E-12.000001 - Money-Services Businesses Act

Updated to 13 September 2021

This document has official status.

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 Insurers Act (chapter A-32.1), the Act respecting financial services cooperatives (chapter C-67.3), the Derivatives Act (chapter I-14.01), the Trust Companies and Savings Companies Act (chapter S-29.02), 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; 2018, c. 23, s. 811.

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 Minister:

(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; 2020, c. 5, s. 73.

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 Minister.

2010, c. 40, Sch. I, s. 5; 2013, c. 18, s. 67; 2020, c. 5, s. 73.

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 Minister 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; 2020, c. 5, s. 73.

8. Within 30 days after receiving the notice from the Minister, the Sûreté du Québec sends the Minister 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 Minister.

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; 2020, c. 5, s. 73.

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

2010, c. 40, Sch. I, s. 9; 2013, c. 18, s. 70; 2020, c. 5, s. 73.

10. (Repealed).

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

DIVISION II DECISIONS REGARDING LICENCES

11. The Minister 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; 2020, c. 5, s. 73.

12. The Minister 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;

(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;

(4)  has repeatedly failed to send a return or a report in the manner and within the time provided for by a fiscal law or a regulation under a fiscal law;

(5)  has repeatedly failed to deduct, withhold or collect an amount that it was required to deduct, withhold or collect under a fiscal law;

(6)  has repeatedly failed to pay an amount owed under this Act or a fiscal law;

(7)  has repeatedly failed to comply with an agreement entered into for the payment of an amount owed under this Act or a fiscal law;

(8)  is liable to a penalty under section 1079.13.1 or 1079.13.2 of the Taxation Act (chapter I-3) in relation to an assessment in respect of which any time limit for objecting has expired or, if the business validly objected to the assessment or appealed from the assessment to a court of competent jurisdiction, in respect of which the objection or appeal, as the case may be, is finally settled; or

(9)  has repeatedly evaded or attempted to evade compliance with this Act or a fiscal law in the course of its business.

2010, c. 40, Sch. I, s. 12; 2013, c. 18, s. 73; 2018, c. 23, s. 811; 2020, c. 5, s. 38.

12.1. The Minister may refuse to issue a licence to a money-services business,

(1)  if the business’ activities are incommensurate with its legal sources of financing;

(2)  if a reasonable person would conclude that the business is lending its name to, or is the extension of, another business that would be unable to obtain a licence under this Act; or

(3)  if the business’ structure enables it to evade the application of this Act or of a fiscal law.

2020, c. 5, s. 39.

13. The Minister 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; 2020, c. 5, s. 73.

14. The Minister 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;

(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 Minister’s opinion, the cessation is attributable to unlawful acts or practices; or

(8)  is in any of the situations described in paragraphs 4 to 9 of section 12.

2010, c. 40, Sch. I, s. 14; 2013, c. 18, s. 74, s. 84; 2020, c. 5, s. 40.

15. The Minister 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

(1)  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; or

(2)  is in any of the situations described in paragraphs 4 to 9 of section 12.

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; 2020, c. 5, s. 41.

16. The Minister 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 Minister 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; 2020, c. 5, s. 73.

17. The Minister 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.

The Minister may suspend or revoke the licence of a money-services business on a ground specified in any of sections 12, 12.1, 14 and 15 or in the first paragraph of section 16 or if the business does not comply with an obligation provided for in Chapter III.

2010, c. 40, Sch. I, s. 17; 2013, c. 18, s. 76; 2016, c. 7, s. 179; 2018, c. 23, s. 811; 2020, c. 5, s. 42.

18. Before suspending or revoking a licence or before imposing a monetary administrative penalty, the Minister may order the money-services business concerned to take the necessary corrective measures within the time the Minister specifies.

2010, c. 40, Sch. I, s. 18; 2020, c. 5, s. 43.

19. Before refusing to issue a licence or suspending or cancelling a licence, the Minister 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 Minister 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 Minister for the purposes of a review of the decision.

2010, c. 40, Sch. I, s. 19; 2020, c. 5, s. 44.

20. Notice of a decision relating to a licence must be given to 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; 2020, c. 5, s. 45.

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

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

2010, c. 40, Sch. I, s. 21; 2020, c. 5, s. 73.

21.1. A money-services business whose licence was revoked must return the licence, and any copy of it, to the Minister 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 Minister 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; 2020, c. 5, s. 73.

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 Minister cause to act under any of sections 11 to 17.

2010, c. 40, Sch. I, s. 23; 2020, c. 5, s. 73.

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 Minister without delay of any change likely to affect the validity of its licence or give the Minister cause to act under any of sections 11 to 17.

2010, c. 40, Sch. I, s. 25; 2020, c. 5, s. 73.

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

2010, c. 40, Sch. I, s. 26; 2020, c. 5, s. 73.

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 Minister 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 Minister 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 Minister stating the grounds for which it recommends that a licence be suspended or revoked. The Minister sends this notice to the Sûreté du Québec.

2010, c. 40, Sch. I, s. 27; 2013, c. 18, s. 79; 2020, c. 5, s. 73.

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.

28.1. A money-services business must hold, in its own name, a bank account with a financial institution.

2020, c. 5, s. 46.

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 Minister. 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 Minister 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 Minister, 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; 2020, c. 5, s. 73.

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 Minister 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 Minister cause to act under any of sections 11 to 16.

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

2010, c. 40, Sch. I, s. 31; 2020, c. 5, s. 73.

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 Minister’s request and within the time the Minister specifies, provide any information or document the Minister considers relevant for the purposes of this Act.

2010, c. 40, Sch. I, s. 32; 2020, c. 5, s. 73.

33. A money-services business must file with the Minister 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; 2020, c. 5, s. 73.

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 Minister for the withdrawal of its licence.

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

2010, c. 40, Sch. I, s. 34; 2020, c. 5, s. 73.

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

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

The Minister notifies the Sûreté du Québec and the police force in the local municipal territory concerned that the money-services business has ceased its activities. The Minister 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; 2020, c. 5, s. 47.

CHAPTER IV FUNCTIONS AND POWERS OF THE MINISTER OF REVENUE

2010, c. 40, Sch. I, c. IV; 2020, c. 5, s. 48.

DIVISION I GENERAL PROVISIONS

36. (Repealed).

2010, c. 40, Sch. I, s. 36; 2018, c. 23, s. 811; 2020, c. 5, s. 49.

37. The Minister may, in accordance with the applicable legislative provisions, enter into an agreement with a government other than the Gouvernement du Québec, a department of such a government, an international organization, or a body of such a government or organization or into an agreement with a person or body in or outside Québec to facilitate the administration or enforcement of this Act, of fiscal, criminal or penal legislation or of any similar legislation outside Québec.

For the purposes of that agreement, personal information may be communicated.

2010, c. 40, Sch. I, s. 37; 2018, c. 23, s. 811; 2020, c. 5, s. 50.

38. Any information, including personal information, may be communicated without the consent of the money-services business or the person or entity concerned to a police force if an employee of the Agence du revenu du Québec has 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 Agence du revenu du Québec or one of its employees, and that the information is required for the purposes of the investigation.

2010, c. 40, Sch. I, s. 38; 2020, c. 5, s. 50.

39. In a case not provided for in section 38, an employee of the Agence du revenu du Québec authorized by regulation 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); 2020, c. 5, s. 51.

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 to an employee authorized in accordance with section 39 any information 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; 2020, c. 5, s. 52.

41. The Minister 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 Minister cannot be required to give security.

2010, c. 40, Sch. I, s. 41; I.N. 2016-01-01 (NCCP); 2020, c. 5, s. 73.

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

An application by the Minister 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); 2020, c. 5, s. 73.

43. The Minister 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; 2020, c. 5, s. 73.

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

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

2010, c. 40, Sch. I, s. 44; 2020, c. 5, s. 73.

DIVISION II INSPECTIONS AND INVESTIGATIONS

45. The inspections and investigations relating to the provisions of this Act, which come under the responsibility of the Minister of Revenue, are conducted in accordance with Division VI of Chapter III of the Tax Administration Act (chapter A-6.002); for that purpose, those provisions are deemed to be a fiscal law.

2010, c. 40, Sch. I, s. 45; 2018, c. 23, s. 811; 2020, c. 5, s. 53.

46. (Repealed).

2010, c. 40, Sch. I, s. 46; 2020, c. 5, s. 54.

47. (Repealed).

2010, c. 40, Sch. I, s. 47; 2020, c. 5, s. 54.

48. (Repealed).

2010, c. 40, Sch. I, s. 48; 2020, c. 5, s. 54.

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 Minister cause to act under any of sections 11 to 17.

2010, c. 40, Sch. I, s. 49; 2013, c. 18, s. 81; 2020, c. 5, s. 73.

DIVISION III CONSERVATORY MEASURES

50. The Minister may, for the purposes or in the course of an investigation, make an ex parte application to a judge of the Court of Québec acting in chambers

(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; 2020, c. 5, s. 55.

51. The person or entity concerned must be notified at least 15 days before any hearing during which a judge of the Court of Québec is to consider an application for the renewal of an order under this division. The judge 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; 2020, c. 5, s. 56.

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 Minister.

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

On request, the person authorized by the Minister must identify himself or herself and show the document signed by the Minister attesting the person’s capacity.

2010, c. 40, Sch. I, s. 52; 2020, c. 5, s. 57.

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 a judge of the Court of Québec 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 at the office of the Court of Québec. The notice must be served on the Minister 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; 2020, c. 5, s. 58.

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

2010, c. 40, Sch. I, s. 55; 2020, c. 5, s. 73.

56. (Repealed).

2010, c. 40, Sch. I, s. 56; 2016, c. 7, s. 179; 2020, c. 5, s. 59.

57. The court may, at the Minister’s request, 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 court may not exceed five years.

The court 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; 2020, c. 5, s. 60.

DIVISION IV MONEY-SERVICES BUSINESS REGISTER

58. The Minister 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; 2020, c. 5, s. 73.

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

2010, c. 40, Sch. I, s. 59; 2020, c. 5, s. 73.

CHAPTER V REGULATORY POWERS

60. The Minister may make regulations determining

(1)  (paragraph repealed);

(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 Minister of any change in the information filed with the Minister 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;

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

(11)  which persons are authorized to communicate information for the purposes of section 39.

2010, c. 40, Sch. I, s. 60; 2020, c. 5, s. 61.

60.1. The Government may make regulations determining the fees and tariffs payable for any formality required by this Act or for the services provided by the Minister, and payment terms and time limits.

2020, c. 5, s. 62.

61. (Repealed).

2010, c. 40, Sch. I, s. 61; 2020, c. 5, s. 63.

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 Minister has passed upon the merits of a money-services business or its conduct.

2010, c. 40, Sch. I, s. 63; 2020, c. 5, s. 73.

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 VI.1 MONETARY ADMINISTRATIVE PENALTIES

2020, c. 5, s. 64.

DIVISION I FAILURE TO COMPLY

2020, c. 5, s. 64.

65.1. A monetary administrative penalty of $500 in the case of a natural person or $1,500 in any other case may be imposed on a money-services business that, in contravention of

(1)  section 22, does not pay the fees determined by regulation;

(2)  section 22.1, does not display its licence or a copy of its licence in the manner provided for in that section;

(3)  section 26, has failed to inform the Minister of any change in the information already filed to obtain a licence;

(4)  section 28, does not verify the identity of its customers or co-contracting parties;

(5)  the first paragraph of section 29, does not maintain and update its records and registers;

(6)  the second paragraph of section 29, does not make its records and registers available to the Minister;

(7)  the third paragraph of section 29, does not provide the Minister with technical assistance to facilitate the Minister’s inspection of the information contained in its records and registers;

(8)  section 30, does not keep the customer information it has on file for six years after the information is gathered;

(9)  section 32, fails to provide, within the specified time, any information or document requested by the Minister;

(10)  the first paragraph of section 34, does not notify the Minister of the cessation of its activities;

(11)  the second paragraph of section 34, does not comply with the conditions determined by the Minister;

(12)  section 35, has failed to hand its records, books and registers over to the Minister; or

(13)  section 16 of the Regulation under the Money-Services Businesses Act (chapter E-12.000001, r. 1), does not keep the information on its co-contracting parties for six years after such information is gathered.

2020, c. 5, s. 64.

65.2. The imposition of a monetary administrative penalty is prescribed by two years from the date of the failure to comply.

2020, c. 5, s. 64.

65.3. If a failure to comply for which a monetary administrative penalty may be imposed continues for more than one day, it constitutes a new failure for each day it continues.

2020, c. 5, s. 64.

DIVISION II NOTICE OF NON-COMPLIANCE AND IMPOSITION

2020, c. 5, s. 64.

65.4. Where the Minister ascertains that a failure to comply with a provision of this Act or the regulations has occurred, a notice of non-compliance may be notified to the money-services business urging that the necessary measures be taken immediately to remedy the failure to comply.

Such a notice must mention that the failure to comply may give rise to a monetary administrative penalty.

2020, c. 5, s. 64.

65.5. A monetary administrative penalty for a failure to comply with a provision of this Act or the regulations may not be imposed on a money-services business if a statement of offence has already been served because of a contravention of the same provision, based on the same facts.

2020, c. 5, s. 64.

65.6. A monetary administrative penalty is imposed on a money-services business by the notification of a notice of claim.

The notice must state

(1)  the amount of the claim;

(2)  the reasons for it;

(3)  the time from which it bears interest;

(4)  the right, under section 65.7, to obtain a review of the decision to impose the penalty and the time limit for exercising that right; and

(5)  the right to contest the review decision before the Administrative Tribunal of Québec and the time limit for bringing such a proceeding.

The notice must also include information on the procedure for recovery of the amount claimed. The money-services business must also be informed that failure to pay the amount owing may give rise to the suspension or revocation of its licence and, if applicable, that the facts on which the claim is founded may result in penal proceedings.

Unless otherwise provided, the amount owing bears interest at the rate determined under the first paragraph of section 28 of the Tax Administration Act (chapter A-6.002), from the 31st day after notification of the notice.

2020, c. 5, s. 64.

DIVISION III REVIEW

2020, c. 5, s. 64.

65.7. A money-services business may apply in writing to the Minister for a review of the decision to impose a monetary administrative penalty within 30 days after notification of the notice of claim.

The persons responsible for the review are designated by the Minister. They must not come under the same administrative authority as the persons responsible for imposing such penalties.

2020, c. 5, s. 64.

65.8. The application for review must be dealt with promptly. After giving the applicant an opportunity to submit observations and produce any documents to complete the record, the person responsible for the review renders a decision on the basis of the record, unless the person deems it necessary to proceed in some other manner.

2020, c. 5, s. 64.

65.9. The review decision must be written in clear and concise terms, with reasons given, must be notified to the applicant and must state the applicant’s right to contest the decision before the Administrative Tribunal of Québec and the time limit for bringing such a proceeding.

If the review decision is not rendered within 30 days after receipt of the application or, if applicable, within the time granted to the applicant to submit observations or produce documents, the interest provided for in the fourth paragraph of section 65.6 on the amount owing ceases to accrue until the decision is rendered.

2020, c. 5, s. 64.

65.10. A review decision that confirms the imposition of a monetary administrative penalty may be contested before the Administrative Tribunal of Québec within 60 days after notification of the review decision.

The Tribunal may only confirm or quash a contested decision.

When rendering its decision, the Tribunal may make a ruling with respect to interest accrued on the penalty while the matter was pending before it.

2020, c. 5, s. 64.

DIVISION IV RECOVERY

2020, c. 5, s. 64.

65.11. The debtor and the Minister may enter into a payment agreement with regard to the monetary administrative penalty owing. Such an agreement, or the payment of the amount owing, does not constitute, for the purposes of penal proceedings and any other administrative penalty under this Act, an acknowledgement of the facts giving rise to it.

2020, c. 5, s. 64.

65.12. If the monetary administrative penalty owing is not paid in its entirety or the agreement entered into for that purpose is not complied with, the Minister may issue a recovery certificate on the expiry of the time for applying for a review of the decision to impose the penalty, on the expiry of the time for contesting the review decision before the Administrative Tribunal of Québec or on the expiry of 30 days after the decision of the Tribunal confirming all or part of the decision to impose the penalty or the review decision, as applicable.

However, a recovery certificate may be issued before the expiry of the time referred to in the first paragraph if the Minister is of the opinion that the money-services business is attempting to evade payment.

2020, c. 5, s. 64.

65.13. On the filing of the recovery certificate at the office of the competent court, together with a copy of the final decision stating the amount of the debt, the decision becomes enforceable as if it were a final judgment of that court not subject to appeal, and has all the effects of such a judgment and, for that purpose, section 13.1 of the Tax Administration Act (chapter A-6.002) applies, with the necessary modifications, for the enforcement of the decision.

2020, c. 5, s. 64.

CHAPTER VII PENAL PROVISIONS

66. A person who

(1)  in any manner makes a misrepresentation to the Minister 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 Minister under this Act,

(3)  hinders or attempts to hinder an inspector or an investigator in the performance of duties under this Act, 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,

(3.1)  uses a nominee to obtain a licence for the purposes of this Act,

(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 Minister or of a court under this Act,

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

(7)  (subparagraph repealed).

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; 2020, c. 5, s. 65.

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. Division IX of Chapter III of the Tax Administration Act (chapter A-6.002) applies to penal proceedings for an offence under a provision of this Act and, for that purpose, those provisions are deemed to be a fiscal law.

2010, c. 40, Sch. I, s. 72; 2020, c. 5, s. 66.

73. (Repealed).

2010, c. 40, Sch. I, s. 73; 2020, c. 5, s. 67.

74. (Repealed).

2010, c. 40, Sch. I, s. 74; 2020, c. 5, s. 67.

75. (Repealed).

2010, c. 40, Sch. I, s. 75; I.N. 2016-01-01 (NCCP); 2020, c. 5, s. 67.

CHAPTER VIII ADMINISTRATION OF THE ACT

76. The charges payable for the issue of a security clearance report must be determined by an agreement between the Minister 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; 2020, c. 5, s. 68.

77. (Repealed).

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

78. (Repealed).

2010, c. 40, Sch. I, s. 78; 2020, c. 5, s. 69.

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 FINAL PROVISIONS

2010, c. 40, Sch. I, c. X; 2020, c. 5, s. 70.

82. (Repealed).

2010, c. 40, Sch. I, s. 82; 2020, c. 5, s. 71.

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. (Repealed).

2010, c. 40, Sch. I, s. 84; 2020, c. 5, s. 71.

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

2010, c. 40, Sch. I, s. 85; 2020, c. 5, s. 72.

86. (Omitted).

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