Archived - Report on Plans and Priorities 2015–16: Supplementary Information Tables: page 3
Name of horizontal initiative: Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime
Name of lead department(s): Department of Finance Canada
Federal partner organization(s): Canada's AML/ATF Regime includes funded and non-funded partners. The funded partners are the Department of Finance Canada, the Department of Justice Canada, the Public Prosecution Service of Canada, the Financial Transactions and Reports Analysis Centre of Canada, the Canada Border Services Agency, the Canada Revenue Agency, the Canadian Security Intelligence Service, and the Royal Canadian Mounted Police. The non-funded partners are Public Safety Canada, the Office of the Superintendent of Financial Institutions Canada, and Foreign Affairs, Trade and Development Canada.
Non-federal and non-governmental partner(s): Not applicable
Start date of the horizontal initiative: June 2000
End date of the horizontal initiative: Ongoing
Total federal funding allocated (start to end date): Total funding: $876,304,457
New funding: In 2015–16, the Financial Transactions and Reports Analysis Centre of Canada will receive $1,747,592 in new funding to support the implementation of legislative amendments and to modernize its analytics system.
Funding contributed by non-federal and non-governmental partners: Not applicable
Description of the horizontal initiative: Canada's AML/ATF Regime was formally established in 2000 as the National Initiative to Combat Money Laundering (NICML), as part of the government's ongoing effort to combat money laundering in Canada. Legislation adopted that year, the Proceeds of Crime (Money Laundering) Act, created a mandatory reporting system for suspicious financial transactions, large cross-border currency transfers, and certain prescribed transactions. The legislation also established the Financial Transactions and Reports Analysis Centre of Canada to collect and analyze these financial transaction reports and to disclose pertinent information to law enforcement and intelligence agencies. In December 2001, the Proceeds of Crime (Money Laundering) Act was amended to include measures to fight terrorist financing activities and was renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
The NICML was expanded and its name formally changed to Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. To improve Canada's ability to address emerging risks and maintain Canada's international leadership in the fight against money laundering and terrorist financing, changes were made to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and to Canada's AML/ATF Regime over the years; in particular, significant changes were made following the Parliamentary Reviews of 2005–06 and 2011–12.
Shared outcome(s): To detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of money laundering and terrorist financing offences.
Governance structures: Canada's AML/ATF Regime is a horizontal initiative comprising eleven federal partner organizations. The Minister of Finance has overall responsibility for Canada's AML/ATF Regime.
An interdepartmental assistant deputy minister−level group and a working group made up of all AML/ATF partners and led by the Department of Finance Canada directs and coordinates the government's efforts to combat money laundering and terrorist financing activities. The Department also chairs a Public/Private Sector Advisory Committee. This broad-based advisory committee is composed of public and private sector representatives who provide general guidance to Canada's AML/ATF Regime.
Planning highlights: Canada's AML/ATF Regime partners will continue to focus on the following key objectives: detecting, deterring and preventing money laundering and terrorist financing and facilitating the investigation and prosecution of money laundering and terrorist financing offences.
Each partner plays a key role in the Regime, and a coordinated effort is necessary to ensure that the AML/ATF Regime continues to be effective and efficient. Canada's AML/ATF Regime partners will continue to focus on the following key priorities: implementation of the commitments in Economic Action Plan 2014 to strengthen Canada's AML/ATF Regime, including the development of regulatory amendments; a peer review by the Financial Action Task Force (FATF) of Canada's compliance with FATF standards; and completion and implementation of Canada's risk assessment for money laundering and terrorist financing.
Results to be achieved by non-federal and non-governmental partners: Not applicable
Chief, Financial Crimes – Domestic Section
|Federal organizations||Link to departmental Program Alignment Architectures||Contributing programs and activities||Total allocation (from start to end date)||2015–16
|Department of Finance Canada||Financial Sector Policy||Policy Development and Oversight of Anti-Money Laundering and Anti-Terrorist Financing Regime||$3,904,000||$244,000||ER 1.1||T 1.1|
|Department of Justice Canada||Justice Policies, Laws and Programs||Criminal Law Policy Section and International Assistance Group||$7,600,000||$100,000*||Not applicable||Not applicable|
|Public Prosecution Service of Canada (PPSC)||Drug, Criminal Code and Terrorism Prosecution Program||Drug, Criminal Code and Terrorism Prosecution Program||$18,973,890||$2,108,210||ER 3.1||T 3.1|
|Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)||Financial Intelligence Program||Financial Intelligence Program||$535,810,165||$18,295,120||ER 4.1||T 4.1|
|Compliance Program||Compliance Program||$19,201,289||ER 4.2||T 4.2|
|Internal Services||Internal Services||$6,330,916||ER 4.3||T 4.3|
|Royal Canadian Mounted Police (RCMP)||Federal Policing||Federal Policing Project-Based Investigations General Investigations||$149,959,158||$9,769,478†||ER 5.1||T 5.1|
|Internal Services||Internal Services||$10,102,662||$1,353,292|
|Canada Revenue Agency (CRA)||Reporting Compliance||Canada's AML/ATF Regime||$32,852,300||$1,964,825||ER 6.1||T 6.1|
|Charities – Public Safety and Anti-Terrorism||Combatting Terrorist Resourcing Through Charities||$31,702,282||$4,103,445||ER 6.2||T 6.2|
|Canada Border Services Agency (CBSA)||Risk Assessment||Intelligence||$85,400,000||$1,700,000||ER 7.1||T 7.1|
|Admissibility Determination||Highway Mode
Postal Courier Low Value Shipment
|$1,100,000||ER 7.2||T 7.2|
|Recourse||Recourse||$300,000||ER 7.3||T 7.3|
|Internal Services||Not applicable||$300,000||ER 7.4||T 7.4|
|Total for all federal organizations||$876,304,457‡||$66,870,575||Not applicable|
| * The Department of Justice Canada, since it started reporting separately from the Public Prosecution Service of Canada in 2007–08, has reported receiving $0.1 million in AML/ATF Regime funding. The Department of Justice Canada no longer accounts for AML/ATF Regime funding separately from its core mandate (A-base) funding and therefore will no longer report on Regime funding.
† Under the new RCMP Federal Policing (FP) Service Delivery Model, the resources allocated to AML/ATF activities and to all other FP-specific or horizontal-related initiatives are delivered through broader FP teams across the country. This flexible model allows FP to better align resources to the highest priorities and thereby to conduct its business more efficiently. Consequently, it is expected that in any given year FP's allocation of funds to AML/ATF activities will fluctuate in line with evolving priorities.
‡ Total funding is the sum of the reporting organizations' total allocation amounts.
The Department of Finance Canada will continue its effective oversight of Canada's AML/ATF Regime.
The Department will also focus on the following areas:
- Continuing to lead the implementation of commitments made in Economic Action Plan 2014 to strengthen Canada's AML/ATF Regime, including the development of regulatory amendments;
- Leading and coordinating input to the Financial Action Task Force's (FATF's) peer review of Canada through the interdepartmental Mutual Evaluation of Canada Working Group;
- Completing and implementing Canada's risk assessment for money laundering and terrorist financing;
- Heading the Canadian delegation to, and actively participating as a member of, the FATF and other regional groups; activities include contributing to the FATF's country review process under the fourth round of assessment and to key international policy development initiatives, including collaborating with key allies, such as the Group of Seven (G7); and
- Continuing to participate in interdepartmental and horizontal initiatives related to the mandates of AML/ATF Regime partners.
Targets are not applicable owing to the nature of the workload and the Department of Finance Canada's mandate.
The PPSC will continue to provide legal advice and support to the Royal Canadian Mounted Police and other law enforcement agencies during the course of investigations related to the proceeds of crime, money laundering and terrorist financing provisions of the Criminal Code and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and to undertake prosecutions that arise out of those investigations.
The PPSC will continue to provide AML/ATF Regime-related training to law enforcement personnel and prosecutors, and to support policy development and coordination. The PPSC will also support the work of the Financial Action Task Force as required.
Targets are not applicable owing to the nature of the workload and the PPSC's mandate.
FINTRAC will continue to provide its partners, policy makers and other interested parties with relevant and actionable financial intelligence that contributes to the public safety of Canadians. FINTRAC will also continue to support efforts to disrupt the ability of criminals and terrorist groups to abuse Canada's financial system, and to reduce the profit incentive of crime.
Percentage of disclosure recipients indicating FINTRAC's disclosure provided information that was helpful to the investigation: 70%
Percentage of disclosure recipients indicating that information provided was actionable: 50%
Percentage of primary recipients indicating increased awareness and understanding of money laundering and terrorist activity financing subject matter as a result of FINTRAC's strategic financial intelligence products: 75%
As part of Canada's AML/ATF Regime, FINTRAC seeks to counter money laundering and terrorist financing by improving the compliance behaviours of reporting entities that have obligations for reporting, record keeping, identity verification and other requirements under Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations.
FINTRAC will continue to undertake compliance and enforcement activities based on internal analysis and risk; to ensure that reporting entities correct any detected non-compliance in a timely manner by employing compliance and enforcement activities commensurate with the level of non-compliance found, including the use of administrative monetary penalties and non-compliance disclosures; and to support reporting entities by providing them with clear and consistent technical support and guidance to facilitate quality and timely reporting.
Non-compliance among reporting entities is detected and addressed.
Percentage of cases where corrective actions taken are commensurate with the level of non-compliance detected: 100%
Entities have access to timely and accurate information.
Percentage of general inquiries answered within established time frames: 90%
FINTRAC's Internal Services groups will continue to work closely with the Department of Finance Canada and other government departments on matters related to money laundering and terrorist activity financing, with particular focus on the following areas:
- Providing support to the Department of Finance Canada for the regulatory process and regulatory amendments associated with the Economic Action Plan 2014 Act, No. 1;
- Engaging with AML/ATF Regime partners and other stakeholders (for example, businesses, international partners and academics), to share expertise on money laundering and terrorist financing; and
- Continuing to participate in the Department of Finance Canada-led Mutual Evaluation Coordination Working Group, in preparation for the mutual evaluation of Canada's AML/ATF Regime.
Targets are not applicable owing to the nature of the workload and FINTRAC's mandate.
In support of its strategic priority on economic integrity, the RCMP will continue to prevent, detect and disrupt crimes that threaten Canada's economy and security, including money laundering and terrorist financing.
The RCMP will develop a strategy to combat money laundering. This strategy will help ensure that the RCMP uses every tool at its disposal in remaining flexible and adaptive while responding to money laundering threats, and on a wider scale, organized crime. In addition, the RCMP will leverage existing capacity through a cooperative approach with its partners across Canada.
The RCMP will continue to disrupt terrorist financing activities in Canada through active investigations in the areas of highest risk and to leverage the information and expertise of its national and international anti-terrorist financing partners.
In all efforts, the RCMP will engage its domestic and international law enforcement partners and regulatory entities for a holistic enforcement and crime prevention approach to anti-money laundering and anti-terrorist financing.
In collaboration with its AML/ATF Regime partners, the RCMP will continue to contribute and be accountable to the Financial Action Task Force external evaluation.
Indicators and targets are being developed.
The CRA will focus on the following key areas:
- Participating in committees and initiatives that aim to manage and strengthen Canada's AML/ATF Regime;
- Continuing to enhance operational relationships with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and other AML/ATF Regime partners; and
- Conducting analysis related to money laundering and tax avoidance and evasion, which includes conducting compliance action focused on individuals and entities that are participating in money laundering and terrorist financing activities.
The Compliance Programs Branch of the CRA will continue to process all disclosures from FINTRAC on a priority basis. The Compliance Programs Branch will thoroughly review all disclosures received from FINTRAC, perform analysis for intelligence and potential criminal investigations, and select for compliance actions those with identifiable tax and collection potential. The projected number of audits is 70 cases, with a projected federal tax reassessment of $7 million. Although the CRA will be starting at least 70 audits for this workload, the nature of the files makes it difficult to predict how many will be closed by the end of 2015–16. In addition, the $7 million estimate of reassessments is based on CRA-wide averages and the final amount may differ significantly from this figure, depending on which files are audited. Information is gathered from FINTRAC disclosures and resulting compliance actions for intelligence purposes to identify trends that could positively impact the quality and success of future compliance actions.
70 audits, with a projected federal tax reassessment of $7 million
The CRA has responsibility for administering the registration system for charities under the Income Tax Act. The existence of a strong regulatory deterrence against terrorist abuse of charities contributes to suppressing the financing of terrorism in Canada and to protecting and preserving the social cohesion and well-being of Canadians.
The CRA's regulatory oversight of charities has been strengthened by the enactment of complementary measures under the Charities Registration (Security Information) Act and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and by changes to the Income Tax Act authorizing broader information sharing between anti-money laundering and anti-terrorist financing agencies. Under these authorities, intelligence provided to the CRA assists in its mandate to protect the integrity of the registration system for charities and information disclosed by the CRA to its partners can be used for investigative purposes. The CRA will continue to identify and respond to cases involving possible links to terrorism by improving systems to support decisions and by refining risk management tools. The CRA will contribute to the international fight against terrorist financing and will bring regulatory actions to the attention of Canadians. The CRA will also continue to collaborate with AML/ATF Regime partners through domestic interdepartmental working groups and internationally through the Financial Action Task Force and the United Nations.
Targets are not applicable owing to the nature of the workload and the CRA's mandate.
The CBSA will continue to be involved in tactical and strategic analysis and assessments of intelligence related to money laundering and terrorist financing activities.
The CBSA will participate in joint forces operations with the Royal Canadian Mounted Police and other government departments.
Indicators and targets are being developed.
Border Services Officers (BSOs) maintain the responsibility to enforce the physical cross-border reporting obligation, including the examination of baggage and conveyances, and to question and search individuals for unreported or falsely reported currency and monetary instruments.
BSOs continue to seize currency and monetary instruments that are not reported and that are greater than the reporting threshold. Seized non-reported currency and monetary instruments are forfeited with no terms of release when BSOs suspect that the seized currency or monetary instruments are proceeds of crime or funds for use in terrorist financing activities. In all other instances, the seized amount will be returned upon payment of a penalty. BSOs are trained to recognize various monetary instruments and potential instances of non-compliance.
Indicators and targets are being developed.
Allow for the legislative or administrative mechanism that provides Canadians with a timely, objective, consistent and transparent internal review process intended to determine the correctness of CBSA decisions and actions taken under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Indicators and targets are being developed.
- Provide functional direction to the regions on the administration and enforcement of Part 2 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act;
- Provide critical strategic planning, priority setting and coordination for the Cross-Border Currency Reporting Program;
- Continue to work closely with other key government departments on matters related to money laundering and terrorist financing; and
- Continue to be involved in international conferences and workshops that require the presence of cross-border law enforcement expertise.
Indicators and targets are being developed.
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