribunal may, at the request of the person concerned, lift the prohibition on such conditions as it considers appropriate.

2010, c. 40, Sch. I, s. 57; 2016, c. 7, s. 179.

DIVISION IV MONEY-SERVICES BUSINESS REGISTER

58. The Authority maintains a public register of licence-holding money-services businesses containing the following information concerning each money-services business:

(1)  its name and its licence number;

(2)  the class of the licence it holds;

(3)  contact information for its head office and each of its establishments in which money services are offered; and

(4)  contact information for the establishments of the mandataries through which the money-services business offers its services.

2010, c. 40, Sch. I, s. 58; 2013, c. 18, s. 83.

59. The Authority may require that a money-services business communicate any information needed to maintain the register.

2010, c. 40, Sch. I, s. 59.

CHAPTER V REGULATORY POWERS

60. The Authority may make regulations determining

(1)  the fees and tariffs payable for any formality required by this Act and for the services provided by the Authority, and payment terms and time limits;

(2)  the form and content of licence applications;

(3)  documents and persons for the purposes of the first paragraph of section 6;

(4)  the time limit and procedure for informing the Authority of any change in the information filed with the Authority by a money-services business, including any change to the lists and other documents provided;

(5)  the nature, form and content of the books, registers and records that a money-services business must maintain and rules relating to their preservation, use and destruction;

(6)  which money-services businesses must provide security for the performance of their obligations, and the amount and form of the security;

(7)  time limits for the purposes of this Act;

(8)  the cases and manner in which the identity of a customer or a co-contracting party must be verified for the purposes of section 28;

(9)  the manner in which notification of a financial transaction is to be given for the purposes of section 31; and

(10)  the nature, form and content of the reports, documents and statements required to be filed under section 33.

2010, c. 40, Sch. I, s. 60.

61. A regulation of the Authority under this Act must be submitted for approval to the Minister, who may approve it with or without amendment.

However, a regulation of the Authority under paragraph 1 of section 60 must be submitted for approval to the Government, which may approve it with or without amendment.

A draft of a regulation referred to in the first paragraph may not be submitted for approval and the regulation may not be made before 30 days have elapsed since the publication of the draft in the Authority’s bulletin. The regulation comes into force on the date of its publication in the Gazette officielle du Québec or on any later date specified in the regulation. Sections 4 to 8, 11 and 17 to 19 of the Regulations Act (chapter R-18.1) do not apply to the regulation.

The Minister may make a regulation referred to in the first paragraph if the Authority fails to make such a regulation within the time determined by the Minister.

The Government may make a regulation referred to in the second paragraph if the Authority fails to make such a regulation within the time determined by the Government.

2010, c. 40, Sch. I, s. 61.

62. Regulatory provisions made under this chapter may vary according to the class of licence to which they apply.

2010, c. 40, Sch. I, s. 62.

CHAPTER VI MISCELLANEOUS PROHIBITIONS

63. No person may make any representation that the Authority has passed upon the merits of a money-services business or its conduct.

2010, c. 40, Sch. I, s. 63.

64. No person may represent that the person holds a licence under this Act unless the representation is true.

2010, c. 40, Sch. I, s. 64.

65. No person may act as nominee for another person or for an entity.

2010, c. 40, Sch. I, s. 65.

CHAPTER VII PENAL PROVISIONS

66. A person who

(1)  in any manner makes a misrepresentation to the Authority or another person or entity when pursuing activities governed by this Act,

(2)  hinders or attempts to hinder a person acting on behalf of the Authority,

(3)  hinders or attempts to hinder an inspector or an investigator, refuses to provide an inspector or an investigator with information or a document the inspector or investigator is entitled to require or examine, or conceals or destroys a document or property relevant to an inspection or investigation,

(4)  acts as nominee, uses the name of another person or an entity who holds a licence or uses that person’s or entity’s licence number to operate a money-services business,

(5)  contravenes a decision of the Authority or the Financial Markets Administrative Tribunal,

(6)  fails to provide information or documents required under this Act, or

(7)  fails to appear after summons, refuses to testify or refuses to communicate or deliver a document or thing required by the Authority or an appointed agent of the Authority, in the course of an investigation or inspection,

is guilty of an offence.

A person who contravenes any subparagraph of the first paragraph is liable to a fine of not less than $5,000 nor more than $50,000 in the case of a natural person and not less than $15,000 nor more than $200,000 in the case of a legal person or an entity.

2010, c. 40, Sch. I, s. 66; 2016, c. 7, s. 179.

67. A person who contravenes any of sections 3, 22 to 35 and 63 to 65 is guilty of an offence and liable to a fine of not less than $5,000 nor more than $50,000 in the case of a natural person and not less than $15,000 nor more than $200,000 in the case of a legal person or other entity.

If the offender is a money-services business whose licence has been suspended or revoked under section 17, it is liable to an additional fine of not less than $10,000 nor more than $100,000.

2010, c. 40, Sch. I, s. 67.

68. A money-services business that has entered into a contract for the loan of money with a lender, other than a financial institution, who or one of whose officers, directors or partners, in the 10 years preceding the loan, was convicted of an indictable offence in connection with the activities carried on by the lender or an indictable offence under sections 467.11 to 467.13 of the Criminal Code (R.S.C. 1985, c. C-46) is guilty of an offence and liable to a fine of not less than $15,000 nor more than $150,000 in the case of a natural person and not less than $45,000 nor more than $450,000 in the case of a legal person or other entity.

2010, c. 40, Sch. I, s. 68; 2013, c. 18, s. 84.

69. A person or entity who helps or, by encouragement, advice or consent or by an authorization or order, induces another person or entity to commit an offence under this Act is guilty of an offence.

A person or entity found guilty under this section is liable to the same penalty as prescribed for the offence committed by the other person or entity.

2010, c. 40, Sch. I, s. 69.

70. In the case of a second or subsequent offence, the minimum and maximum fines prescribed in this Act are doubled.

2010, c. 40, Sch. I, s. 70.

71. The contravention of a regulation made under this Act constitutes an offence that is subject to the same provisions as offences under this Act.

2010, c. 40, Sch. I, s. 71.

72. Penal proceedings for an offence under this Act may be instituted by the Authority.

2010, c. 40, Sch. I, s. 72.

73. When the Authority takes charge of the prosecution, the fine imposed by the court belongs to the Authority.

2010, c. 40, Sch. I, s. 73.

74. Penal proceedings for an offence under any of sections 3, 22 to 35 and 66 to 69 are prescribed five years from the date on which the investigation record relating to the offence was opened.

A certificate of the secretary of the Authority stating the date on which the investigation record was opened constitutes conclusive proof of that date in the absence of any evidence to the contrary.

2010, c. 40, Sch. I, s. 74.

75. The Authority may recover its investigation costs from any person found guilty of an offence under this Act, according to the tariff set by regulation.

The Authority prepares a statement of costs and presents it to a judge of the Court of Québec after giving the interested parties five days’ prior notice of the date of presentation.

The judge determines the costs. The judge’s decision may be appealed with leave of a judge of the Court of Appeal.

2010, c. 40, Sch. I, s. 75; I.N. 2016-01-01 (NCCP).

CHAPTER VIII ADMINISTRATION OF THE ACT

76. The costs incurred by the Government for the administration of this Act, as determined each year by the Government, are borne by the Authority.

The charges payable for the issue of a security clearance report must be determined by an agreement between the Authority and the Sûreté du Québec, as allowed under the second paragraph of section 51 of the Police Act (chapter P-13.1).

2010, c. 40, Sch. I, s. 76.

77. (Repealed).

2010, c. 40, Sch. I, s. 77; 2018, c. 23, s. 660.

78. The Authority may appoint any expert whose assistance it considers useful for the administration of this Act.

2010, c. 40, Sch. I, s. 78.

CHAPTER IX AMENDING PROVISIONS

79. (Amendment integrated into c. A-33.2, s. 93).

2010, c. 40, Sch. I, s. 79.

80. (Amendment integrated into c. A-33.2, s. 94).

2010, c. 40, Sch. I, s. 80.

81. (Amendment integrated into c. A-33.2, s. 115.1).

2010, c. 40, Sch. I, s. 81.

CHAPTER X TRANSITIONAL AND FINAL PROVISIONS

82. A person or entity who, on 1 April 2012, operates a money-services business for which a licence is required under this Act must, within six months after that date, file an application for a licence of the appropriate class in accordance with this Act. The person or entity may continue operating their money-services business until the Authority renders a decision on the licence application.

The business plan referred to in subparagraph 5 of the first paragraph of section 6 need not be submitted with the application.

2010, c. 40, Sch. I, s. 82.

To the extent that it concerns the operation of automated teller machines, this section applies as of 1 January 2013. (2010, c. 40, Sch. I, s. 86; Order in Council 151-2012 dated 29 February 2012, (2012) 144 G.O. 2, 669).

83. Not later than 1 April 2017 and subsequently every five years, the Minister must report to the Government on the carrying out of this Act and on the advisability of maintaining or amending it.

The report is tabled in the National Assembly within the next 15 days or, if the Assembly is not sitting, within 15 days of resumption.

2010, c. 40, Sch. I, s. 83.

84. The Authority is responsible for the administration of this Act.

2010, c. 40, Sch. I, s. 84.

85. The Minister of Finance is responsible for the carrying out of this Act, except sections 8 and 9, section 49 and the second paragraph of section 76, the carrying out of which is under the responsibility of the Minister of Public Security.

2010, c. 40, Sch. I, s. 85.

86. (Omitted).

2010, c. 40, Sch. I, s. 86.