Archived - Report on Plans and Priorities 2016–17:Supplementary Information Tables: page 3
Name of horizontal initiative: Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime
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 Global Affairs 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) (dollars): 949,018,733
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 with a mandate to ensure compliance of reporting entities, to collect and analyze 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 and was renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The NICML was expanded and its name formally changed to Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime.
The Regime is continually reviewed to ensure that it remains effective, addresses emerging risks, and maintains Canada’s international leadership in the fight against money laundering and terrorist financing. Reviews are informed by various evaluations, consultations with industry, assessments of money laundering and terrorist financing risks, as well as international considerations, including the activities of the Financial Action Task Force (FATF) and the actions of G7 partners.
As a result of reviews, changes to the PCMLTFA and the Regime as a whole have been implemented over the years. More significant changes have taken place subsequent to Parliamentary Reviews that took place in 2005–06 and 2012–13.
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, led by the Department of Finance Canada. An interdepartmental steering committee, led by senior officials and consisting of all partners, provides input and advice on AML/ATF policy. In addition, general advice on Canada's AML/ATF Regime is provided by the Public/Private Sector Advisory Committee, a broad-based advisory group composed of public and private sector representatives.
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: identifying opportunities and initiatives to strengthen the Regime; implementing the commitments in Budget 2014 to strengthen the Regime, including the development of regulatory amendments; and following up on the results of the peer review by the FATF of Canada’s compliance with FATF standards.Results to be achieved by non-federal and non-governmental partners: Not applicable
Contact information:
Ian Wright
Chief, Financial Crimes – Domestic Section
Phone: 613-369-3853
Planning Information
| Federal organizations | Link to department's Program Alignment Architecture | Contributing programs and activities | Total allocation (from start to end date) (dollars) | 2016–17 Planned spending (dollars) |
2016–17 Expected results |
2016–17 Performance indicators |
2016–17 Targets |
|---|---|---|---|---|---|---|---|
| Department of Finance Canada | Financial Sector Policy | Policy Development and Oversight of Anti-Money Laundering and Anti-Terrorist Financing Regime | 4,148,000 | 244,000 | ER 1.1 | PI 1.1 | T 1.1 |
| Department of Justice Canada | Justice Policies, Laws and Programs | Criminal Law Policy Section and International Assistance Group | 7,700,000 | 100,000[1] | Not applicable | Not applicable | Not applicable |
| Public Prosecution Service of Canada (PPSC) | Drug, Criminal Code and Terrorism Prosecution Program | Drug, Criminal Code and Terrorism Prosecution Program | 21,082,100 | 2,108,210 | ER 3.1 | PI 3.1 | T 3.1 |
| Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) | Financial Intelligence Program | Financial Intelligence Program | 585,013,499 | 24,109,016 | ER 4.1 | PI 4.1 | T 4.1 |
| Compliance Program | Compliance Program | 19,551,146 | ER 4.2 | PI 4.2 | T 4.2 | ||
| Internal Services | Internal Services | 6,389,726 | ER 4.3 | PI 4.3 | T 4.3 | ||
| Royal Canadian Mounted Police (RCMP) | Federal Policing | Federal Policing Project-Based Investigations General Investigations | 159,753,568 | 9,794,410[2] | ER 5.1 | PI 5.1 | T 5.1 |
| Internal Services | Internal Services | 11,527,639 | 1,424,977 | ||||
| Canada Revenue Agency (CRA)[3] | Reporting Compliance | Canada's AML/ATF Regime | 34,888,200 | 2,474,903 | ER 6.1 | PI 6.1 | T 6.1 |
| Charities – Public Safety and Anti-Terrorism | Combatting Terrorist Resourcing Through Charities | 35,805,727 | 4,074,749 | ER 6.2 | PI 6.2 | T 6.2 | |
| Canada Border Services Agency (CBSA) | Admissibility Determination | Highway Mode Air Mode Rail Mode Marine Mode Postal Courier Low Value Shipment |
89,100,000 | 2,800,000 | ER 7.1 | PI 7.1 | T 7.1 |
| Recourse | Recourse | 300,000 | ER 7.2 | PI 7.2 | T 7.2 | ||
| Internal Services | Internal Services | 600,000 | ER 7.3 | Not applicable | Not applicable | ||
| Total for all federal organizations | 949,018,733 | 73,871,137 | Not applicable | ||||
The Department of Finance Canada will continue its coordination of Canada's AML/ATF Regime.
The Department will focus on the following areas:
- The Department will continue to work in collaboration with Regime partners to identify initiatives and actions to improve the effectiveness of Canada’s AML/ATF regime. This work will be informed by internal research and policy development, by consultations with private sector stakeholders, by the National Inherent Risk Assessment, and by Canada’s FATF mutual evaluation.
- The Department will continue to lead the implementation of commitments made in Budget 2014 and Budget 2015 to strengthen Canada’s AML/ATF Regime, including the development and coming into force of regulatory amendments.
- The Department will continue to participate in interdepartmental and horizontal initiatives related to the mandates of AML/ATF Regime partners.
- The Department, in collaboration with all federal partner organizations, will coordinate the government’s review and response to the FATF's mutual evaluation of Canada.
- The Department will continue to head the Canadian delegation to, and actively participate 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 G7.
Performance indicators are not applicable owing to the nature of the workload of the Department.
Targets are not applicable owing to the nature of the workload and the Department'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 PCMLTFA, 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 FATF as required.
- Number of new possession of proceeds of crime charges by fiscal year.
- Number of new money laundering charges by fiscal year.
- Number of new terrorism financing charges by fiscal year.
- Number of new charges under the PCMLTFA by fiscal year.
- Number and percentage of files involving new possession of proceeds of crime charges in which in-house counsel provided legal advice.
- Number and percentage of files involving new money laundering charges in which in-house counsel provided legal advice.
- Number and percentage of files involving new terrorism financing charges in which in-house counsel provided legal advice.
- Number and percentage of files involving new charges under the PCMLTFA in which in-house counsel provided legal advice.
- Percentage of production orders obtained pursuant to the PCMLTFA.
- Nature of liaison and outreach activities with Regime partners and other stakeholders.
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 strategic and tactical 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 that seek 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.
- Percentage of disclosure recipients indicating that information provided was actionable.
- 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.
- 70% of disclosure recipients indicate FINTRAC's disclosure provided information that was helpful to the investigation.
- 50% of disclosure recipients indicate that information provided was actionable.
- 75% of primary recipients indicate increased awareness and understanding of money laundering and terrorist activity financing subject matter as a result of FINTRAC's strategic financial intelligence products.
As part of Canada's AML/ATF Regime, FINTRAC seeks to deter 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 PCMLTFA and Regulations.
FINTRAC will continue to:
- Undertake compliance and enforcement activities based on internal analysis and risk;
- 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
- Support reporting entities by providing them with clear and consistent technical support and guidance to facilitate quality and timely reporting.
- Entities have access to timely and accurate information.
- Non-compliance by reporting entities is detected and addressed.
- Percentage of cases where corrective actions taken are commensurate with the level of non–compliance detected.
- Percentage of general inquiries answered within established time frames.
- In 100% of cases, corrective actions taken are commensurate with the level of non–compliance detected.
- 90% of general inquiries are answered within established time frames.
FINTRAC's Internal Services groups support the work of the Financial Intelligence and Compliance programs by providing key corporate services.
Performance Indicators are not applicable owing to the nature of the workload and FINTRAC's mandate.
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 Canadian economy and security, including money laundering and terrorist financing.
The RCMP will further implement its strategy to combat money laundering. The objective of the strategy is to 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 ATF 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 AML and ATF.
The RCMP, with AML/ATF partners, will continue to contribute and be accountable to the FATF external evaluation.
- Number of trained RCMP officers.
- Number of joint meetings involving the RCMP and FINTRAC.
- Number of meetings held by the newly established Federal Policing Criminal Operations Money Laundering Working Group.
- Percentage of Tier I[4] and Tier 2[5] projects that have a money laundering component.
- Percentage of projects that have a money laundering component.
- Percentage of High-Risk Travellers’ files for which assistance was sought from FINTRAC through Voluntary Information Requests.
- Number of terrorist financing courses and total trained personnel (from the RCMP, domestic partners and foreign partners).
- RCMP participation to the annual Five Eyes Terrorist Financing Working Group Meeting.
For AML:
In cooperation with Federal Policing National Training Services and Federal Coordination Centres, develop and launch a new pilot course on money laundering. Twenty-four RCMP participants are expected to complete the course in 2016–17.
Increase cooperation with FINTRAC to tailor its financial intelligence products to the needs of RCMP investigators. Three joint priority-setting meetings will be held in 2016–17.
Enhance the interoperability between National Intelligence Coordination Centre, Criminal Intelligence Service Canada, Federal Policing Criminal Operations (FPCO) and the National Capital and regional Divisions to achieve a common understanding of the threat of money laundering. This will be achieved by holding three meetings of the newly established FPCO Money Laundering Working Group and by ensuring that 75% of the Tier I and Tier 2 projects will have a money laundering component.
For ATF:
High-Risk Travellers (HRTs) are one of the highest threats for the RCMP and a priority. For all HRT files, the RCMP aims at having a terrorist financing component in 100% of these cases by seeking FINTRAC’s assistance through Voluntary Information Requests.
The RCMP aims at rolling out three terrorist financing courses to train a total of 90 persons (from the RCMP, our domestic partners and our foreign partners).
The RCMP will participate in the annual Five Eyes Terrorist Financing Working Group Meeting, comprising representatives from law enforcement and intelligence agencies from the Five Eyes countries.
As a partner in Canada’s AML/ATF Regime and with respect to international standards, the RCMP will continually work to ensure an effective outcome in areas within its mandate. Specifically, the RCMP will investigate terrorist financing offences and activities, and assist in the prosecution of those who finance terrorism.
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 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 (CPB) of the CRA will continue to process all disclosures from FINTRAC on a priority basis. The CPB will thoroughly review all disclosures received from FINTRAC and select for compliance actions those with identifiable tax and collection potential. The projected number of audits is 90 cases, with a projected federal tax reassessment of $9 million. Because of the complexity of the files received from FINTRAC, there may be an impact on the number of audits completed in 2016–17. This factor may also potentially impact the federal tax reassessment for these cases.
Information will be gathered from the FINTRAC disclosures and resulting compliance actions for intelligence purposes in order to identify trends that could positively impact the quality and success of future compliance actions.
Number of audits completed.
90 audits
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 PCMLTFAand by changes to the Income Tax Act authorizing broader information sharing between AML and ATF 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 FATF and the United Nations.
Performance indicators are under development.
Targets are under development.
Border Services Officers (BSOs) maintain the responsibility to enforce the physical cross-border reporting obligations, 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.
- Percentage of people examined who are found inadmissible.
- Percentage of imported commercial goods examined that result in seizure action in the marine, highway, air and rail modes of importation.
Targets are under development.
Recourse is 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 PCMLTFA.
- Percentage of enforcement appeals received that are acknowledged within 10 days.
- Percentage of trade appeals received that are acknowledged within 10 days.
Targets are under development.
Internal Services will focus on the following:
- Providing functional direction to the regions regarding the administration and enforcement of Part 2 of the PCMLTFA.
- Providing critical strategic planning, priority setting and coordination for the Cross-Border Currency Reporting Program.
- Continuing to work closely with other key government departments on matters related to money laundering and terrorist financing.
- Continuing to be involved in international conferences and workshops that require the presence of cross-border law enforcement expertise.
1 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.
2 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.
3 The amounts shown for “Total allocation (from start to end date)” and “2016–17 Planned Spending” reflect the budget allocation up to and including 2016–17.
4 Tier I refers to Top Priority projects.
5 Tier 2 refers to Priority projects.
Page details
- Date modified: