Money-Services Businesses User Guide Licence application - Autorité des marchés ...

 
Money-Services Businesses User Guide Licence application - Autorité des marchés ...
Money-Services Businesses User Guide
(Money services and ATM operators)

Licence application
January 2019

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Money-Services Businesses User Guide Licence application - Autorité des marchés ...
INTRODUCTION .............................................................................................................. 3
WHO SHOULD USE THIS GUIDE? ............................................................................................ 3
STEP 1: COMPLETE AND SUBMIT THE LICENCE APPLICATION FORM TO
         THE AMF ........................................................................................................ 5
WHERE TO FIND THE APPLICATION FORM ............................................................................. 5
WHERE TO SEND THE APPLICATION FORM ............................................................................ 5
NEXT STEPS .......................................................................................................................... 5
STEP 2: REGISTER FOR AMF E-SERVICES ............................................................. 6
STEP 3: DISCLOSE BUSINESS RELATIONSHIPS .................................................... 7
WHAT TO DISCLOSE ............................................................................................................ 10
HOW TO DISCLOSE A RELATIONSHIP ................................................................................... 11
   DIRECTOR, PARTNER (ENTITY) OR PARTNER (PERSON) .............................................................................. 11
   OFFICER OF MONEY-SERVICES BUSINESS ..................................................................................................... 15
   OWNS OR CONTROLS BUSINESS (ENTITY OR PERSON) .................................................................................. 17
   ESTABLISHMENT/BRANCH ............................................................................................................................ 19
   BRANCH MANAGER ........................................................................................................................................ 22
   EMPLOYEE WITH MONEY-SERVICES FUNCTIONS.......................................................................................... 23
   EMPLOYEE WITH NO MONEY SERVICES FUNCTIONS..................................................................................... 25
   FINANCIAL INSTITUTION ............................................................................................................................... 26
   LENDER (ENTITY OR PERSON) ....................................................................................................................... 28
   OFFICER, DIRECTOR OR PARTNER OF A LENDER (ENTITY) .......................................................................... 30
   MANDATARY (ENTITY OR PERSON) ............................................................................................................... 31
   MANDATARY’S OFFICER (ENTITY) ................................................................................................................ 32
   BRANCH OF THE MANDATARY (ENTITY) ....................................................................................................... 33
   PERSON RESPONSIBLE FOR KEEPING ATM SUPPLIED WITH CASH (ENTITY OR PERSON)............................ 35
   AUTOMATED TELLER MACHINES .................................................................................................................. 36

VALIDATE AND SEND THE INFORMATION DISCLOSED BY THE ENTERPRISE .......................... 39
SUBMIT THE ADD/CHANGE BUSINESS RELATIONSHIPS APPLICATION .................................... 43
   SENDING SUPPORTING DOCUMENTS .............................................................................................................. 45

STEP 4: PAY APPLICATION FEES ............................................................................ 46
PAYING THE FEES ............................................................................................................... 46
STEP 5: FOLLOW UP ON AND COMPLETE THE APPLICATION ..................... 47
APPLICATION PROCESSING TIME ........................................................................................ 47
FOLLOWING UP ON ON-LINE APPLICATIONS ........................................................................ 47
AFTER THE LICENCE IS ISSUED ............................................................................. 48
DEADLINES FOR NOTIFYING AMF OF CHANGES .................................................................. 49

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Money-Services Businesses User Guide Licence application - Autorité des marchés ...
INTRODUCTION

WHO SHOULD USE THIS GUIDE?

       Money-Services Businesses Act (CQLR, c. E-12.000001)

       Section 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.

       [...]

This Guide was prepared to assist money-services businesses (“MSBs”) which, following the
adoption of the Money-Services Businesses Act (CQLR, c. E-12.000001) (the “Act”), are
required to disclose information to the Autorité des marchés financiers (the “Authority” or the
“AMF”) in order to obtain a licence to offer money services.

A business which applies for a licence in one of the above classes must follow a five-step
process:

   ✓    Step 1: complete and submit the licence application to the AMF
   ✓    Step 2: register for the AMF’s on-line services
   ✓    Step 3: disclose the enterprise’s business relationships
   ✓    Step 4: pay the application fee
   ✓    Step 5: complete the application

This Guide explains in detail the steps of the licence application process, focusing on AMF E-
Services. This Web-based application enables money-services businesses applying for a
licence to disclose information about the persons and automated teller machines (ATMs)
related to their businesses.

This Guide contains only portions of the Regulation under the Money-Services Businesses Act,
the Regulation respecting fees and tariffs under the Money-Services Businesses Act and the
Policy Statement to the Money-Services Businesses Act. Therefore, you should read these
materials in more detail to familiarize yourself with all the legal and regulatory obligations of
businesses under the Act.

It is recommended that you read the Money-Services Businesses Act in its entirety.

The term “money-services business” and the acronym “MSB” are used in this Guide to make
the text easier to read, and cover all licence classes.

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Money-Services Businesses User Guide Licence application - Autorité des marchés ...
If an instruction only applies to the following four classes, it will be shown in an orange box
marked $$$.

   •   currency exchange;
   •   funds transfer;
   •   issue or redemption of traveller’s cheques, money orders or bank drafts;
   •   cheque cashing.

Example:
         $$$
 Only for: currency exchange, funds transfer, the issue or redemption of traveller’s
 cheques, money orders or bank drafts, and cheque cashing

If an instruction only applies to operators of ATMs, it will be shown in a blue box marked ATM.

Example:
        ATM
 Only for: the operation of ATMs

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Money-Services Businesses User Guide Licence application - Autorité des marchés ...
STEP 1: COMPLETE AND SUBMIT THE LICENCE
          APPLICATION FORM TO THE AMF

WHERE TO FIND THE APPLICATION FORM

        $$$
 The licence application form to operate a money-services business is available on the AMF
 website under “Other mandates of the AMF / Money-Services Businesses / Licence
 application / Money Services”.

        ATM
 The licence application for ATM operators is available on the AMF website under “Other
 mandates of the AMF / Money-Services Businesses / Licence application / ATMs”.

You must answer all the questions on the form carefully and accurately.

WHERE TO SEND THE APPLICATION FORM
Once the form is completed, you must send it and all required documents to the AMF at the
following address:

Autorité des marchés financiers
Direction des contrats publics et des entreprises de services monétaires
Place de la Cité – Tour Cominar
2640, boul. Laurier, bureau 400
Québec (Québec) G1V 5C1

NEXT STEPS
Within 4 weeks of receiving your application form, the AMF will contact you asking you to
disclose your business relationships and describing the next step you need to follow to register
for AMF E-Services.

If your form is incomplete, you will be sent a letter about the missing documents or information.
Authorization to disclose your business relationships will be given to you once the AMF has
received these documents or information.

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Money-Services Businesses User Guide Licence application - Autorité des marchés ...
STEP 2: REGISTER FOR AMF E-SERVICES

            Sole proprietorships: Since sole proprietorships do not have access to AMF
            E-Services, they will be sent a letter with the appendices so that they can provide
            the AMF with all the information required to obtain a licence.

Any money-services business or ATM operator wishing to apply for a licence under the Money-
Services Businesses Act must use AMF E-Services.

This service allows you to send all the information required in the next step (Step 3 – Disclose
business relationships) securely and quickly.

As explained in the letter you will receive, the business must have a clicSÉQUR – Business
user code and password to be able to use AMF E-Services. To obtain your clicSÉQUR –
Business user code, call Revenu Québec at 1-866-423-3234.

If you already have a clicSÉQUR – Business user code, follow the steps provided in the
Registering with clicSÉQUR and AMF E-Services section of the letter you receive about
disclosing your business relationships.

Once you have registered for E-Services, your respondent can access your client file. The
respondent will have access to the detailed menu and will be able to disclose your business
relationships.

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Money-Services Businesses User Guide Licence application - Autorité des marchés ...
STEP 3: DISCLOSE BUSINESS RELATIONSHIPS

          We recommend that you contact the AMF staff member responsible for your file
          before beginning this step to avoid filling out forms unnecessarily and to simplify the
          disclosure process.

The disclosure of business relationships is the process through which a business applying for
a money-services business licence provides the AMF with:

   •   the individuals and/or entities related to it;
   •   its establishments;
   •   the financial institutions with which it deals;
   •   its lenders, mandataries and ATMs, where applicable.

ACCESSING YOUR CLIENT FILE USING AMF E-SERVICES
To access a client file using AMF E-Services, the respondent must:

   1. Go to the AMF website (www.lautorite.qc.ca), click on the “Other mandates of the AMF”
      tab, then on E-Services.

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Money-Services Businesses User Guide Licence application - Autorité des marchés ...
2. Click Log in (3rd option under Business) and enter your clicSÉQUR – Business user
   name and password.

3. Once clicSÉQUR’s authentication process has been completed, the AMF E-Services
   home page will appear.

4. From AMF E-Services, go to the “Client File” tab, then select “Manage business
   relationships”.

5. A new page will appear. The respondent can now disclose the business relationships.

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Money-Services Businesses User Guide Licence application - Autorité des marchés ...
When the Manage business relationships function is accessed for the first
              time, only the name of the business’s respondent will appear on screen. The
              business must now disclose all its other business relationships.

              Automatic logout: If there has been no activity for an extended period of
              time, the system will automatically log you out and any unsaved information
              will be lost. To access AMF E-Services again, you will have to re-enter your
              user name and password.

On-line help: On-line help is identified by a question mark.

This icon, which appears on each AMF E-Services page, allows you to obtain assistance by
speaking with an Information Centre agent.

Mandatory fields: Most fields are preceded by a red star (*) or a blue cross (+).

   -   Fields preceded by a red star (*): you must fill out these fields in order to save the current
       page. If the page is closed without all the (*) fields having been filled out, all the
       information will be lost.

   -   Fields preceded by a blue cross (+): these fields are required, but will not prevent you
       from saving the current page and returning to it later. However, all of these fields must
       be filled out before you validate the relationships disclosed; otherwise, you will receive
       error messages and will not be able to submit your Add/change business relationships
       application to the AMF.

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Money-Services Businesses User Guide Licence application - Autorité des marchés ...
WHAT TO DISCLOSE
An MSB must disclose the appropriate relationships and attach the required supporting
documents for any natural person1 or legal person2 acting in one or more of the following
capacities:

                                                                                   Appendices to
                                  Relationships to be disclosed
                                                                                    be provided

          •    Director OR Partner (natural person)
          •    Officer of the money-services business
          •    Employee with money-services functions
          •    Owns or controls the business (natural person)
                $$$
          •     Branch manager                                                      Appendix A
          •     Employee without money-services functions

               ATM
          •     Person responsible for keeping ATM supplied with cash (natural
                person)

                $$$
                                                                                    Appendix B
          •     Partner (legal person)
          •     Owns or controls the business (legal person)

          •     Mandatary (natural person) and/or                                  Appendix D-1
          •     Mandatary (legal person)                                           Appendix D-2

          •     Officer of mandatary                                               Appendix D-3

          •     Lender (natural person) and/or                                     Appendix E-1
          •     Lender (legal person), where applicable                            Appendix E-2

          •    Officer, director or partner of a lender                            Appendix E-3

          •    Establishment or branch
          •    Financial institution
               ATM
          • Automated teller machines
          • Person responsible for keeping ATM supplied with cash (legal person)

1
    “Natural person” means an individual.
2
    “Legal person” means an entity.
                                                                                             10
All types of business relationships which apply to the same person must be disclosed.

Example: A director of the MSB is also its officer and provides customers with money services.
Three types of business relationships must be disclosed for this person:

   •   Director;
   •   Officer of the money-services business;
   •   Employee with money-services functions.

His name will therefore appear three times in the list of relationships disclosed.

HOW TO DISCLOSE A RELATIONSHIP

           Most relationships can be disclosed in any order. However, we recommend that
           you disclose your relationships in the following order. If any of these relationships
           does not apply to the business, skip it and move on to the next one.

DIRECTOR, PARTNER (ENTITY) OR PARTNER (PERSON)
A not-for-profit legal person or cooperative must disclose all the directors of the business who
are members of the executive committee (or the equivalent), i.e., those who have the following
roles: President, Vice-President, Secretary and Treasurer.

A business corporation must disclose ALL its directors.

A limited partnership or general partnership must disclose ALL its partners.

The directors or partners disclosed to the AMF must correspond to those disclosed to the
Registraire des entreprises du Québec (REQ) (Québec Enterprise Registrar).

Disclose relationships

   1. From the disclose relationships function, choose one of the following relationships,
      depending on the situation:

       • Director;
       • Partner (entity);
       • Partner (person).

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2. Then click Add.

3. A new page will appear.

4. Click

   • If the name of the person/entity you want to disclose is already on the list that
     appears, click his or her name. The information about the person/entity will appear
     automatically on the page of the business relationship you are disclosing.
   • If you do not find the person/entity you’re looking for, close the window and type in
     the information about them:
           -   for a person (individual): gender, last name, first name, date of birth, home
               address and references.
           -   for an entity (business): name, NEQ (the Québec enterprise number given by
               the REQ), main address and references.

                                                                                         12
How to enter an address in AMF E-Services

a) To enter an address in a business relationship, click

b) Type in a postal code and click Search.

c) Once the postal code that is entered has been analyzed, the site will propose a street
   name, municipality and province. If the street name is incorrect, you can view and select
   another street from the drop-down menu.

d) Then enter the civic number in the “Civic No.” field and click “OK” when you have
   finished entering the address.

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Addresses in the United States and other countries must be entered manually by
      clicking on the appropriate option button.

      For U.S. zip codes, two formats are accepted: ones with five digits (ex.: 99999) and
      ones with nine digits separated by a hyphen (ex.: 99999-9999).

      Personal phone number: The number entered must follow the format 999 999-9999
      (Canada or United States) or +99999999999 (international).

5. If the “Supporting documents” section shows that Appendix A has already been sent,
   skip to the following point.

   If no supporting document is ticked for the person being disclosed, choose Appendix
   A for a director or partner (person) or Appendix B-2 for a partner (entity) and:

   • “Paper” if you would like to send it by fax (at 418-525-1990) or by regular mail;
   • “Electronic” if you if you have already completed it and saved it on your computer,
     then click Attach. Choose the file saved on your computer. The name of the file will
     appear under “Electronic”. If you choose the wrong file, click Delete. The name of
     the file will disappear. Click Attach again and choose the correct file saved on your
     computer.

      Other document: No document needs to be provided in the “Other document”
      section. However, this section can be used to send additional documents if
      necessary (for example, if the ID is on a separate page from the appendix, it can be
      sent using the “Other document” section).

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6. Once the on-line form is completed, click one of the following buttons.

  This button lets you save the detailed information you have entered. When you click this
  button, your information is saved and the “Disclose relationships” page appears.

  This button lets you save the detailed information you entered. When you click this button,
  your information is saved and a new page appears. The fields are refreshed so you can
  disclose another relationship of the same type.

             This button lets you return to the “Disclose relationships” page without saving
             the information you have entered. When this button is clicked, you are asked
             to confirm before returning to the “Disclose relationships” page. This button is
             not available if an application is being analyzed by the AMF.

OFFICER OF MONEY-SERVICES BUSINESS
The MSB must disclose ALL of its officers.

An MSB which is a business corporation, a not-for-profit organization, an association with legal
personality or a cooperative must also disclose, as officers of the money-services business, all
persons with one of the following roles: President, Vice-President, Secretary, Treasurer and
principal officer (whether or not a Board member).

                                                                                                15
Disclose relationships

   1. From the disclose relationships function, select “Money-Services Business officer” then
      click “Add”.

   2. A new page will appear.

   3. If the person you want to add has already been disclosed in another relationship, click
      Select and choose the person’s name. In the case of a new person, type in the person’s
      information.

   4. Under the “Supporting documents” section, if no supporting document is ticked for the
      disclosed person, choose Appendix A and:
      • “Paper” if you want to send it to us by fax (at 418-525-1990) or regular mail;
      • “Electronic” if you have already completed it and saved it on your computer, then
        click Attach. Select the file saved on your computer. The name of the file will appear
        in E-Services. If you chose the wrong file, click Delete. The name of the file will
        disappear. Click Attach again and choose the correct file from your computer.

   5. Once the file for the relationship is completed, click:
      • Save and return if you want to save your information and return to the “Disclose
        relationships” page; or
      • Save and new if you want to save your information and disclose another person with
        the same relationship.

  You can click Cancel at any time and return to the “Disclose relationships” page without
  saving your information.

                                                                                           16
OWNS OR CONTROLS BUSINESS (ENTITY OR PERSON)

The MSB must disclose all persons or entities who directly or indirectly own or control the
business.

For purposes of the Act, the person or entity who owns the money-services business means:

   •   the owner of the securities of an MSB, whether they be shares, bonds or any other debt
       securities;
   •   the holder of the real decision-making power over the securities of an MSB;
   •   the person or entity who holds securities registered in the name of an intermediary
       acting in particular as a nominee, trustee or mandatary.

If an MSB is a public company, it must disclose the persons or entities holding 20% or more of
its securities, since the AMF considers, for the purpose of the Act, that only these persons or
entities have direct or indirect ownership of the MSB.

For purposes of the Act, the person or entity who controls the money-services business means:

   •   the person or entity who holds a sufficient number of the voting rights attached to all
       outstanding voting securities of an MSB to affect materially the control of the business:
           -   If a person, acting alone or with other persons by virtue of an agreement, holds
               more than 20% of the voting rights, the person is deemed to hold a sufficient
               number of the voting rights to affect materially the control of the MSB.
           -   Influence is material where it allows participation in decisions related to the
               orientations of the MSB.

   •   the person or entity who owns the securities of the money-services business enabling
       the holder to elect in all cases a majority of the directors of the MSB;
   •   the person or entity who holds effective control of the administration or activities of the
       MSB, whether this right or power is exercised via a management contract or otherwise.

If the business is controlled by a trust, disclose its trustee(s) and settlor(s) as the persons who
own the business.

                                                                                                17
Disclose relationships

   1. From the disclose relationships function, select
      • “Owns or controls business (entity)” if you want to disclose a business;
      • “Owns or controls business (person)” if you want to disclose an individual;

         Then, click Add.

   2. A new page will appear.

   3. If the person you want to add has already been disclosed in another relationship, click
      Select and choose the person’s name. In the case of a new person, type in the person’s
      information.

   4. In the “Description of ownership or control” box, provide details about the ownership or
      control (number of shares, percentage of votes, trustee or settlor, etc.).

   5. In the “Supporting documents” section, if no supporting document is ticked for the
      disclosed person, choose Appendix A for an individual or Appendix B for an entity
      and:

      • “Paper” if you want to send it to us by fax (at 418-525-1990) or by regular mail;
      • “Electronic” if you have already completed it and saved it on your computer, then
        click Attach. Choose the file saved on your computer. The file name will appear in
        E-Services. If you chose the wrong file, click Delete. The file name will disappear.
        Click Attach again and choose the correct file from your computer.

                                                                                            18
6. Once the relationship file is completed, click:
      • Save and return if you want to save your information and return to the “Disclose
        relationships” page; or
      • Save and new if you want to save your information and disclose another person with
        the same relationship.

  You can click Cancel at any time to return to the “Disclose relationships” page without saving
  your information.

ESTABLISHMENT/BRANCH
The MSB must provide the address and telephone number of ALL its establishments, whether
money services are offered there or not.

Disclose relationships

   1. From the disclose relationships function, select Establishment / Branch, then click
      Add.

   2. A new page will appear.

   3. To disclose an establishment where the business does not offer any services relating
      to currency exchange, the issue or redemption of traveller’s cheques, money orders or
      bank drafts, cheque cashing or funds transfers OR to disclose an establishment where
      the business only offers services relating to the operation of ATMs:

                                                                                             19
• Identify the establishment by filling in the following template: Est. + Street name +
  (name of MSB in parentheses). See the following example:

                                                                                    20
$$$

4. To disclose an establishment where the business offers services relating to currency
   exchange, funds transfers, the issue or redemption of traveller’s cheques, money orders or
   bank drafts, and cheque cashing:

      •    Identify the branch by filling in the following template: Branch + Street name +
           (name of MSB in parentheses). See the following example:

      •    Tick “Money services are offered at this address”.

5. Once the relationship file is completed, click:

      •    Save and return if you want to save your information and return to the “Disclose
           relationships” page; or

      •    Save and new if you want to save your information and disclose another
           establishment or branch.

   You can click Cancel at any time to return to the “Disclose relationships” page without saving
   your information.

                You must name at least one branch manager for each branch disclosed.

                                                                                              21
$$$

BRANCH MANAGER
For each branch of the MSB disclosed, all the branch officers who are responsible for the
money services must be disclosed. The MSB must disclose at least one branch manager for
each branch.

Disclose relationships

   1. From the link for “Establishment / Branch” relationship you disclosed, click Add.

   2. Select “Branch manager”, then click Add.

   3. A new page will appear.

   4. If the person you want to add has already been disclosed in another relationship, click
      Select and choose his or her name. In the case of a new person, type in the person’s
      information.

   5. In the “Supporting documents” section, if no supporting document is ticked for the
      disclosed person, choose Appendix A and:
      • Paper if you want to send it to us by fax (at 418-525-1990) or by regular mail;
      • Electronic if you have already completed it and saved it on your computer, then click
        Attach. Choose the file saved on your computer. The file name will appear in E-
        Services. If you chose the wrong file, click Delete. The file name will disappear. Click
        Attach again and choose the correct file saved on your computer.

                                                                                             22
6. Once the relationship file is completed, click:
       • Save and return if you want to save your information and return to the “Disclose
         relationships” page; or
        • Save and new if you want to save your information and disclose another person with
          the same relationship.

    You can click Cancel at any time to return to the “Disclose relationships” page without saving
    your information.

EMPLOYEE WITH MONEY-SERVICES FUNCTIONS
       $$$                                           •   deals
                                                            ATMwith the lenders and co-contracting
                                                         parties of the money-services business.
The MSB must disclose ALL of its employees               Fait les contractants
working in Québec whose functions are related
to the money services offered.                       A money-services business applying for a
                                                     licence only for the class relating to the
The expression “employee whose functions are
related to the money services offered” means, in     operation of automated teller machines
particular, any person employed by the money-        must provide only a list of employees whose
services business who:                               functions are related to the operation of
                                                     automated teller machines.
•    gathers personal information on money-
     services customers;                             The expression “employee whose functions
•    identifies or verifies the identity of money-   are related to the operation of automated
     services customers;                             teller machines” means, in particular, any
•    has access to currencies, cheques,              person employed by the money-services
     traveller’s cheques, money orders or bank       business who:
     drafts;
•    supervises the activities of the money-             •   as part of his functions, keeps the
     services business or of another employee                machine supplied with cash;
     whose functions are related to the money
                                                         •   has access to the content and
     services offered;
                                                             functions of an automated teller
•    has access to the safety deposit boxes or
                                                             machine;
     other storage facility of the money-
     services business;                                  •   participates in accounting activities
•    has access to the accounts of the                       or administrative tasks;
     business held at the financial institutions         •   helps prepare the records and
     with which the business deals;                          registers prescribed by the Act and
                                                             its Regulations.

                                                                                                 23
Disclose relationships

   1. From the link for the “Establishment / Branch” relationship you disclosed, click Add.

   2. Select “Employee with money services functions”, then click Add.

   3. A new page will appear.

   4. If the person you want to add has already been disclosed in another relationship, click
      Select and choose his or her name. In the case of a new person, type in the person’s
      information.

   5. In the “Supporting documents” section, if no supporting document is added for the
      disclosed person, choose Appendix A and:
      • “Paper” if you want to send it to us by fax (at 418-525-1990) or by regular mail;
      • “Electronic” if you have already completed it and saved it on your computer, then
        click Attach. Choose the file saved on your computer. The file name will appear in
        E-Services. If you chose the wrong file, click Delete. The file name will disappear.
        Click Attach again and choose the correct file from your computer.

   6. Once the relationship file is completed, click:
      • Save and return if you want to save your information and return to the “Disclose
        relationships” page; or
      • Save and new if you want to save your information and disclose another person with
        the same relationship.

  You can click Cancel at any time to return to the “Disclose relationships” page without saving
  your information.

                                                                                              24
$$$

EMPLOYEE WITH NO MONEY SERVICES FUNCTIONS
An MSB who carries on business in a class other than the operation of an ATM must also
disclose its employees working in Québec who do not have money services functions.

Disclose relationships

   1. From the disclose relationships function, select the relationship “Employee with no
      money services functions”, then click Add.

   2. A new page will appear.

   3. If the person you want to add has already been disclosed in another relationship, click
      Select and choose his or her name. In the case of a new person, type in the person’s
      information.

   4. In the “Description of functions” box, provide details about the employee’s functions.

   5. In the “Supporting documents” section, if no supporting document is added for the
      disclosed person, choose Appendix A and:

      • “Paper” if you want to send it to us by fax (at 418-525-1990) or by regular mail;
      • “Electronic” if you have already completed it and saved it on your computer, then
        click Attach. Choose the file saved on your computer. The file name will appear in
        E-Services. If you chose the wrong file, click Delete. The file name will disappear.
        Click Attach again and choose the correct file from your computer.

   6. Once the relationship file is completed, click:
      • Save and return if you want to save your information and return to the “Disclose
        relationships” page; or
      • Save and new if you want to save your information and disclose another person with
        the same relationship.

  You can click Cancel at any time to return to the “Disclose relationships” page without saving
  your information.

                                                                                               25
FINANCIAL INSTITUTION
The MSB must disclose all the financial institutions with which it deals.

The financial institutions referred to are those that provide banking or financial services to the
business. For example, the business must disclose the financial institutions with which it has a
bank account or a loan.

Disclose relationships

   1. From the disclose relationships function, select “Financial institution”, then click Add.

   2. A new page will appear.

   3. Select the financial institution from the drop-down menu.

                                                                                               26
4. Enter the requested information in the field below.

        In this field you can enter several account or loan numbers as well as several
        addresses if you deal with different branches of the same financial institution.

5. Once the relationship file is completed, click:
   • Save and return if you want to save your information and return to the “Disclose
     relationships” page; or
    • Save and new if you want to save your information and disclose another financial
      institution.

You can click Cancel at any time to return to the “Disclose relationships” page without saving
your information.

                                                                                           27
LENDER (ENTITY OR PERSON)
The MSB must disclose all the lenders with whom it entered into a contract for the loan of
money or property who are not financial institutions.

Disclose relationships

   1. From the disclose relationships function, select the relationship:
      • “Lender (entity)” if you want to disclose a business;
       • “Lender (person)” if you want to disclose an individual;

       Then click Add.

   2. A new page will appear.

   3. If the person you want to add has already been disclosed in another relationship, click
      Select and choose his or her name. In the case of a new person, type in the person’s
      information.

   4. In the “Description of the nature of the loan” box, provide details about the loan (amount,
      conditions, repayment terms, etc.).

   5. In the “Supporting documents” section, if no supporting document is added for the
      disclosed person, choose Appendix E-1 for a person or Appendix E-2 for an entity
      and:
       • “Paper” if you want to send it to us by fax (at 418-525-1990) or by regular mail;
       • “Electronic” if you have already completed it and saved it on your computer, then
         click Attach. Choose the file saved on your computer. The file name will show in E-
         services. If you chose the wrong file, click Delete. The file name will disappear. Click
         Attach again and choose the correct file from your computer.

                                                                                              28
6. Also, for each “Lender” business relationship, you must attach the documents
   evidencing the loan. In this regard, choose “Document No. 01” and/or “Document No.
   02” under point 2. Document(s) evidencing loan in the “Supporting documents” section
   and:
   • “Paper” if you want to send it to us by fax (at 418-525-1990) or by regular mail;
    •   “Electronic” if you have already completed it out and saved it on your computer, then
        click Attach. Choose the file saved on your computer. The file name will appear in
        E-Services. If you chose the wrong file, click Delete. The file name will disappear.
        Click Attach again and choose the correct file from your computer.

7. Once the relationship file is completed, click:
   • Save and return if you want to save your information and return to the “Disclose
     relationships” page; or
    •   Save and new if you want to save your information and disclose another person
        with the same relationship.

You can click Cancel at any time to return to the “Disclose relationships” page without saving
your information.

                                                                                           29
OFFICER, DIRECTOR OR PARTNER OF A LENDER (ENTITY)
For each lender (entity) of the MSB, all the officers, directors or partners of the lender must be
disclosed.

Disclose relationships

   1. From the “Lender (entity)” relationship you disclosed, click Add.

   2. Select “Officer / director / partner of a lender (legal person)”, then click Add

   3. A new page will appear.

   4. If the person you want to add has already been disclosed in another relationship, click
      Select and choose his or her name. In the case of a new person, type in the person’s
      information.

   5. In the “Supporting documents” section, choose “Appendix E-3” and:
       • “Paper” if you want to send it to us by fax (at 418-525-1990) or by regular mail;
       • “Electronic” if you have already completed it and saved it on your computer, then
         click Attach. Choose the file saved on your computer. The file name will appear in
         E-Services. If you chose the wrong file, click Delete. The file name will disappear.
         Click Attach again and choose the correct file from your computer.

   6. Once the relationship file is completed, click:
      • Save and return if you want to save your information and return to the “Disclose
        relationships” page; or
       • Save and new if you want to save your information and disclose another person with
         the same relationship.

   You can click Cancel at any time to return to the “Disclose relationships” page without saving
   your information.

                                                                                               30
$$$

MANDATARY (ENTITY OR PERSON)
The money-services business is required to provide a list of all its mandataries. For purposes
of the Act, a mandatary is a person who, by virtue of an agreement, conducts one or more
money services on behalf of a money-services business. The mandatary acts for and on behalf
of the money-services business for specific or general purposes.

Disclose relationships

   1. From the disclose relationships function, select the relationship:
      • “Mandatary (entity)” if you want to disclose a business;
       • “Mandatary (person)” if you want to disclose an individual;

       Then click Add.

   2. A new page will appear.

   3. If the person you want to add has already been disclosed in another relationship, click
      Select and choose his or her name. In the case of a new person, type in the person’s
      information.

   4. In the “Supporting documents” section, if no supporting document is added for the
      disclosed person, choose “Appendix D-1” for a natural person or the “Appendix D-2” for
      a legal person and:
       • “Paper” if you want to send it to us by fax (at 418-525-1990) or by regular mail;
       • “Electronic” if you have already completed it and saved it on your computer, then
         click Attach. Choose the file saved on your computer. The file name will appear in
         E-Services. If you chose the wrong file, click Delete. The file name will disappear.
         Click Attach again and choose the correct file from your computer.

                                                                                             31
5. Once the relationship file is completed, click:
      • Save and return if you want to save your information and return to the “Disclose
        relationships” page; or
       • Save and new if you want to save your information and disclose another person with
         the same relationship.

  You can click Cancel at any time to return to the “Disclose relationships” page without saving
  your information.

       $$$

MANDATARY’S OFFICER (ENTITY)
For each mandatary (entity) of the MSB, all the officers responsible for the money services of
the mandatary must be disclosed.

Disclose relationships

   1. From the “Mandatary (entity)” relationship you disclosed, click Add.

   2. Select “Mandatary’s officer”, then click Add.

   3. A new page will appear.

                                                                                             32
4. If the person you want to add has already been disclosed in another relationship, click
      Select and choose his or her name. In the case of a new person, type in the person’s
      information.

   5. In the “Supporting documents” section, if no supporting document is added for the
      disclosed person, choose “Appendix D-3” and:
       • “Paper” if you want to send it to us by fax (at 418-525-1990) or by regular mail;
       • “Electronic” if you have already completed it and saved it on your computer, then
         click Attach. Choose the file saved on your computer. The file name will appear in
         E-Services. If you chose the wrong file, click Delete. The file name will disappear.
         Click Attach again and choose the correct file from your computer.

   6. Once the relationship file is completed, click:
      • Save and return if you want to save your information and return to the “Disclose
        relationships” page; or
      •    Save and new if you want to save your information and disclose another person with
           the same relationship.

  You can click Cancel at any time to return to the “Disclose relationships” page without saving
  your information.

          $$$

BRANCH OF THE MANDATARY (ENTITY)
If a mandatary offers money services at an address which is different from the main address
disclosed under the “Mandatary (entity)” relationship, the MSB must disclose the other
addresses as mandatary branches of the mandatary.

Disclose relationships

   1. From the “Mandatary (entity)” relationship you disclosed, click Add.

                                                                                             33
2. Select “Branch of the mandatary (legal person)”, then click Add.

3. A new page will appear.

4. Identify the branch of the mandatary by filling in the following template: Branch of
   mand. + Street name + (name of MSB in parentheses).

5. Once the relationship file is finished, click:
   • Save and return if you want to save your information and return to the “Disclose
     relationships” page; or
    • Save and new if you want to save your information and disclose another mandatary
      branch.

You can click Cancel at any time to return to the “Disclose relationships” page without saving
your information.

                                                                                           34
ATM

PERSON RESPONSIBLE FOR KEEPING ATM SUPPLIED WITH CASH (ENTITY OR PERSON)
For each ATM operated by the business, the MSB must disclose all persons responsible for
keeping the machine supplied with cash.

Disclose relationships

   1. From the disclose relationships function, select the relationship:
      • “Entity responsible for keeping ATM supplied with cash” if you want to disclose a
        business;
      • “Person responsible for keeping ATM supplied with cash” if you want to disclose an
        individual;

         Then, click Add.

   2. A new page will appear.

   3. If the person you want to add has already been disclosed in another relationship, click
      Select and choose his/her/its name. In the case of a new person, type in the person’s
      information.

   4. In the “Supporting documents” section, if no supporting document is added for the
      disclosed person, choose “Appendix A” and:

      • “Paper” if you want to send it to us by fax (at 418-525-1990) or by regular mail;
      • “Electronic” if you have already completed it and saved it on your computer, then
        click Attach. Choose the file saved on your computer. The file name will appear in
        E-Services. If you chose the wrong file, click Delete. The file name will disappear.
        Click Attach again and choose the correct file from your computer.

                                                                                            35
You do not have to provide any supporting document under the “Entity
                   responsible for keeping ATM supplied with cash” link.

   5. Once the relationship file is completed, click:
      • Save and return if you want to save your information and return to the “Disclose
        relationships” page; or
      • Save and new if you want to save your information and disclose another person with
        the same relationship.

  You can click Cancel at any time to return to the “Disclose relationships” page without saving
  your information.

       ATM

AUTOMATED TELLER MACHINES
The MSB must disclose all ATMs it operates.

Disclose relationships

   1. From the AMF E-Services menu, go to the “Client File” tab, then select “Manage
      business relationships”.

   2. A new page will appear. Select the “Automated teller machines (ATMs)” tab.

                                                                                             36
3. Click the Add button at the bottom of the page.

4. Type in the requested information.

   • Serial number, make and model and Maximum amount ATM can contain (ex.:
     LRL161312121212, TRITON RL1613, $20,000)
   • Fixed/Mobile:
           -   Tick Fixed if the ATM is permanently installed at a location (convenience
               store, restaurant, etc.).
           -   Tick Mobile if ATM is temporarily installed at a location and will eventually
               be moved (festival, tradefair, exhibition, etc.). If you tick the “Mobile” box, the
               “… specify date until when ATM will be at this location” field activates and
               must be filled out. To do so, click the field and give a date using the calendar.
   • Type of location: select the appropriate type of location for this ATM from the drop-
     down menu. If you select “Other”, the “Other type” field becomes available and must
     be filled out.

          -    Other type: enter a type of location for this ATM (ex.: University of Montréal).
   • Location details: enter the information about the location (ex.: installed at the south
     entrance to the University of Montréal near the cafeteria).

   • Address:
          -    If the ATM is located in an establishment of your business and you have
               already disclosed that establishment in the Disclose relationships section,
               click Establishment already disclosed, then Select, and choose the
               appropriate value from the drop-down menu.

          -    If the ATM is located in an establishment that does not belong to your
               business, select “Other address” and click Obtain an address to disclose
               that location.

                                                                                               37
• Leased commercial space: Is the ATM located in an establishment other than your
      business?
              -   Answer “Yes” if the ATM is located in an establishment that does not belong
                  to your business and indicate the name of the business or individual who
                  owns the location along with their address and telephone number.
              -   Answer “No” if the ATM is located in an establishment that belongs to your
                  business and skip to the next section.

    • Disclosed person/entity responsible for keeping ATM supplied with cash:
          -       Click the arrow to access the list of persons or entities already disclosed as
                  being responsible for keeping the ATM supplied with cash and select the
                  person to be added.

          -       Click Add.

                  The name of the selected person will appear in the list of persons/entities
                  responsible for keeping the ATM supplied with cash. Repeat the operation for
                  every person responsible for keeping the ATM supplied with cash to be
                  disclosed.

5. Once the relationship file is completed, click:
   • Save and return if you want to save your information and return to the “Automated
     teller machines” page; or

    • Save and new if you want to save your information and disclose another ATM.

You can click Cancel at any time to return to the page “Automated teller machines” without
saving your information.

                                                                                             38
VALIDATE AND SEND THE INFORMATION DISCLOSED BY THE ENTERPRISE
When the business has finished entering all its business relationships, it must validate the
information entered to ensure that it is complete.

   1. From the Manage business relationships application, click “Validate” at the bottom of
      the screen.

                                                                                         39
2. Once the system has finished the validation:

   If your application contains errors or is missing relationships or information, you will
   receive an error message in red at the top of the screen.

   If the validation process returns error messages, the business must make the necessary
   corrections before submitting its Add/change business relationships application to the
   AMF.

                                                                                        40
Once all the errors are corrected, refresh the validation until you see a message
confirming that your relationships have been validated.

          You will not be able to submit your Application to add/change relationships
          to the AMF as long as the validation gives you an error message.

                                                                                   41
3. If you did not receive an error message or when you have finished responding to all the error
   messages you received, click “Next step”.

                                                                                             42
SUBMIT THE ADD/CHANGE BUSINESS RELATIONSHIPS APPLICATION
Once you have clicked Next step, the “Add/change business relationships” page will appear.
It contains the last four steps you must complete to send the information you have disclosed to
the AMF for analysis.

   1. Click the Next button in Step 1: “Identification and description of application or request”.

   2. Click Next in Step 2: “Summary of business relationships and ATMs disclosed”.

                                                                                               43
3. In Step 3: Transmission, tick the box “I declare that the information provided herein is
      accurate.” and click Submit.

   4. Step 4: Confirmation of delivery confirms that the AMF has received your application.
      The system indicates your Client number and your application/request number. Please
      print the information and keep it since you will need it in all correspondence with the
      AMF.

          If you do not submit the Add/change business relationships application, the AMF will
          not be notified of the changes (including any additions and deletions) you have made
          to the list of your business relationships and will not be able to review the changes.

After the application has been sent, an acknowledgement of receipt will be sent to the “Secure
message inbox” section of the AMF E-Services.

The AMF considers the date of receipt of information regarding the addition, change or deletion
of a business relationship to be the date on which the Add/change business relationships
application is sent, not the date on which these changes were entered in the Manage business
relationships function.

                                                                                            44
SENDING SUPPORTING DOCUMENTS
If you have chosen to send the supporting documents in paper format, please include de
digitization forms that were sent to you with the acknowledgement of receipt.

         $$$
The appendices are available on the AMF website under Money-Services Businesses >
Licence application > Appendices – Money Services.

       ATM
The appendices are available on the AMF website under Money-Services Businesses >
Licence application > Appendices – ATM.

An appendix must be submitted for each relationship disclosed. The appendix must be filled
out and signed by the individual or authorized signatory of the legal person who is disclosed
for the relationship. If any question is left unanswered, the form will be returned to the business.

Please send the documents to the following address:

Autorité des marchés financiers
Direction de la certification et de l’inscription
Place de la Cité – Tour Cominar
2640, boul. Laurier, bureau 400
Québec (Québec) G1V 5C1

            If, after analyzing the Add/change business relationships application, the AMF
            determines that certain information is inaccurate, incomplete or missing, it will contact
            the respondent so that he or she can make the necessary corrections.

                                                                                                 45
STEP 4: PAY APPLICATION FEES

PAYING THE FEES
After your Add/change business relationships application is processed, you will receive the
following e-mail notifying you that the AMF has sent your E-Services invoice electronically.

       Message heading:
       You have mail from the AMF.

       Body of message:
       You have unread messages in your inbox. Please read them by signing in to your account via
       AMF E-Services at www.lautorite.qc.ca.

       This message is generated automatically. Please do not use the Reply function to contact us.
       Instead, sign in to your account at the above address, or contact the AMF Information Centre at
       1-877-525-0337.

       To ensure these reminders are not classified as spam, be sure to write the sender’s address
       shown above in your approved senders list.

To consult the invoice:

   a) Open an AMF E-Services session.
   b) From the E-Services menu, go to the “Client File” tab.
   c) Select “Statement of account”, then “View”.

Your invoice will include a $124 charge for each security clearance report requested for each
person or entity disclosed as well as a $221 fee for each ATM operated, if applicable.

Payment is due upon receipt.

You may pay your invoice by credit card on-line or by cheque made payable to the Autorité des
marchés financiers sent to the following address:

Autorité des marchés financiers
Place de la Cité – Tour Cominar
2640, boul. Laurier, bureau 400
Québec (Québec) G1V 5C1

No licence will be issued until the fees have been paid. The fees are not refundable.

                                                                                                   46
STEP 5: FOLLOW UP ON AND COMPLETE THE APPLICATION

APPLICATION PROCESSING TIME
Receipt of your invoice indicates that your file has been sent to the Sûreté du Québec (SQ)
and the police in the area where you carry on business. Please allow 30 to 45 days to receive
notice of the decision regarding your file.

FOLLOWING UP ON ON-LINE APPLICATIONS
At any time after an application has been submitted, the business can follow up on it and view
its content.

To access an application that has been submitted through AMF E-Services, go the Client File
tab and then “Follow-up on applications/requests”.

The “Follow up on applications/requests” page will appear. If you are registered with the AMF
under several statutes, you can use the drop-down menu to sort the applications by AMF unit.

The “Status” column indicates the status of your application. Four status types are possible:

   •   Being analyzed at AMF: This status indicates that the processing of your
       application/request has not been completed. The time required for an analysis depends
       on the nature of the application/request.
   •   Waiting for client: This status indicates that the application/request is incomplete
       because information, a document or payment is missing. The missing item must be
       provided so the AMF can complete its analysis.
   •   Waiting for third party: This status indicates that the AMF is waiting for an answer from
       one of its partners (SQ, police, etc.).
   •   Processed: This status indicates that your application/request has been processed and
       a decision has been entered in your file. The result will be sent to you shortly by regular
       mail.

                                                                                                47
LICENCE APPLICATION DECISION

When the AMF is sure there are no grounds for refusing to issue the licence, it will mail the
authorization to the MSB concerned. If the MSB operates ATMs, it will receive stickers that it
must place on its machines. Additional instructions will be provided with the authorization.

If, during its analysis, the AMF discovers grounds for refusing to issue a licence, it will indicate
those grounds to the MSB’s respondent, who will have 30 days to submit written comments
or provide other documents to complete its file.

AFTER THE LICENCE IS ISSUED
The MSB is required to notify the AMF of any change to the information it provided. The
changes may be grouped together as follows:

   •   Addition of classes;
   •   Addition, withdrawal or change of a business relationship (person or entity,
       establishment, financial institution, lender, mandatary, etc.);
   •   Addition or withdrawal of ATMs;
   •   Change of respondent;
   •   Reprint of licence or ATM sticker;
   •   Removal of a class or withdrawal of licence.

If you make any of the above changes after your licence is issued, we suggest that you call us
at 1-877-525-0337 or e-mail us at direction-lcop-esm@lautorite.qc.ca for help updating your
file.

                                                                                                  48
DEADLINES FOR NOTIFYING AMF OF CHANGES

The MSB must notify the AMF immediately of any change which could affect the validity of
its licence.

However, for any withdrawal of individuals or change to the information about them, the MSB
must notify the AMF within 15 days of the end of the month during which the change occurred.

Example: An employee leaves the MSB on March 6. The MSB has until April 15 to notify the
AMF.

     Money-Services Businesses Act (CQLR, c. E-12.000001)

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

     Section 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.

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