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Archived - Departmental Results Report 2016–17 - Supplementary Information Tables

The 2013–16 Federal Sustainable Development Strategy (FSDS) presents the Government of Canada’s sustainable development activities, as required by the Federal Sustainable Development Act . In keeping with the objectives of the Act to make environmental decision making more transparent and accountable to Parliament, the Department of Finance Canada supports the implementation of the FSDS through the activities described in this supplementary information table.

This Departmental Sustainable Development Strategy describes the Department of Finance Canada’s actions in support of Theme I: addressing climate change and air quality, Theme III: protecting nature and Canadians, and Theme IV: shrinking the environmental footprint, beginning with government. The report for 2016–17 presents a high-level overview of results and is the final report under the 2013–16 FSDS. Last year’s report is available on the departmental website .

Under Theme I, the Department of Finance Canada contributed to the 2013–16 FSDS through two implementation strategies for Goal 1: climate change and two implementation strategies for Goal 2: air pollution.

The Department:

Under Theme III, the Department of Finance Canada contributed to the 2013–16 FSDS through one implementation strategy for Goal 4: conserving and restoring ecosystems, wildlife and habitat, and protecting Canadians.

The Department:

Under Theme IV, the Department of Finance Canada contributed to the 2013–16 FSDS through the following implementation strategies for Goal 7: waste and asset management.

Goal 7: waste and asset management
FSDS goal FSDS target FSDS performance indicator FSDS performance results
Goal 7: waste and asset management Target 7.2: green procurement

As of April 1, 2014, the Government of Canada will continue to take action to embed environmental considerations into public procurement, in accordance with the federal Policy on Green Procurement. 		Departmental approach to further the implementation of the Policy on Green Procurement in place as of April 1, 2014. Achieved

Environmental considerations are embedded in the Department’s procurement activities. Goods are usually purchased through Public Services and Procurement Canada (PSPC) or Shared Services Canada (SSC) standing offers and supply arrangements that include environmental performance specifications. When contracting for services, procurement to pay processes from electronic solicitation and bidding, use of scanning technology to issue contracts, as well as electronic invoicing and payment by direct deposit are embedded in the process. Of all supplier payments, 90% are made using direct deposit.
Number and percentage of specialists in procurement and/or material management who have completed the Canada School of Public Service Procurement course or equivalent, in fiscal year 2016–17. 6

100%

All departmental functional specialists in procurement and material management have completed the Green Procurement course.

Targeted performance level for 2016–17: 100%

Performance level achieved for 2016–17: 100%
Number and percentage of managers and functional heads of procurement and materiel whose performance evaluation includes support and contribution toward green procurement, in fiscal year 2016–17.

Departmental performance indicators for departmental green procurement targets		 2

100%

The Director of the Corporate Administrative Services Division and the Team Leader of the Procurement and Materiel Management unit have performance objectives relating to green procurement activities.

Targeted performance level for 2016–17: 100%

Performance level achieved for 2016–17: 100%
Departmental target:

By March 31, 2017, 90% of purchases of audiovisual equipment will include criteria to reduce the environmental impact associated with production, acquisition, and use and/or disposal of the equipment. 		Dollar value of audiovisual equipment purchases that meet the target objective relative to the total dollar value of all audiovisual equipment purchased. Audiovisual equipment (for example, projectors, headsets, digital signage and televisions) purchased by the Department through PSPC standing offers and supply arrangements that include environmental performance specifications is reported. 100%

Purchases totalled $1,567 in fiscal year 2016–17.

Targeted performance level for 2016–17: 90%

Performance level achieved for 2016–17: 100%
Departmental target:

By March 31, 2017, 90% of information technology (IT) hardware purchases will include criteria to reduce the environmental impact associated with the production, acquisition, use and/or disposal of the equipment. 		Dollar value of IT hardware purchases that meet the target objective relative to the total dollar value of all purchases of IT hardware.

IT hardware (desktop computers, laptops, tablets and peripherals) purchased through PSPC or SSC standing offers and supply arrangements that include environmental performance specifications is reported.		 99%

Purchases totalled $1,345,029 in fiscal year 2016–17. Of this amount, $1,339,492 (99%) was for IT hardware purchased through standing offers or supply arrangements.

Targeted performance level for 2016–17: 90%

Performance level achieved for 2016–17: 99%
Departmental target:

By March 31, 2017, 95% of copy paper, commercial printing, and/or envelope purchases will contain a minimum of 30% recycled content and be certified to a recognized environmental standard to reduce the environmental impact of its production. 		Dollar value of copy paper, commercial printing and/or envelope purchases that meet the target objective relative to the total value of all copy paper, commercial printing and/or envelope purchases. 100%

Copy paper and commercial printing purchases totalled $613,248 in fiscal year 2016–17. All copy paper and commercial printing included a minimum 30% post-consumer recycled paper content.

The Department awarded 2 commercial printing contracts for the production of the 2016 Fall Economic Statement and the 2017 Federal Budget. All other documents and reports produced during 2016–17 were available in electronic format only.

Targeted performance level for 2016–17: 90%

Performance level achieved for 2016–17: 100%
Implementation strategy elements 7.2.1.5. Leverage common-use procurement instruments where available and feasible. Achieved

The Department purchases goods and services through PSPC and SSC standing offers and supply arrangements whenever possible.
7.2.3. Train acquisition cardholders on green procurement. Achieved

The Department provides training to cardholders through information sessions and encourages them to incorporate green procurement considerations when making purchasing decisions.
7.2.4. Increase awareness of the Policy on Green Procurement among managers. Achieved

The Department has a Manager’s Guide to Procurement and Contracting that includes information on the Policy on Green Procurement and that promotes green activities during the procurement and contracting process.
Target 7.3: Sustainable Workplace operations

The Government of Canada will update and adopt policies and practices to improve the sustainability of its workplace operations. 		Approach to maintain or improve the sustainability of the departmental workplace in place as of March 31, 2015. Achieved

The Department has an Enviro Committee that supports the development and promotion of sustainable workplace operations. There are recycling centres and compost bins throughout the Department. A waste audit conducted during 2015–16 found that 59% (121 tonnes) of waste is diverted from landfill. In April 2016, disintegrated paper was added to the composting program, diverting an additional 26 tonnes of waste from landfill.
Implementation strategy elements 7.3.1.1. Engage employees in greening government operations practices. Achieved

Digital display panels are used to communicate tips and facts to employees to promote sustainable workplace operations as well as the Department’s annual Enviro Fair.
7.3.1.3 Maintain or improve existing approaches to sustainable workplace practices (that is, printer ratios, paper usage and green meetings). Achieved

The Department maintained an 8:1 employee to printer ratio. The defaults for multi-functional devices are set to duplex, black and white printing, and swipe-to-print technology.

The Department’s Green Meeting Guide is posted on the Department’s intranet, and electronic distribution of documents and use of laptops at meetings are actively promoted.
7.3.1.5. Select and operate IT and office equipment in a manner that reduces energy consumption and material usage. Achieved

The Department’s IT equipment defaults to enter sleep mode or power down after a period of inactivity.

The Department implemented swipe-to-print technology in 2016–17, reducing the number of unnecessary or duplicate print jobs.
7.3.1.6. Dispose of e-waste in an environmentally sound and secure manner. Achieved

E-waste is reused, whenever possible, through the Computers for Schools program, or if necessary, disposed of in an environmentally sound and secure manner. A battery recycling program is also in place.

The Department of Finance Canada continues to implement strategies to improve Green Procurement and Sustainable Workplace Operations in its day-to-day operations, for example, by:

During the 2016–17 reporting cycle, the Department of Finance Canada considered the environmental effects of initiatives subject to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, as part of its decision-making processes. Through the Strategic Environmental Assessment process, departmental proposals were found to have positive effects on progress toward the 2013–16 FSDS goals and targets in Theme I: addressing climate change and air quality, Theme II: maintaining water quality and availability, and Theme III: protecting nature and Canadians.

Additional information on the results of the Strategic Environmental Assessments is available on the Department’s public statements web page.

Internal audits completed in 2016–17
Title of internal audit Internal audit type Completion date
Audit of Web Posting Internal controls June 2016
Audit of the Business Continuity Planning Program Internal controls August 2016
Evaluations in progress or completed in 2016–17
Title of evaluation Status Deputy head approval date Link to department’s programs
Canada’s Payments to the International Development Association In progress March 2018
  • 1.2 Transfer and Taxation Payment Programs
  • 1.2.3 Commitments to International Financial Organizations

This audit examined whether the Department of Finance Canada, the Business Development Bank of Canada (BDC), and Innovation, Science and Economic Development Canada (ISED), consistent with their roles and responsibilities, properly assessed the policy need for the Venture Capital Action Plan and designed and implemented the Action Plan to meet its stated objectives. The audit also examined whether the Department, BDC, and ISED, consistent with their roles and responsibilities, measured and monitored the performance of the Action Plan against the stated objectives and intended outcomes. Three recommendations were directed to the Department.

This audit examined whether selected departments and agencies were achieving results toward the objectives of the Beyond the Border Action Plan to enhance security and accelerate the legitimate flow of travel and trade, and whether reporting on progress against the Action Plan was accurate and complete.

The Department of Finance Canada was 1 of 9 departments and agencies audited.

The Department did not receive any recommendations.

This audit examined whether the Canada Revenue Agency was managing the income tax objections and appeals process efficiently.

The Department of Justice Canada and the Department of Finance Canada were examined to the extent of their involvement in the court appeals process and in identifying the need for legislative changes.

The Department of Finance Canada did not receive any recommendations.

There were no audits in 2016–17 requiring a response.

Name of transfer payment program Payments to the International Development Association
Start date 1960
End date Ongoing
Type of transfer payment Other transfer payment
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 2014–15
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.3: Commitments to International Financial Organizations
Description This program provides encashment of demand notes to allow the International Development Association (IDA) to disburse concessional financing for development projects and programs in the world’s poorest countries.
Results achieved The payment during the reporting period was made on time and without errors. In addition to payments made, Canada was involved in negotiations toward a successful replenishment for future payments and was a key contributor toward reforms in the IDA funding model, to ensure that IDA maximizes the use of Canada’s future contributions.
Comments on variances No variance
Audits completed or planned No audit was completed during the reporting year, and no audit is planned or underway at this time.
Evaluations completed or planned No evaluation was completed during the reporting year. An evaluation is currently underway. Its expected completion date is October 2017.
Engagement of applicants and recipients Canadian officials engaged with IDA to identify ways to enable additional lending capacity through innovative funding approaches that make better use of IDA’s existing resources. As a result of these discussions, IDA will start complementing the resources it receives from donor countries, such as Canada, by borrowing from the market. This will result in approximately a 50% increase in resources available for the world’s poorest countries through IDA, without requiring any increase in the program’s expenditures.

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 883,220,000 441,610,000 441,620,000 441,620,000 441,620,000 0
Total program 883,220,000 441,610,000 441,620,000 441,620,000 441,620,000 0
Name of transfer payment program Fiscal Equalization (Federal-Provincial Fiscal Arrangements Act, Part I)
Start date 1957
End date Ongoing
Type of transfer payment Other transfer payment
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 2013–14
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description The Equalization program ensures that less prosperous provinces have sufficient revenue to provide reasonably comparable levels of public services at reasonably comparable levels of taxation, reducing fiscal disparities among provinces.

Equalization payments are unconditional and are determined using a formula, set out in federal legislation and regulations, which measures each province’s revenue-raising ability. The annual growth of this program is based on a 3-year moving average of nominal gross domestic product (GDP) growth.
Results achieved Timely and accurate payments in 2016–17 met all legislative requirements for financial support to provinces.
Comments on variances The increase in actual spending from 2015–16 to 2016–17 was due to the legislated annual program growth, calculated by multiplying the 2015–16 program payout by the 3.1% escalator derived using the GDP data available in the fall of 2015.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2016–17 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients With regard to the 2016–17 payments, provincial finance ministers were informed of the amounts in advance of the December 2015 Finance Ministers’ Meeting.

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 16,669,278,000 17,341,310,000 17,880,415,000 17,880,415,000 17,880,415,000 0
Total program 16,669,278,000 17,341,310,000 17,880,415,000 17,880,415,000 17,880,415,000 0
Name of transfer payment program Territorial Formula Financing (Federal-Provincial Fiscal Arrangements Act, Part I.1)
Start date 1985
End date Ongoing
Type of transfer payment Other transfer payment
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 2013–14
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description Territorial Formula Financing (TFF) payments are made to all territorial governments and provide the resources they need to deliver services that are comparable to those delivered by provincial governments, taking into account the high costs and unique challenges in the North. TFF fills the gap between a proxy of each territory’s expenditure needs and its capacity to generate revenues.
Results achieved Timely and accurate payments in 2016–17 met all legislative requirements for financial support to territories.
Comments on variances The increase in actual spending from 2015–16 to 2016–17 was mainly due to the growth in provincial and territorial spending.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2016–17 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients With regard to the 2016–17 payments, territorial finance ministers were informed of the amounts in advance of the December 2015 Finance Ministers’ Meeting, and additional amounts to address the impact of a Statistics Canada data revision were provided after the Budget Implementation Act, 2016, No. 1 was passed.

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 3,469,215,474 3,561,034,002 3,536,327,825 3,602,979,726 3,602,979,726 66,651,901
Total program 3,469,215,474 3,561,034,002 3,536,327,825 3,602,979,726 3,602,979,726 66,651,901
Name of transfer payment program Canada Health Transfer (Federal-Provincial Fiscal Arrangements Act, Part V.1)
Start date 2004
End date Ongoing
Type of transfer payment Other transfer payment
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 2013–14
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description This transfer payment to provinces and territories provides funding for health care. Annual funding for the Canada Health Transfer (CHT) has been increasing by 6% a year, and will continue to do so until 2016–17, after which its growth will be based on a 3-year moving average of nominal gross domestic product (GDP), with funding guaranteed to increase by at least 3% a year.

The CHT supports the government’s commitment to maintain the Canada Health Act’s national criteria (comprehensiveness, universality, portability, accessibility, and public administration) and prohibitions against user fees and extra-billing.
Results achieved Timely and accurate payments in 2016–17 met all legislative requirements for financial support to provinces and territories.
Comments on variances The increase in actual spending from 2015–16 to 2016–17 was due to the legislated 6% annual escalation of the CHT.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2016–17 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients With regard to the 2016–17 payments, provincial and territorial finance ministers were informed of the amounts in advance of the December 2015 Finance Ministers’ Meeting.

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 32,114,006,363 34,024,617,855 36,067,673,000 36,057,581,263 36,057,581,263 (10,091,737)
Total program 32,114,006,363 34,024,617,855 36,067,673,000 36,057,581,263 36,057,581,263 (10,091,737)
Name of transfer payment program Canada Social Transfer (Federal-Provincial Fiscal Arrangements Act, Part V.1)
Start date 2004
End date Ongoing
Type of transfer payment Other transfer payment
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 2012–13
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description This program provides transfer payments to provinces and territories in support of social assistance and social services, post-secondary education and programs for children. These funds are allocated on an equal per capita basis, and provincial and territorial governments are responsible for designing and delivering programs and are accountable to their citizens and legislatures for outcomes achieved and dollars spent.
Results achieved Timely and accurate payments in 2016–17 met all legislative requirements for financial support to provinces and territories.
Comments on variances The increase in actual spending from 2015–16 to 2016–17 was due to the legislated annual 3% escalation of the Canada Social Transfer program.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2016–17 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients With regard to the 2016–17 payments, provincial and territorial finance ministers were informed of the amounts in advance of the December 2015 Finance Ministers’ Meeting.

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 12,581,729,000 12,959,181,000 13,347,956,000 13,347,956,000 13,347,956,000 0
Total program 12,581,729,000 12,959,181,000 13,347,956,000 13,347,956,000 13,347,956,000 0
Name of transfer payment program Statutory Subsidies (Constitution Act,1867; Constitution Act, 1982; and other statutory authorities)
Start date 1867
End date Ongoing
Type of transfer payment Other transfer payment
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 1996–97
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description The statutory subsidies provide a source of funding to provinces in accordance with their terms of entry into Confederation.
Results achieved Timely and accurate payments in 2016–17 met all legislative requirements for financial support to provinces.
Comments on variances The increase in actual spending from 2015–16 to 2016–17 is mainly due to the resumption of Newfoundland and Labrador’s Term 29 payments under the Newfoundland and Labrador Additional Financial Assistance Act ($8 million a year). The province was provided upfront payments in 1996–97, 1997–98 and 1998–99 in exchange for its Term 29 payments over the 20-year period 1996–97 to 2015–16. There is also a small decrease resulting from the inclusion of updated data for the 3 provinces (Manitoba, Saskatchewan and Alberta) that have the computation of a portion of their payments based on estimated population data.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2016–17 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 34,363,164 34,362,809 42,362,809 42,355,839 42,355,839 (6,970)
Total program 34,363,164 34,362,809 42,362,809 42,355,839 42,355,839 (6,970)
Name of transfer payment program Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964)
Start date 1964
End date Ongoing
Type of transfer payment Other transfer payment (recovery)
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 1973–74
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description The Youth Allowances Recovery is a recovery from the Province of Quebec of an income tax point transfer (3 percentage points) that is related to the discontinued Youth Allowances Program. Since the program for which it received this tax transfer no longer exists, the value of these tax points is reimbursed to the Government of Canada each year.
Results achieved Timely and accurate payments and recoveries in 2016–17 met all legislative requirements.
Comments on variances The variance between planned recoveries and actual recoveries is due to a prior-year adjustment and to a revised estimate of the 2016–17 recovery, made in March 2017.

In March 2017, re-estimates of both the prior-year (2015–16) and the current year (2016–17) summed to an overall recovery for 2016–17 that was less than the recovery for fiscal year 2015–16.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2016–17 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments (767,147,511) (810,613,866) (890,667,000) (804,534,285) (804,534,285) 86,132,715
Total program (767,147,511) (810,613,866) (890,667,000) (804,534,285) (804,534,285) 86,132,715
Name of transfer payment program Alternative Payments for Standing Programs (Federal-Provincial Fiscal Arrangements Act, Part VI)
Start date 1977
End date Ongoing
Type of transfer payment Other Transfer Payment (recovery)
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 2012–13
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description In the 1960s, Quebec was the only province that opted to receive a tax point transfer in lieu of the federal cash support being given to provinces for certain social programs such as hospital insurance and social welfare. The federal income taxes paid by Quebec residents were lowered by 13.5 percentage points, and Quebec income taxes were increased by an equivalent amount. Today, those social programs are supported by the major federal transfers paid to provinces and territories. Since Quebec’s major transfer payments are calculated in the same way as those of the other provinces and the province’s tax revenues continue to be augmented by the tax point transfer in lieu of federal cash support, the value of the tax point transfer is recovered from the province’s transfer payments to ensure consistent treatment across the country.
Results achieved Timely and accurate payments and recoveries in 2016–17 met all legislative requirements.
Comments on variances The variance between actual recoveries and planned recoveries was due to prior-year adjustments resulting from revisions to the estimated value of federal tax points for prior open years, and to a revised official estimate of the 2016–17 recovery, made in February 2017.

The recovery for 2016–17 was greater than the recovery for 2015–16 because the value of the estimated tax points was greater in 2016–17.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2016–17 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments (3,466,658,000) (3,640,752,000) (4,043,422,000) (3,646,468,000) (3,646,468,000) 396,954,000
Total program (3,466,658,000) (3,640,752,000) (4,043,422,000) (3,646,468,000) (3,646,468,000) 396,954,000
Name of transfer payment program Debt Payments on Behalf of Poor Countries to International Organizations Pursuant to section 18(1) of the Economic Recovery Act (stimulus)
Start date 2010
End date 2054
Type of transfer payment Other transfer payment
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 2010–11
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.3: Commitments to International Financial Organizations
Description Payments for Canada’s commitment to the G8-led Multilateral Debt Relief Initiative
Results achieved The payment during the reporting period was made on time and without errors. There are no gaps between the results achieved and the expected results.
Comments on variances No variance
Audits completed or planned No audit was completed during the reporting year, and no audit is planned or underway at this time.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Payments under this program are set under a previously negotiated schedule, with periodic technical adjustments made on a 3-year basis to account for fluctuations in interest rate and currency value. No changes were required during the reporting period. Consequently, engagement with the International Development Association on this payment was minimal.

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 51,200,000 51,200,000 51,200,000 51,200,000 51,200,000 0
Total program 51,200,000 51,200,000 51,200,000 51,200,000 51,200,000 0
Name of transfer payment program Additional Fiscal Equalization to Nova Scotia (Federal-Provincial Fiscal Arrangements Act, Part I)
Start date 2008–09
End date 2019–20
Type of transfer payment Other transfer payment
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 2007–08
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description Additional Fiscal Equalization payments to Nova Scotia are related to its 2005 Offshore Arrangement. In Budget 2007, the Government of Canada introduced a new formula for Equalization (the current formula). Nova Scotia was guaranteed that the current formula would not reduce the sum of its Equalization payments and 2005 Equalization offset payments when compared with what the province would have received under the formula that was in place when it signed its 2005 Offshore Arrangement, over the life of the offshore arrangements.
Results achieved Timely and accurate payments in 2016–17 met all legislative requirements for financial support to Nova Scotia.
Comments on variances Actual spending was higher than planned spending because the official calculation to determine the amount of the transfer payment was made after the 2016–17 Report on Plans and Priorities was prepared.

The decrease in actual spending from 2015–16 to 2016–17 was due to higher growth of combined Equalization and 2005 Offshore Equalization Offset payments in the current formula compared with the formula that was in place before 2007.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2016–17 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 131,184,000 88,186,000 16,026,000 10,598,000 10,598,000 (5,428,000)
Total program 131,184,000 88,186,000 16,026,000 10,598,000 10,598,000 (5,428,000)
Name of transfer payment program Additional Fiscal Equalization Offset Payment to Nova Scotia (Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act)
Start date 2005–06
End date 2019–20
Type of transfer payment Other transfer payment
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 2005–06
Strategic Outcome A strong economy and sound public finances for Canadians
Link to department’s Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description Additional Fiscal Equalization Offset payments to Nova Scotia are related to its 2005 Offshore Arrangement. In 2005, the Government of Canada signed offshore arrangements with Nova Scotia and Newfoundland and Labrador. These arrangements guaranteed that for those two provinces, their Equalization payments would not be reduced because of offshore oil and gas revenues that entered the Equalization formula. These arrangements were in place for an 8-year period (2004–05 to 2011–12), and Nova Scotia qualified for an extension of its Accord for another 8-year period (2012–13 to 2019–20).
Results achieved Timely and accurate payments in 2016–17 met all legislative requirements for financial support to Nova Scotia.
Comments on variances The decrease in actual spending between 2015–16 and 2016–17 was due to a decrease in Nova Scotia’s offshore oil and gas revenues.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2016–17 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable

Performance Information (dollars)

Type of transfer payment 2014–15 Actual
spending 		2015–16 Actual
spending 		2016–17 Planned
spending 		2016–17 Total
authorities available for use 		2016–17 Actual
spending (authorities used) 		Variance (2016–17 actual minus 2016–17 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 64,481,000 36,779,000 33,255,000 33,255,000 33,255,000 0
Total program 64,481,000 36,779,000 33,255,000 33,255,000 33,255,000 0

Name of horizontal initiative: Canada’s Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime

Lead departments: Department of Finance Canada

Federal partner organizations: Canada’s AML/ATF Regime is a horizontal initiative comprising both 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 Royal Canadian Mounted Police, the Canada Revenue Agency, the Canada Border Services Agency, and the Canadian Security Intelligence Service. 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 partners: 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: 952,699,189

Total federal planned spending to date (dollars): 930,258,586

Total federal actual spending to date (dollars): 925,000,878

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, coordinated 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 an Advisory Committee on Money Laundering and Terrorist Financing, a broad-based advisory group composed of public and private sector representatives.

Contact information:
Ian Wright
Chief, Financial Crimes: Governance and Operations
Phone: 613-369-3853

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 (FINTRAC), with a mandate to ensure compliance of reporting entities with reporting, recordkeeping, identity verification and other obligations; 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 National Initiative to Combat Money Laundering was expanded, and its name was 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 and the actions of G7 partners.

As a result of reviews, over the years, changes were made to the PCMLTFA and Canada’s AML/ATF Regime. 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 indicators: An effective regime that respects domestic legal and constitutional frameworks and is consistent with international standards.

Targets: 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 Regime-wide performance management working group.

Results: The Regime partners have made substantial progress in improving Canada’s resilience to money laundering and terrorist financing activities. The partners continue to explore ways to improve the Regime’s effectiveness in the detection, deterrence, investigation and prosecution of these crimes.

Expected outcome or result of non-federal and non-governmental partners: Not applicable

Performance Information

Federal organizations Link to department’s Program Alignment Architecture Contributing programs and activities Link to department’s Strategic Outcomes Link to government priorities Total allocation (from start to end date) (dollars) 2016–17 Planned spending (dollars) 2016–17 Actual spending (dollars) 2016–17 Expected results 2016–17 Performance indicators 2016–17 Targets 2016–17 Actual results
Department of Finance Canada Financial Sector Policy Policy Development and Oversight of AML/ATF Regime A strong economy and sound public finances for Canadians. Security and Opportunity 4,148,000 244,000 244,000 ER 1.1 PI 1.1 T 1.1 AR 1.1
Department of Justice Canada Justice Policies, Laws and Programs Criminal Law Policy Section and International Assistance Group A fair, relevant and accessible Canadian justice system.

A federal government that is supported by high-quality legal services.		 Security and Opportunity 7,700,000* 100,000** Not applicable Not applicable 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 Criminal and regulatory offences under federal law are prosecuted in an independent, impartial and fair manner. Not applicable 21,082,100 2,108,210 6,841,861† ER 3.1 PI 3.1 T 3.1 AR 3.1
Financial Transaction and Reports Analysis Centre of Canada (FINTRAC) Financial Intelligence Program Financial Intelligence Program A Canadian financial system resistant to money laundering and terrorist financing. Security and Opportunity 588,693,955 24,109,016 23,114,030 ER 4.1 PI 4.1 T 4.1 AR 4.1
Compliance Program Compliance Program A Canadian financial system resistant to money laundering and terrorist financing. Security and Opportunity 19,551,146 17,369,489 ER 4.2 PI 4.2 T 4.2 AR 4.2
Internal Services Internal Services A Canadian financial system resistant to money laundering and terrorist financing. Security and Opportunity 6,389,726 6,800,957 ER 4.3 PI 4.3 T 4.3 AR 4.3
Royal Canadian Mounted Police (RCMP) Federal Policing Federal Policing Project-Based Investigations and General Investigations Criminal activity affecting Canadians is reduced. Security and Opportunity 159,753,568 9,794,410†† 9,794,410 ER 5.1 PI 5.1 T 5.1 AR 5.1
Internal Services Internal Services Not applicable Not applicable 11,527,639 1,424,977 1,424,977
Canada Revenue Agency (CRA) Reporting Compliance Canada’s AML/ATF Regime Taxpayers meet their obligations and Canada’s revenue base is protected. Not applicable 34,888,200 2,474,903 2,971,011 ER 6.1 PI 6.1 T 6.1 AR 6.1
Charities: Public Safety and Anti-Terrorism Combatting Terrorist Resourcing Through Charities To protect the integrity of the charity registration system from the risk of terrorist abuse. To protect Canada and ensure the safety of Canadians 35,805,727 4,074,749 7,061,019‡ ER 6.2 PI 6.2 T 6.2 AR 6.2
Canada Border Services Agency (CBSA)‡‡ Risk Assessment Intelligence Targeting International trade and travel is facilitated across Canada’s border and Canada’s population is protected from border-related risks. Security and Opportunity 89,100,000 Not applicable 1,700,000 ER 7.1 PI 7.1 T 7.1 AR 7.1
Admissibility Determination Highway Mode
Air Mode
Rail Mode
Marine Mode
Postal
Courier Low-Value Shipment		 International trade and travel is facilitated across Canada’s border, and Canada’s population is protected from border-related risks. Security and Opportunity 2,800,000 1,100,000 ER 7.2 PI 7.2 T 7.2 AR 7.2
Recourse Recourse International trade and travel is facilitated across Canada’s border, and Canada’s population is protected from border-related risks. Open and Transparent Government 300,000 300,000 ER 7.3 PI 7.3 T 7.3 AR 7.3
Internal Services Internal Services International trade and travel is facilitated across Canada’s border, and Canada’s population is protected from border-related risks. Not applicable 600,000 600,000 Not applicable Not applicable Not applicable Not applicable
Total for all federal organizations§ Not applicable Not applicable Not applicable Not applicable 952,699,189 73,971,137 79,321,754 Not applicable Not applicable Not applicable Not applicable
* This amount includes funding provided to the Department of Justice Canada before the creation of the Public Prosecution Service of Canada. Since 2007–08, the Department of Justice Canada has received $800,000 in funding.

** The Department of Justice Canada, since it started reporting separately from the Public Prosecution Service of Canada in 2007–08, has reported receiving $100,000 in AML/ATF Regime funding annually. 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.

† Regarding the variance between planned and actual spending, the total planned spending is the maximum amount allocated to the PPSC under the AML/ATF initiative. However, the PPSC also spends additional A-base funding to prosecute money laundering- and terrorist financing-related cases, thus contributing to the discrepancy between planned and actual spending.

†† 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.

‡ Actual spending was $3 million higher than planned spending owing to a change in methodology to include expenditures funded from internal CRA resources and additional funding provided in Budget 2016.

‡‡ CBSA changed its contributing programs and activities, expected results, performance indicators and targets after the publication of the 2016–17 Report on Plans and Priorities.

§ Total funding is the sum of the total allocation amounts of all reporting federal organizations.

The Department of Finance Canada will continue its coordination of Canada's AML/ATF Regime.

The Department will focus on the following areas:

Performance indicators are not available for this reporting period but will be available for the 2017–18 reporting period. The Department of Finance Canada’s contribution to Canada’s AML/ATF Regime consists chiefly of policy development and coordination, including leadership on horizontal regime governance. See the column on actual results for the Department’s overall performance against expectations.

Targets are not available for this reporting period but will be available for the 2017–18 reporting period. The Department of Finance Canada’s contribution to the AML/ATF Regime consists chiefly of policy development and coordination, including leadership on horizontal regime governance. See the column on actual results for the Department’s overall performance against expectations.

The Department of Finance Canada continued to support Canada’s AML/ATF Regime through coordination activities and AML/ATF policy development.

The Department:

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.

Targets are not established for volume and characteristics of case load as referrals for prosecution are driven by external influences beyond PPSC’s direct control. See the column on actual results for PPSC’s overall performance against expectations.

The PPSC dealt with 7,019 new AML/ATF Regime-related charges. Of the charges under the Criminal Code, 6,975 related to the possession of proceeds of crime, 42 to money laundering, and 1 to terrorism financing. There was 1 charge under the PCMLTFA.

The PPSC provided legal advice in 3% of the possession of proceeds of crime files and 30% of the money laundering files. It also provided advice for the terrorism financing case under the Criminal Code.

It should be noted that time recorded against litigation files is file-specific rather than initiative- or charge-specific. Because charges relating to an accused on a file are dealt with as part of the prosecution of all the charges against the accused, or against all of the accused, it is not possible to attribute a precise level of effort (that is, number of hours) dedicated exclusively to the AML/ATF component of any file. In general, the time entered on each file overestimates the actual level of effort focused exclusively on AML/ATF activities. In addition, the effort required is not correlated directly to the number of charges, as cases can vary widely in complexity and effort required.

PPSC counsel provided legal support and training to law enforcement personnel over the course of their investigations, as required. Resources were also dedicated to policy development and coordination to ensure consistency in prosecutorial activities across all regions.

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.

FINTRAC provided 2,015 disclosures of actionable financial intelligence to its AML/ATF Regime partners. Of these, 1,366 related solely to money laundering, 462 related solely to terrorist activity financing and other threats to the security of Canada, and 187 related to all 3 areas.

FINTRAC continually seeks feedback on its disclosures from partners at the municipal, provincial and federal levels. In 2016–17, FINTRAC received 1,112 disclosure feedback forms, with the level of positive feedback from partners continuing to exceed expectations.

FINTRAC also produced strategic financial intelligence for federal policy and decision makers, businesses subject to the PCMLTFA, international partners and other stakeholders. An important area of focus for FINTRAC’s strategic intelligence was ISIL’s financing strategies and the assessment of the financing available to the terrorist group through its territorial control.

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 PCMLTFA and Regulations.

FINTRAC will continue to:

FINTRAC uses a range of compliance and enforcement activities and tools to ensure that the more than 31,000 reporting entities fulfill their PCMLTFA obligations. These include examinations and follow-up examinations, the issuance of compliance assessment reports, the monitoring of financial transaction reports, observation letters and validation reviews, as well as other awareness and assistance activities. These activities are planned and undertaken on the basis of risk, with a larger proportion of FINTRAC’s higher-intensity assessments and enforcement activities allocated to medium- and higher-risk reporting entity sectors, and lower-intensity awareness and assistance activities assigned to lower-risk sectors.

FINTRAC conducted 661 compliance examinations across all sectors, with significant effort dedicated to working with the real estate sector and, in particular, with the British Columbia Notaries.

In addition, FINTRAC responded to enquiries from reporting entities and other stakeholders on a broad range of issues, including reporting obligations, access to reporting systems, and the registration of money services businesses. Over the past fiscal year, FINTRAC responded to 5,719 enquiries from reporting entities from across the country.

FINTRAC also responded to requests from reporting entities and other stakeholders for clarification, including the analysis of complex business models and emerging technology applications, through policy interpretations that are based on the specific situations and facts provided by the requestor. FINTRAC issued 278 policy interpretations to regional compliance officers and reporting entities. The complexity of the policy interpretation requests and level of external consultations required was much higher than in previous years. As a result, the response time, which was set to 30 days when it was first established in 2012, is no longer practical, and FINTRAC will be reviewing its service standards.

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 mandate of Internal Services. See the column on actual results for FINTRAC’s overall performance against expectations.

Targets are not applicable owing to the nature of the mandate of Internal Services. See the column on actual results for FINTRAC’s overall performance against expectations.

FINTRAC assisted the Department of Finance Canada in preparing for the meeting with the FATF to discuss Canada’s Mutual Evaluation Report, which was published on September 15, 2016.

In preparation for the upcoming Parliamentary Review of the PCMLTFA, FINTRAC began to identify potential areas of improvement for Canada’s AML/ATF Regime and developed policy proposals in collaboration with other Regime partners for submission to the Department of Finance Canada.

FINTRAC continued to work closely with the Department of Finance Canada to consult reporting industry sectors about regulatory amendments, particularly those amendments not yet in force, to ensure a smooth and successful implementation of the provisions.

FINTRAC continued to contribute to broader Regime-wide and government-wide initiatives, including the National Anti-Drug Strategy and Canada’s Counter-Terrorism Strategy.

FINTRAC’s Internal Services supported the work of the Centre’s Financial Intelligence and Compliance Programs by providing effective Communications, Legal Services, Human Resources, Financial Management, Information Management and Technology, and Security.

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 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.

Anti-Money Laundering

Anti-Terrorist Financing

The RCMP continued to prevent, detect and disrupt crimes that threatened the Canadian economy and security, including money laundering and terrorist financing.

The RCMP strengthened its money laundering capacity and that of other law enforcement organizations through training. The new Money Laundering / Proceeds of Crime training course was completed during the reporting period and delivered 3 times. Seventy-one RCMP members, 2 police officers from other police forces, and 4 employees from other government agencies were trained. This training helped the RCMP to further implement its strategy to combat money laundering, while enhancing its flexibility and adaptiveness to respond to money laundering threats. For example, in June 2016, 4 individuals and 1 business from Calgary were charged with fraud and money laundering related to a series of mortgage and vehicle financing frauds. Victims were defrauded of more than $1 million. Also in June 2016, 5 people were arrested in Montreal related to a counterfeit money operation. Over $20,000 in cash and fake credit cards were seized. The investigation also led to a laboratory used for making currency and false banknotes being seized.

Twenty-four percent of all tiered federal operations in serious and organized crime and financial crime involved money laundering offences, and 32% of Tier 1 and Tier 2 projects had a money laundering component.4

The RCMP also engaged its domestic and international law enforcement partners and regulatory entities to take a more holistic enforcement and crime prevention approach. The RCMP-FINTRAC Strategic working group met twice during 2016–17. Furthermore, there were a number of meetings held by the newly established Federal Policing Criminal Operations (FPCO) money laundering working group. The working group held 3 face-to-face meetings with subject matter experts from British Columbia, Ontario and Quebec during the reporting year. The working group also had teleconference calls several times a month to provide updates on key operations and policy issues. The RCMP continues to participate in the annual Five Eyes Terrorist Financing Working Group meetings. Additionally, to improve cooperation and develop greater knowledge among law enforcement, the RCMP created a Canada-China Law Enforcement Working Group focusing on the issue of money laundering. The 2 countries held several teleconferences of subject-matter experts, the RCMP Asia Regional International Liaison Manager travelled to China to deliver a presentation on money laundering, and a workshop for money laundering experts from the 2 countries was held in Ottawa. These efforts helped increase the collective understanding of typologies, trends, investigative techniques and legislative issues.

Regarding terrorist financing, the RCMP delivered 2 Terrorist Financing Investigators courses to 64 participants: 53 RCMP employees (including seconded law enforcement), 8 domestic partners and 3 foreign partners. A third course was initially planned for March 2017 but was moved to May 2017. The RCMP also disrupted a number of terrorist financing activities in Canada and met its 100% target of seeking FINTRAC’s assistance through Voluntary Information Records on high-risk traveller files.

Finally, the RCMP, with the support from both national headquarters and the divisions, provided information for the FATF mutual evaluation of Canada’s AML/ATF Regime. The final report was adopted in June 2016. The RCMP worked with the Department of Finance Canada and other Regime partners to address gaps and issues raised. For example, the RCMP and FINTRAC co-chaired an AML Operational Advisory Committee tasked with identifying gaps and challenges within the AML Regime that affect the ability of the RCMP and its Regime partners to undertake effective money laundering investigations. A key component of the work conducted to date was the completion of a tabletop exercise, wherein the RCMP and partner departments and agencies involved in AML efforts (the Department of Justice Canada, PPSC, CBSA, CRA, the Department of Finance Canada, Public Safety Canada) reviewed past cases and identified the key gaps and issues limiting effective investigations and prosecutions of money laundering cases in Canada. The results of this exercise will be reviewed by the Assistant Deputy Minister Anti-Money Laundering Advisory Committee on Operational Effectiveness, and recommendations to address the gaps and issues will be presented to the National Security Advisor in 2017–18. The RCMP also continues to work with domestic and international partners on the use of new and emerging technologies (for example, cryptocurrencies) and their impact on money laundering in Canada.

The CRA will focus on the following key areas:

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 at 90 cases, with a projected federal tax reassessment of $9 million. Given 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.

The CRA participated in Regime committee meetings as well as in multiple conferences and meetings with the RCMP and other external law enforcement. The Criminal Investigations Directorate (CID) and FINTRAC met on a regular basis to enhance their operational efficiencies and effectiveness. The meetings provided opportunities to share feedback and improve the quality of the disclosures.

CID received 164 FINTRAC disclosures between April 1, 2016, and March 31, 2017. This figure represents a 54% increase from the previous year. All of the FINTRAC disclosures were reviewed by CID for potential tax evasion or fraudulent activity. If CID determined that a disclosure showed potential for a criminal investigation, it was referred to 1 of the 6 Criminal Investigations Divisions across the country for further analysis. In total, 30 disclosures were referred to our CID offices during the year. The remainder of the disclosures were forwarded to the Small and Medium Enterprises Directorate or the Offshore Aggressive Tax Planning Directorate for civil compliance reviews or actions. CID also analyzed all FINTRAC disclosures to identify possible new trends related to international tax avoidance or tax evasion.

CID recognizes the importance of the financial information received by FINTRAC in facilitating its criminal investigations, and accordingly, CID placed a great emphasis on sending Voluntary Information Records to FINTRAC for many of the cases that were reviewed or accepted for criminal investigation in the year. The CRA sent 46 Voluntary Information Records to FINTRAC in 2016–17, and as a result of these Voluntary Information Records, CID received disclosures in 80% of cases, 10% had no disclosures, and the remaining 10% are being analyzed.

The Small and Medium Enterprises Directorate continued to process all disclosures from FINTRAC on a priority basis. The Directorate thoroughly reviewed all disclosures received from FINTRAC, performed analysis for intelligence, and selected for compliance actions those of high risk, with identifiable tax and collection potential.

Because of the high risk and complexity of the referrals selected for audit, the CRA completed 83 audits (compared with a forecast of 90), with total federal income taxes reassessed in the amount of $29,788,249 (as compared with a forecast of $9 million). In addition, the complexity of these high-risk audits resulted in higher than projected expenditures for the reporting period.

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 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. 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 not applicable owing to the nature of the mandate of CRA’s Review and Analysis Division. See the column on actual results for CRA’s overall performance against expectations.

Targets are not applicable owing to the nature of the mandate of CRA’s Review and Analysis Division. See the column on actual results for CRA’s overall performance against expectations.

Regarding its ATF responsibilities, the CRA’s Charities Directorate continued its core activities of reviewing applications for charitable registration, monitoring registered charities, carrying out regulatory activities, and exchanging information under legal authorities with Canada’s AML/ATF Regime partners.

Specifically, the Directorate:

Internationally, the Charities Directorate contributed to the revision of the FATF’s international standard on protecting non-profit organizations from terrorist financing abuse, which was updated in June 2016, and to the FATF Evaluation Methodology pertaining to Recommendations 8 and 10. In addition, a representative of the Charities Directorate provided subject-matter expertise and acted as an assessor in support of the 2016 FATF Mutual Evaluation of Singapore.

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 RCMP and other government departments.

In all modes of operation, border services officers will continue to seize unreported and falsely reported imports and exports of currency and monetary instruments totalling CAD$10,000 or more at ports of entry.

Performance indicators are not available for this reporting period but will be available for the 2017–18 reporting period. See the column on actual results for CBSA’s overall performance against expectations.

Targets are not applicable given the nature of CBSA’s activities. See the column on actual results for CBSA’s overall performance against expectations.

CBSA intelligence officers and investigators participated in projects focused on money laundering and terrorist financing activities.

The CBSA continued to engage with federal partners on money laundering and terrorist financing threats and risks to Canada through the Public Safety Canada Threat Resourcing Working Group and the National Risk Assessment Committee, led by the Department of Finance Canada. The CBSA also continued to conduct research and analysis toward the production of a strategic risk assessment of trade fraud, including trade-based money laundering, and to engage and raise awareness of money laundering and terrorist financing threats and risks to international trade systems with FINTRAC, Public Safety Canada and foreign government partners.

Border services officers completed 1,813 currency and monetary instrument seizures with a value of over $41 million.

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 imports and exports of currency and monetary instruments totalling CAD$10,000 or more at ports of entry.

The CBSA Recourse Directorate will acknowledge receipt of the request for a minister’s review and confirm that a file has been opened.

The CBSA Recourse Directorate will issue ministerial decisions in response to requests for review of an enforcement action.

Not applicable

Not applicable

Not applicable

Not applicable

General Information

Fee name Fees charged for the processing of access requests filed under the Access to Information Act
Fee type Other products and services
Fee-setting authority Access to Information Act
Year introduced 1983
Year last amended 1992
Performance standard Under the Access to Information Act, a response is to be provided within 30 days after a request is received. Section 9 of the Act states that the response time may be extended; a notice of extension is to be sent within 30 days after the request is received.
Performance results 83.8% of access requests were completed on time.
Other information As of May 2016, departments can no longer charge any fees under the Access to Information Act other than the initial $5 application fee. Therefore, search and reproduction fees are no longer charged. Documents are provided to requestors in either paper or PDF format (on a CD), as requested.

Financial Information, 2016–17 (dollars)

Forecast revenue Actual revenue Full cost
6,625 6,625 1,050,039*
*The full cost for the processing of access to information requests filed under the Access to Information Act includes the direct costs to operate the Access to Information and Privacy Division of the Department of Finance Canada.

Financial Information, 2017–18, 2018–19 and 2019–20 (dollars)

Planning year Forecast revenue Estimated full cost
2017–18 6,000 1,155,000
2018–19 7,800 1,270,000
2019–20 10,140 1,397,000

1 The horizontal initiative is ongoing, with no fixed end date. Therefore, allocation amounts include funding to date (up to and including funding for the 2016–17 fiscal year), but exclude future funding. Total funding is the sum of the total allocation amounts shown for the reporting Regime partners in the “Performance information” table.

2 Tier 1 refers to Top Priority projects.

3 Tier 2 refers to Priority projects.

4 Statistics are provisional, and work is needed to ensure that all files have their Uniform Crime Reporting codes updated in the police records systems. Note that these data do not include other proceeds of crime related to Criminal Code infractions or asset forfeitures.

5 CBSA made changes to its contributing programs and activities, expected results, performance indicators and targets after the publication of the 2016–17 Report on Plans and Priorities.

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