Archived - Departmental Plan 2017–18: Supplementary Information Tables: page 2
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): 1,017,359,314
Total federal planned spending to date (dollars): Not availablea
Total federal actual spending to date (dollars): Not availableb
Funding contributed by non-federal and non-governmental partners: Not applicable
Governance structures: Canada’s AML/ATF Regime is a horizontal initiative comprising 11 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 Advisory Committee on Money Laundering and Terrorist Financing, a broad-based advisory group composed of public and private sector representatives.
Chief, Financial Crimes
a The amount for “Total federal planned spending” will be available by May 31, 2017.
b The amount for “Total federal actual spending” will be available by May 31, 2017.
Description of the horizontal initiative: Canada’s AML/ATF Regime was formally established in 2000 as the National Initiative to Combat Money Laundering, 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. The National Initiative to Combat Money Laundering was expanded and its name formally changed to Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime.
The Regime is regularly 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 and the actions of G7 partners.
As a result of reviews, changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Regime as a whole have been implemented over the years. The most significant changes were made following the Parliamentary Reviews of 2005–06 and 2012–13.
Fiscal year of planned completion of next evaluation: Not applicable
Shared outcome of federal partners: 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
Performance indicator(s): An effective regime that respects domestic legal and constitutional frameworks and is consistent with international standards
Target(s): Improved level of compliance and effectiveness
Data source and frequency of monitoring and reporting: Data sources and frequency of monitoring and reporting are being developed by the newly created Regime-wide performance management working group.
Expected outcome or result of non-federal and non-governmental partners: Not applicable
|Federal organizations||Link to department’s Program Inventory||Contributing programs and activities||Total allocation (from start to end date) (dollars)||2017–18 Planned spending (dollars)||2017–18 Expected results||2017–18 Performance indicators||2017–18 Targets||Link to department’s Strategic Outcomes||Link to government priorities|
|Department of Finance Canada||Financial Sector Policy||Policy Development and Oversight of Anti-Money Laundering and Anti-Terrorist Financing Regime||4,392,000||244,000||ER 1.1||PI 1.1||T 1.1||Senior government officials have timely access to evidence-based analysis, research and advice on matters that impact the Government of Canada’s financial sector policy agenda.||Security and Opportunity|
|Department of Justice Canada||Justice Policies, Laws and Programs||Criminal Law Policy Section and International Assistance Group||7,800,000||100,000a||Not applicable||Not applicable||Not applicable||Not applicable||Not applicable|
|Public Prosecution Service of Canada (PPSC)||Drug, National Security and Northern Prosecutions Program||Drug, National Security and Northern Prosecutions Program||23,190,310||2,108,210||ER 3.1||PI 3.1||T 3.1||Criminal and regulatory offences under federal law are prosecuted by the Office of the Director of Public Prosecutions in an independent, impartial and fair manner.||Security and Opportunity|
|Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)||Financial Intelligence Program||Financial Intelligence Program||634,243,246||20,295,108||ER 4.1||PI 4.1||T 4.1||A Canadian financial system resistant to money laundering and terrorist financing||Security and Opportunity|
|Compliance Program||Compliance Program||18,390,144||ER 4.2||PI 4.2||T 4.2||A Canadian financial system resistant to money laundering and terrorist financing||Security and Opportunity|
|Internal Services||Internal Services||6,309,374||ER 4.3||Not applicable||Not applicable||A Canadian financial system resistant to money laundering and terrorist financing||Not applicable|
|Royal Canadian Mounted Police (RCMP)||Federal Policing||Federal Policing Project-Based Investigations
|169,433,965||9,680,397b||ER 5.1||PI 5.1||T 5.1||Criminal activity affecting Canadians is reduced.||Security and Opportunity|
|Internal Services||Internal Services||13,058,821||1,531,182||Not applicable||Not applicable|
|Canada Revenue Agency (CRA)c||Domestic Compliance (Under the new Departmental Results Framework)||Small and Medium Enterprises||36,923,800||2,578,651||ER 6.1||PI 6.1||T 6.1||Canadians obtain services and information that are accessible, timely, useful and fair.||Security and Opportunity|
|Charities (Under the new Departmental Results Framework)||Charities: Public Safety and Anti-Terrorism||39,909,172||4,103,445||ER 6.2||PI 6.2||T 6.2||To protect the integrity of the charity registration system from the risk of terrorist abuse.||Security and Opportunity|
|Canada Border Services Agency (CBSA)||Risk Assessment||Intelligence
|92,800,000||1,700,000||ER 7.1||PI 7.1||T 7.1||International trade and travel is facilitated across Canada’s border and Canada’s population is protected from border-related risks.||Security and Opportunity|
|Admissibility Determination||Highway Mode
Courier Low Value Shipment
|1,100,000||ER 7.2||PI 7.2||T 7.2||International trade and travel is facilitated across Canada’s border, and Canada’s population is protected from border-related risks.||Security and Opportunity|
|Recourse||Recourse||300,000||ER 7.3||PI 7.3||T 7.3||International trade and travel is facilitated across Canada’s border, and Canada’s population is protected from border-related risks.||Open and Transparent Government|
|Internal Services||Internal Services||600,000||ER 7.4||Not applicable||Not applicable||International trade and travel is facilitated across Canada's border, and Canada's population is protected from border-related risks.||Not applicable|
|Total for all federal organizations||1,017,359,314||69,040,511||Not applicable||Not applicable||Not applicable||Not applicable||Not applicable|
|a The Department of Justice Canada, since it started reporting separately from the PPSC 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 no longer reports on Regime funding.
b Under the 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 investigative teams across the country. This model enables FP to better align resources to the highest priorities and threats to the safety and security of Canadians. As a result, it is expected that in any given year FP's allocation of funds to AML/ATF activities will fluctuate in line with evolving priorities.
c The amounts shown for “Total allocation (from start to end date)” and “2017–18 Planned spending” reflect the budget allocation up to and including 2017–18. CRA’s “Total allocation” of $36,923,800 includes Employee Benefit Plan (EBP) premiums of 20% and excludes Accommodation premiums of 13%. CRA’s “2017–18 Planned spending” includes EBP premiums of 20% and excludes Accommodation premiums of 13% in accordance with instructions.
The Department of Finance Canada will continue to coordinate Canada’s AML/ATF Regime. The Department will focus on the following areas:
- working 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, consultations with private sector stakeholders, the National Inherent Risk Assessment, and the Financial Action Task Force’s mutual evaluation of Canada
- leading 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
- participating in interdepartmental and horizontal initiatives related to the mandates of AML/ATF Regime partners
- coordinating the government’s response to the Financial Action Task Force’s mutual evaluation of Canada, in collaboration with all AML/ATF Regime partners
- heading the Canadian delegation to, and actively participating as a member of, the Financial Action Task Force and other regional groups. Activities will involve contributing to the Financial Action Task Force’s country review process under the fourth round of assessment and to key international policy development initiatives, including collaboration with key allies, such as the G7
- Level of activity and outputs of steering committees, and working-level committees with a focus on money laundering and terrorist financing
- Alignment and significance of legislative and regulatory changes to identified Regime gaps and AML/ATF priorities
- Number and type of outreach consultation activities with public/private sector advisory groups on the risks of money laundering and terrorist financing
- Level of participation in international meetings of AML/ATF organizations, committees, initiatives (meetings attended, nature of contribution)
- Regular meetings with the private sector through the Advisory Committee on Money Laundering and Terrorist Financing, conferences and other activities
- Regular attendance at, and participation in, meetings of the Financial Action Task Force and regional and working groups
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 under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and under provisions of the Criminal Code relating to the proceeds of crime, money laundering and terrorist financing, 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.
- Number of new possession of proceeds of crime charges under the Criminal Code referred to the PPSC during the fiscal year
- Number and percentage of files involving new possession of proceeds of crime charges under the Criminal Code where PPSC counsel provided legal advice
- Number of new money laundering charges under the Criminal Code referred to the PPSC during the fiscal year
- Number and percentage of files involving new money laundering charges under the Criminal Code where PPSC counsel provided legal advice
- Number of new terrorism financing charges under the Criminal Code referred to the PPSC during the fiscal year
- Number and percentage of files involving new terrorism financing charges under the Criminal Code where PPSC counsel provided legal advice
- Number of new charges under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act referred to the PPSC during the fiscal year
- Number and percentage of files involving new charges under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act where PPSC counsel provided legal advice
- Nature of liaison and outreach activities with AML/ATF Regime partners and other stakeholders
Targets are not applicable owing to the nature of the PPSC’s workload and 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 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
- 80% of disclosure recipients indicate disclosure provided information that was helpful to the investigation
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 and Part 1.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations.
- Non-compliance among reporting entities is detected and addressed, and entities have access to timely and accurate information
- Non-compliance among reporting entities is detected and addressed: 100% of cases where corrective actions taken are commensurate with the level of non-compliance detected
- Entities have access to timely and accurate information: 90% of general inquiries 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.
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 those involving money laundering and terrorist financing in Canada. This will be achieved through active investigations in the areas of highest risk and by leveraging the information and expertise of national and international partners.
In 2017–18, the RCMP’s Federal Policing Criminal Operations (FPCO) Money Laundering Working Group will continue to meet on a regular basis. This Working Group allows representatives from key RCMP Divisions and National headquarters to ensure that their operational priorities are aligned. In addition to improving collaboration between and among the Divisions and National Headquarters, this Working Group has made progress in addressing key issues identified in the RCMP’s Anti-Money Laundering Strategy.
The newly established ADM-Level Advisory Committee, co-led by the RCMP and FINTRAC, will focus on the operational challenges faced by key Government of Canada partners responsible for investigating and prosecuting threats of money laundering. Specifically, this Committee will identify gaps or challenges that hinder the ability to investigate and, ultimately, to prosecute financial crimes in Canada.
The RCMP will continue to work with its partners, specifically FINTRAC, to ensure that products produced by FINTRAC are aligned with key operational priorities and the operational realities of the RCMP. By doing so, both the RCMP and FINTRAC will improve efficiencies and maximize the use of their resources.
Further to recommendations identified in its Anti-Money Laundering Strategy, the RCMP launched a “Proceeds of Crime – Money Laundering” training course in 2016, designed to enhance the ability of officers within the RCMP’s Federal Policing program to investigate financial crimes. The training course is available to members of all RCMP Divisions. This additional training in financial crime investigations will increase the ability of Federal Policing members to examine the proceeds of crime and to undertake investigations on money laundering.
- Percentage of all Tier I and Tier 2 projects that have a money laundering component
- Number of joint meetings held by the RCMP and FINTRAC to set priorities
- Number of meetings held by the FPCO Money Laundering Working Group
- Percentage of high-risk traveller files where assistance was sought from FINTRAC through Voluntary Information Requests
- RCMP participation in the annual meeting of the Five Eyes Terrorist Financing Working Group
- Number of training sessions delivered, including the number of sessions of the “Proceeds of Crime – Money Laundering” course and other courses on terrorist financing
- Number of trained personnel from the RCMP and domestic and international partners
- Target to be determined for Tier I and Tier 2 projects having a money laundering component
- Three joint meetings to set priorities will be held by the RCMP and FINTRAC
- The RCMP will hold three meetings of the FPCO Money Laundering Working Group
- The RCMP aims to examine 75% of high-risk traveller files for possible terrorist financing components by seeking FINTRAC’s assistance through Voluntary Information Requests
- The RCMP will participate in the annual meeting of the Five Eyes Terrorist Financing Working Group
- The RCMP plans to deliver four sessions of the Proceeds of Crime – Money Laundering training course and two Anti-TF training courses. A total of 60 investigators are expected to be trained, including approximately 46 RCMP investigators and analysts
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
- 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 Domestic Compliance Programs Branch (DCPB) of the CRA will continue to process all disclosures from FINTRAC on a priority basis. The DCPB 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 2017–18. This factor may also potentially impact the federal tax reassessment for these cases.
Information will be 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.
- Total number of audits completed
- 90 audits
The CRA administers 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 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 the risk of terrorist abuse 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.
Performance indicators are not applicable owing to the nature of the workload and the mandate of the CRA’s Review and Analysis Division.
Targets are not applicable owing to the nature of the workload and the mandate of the CRA’s Review and Analysis Division.
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 Force Operations with the RCMP and other government departments.
In all modes of operation, Border Services Officers will continue to seize unreported and falsely reported currency and monetary instruments arriving at or departing from ports of entry.
- Number of relevant strategic or intelligence reports or documents produced related to money laundering or terrorist financing
- Number of Joint Force Operations completed with the RCMP and other government departments
- Number of compliance reports accepted at CBSA ports of entry and forwarded to FINTRAC
- Number of currency and monetary instrument seizures carried out by Border Services Officers
In all modes of operation, Border Services Officers maintain the administrative responsibility to collect cross-border currency and monetary instrument reports from inbound and outbound travellers and entities; these reports are forwarded to FINTRAC.
In all modes of operation, Border Services Officers continue to seize unreported and falsely reported currency and monetary instruments arriving at, or departing from, ports of entry.
- Number of compliance reports accepted at ports of entry by the CBSA and forwarded to FINTRAC
- Number of currency and monetary instrument seizures carried out by Border Services Officers
- Screening of 100% of travellers. All travellers are asked whether they are carrying funds over $10,000
The CBSA Recourse Directorate will acknowledge receipt of the request for a minister’s review and will confirm that a file has been opened.
- Percentage of enforcement appeals received, including those under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, that are acknowledged within 10 days
- 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
- Continue to be involved in international conferences and workshops that require the presence of cross-border law enforcement expertise
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