Anti money laundering regulations

Anti-money-laundering regulations aimed specifically at real estate developers slated to be implemented in 2009 will require developers to comply with the record-keeping and reporting requirements found in Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. For further information see Article on page 3.

The Federal Government, through recent amendments to the Bankruptcy and Insolvency Act, appears poised to make all RRSPs, RRIFs and other similar registered savings plans (including self-directed plans) unseizable and exempt from execution. The new rules have not yet come into force, but it is anticipated that same may be proclaimed by the end of this year. SR will continue to monitor the progress of the amendments.

Commencing Apr./08, transfers of real property in Ontario require the participation of two lawyers. Exemptions to this rule include inter-family and related-company transfers, estate transfers to beneficiaries and severances where the parties are the same.

The defendants sought a Declaration that RBC had accessed the TD information in violation of their s. 8 Charter rights. In addition, they argued that the provisions of the Personal Information Protection and Electronic Documents Act (Canada) (PIPEDA) that purportedly allowed TD to share private information with RBC were inconsistent with s. 8 of the Charter.

The Court disagreed. It held that s. 8 of the Charter, which provides that everyone has the right to be secure against unreasonable search or seizure, was inapplicable as it does not apply to a private organization.

The Court then held that the intent behind the drafting of the relevant provisions of PIPEDA was not to grant  insurance companies and banks a novel power to share information between themselves for the purposes of fraud detection and prevention. Instead, these provisions served to preserve the already-existing investigative powers of these organizations.

Royal Bank of Canada v. Welton, 2008 (ON S.C.).