Anti-Terrorism/Money Laundering Update
Oct 2018 Charity & NFP Law Update
FATF Plenary Prioritizes Virtual Assets
The first Plenary meeting of the 2018-2019 Financial Action Task Force (“FATF”) took place in Paris from October 17 to October 19, 2018. The Plenary meeting follows the stated objectives of the incoming president of the FATF, the US Department of the Treasury’s Assistant Secretary, with regard to prioritizing how the FATF standards apply to virtual currency providers and related businesses.
In this regard, while recognizing that virtual assets and related financial services have the potential to improve financial inclusion, which is of concern to charities and not-for-profits operating in certain parts of the world with inadequate financial services infrastructure, the Plenary released a Statement indicating how the FATF will provide clarification to its various member states in managing the money laundering and terrorist financing risks of virtual assets.
The Statement explains that the FATF has adopted changes to its FATF Recommendations and Glossary by adding new definitions of “virtual assets” and “virtual asset service providers” (“VASP’s”) that clarify how the FATF Recommendations apply in case of financial activities involving virtual assets, including crypto currencies. “Virtual assets” refer to “digital representations of value that can be digitally traded or transferred and can be used for payment or investment purposes, including digital representations of value that function as a medium of exchange, a unit of account, and/or a store of value”, and VASP’s refer to cryptocurrency exchanges, certain types of wallet providers, and providers of financial services for Initial Coin Offerings.
The Statement further encourages member states to take urgent legal and practical steps to prevent the misuse of virtual assets and clarify that FATF recommendations require monitoring and supervision only for purposes of anti-money laundering and counter-terrorism financing.
Managing Cannabis in the Workplace in Ontario
Oct 2018 Charity & NFP Law Update>
On October 17, 2018, federal Bill C-45, the Cannabis Act (the “Federal Act”), came into force as proclaimed by Order in Council, after having received Royal Assent on June 21, 2018. Each province and territory has its own legislation to regulate the recreational use of cannabis in their respective jurisdiction, similar to each province’s authority to regulate the sale of alcohol. This Charity & NFP Law Bulletin provides a brief overview of the relevant federal and Ontario legislation with a focus on its impact on the workplace. Charities and not-for-profits, as employers, need to be aware of their legal rights, as well as obligations under the new legislative regime and develop or modify their workplace policies accordingly.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 431.
New Toronto Office Opening
Oct 2018 Charity & NFP Law Update
Carters is pleased to announce the opening of its new Toronto office on November 30, 2018 to support its growing team in providing expanded services for our clients in Toronto. The new office is located at 67 Yonge Street, Suite 1402, Toronto, Ontario.
Corporate Update
Oct 2018 Charity & NFP Law Update
New Online Service for Not-For-Profit Corporations
On October 4, 2018, Corporations Canada announced that it is now possible to obtain a certificate of compliance or a certificate of existence for a not-for-profit incorporated under the Canada Not-for-profit Corporations Act (“CNCA”) through Corporation Canada’s Online Filing Centre. These certificates are often required by third parties to evidence that a corporation exists and has not been dissolved. A certificate of compliance shows that the corporation exists under the CNCA, it has not been dissolved or amalgamated into another corporation, or continued under another corporate statute, has filed the required annual returns with Corporations Canada and paid all required fees. A certificate of existence shows that the corporation exists (i.e., it is not dissolved, amalgamated or discontinued) as of a specified date or for a specified period, but does not certify whether the corporation has filed its annual returns or paid all required fees to Corporations Canada. Additional information is available on the Corporations Canada webpage Obtaining a certificate of compliance or certificate of existence.
New Services for Cooperatives
Also on October 4, 2018, Corporations Canada introduced its new “Annual Return Notification Program for Cooperatives”, whereby cooperatives will be mailed a reminder to file their annual return.
Corporations Canada also announced the recent creation of two new webpages providing information for cooperatives. The webpage, Your reporting obligations under the Canada Cooperatives Act, explains reporting obligations to keep a cooperative in good standing, including filing annual returns, changes to the address of the registered office, changes to the board of directors, and articles of amendment. The webpage, Guide on dissolving a cooperative, provides information on how to prepare a request to dissolve a cooperative, as well as information regarding the effect of dissolution on the property and liabilities of the cooperative.