The Cullen Commission

John Mayr Marny Morin

The Cullen Commission and The Society of Notaries Public of BC

The Society of Notaries Public (SNPBC) was granted standing at the Commission into Money Laundering in British Columbia and participated fully in the hearings.

The Society made written submissions and both Ms. Morin as Secretary, and Mr. Mayr as Executive Director, gave evidence to the Commission. Ron Usher acted as counsel for The Society and attended all the hearings.

The Cullen Commission released its fi nal Report on Wednesday June 15, 2022. The Report includes 101 recommendations. Of those, 3 are directed to BC Notaries Public. The Report dedicates 17 pages to the evidence, testimony, and fi ndings of the Commission and includes a brief history, lists the scope of practice, and speaks to the regulation of members by The Society.

The recommendations made by the Commission and The Society’s responses are as follows.

Recommendation 66

I recommend that the Province, in consultation with The Society of Notaries Public of British Columbia, raise the maximum fi ne that can be imposed when a member of The Society is guilty of misconduct as set out in the Notaries Act.

Given the Ministry of the Attorney General’s (MAG) announcement to create a single regulatory body for legal professionals in BC, it is somewhat unlikely that the MAG would engage in the legislative process to amend the Notaries Act. It is anticipated that the new legislation will address this recommendation.

Recommendation 67

I recommend that The Society of Notaries Public of British Columbia require its members to obtain, record, and keep records of the source of funds from their clients when those members engage in or give instructions with respect to fi nancial transactions.

The recommendation that The Society requires members to make and maintain records related to source of funds would require an amendment to the Rules of The Society.

The Rules do not require approval by the Attorney General and changes may be implemented by the Directors. This recommendation is consistent with current Law Society of BC Rules for source-of-funds determination. The Commission makes the following recommendation to the Law Society with respect to source of funds declarations.

Recommendation 56

I recommend that the Law Society of British Columbia amend its client identifi cation and verifi cation rules to explain what is required when inquiring into a client’s source of money. The rules should make clear, at a minimum • that the client identifi cation and verifi cation rules require the lawyer to record the information specifi ed in the Fall 2019

Benchers’ Bulletin; • the meaning of the term “source of money”; and • that lawyers must consider whether the source of money is reasonable and proportionate to the client’s profi le.

Amending the Rules of the SNPBC to meet the purpose and intent of the Recommendation will be considered by the Board of Directors of The Society. Source of funds declarations are a recognized tool to combat money laundering.

Recommendation 68

I recommend that The Society of Notaries Public of British Columbia educate its members on the money laundering risks relating to private lending, through educational materials or other means.

Recommendation 68 seeks to enhance the education of members with respect to money laundering and private lending.

Private lending is the subject of Recommendations 31 and 32. The Commission found evidence of money laundering through private lending and identified that Notaries Public may be engaged in real property conveyances that may involve private lenders. Given the evidence and findings of the Commission, and the increasing incidence of private lending, there is merit in adopting this recommendation and ensuring that the Notary education program includes components to educate members of the risks of money laundering related to private lending.

The Commission Report deals extensively with lawyers, the Law Society, and related organizations. Recommendation 53 through 65 all relate to the regulation of lawyers and legal practice. The text of the Commission’s Report detailing issues related to independence are illustrative of the challenges that the Government will have to consider in the construction of the statute for the proposed single legal regulator. Starting at page 1108 and continuing for approximately 100 pages, the Commission provides a significant overview of national and provincial regulatory challenges and initiatives.

That section includes positive comments about the Federation of Law Societies and the Law Society

of BC’s efforts related to AML (Anti Money Laundering). Contrary to the often-expressed opinion that lawyers are not subject to antimoney laundering Rules, the report acknowledges the good work of the Federation and LSBC in addressing concerns that lawyers were, wittingly or unwittingly, engaged in activities that facilitated money laundering in Canada and British Columbia. Notaries should consider ...the report each of the acknowledges the good recommendations work of the Federation and LSBC in addressing concerns that lawyers made by the Commission to the legal profession and legal regulator were, wittingly or to investigate unwittingly, engaged the applicability in activities that facilitated and relevance money laundering of each of the in Canada and recommendations

British Columbia. to notarial practice. The report of the Commission is a valuable tool in strengthening the regulation of Notaries Public, legal services providers, and the systems related to real property in the province of BC. The Society of Notaries Public and the profession, having established systems and processes designed to protect the public and comply with federal and provincial legislation, fared well in the context of the Commission’s Report. As a regulatory body, we must continue to deepen our commitment to AML measures while protecting the independence of The Society and the profession in the delivery of services to the public. s Submitted by SNPBC Secretary Marny Morin, and Executive Director John Mayr.

Services a BC Notary Can Provide

A. PROPERTY MATTERS

1. Residential and Commercial Real Estate Transfers 2. Mortgage Refinancing Documentation 3. Manufactured Home Transfers 4. Easements, Covenants, and Rights of Way 5. Builder’s Liens 6. Subdivisions and Statutory Building Schemes 7. Zoning Applications

B. PERSONAL PLANNING

1. Wills Preparation 2. Powers of Attorney 3. Representation Agreements 4. Advance Directives 5. Wills Notice Searches 6. Estate Planning

C. NOTARIZATION/DOCUMENTS

1. Affidavits for All Documents required at a Public Registry within BC 2. Certified True Copies of Documents 3. Execution/Authentications of International Documents 4. Notarizations/Attestations of Signatures 5. Insurance Loss Declarations 6. Personal Property Security Agreements 7. Statutory Declarations 8. Authorization of Minor-Child Travel 9. Letters of Invitation for Foreign Travel 10.Passport Application Documentation D. BUSINESS

1. Business Purchase/Sale 2. Commercial Leases and Assignment of Leases 3. Contracts and Agreements

E. SOME BC NOTARIES PROVIDE

THESE SERVICES.

1. Marine Bills of Sale and Mortgages 2. Marine Protests 3. Marriage Licences 4. Mediation 5. Real Estate Disclosure Statements

There are Notaries to serve you throughout British Columbia For the BC Notary office nearest you, please call 1-604-676-8570 or visit www.bcnotaryassociation.ca. Note: Not all Notaries provide all services listed. Please check with your Notary before making an appointment for services.