Departmental Results Report 2018–19: Supplementary Information Tables

Departmental Sustainable Development Strategy

1. Context for the Departmental Sustainable Development Strategy

The 2016–2019 Federal Sustainable Development Strategy (FSDS):

• sets out the Government of Canada's sustainable development priorities
• establishes goals and targets
• identifies actions to achieve them, 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 reporting on the implementation of the FSDS and its Departmental Sustainable Development Strategy, or equivalent document, through the activities described in this supplementary information table.

2. Sustainable Development in the Department of Finance Canada

The Department of Finance Canada's Departmental Sustainable Development Strategy for 2017 to 2020 describes the department's actions in support of achieving:

• greening government
• effective action on climate change
• clean energy
• sustainably managed lands and forests

This supplementary information table presents available results for the departmental actions pertinent to these goals. Last year's supplementary information table is posted on the department's website. This year, the Department of Finance Canada is also noting which United Nations Sustainable Development Goal target each departmental action contributes to achieving.

3. Departmental performance by FSDS goal

The following tables provide performance information on departmental actions in support of the FSDS goals listed in section 2.

FSDS goal: Greening government

FSDS target(s)	FSDS contributing action(s)	Corresponding departmental action(s)	Support for UN Sustainable Development Goal target	Starting point(s), target(s) and performance indicator(s) for departmental actions	Results achieved
Reduce greenhouse gas emissions (GHG) from federal government buildings and fleets by 40% below 2005 levels by 2030, with an aspiration to achieve it by 2025.	Improve the energy efficiency of our buildings/operations.	The Department of Finance is a tenant in a LEED Gold certified building that was built to the latest design approaches and building technologies for sustainable development.	12.5	Public Services and Procurement Canada (PSPC) reports GHG emissions.	The Department actively worked with PSPC to promote and support ongoing greening of building operations, leading to a reduction in GHG emissions. The building received the BOMA BEST platinum certification in 2018. This certification recognizes excellence in energy and environmental management and performance in commercial real estate.
Reduce greenhouse gas emissions (GHG) from federal government buildings and fleets by 40% below 2005 levels by 2030, with an aspiration to achieve it by 2025.	Modernize our fleet.	Reduce carbon intensity by replacing executive vehicles at the end of their life cycle with electric vehicles, hybrids, or more fuel-efficient vehicles. Promote behaviour change (e.g., anti-idling campaigns, driver training). Promoting fleet infrastructure (e.g., charging stations).	12.7	The Department will replace its executive vehicles with more fuel-efficient vehicles when they reach the end of their life cycle. The Department has charging stations for electric vehicles available in the parking garage.	The Department did not purchase any new executive vehicles, as the existing vehicles have not reached the end of their life cycle. The building owner promoted the availability of electric vehicle charging stations.
Reduce greenhouse gas emissions (GHG) from federal government buildings and fleets by 40% below 2005 levels by 2030, with an aspiration to achieve it by 2025.	Support the transition to a low-carbon economy through green procurement.	Integrate environmental considerations into procurement decisions, processes and controls. Ensure decision-makers have the necessary training and awareness to support green procurement. Ensure key officials include contribution to and support for the Government of Canada Policy on Green Procurement objectives in their performance evaluations.	12.7	Embed Environmental considerations in the Department's procurement activities. Departmental functional specialists in procurement and materiel management will complete the green procurement course. Target: 100%. The Director of the Corporate Administrative Services Division and the Team Leader of the Procurement and Materiel Management Section will have performance objectives supporting green procurement activities. Target: 100%	When contracting for services, the procurement processes incorporated electronic bid solicitation, used scanning technology to issue contracts, promoted electronic invoicing, and paid 90% of all supplier payments by direct deposit. All functional specialists in procurement and materiel management completed the green procurement course. Results: 100%. The Director of Corporate Administrative Services, the Team Leader of Procurement and Material Management, and the Manager of Facilities each have individual performance objectives supporting green procurement and sustainable operations activities. Results: 100%
Reduce greenhouse gas emissions (GHG) from federal government buildings and fleets by 40% below 2005 levels by 2030, with an aspiration to achieve it by 2025.	Support the transition to a low-carbon economy through green procurement.		12.7	The Department will use common-use procurement instruments that include environmental criteria when procuring IT hardware (i.e., desktops, computers, laptops and tablets). The Department will purchase copy paper, commercial printing and/or envelopes containing a minimum 30% recycled content and certified to a recognized environmental standard to reduce the environmental impact of its production. Target: 90%.	The Department purchased $1.3M in goods, including IT hardware, using standing offers and supply arrangements that include environmental performance specifications. The Department purchased copy paper, commercial printing, and envelopes certified as minimum 30% recycled content. Results: 100%.
Reduce greenhouse gas emissions (GHG) from federal government buildings and fleets by 40% below 2005 levels by 2030, with an aspiration to achieve it by 2025.	Promote sustainable travel practices.	Promote the use of the Department's video conferencing, teleconference and telepresence facilities. Support and promote sustainable commuting options for employee travel to work, such as walking, cycling, public transit and carpools.	12.5	Not applicable.	The Department promoted video conferencing, teleconference and telepresence facilities in the Green Meeting Guide posted on the Department's Intranet site. The Department supported and promoted carpooling commuting options by having the building provide priority parking for registered carpool participants. The Department promoted bicycle commuting by participating in Ottawa, Ontario's Bike to Work Month. The Department supported employees by promoting and providing bike tune-ups on-site at no charge during Canada's Environment Week.

Additional departmental sustainable development activities and initiatives related to greening government

FSDS contributing action(s)	Corresponding departmental action(s)	Results achieved
Promote sustainable workplace operation as follows: Increase the waste diverted from landfill through the promotion and use of recycling centres and composting programs. Engage employees in greening government operations practices. Maintain or improve existing approaches to sustainable workplace practices (printer ratios, paper usage, and green meetings). Supports UN Sustainable Development Goal target: 12.5.	Use digital display panels to communicate tips and facts to employees to promote sustainable workplace operations. Co-host the building's annual Enviro Fair promoting sustainable practices in the office and home.	The Department developed an awareness campaign and used digital display panels to show messages promoting sustainable workplace operations.  90 Elgin maintained its waste diversion rate of 63.0%. The Department celebrated Canada's Environment Week by co-hosting an Enviro Fair featuring environment-themed kiosks presented by both public and private sectors.  Employees were encouraged to make a difference by making sustainable choices in their daily lives. The Department invited NuGrocery to provide "A Zero Waste" Interactive Talk. The Department invited the Department of Fisheries and Oceans to conduct a Workshop: Impact of single-use plastics on oceans and waterways. The Department, in consultation with TBS, arranged a presentation on the Circular Economy provided by Environment and Climate Change Canada. Employees participated in a Green Office Challenge with employees of the Treasury Board of Canada Secretariat and other departments. The Department maintained its existing people to printer ratio of 11:1 and paper usage of approximately 5,700 pages per person. In addition, the Department promoted increased usage of Wi-Fi technology to encourage green meetings.

FSDS goal: Effective action on climate change

FSDS target(s)	FSDS contributing action(s)	Corresponding departmental action(s)	Support for UN Sustainable Development Goal target	Starting point(s), target(s) and performance indicator(s) for departmental actions	Results achieved
By 2030, reduce Canada's total GHG emissions by 30%, relative to 2005 emission levels.	Support voluntary action to reduce GHG emissions and adapt to climate change.	Put into place the fuel charge component of the federal carbon pollution pricing system that will be effective in provinces and territories upon request, and in provinces and territories that do not have in place a carbon pollution pricing system that meets the federal standard.	13.2	The government released for consultation draft legislative proposals related to the federal carbon pollution pricing system in January 2018. Legislation in place in 2018 to enable the fuel charge component of the federal carbon pollution pricing system to be implemented in provinces and territories as necessary.	The Greenhouse Gas Pollution Pricing Act and the Fuel Charge Regulations received Royal Assent on June 21, 2018. Subsequent to the announcement of the carbon pollution pricing system in 2018, the fuel charge has now been applied in Ontario, New Brunswick, Manitoba and Saskatchewan since April 1, 2019, and in Yukon and Nunavut since July 1, 2019. The Government has also announced that the fuel charge will apply in Alberta as of January 2020.
By 2030, reduce Canada's total GHG emissions by 30%, relative to 2005 emission levels.	Support voluntary action to reduce GHG emissions and adapt to climate change.	Continue to impose a Green Levy on certain fuel-inefficient passenger vehicles sold in Canada.	13.2	The Green Levy raised revenues of about $12 million in 2016–17. Performance will be evaluated in terms of the revenues generated by the Green Levy each year (assuming that the levy incentivizes consumers to purchase fewer fuel-inefficient vehicles, these revenues will tend to decline over time).	Revenues from the Green Levy have increased somewhat from 2016-17 to 2017-18 but remain modest in 2018-19. The Department of Finance Canada will continue to monitor the effectiveness of the Green Levy.

FSDS goal: Clean energy

FSDS target(s)	FSDS contributing action(s)	Corresponding departmental action(s)	Support for UN Sustainable Development Goal target	Starting point(s), target(s) and performance indicator(s) for departmental actions	Results achieved
By 2030, 90%, and in the long term, 100% of Canada's electricity is generated from renewable and non-emitting sources.	Support voluntary action to reduce GHG and air pollutant emissions through clean energy generation and consumption.	Provide an incentive for investment in clean energy equipment available through the accelerated capital cost allowance for clean energy and energy conservation equipment (Class 43.1/43.2).	7.2  7.3	A tax incentive for clean energy generation equipment has been in place since 1976. Performance will be evaluated on the basis of the amount of new investment in Class 43.1/43.2 equipment relative to previous years.	In 2017, the amount of investment in Class 43.1/43.2 assets decreased relative to 2016. However, investment in these assets increased substantially from 2013 to 2015. Investment trends tend to be uneven from year to year because of certain large projects. The 2018 Fall Economic Statement enhanced the incentive by introducing immediate expensing for property currently included in Class 43.1 or 43.2.

FSDS goal: Sustainably managed lands and forests

FSDS target(s)	FSDS contributing action(s)	Corresponding departmental action(s)	Support for UN Sustainable Development Goal target	Starting point(s), target(s) and performance indicator(s) for departmental actions	Results achieved
By 2020, at least 17% of terrestrial areas and inland water are conserved through networks of protected areas and other effective area-based conservation measures.	Conserve natural spaces.	Maintain the tax incentives for donations of ecologically sensitive land though the  Ecological Gifts Program (EGP).  The EGP helps to ensure the ongoing protection of Canada's ecologically sensitive land including habitat used by species at risk.	15.1	To measure success in conserving ecologically sensitive land, the area protected by the Ecological Gifts Program is tracked. As of March 2018, 190,393 hectares of land were under protection. Performance will be evaluated based on the amount of increase to the total cumulative land area that is conserved under the Ecological Gifts Program.	The Department maintains and regularly evaluates the effectiveness of tax incentives for donation of Canada's ecologically sensitive land and supporting rules for the continued protection of land. These incentives are a key component of the Ecological Gifts Program, which is administered by Environment and Climate Change Canada. The Department evaluates the ongoing effectiveness of these measures based upon the amount of increase to the total cumulative land area conserved under the Ecological Gifts Program. According to results reported by Environment and Climate Change Canada, as of March 31, 2019, the area protected by the Ecological Gifts Program in Canada amounted to over 195,000 hectares of land, an increase of almost 5,000 hectares since March 31, 2018. (As the results of the Ecological Gifts Program are already reported by Environment and Climate Change Canada, the Department will no longer be reporting on these results in future versions of its Departmental Sustainable Development Strategy).

4. Report on Integrating Sustainable Development

During the 2018–19 reporting cycle, the Department of Finance Canada considered the environmental effects of 86 proposals 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 (SEA) process, six of these proposals were found to have potential, important positive or negative effects on progress toward achieving the 2016 to 2019 FSDS goals and targets. For example, the a $950 million investment to the Federation of Canadian Municipalities was announced in Budget 2019 to increase energy efficiency in residential, commercial and multi-unit buildings through financing programs such as loans and grants. The SEA concluded that this initiative would support retrofits and upgrades that increase energy efficiency in homes and buildings and reduce energy use and greenhouse gas emissions when the source of energy is fossil fuel based (such as coal and natural gas).

Additional information on the results of the Strategic Environmental Assessments is available on the departmental website.

Details on transfer payment programs of $5 million or more

• Youth Allowances Recovery (Federal‑Provincial Fiscal Revision Act, 1964)
• Additional Fiscal Equalization to Nova Scotia (Federal‑Provincial Fiscal Arrangements Act, Part I)
• Establishment of a Canadian Securities Regulation Regime and Canadian Regulatory Authority (Budget Implementation Act, 2014)
• Debt Payments on Behalf of Poor Countries to International Organizations Pursuant to section 18(1) of the Economic Recovery Act (stimulus)
• Statutory Subsidies (Constitution Act, 1867; Constitution Act, 1982; and other statutory authorities)
• Canada Health Transfer (Federal‑Provincial Fiscal Arrangements Act, Part V.1)
• Additional Fiscal Equalization Offset Payment to Nova Scotia (Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act)
• Fiscal Equalization (Federal‑Provincial Fiscal Arrangements Act, Part I)
• Canada Social Transfer (Federal‑Provincial Fiscal Arrangements Act, Part V.1)
• Canadian Securities Regulation Regime Transition Office (CSTO) / (Canadian Securities Regulation Regime Transition Office Act)
• Alternative Payments for Standing Programs (Federal‑Provincial Fiscal Arrangements Act, Part VI)
• Territorial Formula Financing (Federal‑Provincial Fiscal Arrangements Act, Part I.1)
• Payments to the International Development Association

General information

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
Link to the department's Program Inventory	Program: 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. Together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the Quebec Abatement. These arrangements ensure that all provinces and territories are treated the same through cash and tax transfers in support of health and social programs.
Results achieved	Timely and accurate payments and recoveries in 2018–19 met all legislative requirements.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	Not applicable

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	(804,534,285)	(856,507,839)	(909,825,000)	(914,124,930)	(914,124,930)	(4,299,930)
Total program	(804,534,285)	(856,507,839)	(909,825,000)	(914,124,930)	(914,124,930)	(4,299,930)
Explanation of variances	The value of income tax points are correlated to the strength of the provincial economy. There was an increase in recoveries because of the growth in the value of income tax points due to a strong Quebec economy.

General information

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
Link to the department's Program Inventory	Program: Fiscal Arrangements with Provinces and Territories
Description	Additional Fiscal Equalization payments to Nova Scotia are related to its 2005 Offshore Arrangement. These arrangements guaranteed that the Equalization payments for Nova Scotia would not be reduced because of offshore oil and gas revenues that entered the Equalization formula. 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, over the life of the offshore arrangements, when compared with what the province would have received under the formula that was in place when it signed its 2005 Offshore Arrangement.
Results achieved	Timely and accurate payments in 2018–19 met all legislative requirements for financial support to Nova Scotia.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	Not applicable

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	10,598,000	16,407,000	(113,203,000)	0	0	113,203,000
Total program	10,598,000	16,407,000	(113,203,000)	0	0	113,203,000
Explanation of variances	The Additional Fiscal Equalization for 2018-19 was forecast in December 2017 to be a recovery of $113,203,000. The final calculation of 2018-19 in December 2018 reduced the recovery to $89,824,000. Since the amount is negative, according to the regulations, the recovery is to be made in the following fiscal year (2019-20). Unlike the positive amounts each year between 2011-12 and 2017-18, the 2018-19 amount is a recovery because, on a cumulative basis, the sum of its Equalization payments and 2005 Equalization offset payments is now higher under the current formula than under the old formula. Fiscal year 2019-20 is the final year of the arrangement, and the final calculation will be completed in December 2019.

General information

Name of transfer payment program	Establishment of a Canadian Securities Regulation Regime and Canadian Regulatory Authority (Budget Implementation Act, 2014)
Start date	2009-10
End date	2020-21
Type of transfer payment	Other transfer payment
Type of appropriation	Statutory commitment
Fiscal year for terms and conditions	2009-10
Link to the department's Program Inventory	Program: Financial Sector Policy
Description	Under the Memorandum of Agreement Regarding the Cooperative Capital Markets Regulatory System, the Government of Canada committed to make payments to eligible participating provinces and territories for lost net revenue as a result of transitioning to a Cooperative Capital Markets Regulatory System.
Results achieved	The payment during the reporting period was made on time and without errors.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	Not applicable.

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	0	0	0	77,100,000	77,100,000	77,100,000
Total program	0	0	0	77,100,000	77,100,000	77,100,000
Explanation of variances	Note: This portion of the program involves providing transition payments to provinces and territories that join the Cooperative Capital Markets Regulatory System. Given that no provinces or territories joined in fiscal years 2016-17 and 2017-18, there were no payments made in those fiscal years. Further to the Budget Implementation Act, 2014 (Section 313), the Budget Implementation Act, 2009 (Section 295 (1)) was amended to increase the direct payments that the Minister of Finance may make in the aggregate, to a maximum amount of $328,000,000 from $150,000,000, to provinces and territories for matters relating to the establishment of a Canadian securities regulation regime and a Canadian regulatory authority. Pursuant to this authority, the Minister of Finance made a transition payment in 2018-19.

General information

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
Link to the department's Program Inventory	Program: 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.
Findings of audits completed in 2018–19	An internal audit of the financial commitments to international financial institutions is expected to be completed by November 2020.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	Payments under this program are set under a previously negotiated schedule, with period 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, there was minimal engagement with the International Development Association on this payment. The payments are achieving their purpose of compensating international organizations for providing debt relief to lower-income countries.

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 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
Explanation of variances	There were no variances between planned and actual spending.

General information

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
Link to the department's Program Inventory	Program: 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 2018–19 met all legislative requirements for financial support to provinces.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	Not applicable

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	42,355,839	42,355,897	42,355,897	42,483,704	42,483,704	127,807
Total program	42,355,839	42,355,897	42,355,897	42,483,704	42,483,704	127,807
Explanation of variances	Population estimates used to calculate the Statutory Subsidies for three provinces (Manitoba, Saskatchewan, and Alberta) are based on the five-year Census or intercensal estimates that are updated each year. Population estimates for the remaining seven provinces are based on the 10-year Census (currently Census 2011 population estimates until Census 2021 population data are incorporated in 2023). The variance in 2018-19 figures is due to the annual update to the intercensal estimates.

General information

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	2018-19
Link to the department's Program Inventory	Program: Canada Health Transfer
Description	The Canada Health Transfer (CHT) provides equal per capita support for health care through cash transfers to provincial and territorial governments. The CHT supports the government's commitment to maintain the Canada Health Act's national criteria (comprehensiveness, universality, portability, accessibility, and public administration), conditions, and prohibitions against user fees and extra-billing. Since 2014–15, the CHT has been distributed on an equal per capita cash basis.
Results achieved	Timely and accurate payments in 2018–19 met all legislative requirements for financial support to provinces and territories.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	Budget 2018 included changes to the Federal-Provincial Fiscal Arrangements Act, which improve compliance with the Canada Health Act by allowing for the reimbursement of Canada Health Transfer deductions when provinces and territories have taken certain steps to eliminate extra-billing and user fees in the delivery of public health care. The changes were enacted in Bill C-74 on June 21, 2018. With regard to the 2018–19 payments, provincial and territorial finance ministers were informed of the amounts in advance of the December 2017 Finance Ministers' meeting.

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	36,057,581,263	37,123,933,953	38,583,703,000	38,567,524,392	38,567,524,392	(16,178,608)
Total program	36,057,581,263	37,123,933,953	38,583,703,000	38,567,524,392	38,567,524,392	(16,178,608)
Explanation of variances	The CHT increases in line with the 3-year moving average of nominal GDP growth, with funding guaranteed to increase by at least 3% per year. The CHT increased by 3.86% from 2017–18 to 2018–19 based on this formula. However, in March 2019, deductions were made from the 2018–19 CHT, as directed by the Minister of Health, for violations of the extra-billing and user charges provisions of the Canada Health Act.

General information

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
Link to the department's Program Inventory	Program: 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 the Equalization payments for those provinces 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 2018–19 met all legislative requirements for financial support to Nova Scotia.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	Not applicable

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	33,255,000	19,957,000	18,092,000	18,092,000	18,092,000	0
Total program	33,255,000	19,957,000	18,092,000	18,092,000	18,092,000	0
Explanation of variances	There were no variances between planned and actual spending.

General information

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	2018-19
Link to the department's Program Inventory	Program: Fiscal Arrangements with Provinces and Territories
Description	Formula‑based Equalization payments are made to eligible provincial governments to enable them to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. Equalization payments are unconditional.
Results achieved	Timely and accurate payments in 2018-19 met all legislative requirements for financial support to provinces.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	The renewal for a five-year period beginning April 1, 2019, with technical improvements to improve the accuracy and efficiency of the calculation of entitlements, was included in Budget 2018. The changes to the Act were enacted in Bill C-74 on June 21, 2018 and the amendments to the regulations were published in SOR/2018-131 on June 22, 2018. Consultations were held prior to the renewal of Fiscal Equalization. These improvements to the program did not impact Equalization payments for 2018-19, which had already been announced. Provincial finance ministers were informed of the amounts in advance of the December 2017 Finance Ministers' meeting.

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	17,880,415,000	18,253,657,000	18,958,259,000	18,958,259,000	18,958,259,000	0
Total program	17,880,415,000	18,253,657,000	18,958,259,000	18,958,259,000	18,958,259,000	0
Explanation of variances	There were no variances between planned and actual spending.

General information

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
Link to the department's Program Inventory	Program: Fiscal Arrangements with Provinces and Territories
Description	The Canada Social Transfer (CST) provides equal per capita cash support to provincial and territorial governments to assist them in financing social assistance and social services, post-secondary education, and programs for children. The CST gives provinces and territories the flexibility to allocate payments to those areas according to their own priorities, and supports the government's commitment to prohibit minimum residency requirements for social assistance.
Results achieved	Timely and accurate payments in 2018–19 met all legislative requirements for financial support to provinces and territories.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	With regard to the 2018–19 payments, provincial and territorial finance ministers were informed of the amounts in advance of the December 2017 Finance Ministers' meeting.

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	13,347,956,000	13,748,395,000	14,160,847,000	14,160,847,000	14,160,847,000	0
Total program	13,347,956,000	13,748,395,000	14,160,847,000	14,160,847,000	14,160,847,000	0
Explanation of variances	There were no variances between planned and actual spending.

General information

Name of transfer payment program	Canadian Securities Regulation Regime Transition Office (CSTO) / (Canadian Securities Regulation Regime Transition Office Act)
Start date	2009-10
End date	2020-21
Type of transfer payment	Other transfer payment
Type of appropriation	Statutory commitment
Fiscal year for terms and conditions	2009-10
Link to the department's Program Inventory	Program: Financial Sector Policy
Description	The CSTO is responsible for supporting the Government of Canada's participation in establishing the Cooperative Capital Market Regulatory System, under the framework set out in the Memorandum of Agreement Regarding the Cooperative Capital Markets Regulatory System, entered into by the governments of Canada, Ontario, British Columbia, Saskatchewan, New Brunswick, Nova Scotia, Prince Edward Island, and Yukon.
Results achieved	The payment during the reporting period was made on time and without errors.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	Not applicable

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	0	0	0	11,400,000	11,400,000	11,400,000
Total program	0	0	0	11,400,000	11,400,000	11,400,000
Explanation of variances	Note: Budget 2018 authorized additional funding of $11,400,000 in 2018-19 to the CSTO to support the implementation of the Cooperative Capital Markets Regulatory System. To provide the funds, the Canadian Securities Regulation Regime Transition Office Act was amended by Appropriation Act No. 3, 2018-19 to increase the amount of direct payments that the Minister of Finance may make to the CSTO by $11,400,000, to $107,500,000 from $96,100,000. A lump sum payment of $53,100,000 was made in 2015-16 to allow the CSTO to operate without additional funding until 2018-19.

General information

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
Link to the department's Program Inventory	Program: 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 2018–19 met all legislative requirements.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	Not applicable

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	(3,646,468,000)	(3,882,984,000)	(4,086,656,000)	(4,132,159,000)	(4,132,159,000)	(45,503,000)
Total program	(3,646,468,000)	(3,882,984,000)	(4,086,656,000)	(4,132,159,000)	(4,132,159,000)	(45,503,000)
Explanation of variances	The value of income tax points are correlated to the strength of the provincial economy. There was an increase in recoveries because of the growth in the value of income tax points due to a strong Quebec economy.

General information

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	2018-19
Link to the department's Program Inventory	Program: Fiscal Arrangements with Provinces and Territories
Description	Territorial Formula Financing payments are made to territorial governments to provide the resources they need to deliver services comparable to those delivered by provincial governments, taking into account the high costs and unique challenges in the North. Territorial Formula Financing payments are unconditional.
Results achieved	Timely and accurate payments in 2018-19 met all legislative requirements for financial support to territories.
Findings of audits completed in 2018–19	The Office of the Auditor General of Canada has completed its 2018–19 financial audit, and there were no issues identified for this program.
Findings of evaluations completed in 2018–19	Not applicable
Engagement of applicants and recipients in 2018–19	The renewal for a five-year period beginning April 1, 2019, with technical improvements to improve the accuracy and efficiency of the calculation of entitlements as well as transitional payments, was included in Budget 2018. The changes to the Act were enacted in Bill C-74 on June 21, 2018 and the amendments to the regulations were published in SOR/2018-131 on June 22, 2018.  Consultations were held prior to the renewal of Territorial Formula Financing. These improvements to the program and transitional payments did not impact Territorial Formula Financing payments for 2018-19, which had already been announced. Territorial finance ministers were informed of the amounts in advance of the December 2017 Finance Ministers' Meeting.

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	3,602,979,726	3,681,830,727	3,785,321,565	3,785,321,565	3,785,321,565	0
Total program	3,602,979,726	3,681,830,727	3,785,321,565	3,785,321,565	3,785,321,565	0
Explanation of variances	There were no variances between planned and actual spending.

General information

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
Link to the department's Program Inventory	Program: 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.
Findings of audits completed in 2018–19	An internal audit of the financial commitments to international financial institutions is expected to be completed by November 2020.
Findings of evaluations completed in 2018–19	An evaluation of the program was completed during 2018-19 with the following findings: The Department of Finance Canada manages Canada's IDA contributions effectively and efficiently. However, some opportunities exist for the department to better manage consultations with civil society organizations, and to better report on the effectiveness of Canada's significant IDA contributions in achieving poverty reduction objectives. Countries that receive financing from the IDA have demonstrated progress on key measures of poverty reduction and development, especially in the areas of human development and access to basic services that are fundamental to human dignity. However, the IDA could further improve its contribution to the development outcomes of the world's poorest countries by enhancing IDA's institutional effectiveness.
Engagement of applicants and recipients in 2018–19	During the reporting period, Canadian officials engaged with IDA management and consulted with other IDA donors as part of the negotiations for the 19th replenishment of IDA, which are set to end in December 2019.

Financial information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018–19 Actual spending (authorities used)	Variance (2018–19 actual minus 2018–19 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	0	0	0	0
Total other types of transfer payments	441,620,000	441,610,000	441,610,000	441,610,000	441,610,000	0
Total program	441,620,000	441,610,000	441,610,000	441,610,000	441,610,000	0
Explanation of variances	There were no variances between planned and actual spending.

Gender-based analysis plus

General information

Governance structures

The Department of Finance Canada is responsible for delivering on the government's commitment, outlined in the Fall Economic Statement 2016, "to submit all future budgets to more rigorous analysis by completing and publishing a gender-based analysis of budgetary measures."

The Department commits to integrating, where appropriate and data exists, gender-based analysis plus (GBA+) into the development of policy, program and legislative options and related considerations in its advice to the Minister of Finance.

The Department delivers on this commitment by:

• conducting GBA+ when developing proposals on policy under the Minister of Finance's responsibility
• reviewing and providing advice on GBA+ conducted by other departments for proposals brought forward for Cabinet consideration, and funding decisions

The Department has put in place all elements of a robust GBA+ implementation framework as prescribed by the Department for Women and Gender Equality (WAGE):

• a formal departmental policy statement
• a GBA+ responsibility centre
• an intra-departmental GBA+ advisory committee
• a GBA+ champion
• a departmental GBA+ action plan
• resources dedicated to the development, delivery and promotion of GBA+ training for employees
• tools and resources to assist employees in applying GBA+ to their work

The departmental GBA+ champion, a position held by an Assistant Deputy Minister, is responsible for leading, supporting and monitoring the integration of GBA+ into the day-to-day operations of the Department. An intra-departmental GBA+ advisory committee, established in summer 2017, supports the GBA+ champion.

Human resources

A total of 4.5 full-time equivalents (FTEs) work on the implementation of GBA+ in the Department; all are members of the GBA+ advisory committee: 

• 1 Senior Director works part time on GBA+ implementation in the Department (0.5 FTE)
• 6 junior and senior analysts work half time as GBA+ branch advisors for the Economic Development and Corporate Finance, Economic and Fiscal Policy, International Trade and Finance, Federal-Provincial Relations and Social Policy, Financial Sector Policy and Tax Policy branches (total of 3.0 FTEs)
• 1 senior analyst works full time as the Departmental Focal Point (from the Assistant Deputy Minister's Office, Federal-Provincial Relations and Social Policy Branch) to support the work of the GBA+ advisory committee (total of 1.0 FTE)

Resources are allocated to incorporating GBA+ into budget decision making and to the publication of GBA+ information on all budget measures. These resources are covered under the Department's core responsibility of Economic and Fiscal Policy.

Major initiatives: results achieved

The Canadian Gender Budgeting Act was passed by Parliament in December 2018, enshrining the Government's commitment to decision-making that takes into consideration the impacts of policies on all Canadians in a budgetary context.

In 2018–19, the Department of Finance Canada continued to strengthen all elements of its implementation framework to improve the quality and scope of GBA+ and strengthen its advice to the Minister of Finance.

Key initiatives in 2018-19:

In response to the reporting requirements of the Canadian Gender Budgeting Act the Department published the Gender Report, demonstrating concerted efforts to incorporate GBA+ in the policy development process and to make the Government's analysis available to Canadians.

In addition, through the Canadian Gender Budgeting Act, GBA+ was also made part of the federal government's financial management processes, requiring that, once a year, the Minister of Finance make available to the public analysis on the impacts in terms of gender and diversity of tax expenditures. In keeping with this requirement, the 2019 Report on Federal Tax Expenditures features a comprehensive GBA+ of the federal personal income tax system and tax expenditures, examining their effects on the distribution of income between men and women, while accounting for other identity factors such as family composition and income brackets.

Integration of GBA+ into the decision-making process: the Department required that a GBA+ be conducted on all policy options developed for the Minister's consideration and that the GBA+ performed by other federal departments for Cabinet consideration be reviewed by Finance analysts.

In 2018–19, the Department of Finance continued to advance the government's commitment to fairness and equality through gender budgeting. Chapter 5 of Budget 2019 consists of a Gender Statement, which includes an analysis of the indicators in the Gender Results Framework and an overview of the GBA+ impacts of Budget 2019 as a whole.

Monitoring and reporting: In 2018–19, the Department implemented better tools to receive GBA+ input from federal departments and agencies on budget proposals (summary template and guidance document) and developed an internal database of key data sources.

Training: In 2018-19, the Department offered GBA+ learning opportunities tailored to the work of both challenge function and internal policy analysts. It also worked with the Canada School of Public Service on the development and delivery of the GBA+ Premium course. 

In addition,

• Ninety-five per cent of departmental analysts completed the mandatory WAGE online introductory GBA+ course
• A GBA+ Budget Boot Camp was offered in early October (three sessions with participants from all policy-focused branches)
• A departmental event was organized for GBA+ Awareness Week in November (using a Human Library theme)
• GBA+ training outside the Department supported including the WAGE GBA+ Learning Day and the WAGE GBA+ Forum

Horizontal initiatives

Close-out Reporting on Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime

Horizontal initiative close-out report 

Name of horizontal initiative: Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime

• Start date: June 2000
• End date: Ongoing
• Lead department: Department of Finance Canada
• Number of times renewed: Not applicable
• Partner departments: Department of Justice Canada; Public Prosecution Service of Canada; Financial Transactions and Reports Analysis Centre of Canada; Royal Canadian Mounted Police; Canada Revenue Agency; Canada Border Services Agency.
• Other non-federal partners: Not applicable

Expenditures

Total federal funding allocated (from start to end date) (dollars): $1,093,478,784

Total federal planned spending to date (dollars): $1,071,638,572

Total federal actual spending to date (dollars): $ 1,096,695,558

Results

Shared outcome of federal partners: An effective Regime that respects domestic legal and constitutional frameworks and is consistent with international standards.

Performance indicator(s): Level of compliance with international standards and effectiveness in the prevention, detection, deterrence and disruption of money laundering (ML) and terrorist financing (TF).

Target(s): Improved compliance and effectiveness.

Shared result: Since the launch of the horizontal initiative in June 2000 and over the course of 2018-19, Regime partners have made substantial progress in improving Canada's resilience to ML and TF activities through:

• Policy and regulatory measures aligned with international standards, through the introduction and refinement of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and Regulations.
• A good level of compliance and effectiveness against international standards, as recognized by the Financial Action Task Force (FATF).
• Support for mutual legal assistance and extradition in ML and TF cases, in fulfillment of Canada's international obligations.
• The establishment and strengthening of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as Canada's AML/ATF regulator and financial intelligence unit (FIU).
• Improved awareness and compliance of private sector entities and registered charities with their anti-money laundering and anti-terrorist financing obligations.
• Production of tactical and strategic intelligence for Regime partners on suspected ML and TF activities.
• Investigations and prosecutions of ML and TF cases.

The partners continue to explore ways to improve the Regime's effectiveness in the detection, deterrence, investigation and prosecution of these crimes.

Programs receiving ongoing funding

Federal organizations	Program	Ongoing funding	Purpose
Department of Finance Canada	Financial Sector Policy (1.1)	$244,000	Development of AML/ATF policy for the PCMLTFA and Regulations. Advice to the Minister of Finance on policy issues, Regime-related activities, Minister's responsibility for oversight of FINTRAC, and developments related to combating ML and TF. Secretariat for management and coordination of Canada's AML/ATF Regime.
Department of Justice Canada	Justice Policies, Laws and Programs (2.1)	$100,000[1]	Legal advice on money laundering and terrorist financing offences. Providing legal opinions on Regime issues. Negotiation and administration of Canada's treaties for mutual legal assistance and extradition. Supporting Canadian investigations and prosecutions involving evidence and/or individuals located abroad.
Public Prosecution Service of Canada	Drug, National Security and Norther Prosecutions Program (3.1)	$2,108,210	Legal advice and support to the Royal Canadian Mounted Police (RCMP) and other law enforcement agencies on investigations related to the PCMLTFA and to the proceeds of crime, ML and TF provisions of the Criminal Code, as well as prosecutions arising out of those investigations.
Financial Transactions and Reports Analysis Centre of Canada	Financial Intelligence Program (4.1)	$12,075,001	Analysis and assessments of reports and information from a variety of sources in order to assist in the detection, prevention, and deterrence of money laundering and terrorist activity financing.
	Compliance Program (4.2)	$15,671,379	Ensuring that reporting entities comply with their obligations under the PCMLTFA and its regulations, including obligations related to customer identification, reporting, and record keeping.
	Strategic Policy and Review Program (4.3)	$379,071	Sharing of operational and strategic expertise and knowledge of Canada's law enforcement and national security priorities and to identify potential enhancements to legislation and regulations, with a view to strengthening Canada's Regime.
	Strategic Intelligence and Research Program (4.4)	$1,292,218	Identification of emerging characteristics, trends and tactics used by criminals to launder money or fund terrorist activities. Informing Regime partners and the public about the nature and extent of money laundering and terrorist activity financing.
	Internal Services	$16,400,085	Activities and resources in support of AML/ATF programs (e.g., human resources, communications, legal services).
Royal Canadian Mounted Police	Federal Policing (5.1)	$9,948,419	Investigation of ML and TF cases, laying charges, making arrests, and seizure of funds or assets suspected of being proceeds of crime or used in support of terrorist criminal activity. Exchange of criminal intelligence with international police forces and liaison officers. Referral of cases to the PPSC for prosecution.
	Internal Services	$1,340,454	Activities and resources in support of AML/ATF programs (e.g., human resources, communications, legal services).
Canada Revenue Agency	Domestic Compliance (6.1)	$2,035,600	Investigation of money laundering offences in connection with tax evasion. Analysis of disclosures from FINTRAC and Regime partners in support of these efforts.
	Charities (6.2)	$4,103,445	Protection of the integrity of Canada's charitable registration system from the risk of terrorist financing abuse. Sharing relevant taxpayer information with Regime partners in support of their anti-terrorism mandates. Supporting Canada in its international commitments vis-à-vis AML/ATF initiatives specifically as they relate to terrorist financing.
Canada Border Services Agency	Intelligence Collection and Analysis Targeting (7.1)	$1,700,000	Identification and interception of high-risk people, goods, and conveyances that pose a threat to the security of Canadians, including through currency and proceeds of crime lookouts. Currency training to law enforcement partners. Collaboration with law enforcement partners through regional Joint Forces Operations on border-related issues, including predicate offences for money laundering.
	Traveller Facilitation and Compliance Commercial-Trade Facilitation and Compliance (7.2)	$1,100,000	Administration and enforcement of Part 2 of the PCMLTFA, which requires reporting on the cross-border movement of currency or monetary instruments valued at $10,000 or more and any associated seizures. Seizure of unreported currency and monetary instruments greater than reporting threshold. Forfeiture of seized funds where suspected of being proceeds of crime or funds for terrorist financing activities. In other instances, return of seized funds upon payment of a penalty.
	Recourse (7.3)	$300,000	Impartial review of cross-border currency reporting program decisions taken by the Canada Border Services Agency (CBSA).
	Internal Services	$600,000	Activities and resources in support of AML/ATF programs (e.g., human resources, communications, legal services).
All Partners	Total	$69,397,882

Plans (including timelines) for evaluation and/or audit

The FATF last evaluated Canada's AML/ATF Regime in 2016, producing a Mutual Evaluation Report (MER) on the effectiveness of Canada's AML/ATF efforts.^[2] The House of Commons Standing Committee on Finance completed a Statutory Review of the PCMLTFAin 2018, as required by that legislation; the Committee's final report provided recommendations on measures to strengthen Canada's Regime.^[3] 

In 2022-23, Canada expects to undergo its 5th-Year Follow-up Assessment by the FATF, which will include an onsite evaluation to assess the extent to which Canada has addressed the deficiencies identified in the FATF's 2016 evaluation.

Results by Organization on Fiscal Year 2018–19 Departmental Plan Performance Indicators

1. Department of Finance Canada

1.1 Financial Sector Policy

Expected Results

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, informed by internal research and policy development, consultations with private sector stakeholders, the National Inherent Risk Assessment and the FATF's 2016 Mutual Evaluation (ME) of Canada.
• Coordinating the interdepartmental working group on Regime performance measurement and governance.
• Continuing to lead the implementation of commitments made in Budget 2014 and Budget 2015 to strengthen Canada's AML/ATF Regime, including the development and coming into force of Budget 2017 and regulatory amendments.
• Participating in interdepartmental and horizontal initiatives related to the mandates of AML/ATF Regime partners.
• Heading the Canadian delegation to, and actively participating as a member of, the FATF and other regional groups.
  • For example, this participation will involve contributing to the FATF's ME process under the fourth round of assessments and to key international policy development initiatives, including collaboration with key allies such as the G7.

Performance Indicators

The Department of Finance Canada's contribution to the Regime consists chiefly of policy development and coordination, including leadership on horizontal Regime governance. Indicators that reflect the Department's role in the Regime are as follows:

• Meetings of steering committees, working-level committees and working groups with a focus on money laundering and terrorist financing.
• The development of legislative and regulatory changes in response to identified Regime gaps and AML/ATF priorities.
• Outreach and consultation activities with public-private sector advisory committees and working groups on the risks of money laundering and terrorist financing.
• Participation in international meetings of AML/ATF organizations, committees and initiatives.

Targets

The Department of Finance Canada's contribution to the Regime consists chiefly of policy development and coordination, including leadership on horizontal regime governance. Targets that reflect the Department's role in the Regime are as follows:

• Meetings with the private sector through the Advisory Committee on Money Laundering and Terrorist Financing (ACMLTF) and subsidiary working groups, as well as conferences and other activities.
• Regular attendance at, and participation in, meetings of the FATF and regional and working groups.

Results Achieved

In 2018-19, the Department of Finance:

• Contributed to the final report of the House of Commons Standing Committee on Finance (FINA) on the statutory review of the PCMLTFA, released in November 2018^[4], which provided 32 recommendations to strengthen the PCMLTFA and Canada's AML/ATF Regime including legislative and regulatory gaps, exchange of information and privacy rights, as well as strengthening intelligence capacity and enforcement.
• Implemented key recommendations, such as amending the Criminal Code to add a recklessness offence and establishing a regulatory Regime for virtual assets service providers, while continuing to assess the remaining recommendations as appropriate.
• Published new regulatory amendments to the PCMLTFA in the Canada Gazette for public comment (now approved and coming into force fully by June 2021), which would resolve several outstanding technical compliance deficiencies identified in the 2016 MER^[5].
• Provided advice to the Minister of Finance in the context of Budget 2019 for funding of $178 million to modernize and strengthen Canada's AML/ATF Regime.
• Continued to make progress on strengthening beneficial ownership transparency, in collaboration with Innovation, Science and Economic Development Canada as well as the provinces and territories^[6].
• Collaborated with the Government of British Columbia to address money laundering in the province through a multi-agency a working group focused on combatting the risks of ML, tax evasion, speculation and fraud in the province's real estate sector.
• Consulted with ACMLTF members and industry representatives throughout the development of the recently published amendments to the PCMLTFA and its Regulations.
• Established a new Deputy Minister-level committee to provide strategic direction to the Regime and ensure its alignment with broader national security priorities.
• Undertook work to create a Regime strategy and performance measurement framework, in collaboration with Regime partners.
• Contributed to improving international standards for the prevention and detection of money laundering, including new FATF guidance on the risk-based approach for legal professionals, accountants and trust and company service providers.

2. Department of Justice Canada

2.1 Justice Policies, Laws and Programs

The Department of Justice Canada, since it began 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.

3. Public Prosecution Service of Canada

3.1 Drug, National Security and Northern Prosecutions Program

Expected Results

The PPSC will continue to provide legal advice and support to the RCMP and other law enforcement agencies during the course of investigations under the PCMLTFA and other provisions of the Criminal Code relating to the proceeds of crime, ML and TF. The PPSC will also continue to undertake prosecutions that arise out of those investigations. The PPSC is not, however, an investigative agency and therefore does not determine who should be investigated and for what activities.

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.

Performance Indicators

• 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 in which PPSC counsel provided legal advice.
• Number and percentage of files involving new money laundering charges under the Criminal Code in which 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 in which PPSC counsel provided legal advice.
• Number of new charges under the PCMLTFA referred to the PPSC during the fiscal year.
• Number and percentage of files involving new charges under the PCMLTFA in which PPSC counsel provided legal advice.
• Nature of liaison and outreach activities with AML/ATF Regime partners and other stakeholders.

Targets

The PPSC does not have targets for volume and characteristics of caseload because referrals for prosecution are driven by external influences beyond its direct control.

Results Achieved

In fiscal year 2018–19, the PPSC dealt with 6,886 new AML/ATF Regime-related charges: 6,842 were related to the possession of proceeds of crime; 43 were related to money laundering; one was laid under the PCMLTFA.  There were no terrorist financing charges.

The PPSC provided legal advice on a number of files involving new charges. Provision of legal advice was also recorded in 4.77% of the possession of proceeds of crime files, 39.29% of the money laundering files and the PCMLTFA files.

4. Financial Transactions and Reports Analysis Centre of Canada

4.1 Financial Intelligence Program

Expected Results  

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.

Performance Indicators

• Number of police, law enforcement, national security and other partner agency major and project-level investigations supported by FINTRAC financial intelligence disclosures.
• Percentage of FINTRAC's financial intelligence disclosures that align with partner investigative priorities.
• Percentage of feedback from disclosure recipients that indicates that the FINTRAC financial intelligence disclosure was actionable.
• Percentage of feedback from proactive disclosure recipients that indicates that the independent analysis provided by FINTRAC was actionable.

Targets

• FINTRAC's financial intelligence disclosures supported 100 police, law enforcement, national security and other partner agency major and project-level investigations.
• 85% of FINTRAC's financial intelligence disclosures align with partner investigative priorities.
• 85% of feedback from disclosure recipients indicates that the FINTRAC financial intelligence disclosure was actionable.
• 75% of feedback from proactive disclosure recipients indicates that the independent analysis provided by FINTRAC was actionable.

Results Achieved

4.1

Throughout 2018–19, FINTRAC's financial intelligence contributed to 296 project-level investigations at the municipal, provincial and federal levels across the country.

• 100% of FINTRAC's financial intelligence disclosures aligned with partner investigative priorities;
• 90% of feedback from disclosure recipients indicated that the FINTRAC financial intelligence disclosure was actionable.
• 84% of feedback from proactive disclosure recipients indicated that the independent analysis provided by FINTRAC was actionable.

In 2018–19, FINTRAC provided 2,276 unique disclosures of actionable financial intelligence to its Regime partners, an increase of more than 80 percent over the past five years. Of these, 1,702 were associated solely with money laundering, 373 dealt with cases of terrorist activity financing and other threats to the security of Canada, and 201 had associations with all three areas.

Over the past fiscal year, FINTRAC received 318 completed disclosure feedback forms with the level of positive feedback from partners exceeding targeted levels. The Centre's contributions were also recognized publicly by several law enforcement agencies as providing valuable assistance to criminal investigations that led to successful disruption of money laundering schemes.

4.2 Compliance Program

Expected Results

As part of Canada's AML/ATF Regime, FINTRAC seeks to deter ML and TF 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 associated Regulations.

Performance Indicators

• Percentage of follow-up examinations where reporting entities demonstrate higher rates of compliance with their money laundering and terrorism financing legislative and regulatory obligations.
• Percentage of follow-up examinations where reporting entities demonstrate higher rates of compliance with their money laundering and terrorism financing legislative and regulatory obligations.
• Percentage of financial transaction reports submitted to FINTRAC that meet quality requirements.

Targets

• 80% of follow-up examinations on reporting entities demonstrate higher rates of compliance with their money laundering and terrorism financing legislative and regulatory obligations,
• 80% of follow-up examinations on reporting entities demonstrate improvement in the quality of their reporting to FINTRAC.
• 80% of Financial Transaction Reports submitted to FINTRAC meet quality requirements.

Results Achieved

4.2

• In 79% of follow-up examinations, reporting entities demonstrated higher rates of compliance with their money laundering and terrorism financing legislative and regulatory obligations.
• In 100% of follow-up examinations, reporting entities demonstrated improvement in the quality of their reporting to FINTRAC.
• 98.7% of Financial Transaction Reports submitted to FINTRAC met quality requirements.

FINTRAC uses a range of assistance, assessment and enforcement activities to ensure that all reporting entities fulfill their PCMLTFA obligations.

Over the past year, FINTRAC has seen major developments in its compliance program. As part of its transparency initiative, FINTRAC published important and wide-ranging information about its compliance program in an effort to assist businesses in understanding their legislative and regulatory obligations as well as to strengthen Canada's AML/ATF Regime. Key publications include FINTRAC's Compliance Framework that captures the guiding principles shaping its compliance program, the Compliance Assessment Manual, the revised Administrative Monetary Penalties policy and calculation methodology as well as the notice on Voluntary Self-Declaration of Non-Compliance.

In 2018–19, FINTRAC conducted 497 compliance examinations. The examinations focused on key sectors including real estate (190), money services businesses (112) and securities dealers (57).

Last fiscal year, the Centre conducted 19 follow-up examinations. They identified improvements in compliance behaviour in 79% of cases comparted with the previous examination. In instances where a negative change in behavior was observed (21% of follow-ups), additional compliance and enforcement activities are planned and enforced.

In addition, the Centre also responded to 5,991 enquiries from businesses in every reporting sector on a broad range of issues, including reporting obligations, access to reporting systems and the registration of money services businesses.

4.3 Strategic Policy and Review Program

Expected Results

FINTRAC's Strategic Policy and Review Program will use its operational and strategic expertise and knowledge of Canada's law enforcement and national security priorities to identify potential enhancements to legislation and regulations, with a view to strengthening Canada's AML/ATF Regime as a whole.

Performance Indicators

• Percentage of key international and domestic AML/ATF committees and working groups in which FINTRAC participates and influences policy decisions based on its expertise in preventing, detecting and deterring ML and TF activities.

Targets

• FINTRAC participates and influences policy decisions in 75% of key international and domestic AML/ATF committees and working groups.

Result Achieved

4.3

• FINTRAC attended and participated in 100% of its key international and domestic AML/ATF committees and working groups providing expertise in preventing, detecting and deterring ML and TF activities.

FINTRAC's strategic work encompasses operational policy coordination and collaboration. The Centre works closely with the Department of Finance Canada and other Regime partners, sharing its strategic and operational expertise on money laundering and terrorist activity financing and its knowledge of Canada's national security priorities, to identify potential enhancements to legislation and regulations with a view to strengthening Canada's overall Regime.

Throughout 2018–19, FINTRAC played an active role in support of the five-year Parliamentary Review of the PCMLTFA by the House of Commons Standing Committee on Finance. The Centre appeared before the Committee to describe its regulatory and financial intelligence functions and results, as well as to answer questions on a variety of money laundering and terrorism financing related issues. As well, FINTRAC contributed to the Government of Canada's response to the Committee's formal Parliamentary Review Recommendations.

FINTRAC also works closely with its counterpart organizations within the Five Eyes community, consisting of Australia, Canada, New Zealand, the United Kingdom and the United States. In 2018–19, FINTRAC led the creation of the Five Eyes Heads of Financial Intelligence Units Cooperation Group, which has agreed to formal terms of reference, with the goal of increasing cooperation at the policy, strategic and operational levels.

4.4 Strategic Intelligence and Research Program

Expected Results

FINTRAC's Strategic Intelligence and Research Program will provide a wide analytic perspective on the nature, scope and threat posed by money laundering and terrorist financing, with a focus on strengthening Canada's ability to prevent, detect, deter and disrupt the methods and techniques used by criminals to launder money or fund terrorist activities.

Performance Indicators

• Number of strategic financial intelligence products recognized by recipients for making a significant contribution to their understanding of money laundering and terrorism financing issues, trends and risks.

Targets

• Five or more of FINTRAC's strategic financial intelligence products are recognized by recipients for making a significant contribution to their understanding of money laundering and terrorism financing issues, trends and risks.

Results Achieved

4.4

• In 2018–19, eight of FINTRAC's strategic financial intelligence products were recognized by recipients for contributing to their understanding of money laundering and terrorism financing issues, trends and risks.

FINTRAC uses the information it receives from Regime partners and businesses across the country, as well as other sources of information, to produce valuable strategic intelligence in the fight against money laundering and terrorist activity financing.

In 2018–19, FINTRAC produced nine strategic financial intelligence assessments and reports and contributed its financial intelligence insight and expertise to numerous other Regime partner projects. The majority of the Centre's strategic intelligence was focused on specific money laundering and terrorism financing issues, including a number of terrorism financing jurisdictions of concern. This intelligence was generated to support FINTRAC's own intelligence work as well as that of the Canadian security and intelligence community.

During the year, FINTRAC also produced strategic intelligence to assist Canadian businesses in understanding the potential risks and vulnerabilities in their sectors and in complying with their obligations under the PCMLTFA. In addition to publishing indicators relating to the Laundering the Proceeds of Romance Fraud, the Centre also issued an operational alert regarding Professional Money Laundering through Trade and Money Services Businesses.

Lastly, FINTRAC focused its strategic intelligence efforts on identifying trends, opportunities and risks arising from the rapid growth of financial technology (FinTech) and how the technology could be used for the purposes of money laundering and terrorist activity financing. FINTRAC produced and presented strategic analysis on various FinTech related topics, including cryptocurrency, digital identity and alternative financing to support federal policymakers in understanding emerging issues, trends and patterns in the broader ML and TF environment.

5. Royal Canadian Mounted Police

5.1 Federal Policing

Expected Results

Investigation

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 ML and TF in Canada. This expected result will be achieved by conducting investigations in the areas of highest risk and by using the information and expertise of national and international partners.

Collaboration

The RCMP's Federal Policing Criminal Operations 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 align. In addition to improving collaboration between the divisions and National Headquarters, this working group has made progress in addressing key issues identified in the RCMP's AML Strategy.

The Assistant Deputy Minister Anti-Money Laundering Advisory Committee on Operational Effectiveness, co-led by the RCMP and FINTRAC, focuses on the operational challenges faced by key Government of Canada partners responsible for investigating and prosecuting threats of money laundering. Specifically, this committee has identified gaps and challenges that hinder the ability to investigate and, ultimately, to prosecute financial crimes in Canada, and recommended options to senior Government of Canada officials.

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.

Training

Further to recommendations identified in its AML 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 course will continue to be available to members of all RCMP divisions and to Canada's AML/ATF Regime partners. 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 ML.

Performance Indicators

Investigation

• Percentage of all Tier I and Tier 2 projects that have a money laundering component^[1]

Collaboration

• Number of joint meetings held by the RCMP and FINTRAC to set priorities.
• Number of meetings held by the Federal Policing Criminal Operations Money Laundering Working Group.
• Percentage of high-risk traveller files where assistance was sought from FINTRAC through Voluntary Information Records (VIRs).
• RCMP participation in the annual meeting of the Five Eyes Terrorist Financing Working Group.

Training

• 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.

Targets

Investigation

• Target to be determined for Tier I and Tier 2 projects having a money laundering component.

Collaboration

• The RCMP aims to hold three joint meetings to set priorities between the RCMP and FINTRAC.
• The RCMP aims to hold three meetings of the Federal Policing Criminal Operations Money Laundering Working Group.
• The RCMP aims to examine 100% of high-risk traveller files for possible terrorist financing components by seeking FINTRAC's assistance through VIRs.
• The RCMP will participate in the annual meeting of the Five Eyes Terrorist Financing Working Group, held in Canada, in May 2018.

Training

• The RCMP plans to deliver four sessions of the Proceeds of Crime – Money Laundering training course to train 96 investigators, including approximately 85 RCMP investigators and analysts.
• The RCMP plans to deliver three Anti-Terrorist Financing training courses. A total of 90 investigators are expected to be trained, including approximately 60 RCMP investigators and analysts.

Results Achieved

Percentage of all Tier I and Tier 2 projects that have a money laundering component

• In fiscal year 2018–19, 29%(45 out of 154)^[7] of all active tier 1 and tier 2 projects^[8] (including projects in court) had a money laundering component.

Number of joint meetings held by the RCMP and FINTRAC to set priorities

• In fiscal year 2018–19, two formal meetingswere held with FINTRAC to discuss operational and strategic priorities. In addition to formal meetings, the RCMP has regular lines of communication with FINTRAC on operational matters, in both a bi-lateral setting and through FINTRAC-led PCMLTFA working groups.
• The RCMP also regularly engages domestic partners, including FINTRAC and the Canada Revenue Agency (CRA), through the National Security Joint Operations Centre in relation to high risk traveler files.

Number of meetings held by the Federal Policing Criminal Operations Money Laundering Working Group

• The RCMP Money Laundering Working Group held 12 monthly meetings, two of which were in-person two-day meetings (one in Ottawa, one in Edmonton). The remaining ten meetings were conducted via teleconferences involving the major RCMP divisions and National Headquarters Financial Crime, Intelligence and Strategic Planning units.

RCMP participation in the annual meeting of the Five Eyes Terrorist Financing Working Group

• The RCMP participated in the Five Eyes Terrorist Financing Working Group via two secure video-conferencesin fiscal year 2018–19.

Percentage of high-risk traveller files where assistance was sought from FINTRAC through VIRs

• The RCMP continued working with FINTRAC with respect to high-risk traveller files. The RCMP consulted FINTRAC on 100%of high-risk traveller files, and in many instances sought FINTRAC assistance through VIRs.

Number of training sessions delivered in fiscal year 2018–19, 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

• In total, six sessions ­were delivered. Threedeliveries of the Proceeds of Crime Money Laundering Course and threedeliveries of the Terrorist Financing Investigators Course.
• 160RCMP personnel and domestic and international partners received AML/AFT training.
  • 75 individuals participated on the Proceeds of Crime Money Laundering Course, of which 71 were RCMP candidates and four were candidates from other domestic and international law enforcement agencies.
  • 85 individuals participated on the Terrorist Financing Investigators Course. 67 of those candidates were RCMP Investigators and Analysts and 18 candidates were from other international and domestic partner agencies.

6. Canada Revenue Agency

6.1 Domestic Compliance

Expected Results

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 ML and TF activities.

The Domestic Compliance Programs Branch of the CRA will continue to process all disclosures from FINTRAC on a priority basis. The branch 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 2018–19. 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 have a positive effect on the quality and success of future compliance actions.

Performance Indicators

• Total number of audits completed.

Targets

• 90 audits and a projected federal tax reassessment of $9 million.

Results Achieved

• 24 audits and actual federal tax reassessed of $8.31 million.

6.2 Charities

Expected Results

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 PCMLTFA 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 FATF and the United Nations.

Performance Indicators

Performance indicators are not applicable owing to the nature of the workload and the mandate of the CRA's Review and Analysis Division.

Targets

Targets are not applicable owing to the nature of the workload and the mandate of the CRA's Review and Analysis Division.

Results Achieved

With respect to its domestic anti-terrorist financing responsibilities, the CRA 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 CRA:

• Reviewed 2,371 new applications for registered charitable status, 11 of which were selected for detailed examination.
• Conducted 16 audits where a risk of terrorism financing was identified. As a result, three organizations had their charitable status revoked, while four were subject to a compliance agreement to maintain their charitable status, one of which was sanctioned with a penalty.
• Received 22 disclosures from, and made 16 disclosures to, Canada's AML/ATF Regime partners.

In fiscal year 2018–19, the CRA continued its work towards enhancing outreach efforts to educate charities on the risk of terrorist abuse and how they can protect themselves from this risk. 

Internationally, the CRA contributed to international policy development led by the FATF.  Most notably, a representative of the CRA acted as an assessor during the ME of Saudi Arabia and Turkey. The CRA participated in the development of FATF's Guidance on conducting Terrorist Financing Risk Assessments.  The CRA was also appointed co-chair for the Americas Joint Group, which works with countries from the Americas who have been referred to the International Co-operation Review Group due to gaps in their AML/ATF Regime.  In addition, the CRA provided technical assistance to Mauritius under the auspices of the United Nations Office of Counter-terrorism.

7. Canada Border Services Agency

7.1 Intelligence Collection and Analysis Targeting

Expected Results

The CBSA will continue to be involved in tactical and strategic analysis and assessments of intelligence related to ML and TF activities.

The CBSA will participate in Joint Force Operations with the RCMP and other federal departments.

Performance Indicators

• Number of money laundering- and terrorist financing-related intelligence products produced and/or disseminated.
• Number of Joint Force Operations completed with the RCMP and other government departments.

Targets

Not applicable

Results Achieved

The CBSA has developed and maintained information to support 434 Currency Lookouts and 61 Proceeds of Crime Lookouts for the 2018–19 fiscal year.  The CBSA continues to provide currency training to law enforcement partners at the Canadian Police College.

The CBSA works in collaboration with key law enforcement partners within the context of regional Joint Forces Operations on multiple border related issues including a number of predicate offences for money laundering which fall under CBSA's program legislation. The CBSA participated in 39 Joint Force Operations working with the RCMP and/or other federal, provincial or municipal agencies including:

• Integrated Border Enforcement Teams (6)
• Border Enforcement Security Taskforce  (3)
• Integrated National Security Enforcement Team (4)
• Criminal Intelligence Service (5)
• Organized Crime Units (2)
• Weapons Enforcement Units (2)
• Regional Joint Force Intelligence Units (17)

The CBSA also participates in the three Marine Security Operations Centers (MSOC).

United 7.2 Traveller Facilitation and Compliance; Commercial-Trade Facilitation and Compliance

Expected Results

In all modes and streams of operation, Border Services Officers (BSOs) 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, BSOs seize unreported and falsely reported currency and monetary instruments arriving at or departing from ports of entry.

Performance Indicators

• 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 BSOs.

Targets

• All travellers are screened.
• All travellers are asked whether they are carrying funds over $10,000.

Results Achieved

In fiscal year 2018–19, the CBSA has accepted and forwarded to FINTRAC the total of 60,416 compliant currency and monetary instruments reports collected from individuals and entities.

During the same time period, the CBSA has carried out 2,181 seizures for failing to properly declare currency and monetary instruments that meet the reporting threshold of $10,000 CAD. The total value of the seized funds was over $35.7 million, of which over $2.7 million was forfeited to the Crown as suspected proceeds of crime and TF.

7.3 Recourse

Expected Results

The CBSA acknowledges receipt of the request for a minister's review and confirms that a file has been opened.

Performance Indicators

• Percentage of enforcement appeals received that are acknowledged within 10 calendar days (this includes all enforcement actions, including PCMLTFA appeals).
• Percentage of enforcement appeals received that are decided within 180 calendar days (this includes all enforcement actions, including PCMLTFA appeals).

Targets

• 90% of enforcement appeals are acknowledged within 10 calendar days.
• 80% of enforcement appeals are decided within 180 calendar days.

Results Achieved

2018–19	Acknowledged	Met	% Met	Decided	Met	% Met
PCMLTFA related appeals	237	227	96%	211	147	70%

Responses to Parliamentary Committees and External Audits

External Audits

Response to audits conducted by the Office of the Auditor General of Canada (including audits conducted by the Commissioner of the Environment and Sustainable Development):

• 2018 Fall Reports of the Commissioner of the Environment and Sustainable Development, Report 3—Departmental Progress in Implementing Sustainable Development Strategies
  

  This audit examined whether the federal departments and agencies had:

  • adequately applied the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals and its related guidelines to policy, plan, and program proposals submitted for approval to Cabinet, including the Treasury Board; and
  • adequately met their commitments to strengthening their strategic environmental assessment practices as outlined in their departmental sustainable development strategies, the Federal Sustainable Development Strategy, and departmental responses to recommendations from past audits by the Commissioner of the Environment and Sustainable Development.

  There were no recommendations for the Department of Finance.

• 2019 Spring Reports of the Commissioner of the Environment and Sustainable Development, Report 3—Tax Subsidies for Fossil Fuels—Department of Finance Canada

  This audit examined whether the Department of Finance Canada provided advice to support decision making on inefficient tax subsidies for fossil fuels that was based on analysis of all relevant and reliable statistics, data, or qualitative information.

  One recommendation was directed to the Department of Finance Canada. The Department disagreed with the recommendation to develop guidance that clearly defines the criteria for determining the inefficiency of tax subsidies for fossil fuels, taking into account relevant and reliable evidence that integrates on an equal basis economic, social, and environmental sustainability over the long term.

  In the context of the G20 commitment, the term "inefficient" is not susceptible to the use of simple criteria, given the breadth of potential issues that may need to be considered. The Department of Finance Canada has instead developed a comprehensive framework to assess whether a tax measure may constitute an "inefficient fossil fuel subsidy."

• 2019 Spring Reports of the Auditor General of Canada, Report 3—Taxation of E-Commerce

  This audit examined whether, according to their respective roles and responsibilities, the Canada Revenue Agency, the Canada Border Services Agency, and the Department of Finance, with regard to e-commerce, ensured that the tax system was neutral and that the GST/HST tax base was protected.

  There were no recommendations for the Department of Finance.

Response to audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages:

• There were no audits in 2018–19 requiring a response.

Response to Parliamentary Committees

House of Commons Standing Committee on Public Accounts:

On December 13, 2017, the House of Commons Standing Committee on Public Accounts released its thirty-fourth report entitled Report 2, Customs Duties, from the Spring 2017 Reports of the Auditor General of Canada – Part I. The report examines the findings of the Auditor General's Spring 2017 report, which set out to determine whether Finance Canada, Global Affairs Canada and the Canada Border Services Agency (CBSA) have adequately managed customs duties according to their roles and responsibilities. The report contains six recommendations. The Minister of Finance and the Minister of Public Safety and Emergency Preparedness jointly tabled the Government's response in the House of Commons on April 16, 2018. Two of the six recommendations related the Department of Finance.

In response to Recommendation 6, the Department of Finance conducted a review of the Customs Tariff in Fall 2017 to identify tariff items that could be modified, as well as other changes to reduce administrative burden for Canadian businesses. As a result of this review, Budget 2018 announce the Government's intention to streamline the Customs Tariff. The changes were included in Bill C-86, Budget Implementation Act, 2018, No. 2 that received Royal Assent on December 13, 2018.

In response to Recommendation 5B, the Department of Finance advised the committee in October 2018 that it had received views from CBSA on making import licenses renewable and potential options to strengthen financial controls. It further noted it would continue to work with the CBSA as any resulting administrative or enforcement changes would be made under the Customs Act, under the purview of the Minister of Public Safety and Emergency Preparedness.

The House of Commons Standing Committee on International Trade:

On April 26, 2018, the House of Commons Standing Committee on International Trade released its ninth report entitled E-Commerce: Certain Trade-related Priorities of Canada's Firms. The report studies the opportunities that e-commerce provides to Canada's firms, including its small and medium-sized enterprises. The report contains eleven recommendations. The Minister of Finance, the Minister of Innovation, Science and Economic Development, and the Minister of International Trade jointly tabled the Government's response in the House of Commons on June 20, 2018.

The Government broadly agrees with the report's recommendations and notes it has various programs and policies corresponding to the directions set out in the recommendations. The Government will continue to explore ways in which its programs and policies can be improved to further support the efforts of Canadian firms to maximize the potential of e-commerce. It continues to work with stakeholders, including the provinces, territories and the private sector to help Canadian firms flourish in the digital economy.

The Standing Senate Committee on Aboriginal Peoples:

On May 1, 2018 the Standing Senate Committee on Aboriginal Peoples presented its eleventh report entitled The Subject Matter of Bill C-45: An Act Respecting Cannabis and to Amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts. The report examines the subject matter of the bill insofar as it relates to the Indigenous peoples of Canada. The Report contains eight recommendations. The Minister of Finance, the Minister of Indigenous Services, the Minister of Health, and the Minister of Border Security and Organized Crime Reduction jointly tabled the Government's response in the Senate on September 28, 2018.

The response outlines the broad range of initiatives and investments that the Government had put in place to address a number of the issues raised in the Committee's Report. It reiterated the Government's commitment to addressing the health and social harms associated with illegal cannabis production, distribution and use as soon as possible in order to better protect the health of all Canadians, including Indigenous Peoples. The Government committed to provide a full report back to both Chambers around progress on action areas identified in the Committee's Report by June 2019. The progress report was tabled by the Minister of Border Security and Organized Crime Reduction on June 20, 2019.

The Standing Senate Committee on Banking, Trade and Commerce:

On May 31, 2018, the Standing Senate Committee on Banking, Trade and Commerce released its twenty-first report entitled Taxation of the Hutterites in Canada. The report examines the taxation of communal organizations, with specific focus on the colonies of the Hutterian Brethren Church, whose members are known as the Hutterites. The report contained observations which were noted by the Department of Finance. There were no recommendations for the Department of Finance. The Minister of Finance tabled the Government's response in the Senate on November 2, 2018.

The Standing Senate Committee on Social Affairs, Science and Technology:

On June 27, 2018, the Standing Senate Committee on Social Affairs, Science and Technology released its twenty-sixth report entitled Breaking Down Barriers: A Critical Analysis of the Disability Tax Credit and Registered Disability Savings Plan. The study examined the Disability Tax Credit and the Registered Disability Savings Plan. The report contains sixteen recommendations. The Minister of Finance, the Minister of National Revenue, and the Minister of Public Services and Procurement jointly tabled the Government's response in the Senate on February 21, 2019. The response was thematic in nature and did not answer the recommendations on an individual basis.

The House of Commons Standing Committee on Finance:

On November 8, 2018, the House of Commons Standing Committee on Finance released its twenty-fourth report entitled Confronting Money Laundering and Terrorist Financing: Moving Canada Forward. The report is the result of a statutory review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The report contains thirty-two recommendations. As the leading Minister, the Minister of Finance tabled a response in the House of Commons on February 21, 2019.

To support the Committee's review of the PCMLTFA, the Department of Finance published a discussion paper entitled "Reviewing Canada's Anti-Money Laundering and Anti Terrorist Financing Regime" on February 7, 2018. The measures described in this paper focused on improving the PCMLTFA and addressing gaps noted in the 2016 Financial Action Task Force Mutual Evaluation Report.

The Standing Senate Committee on National Finance:

On December 13, 2017, the Standing Senate Committee on National Finance released its twenty-fourth report entitled Fair, Simple and Competitive Taxation: The Way Forward for Canada. The report examined the Government's proposed changes to the Income Tax Act respecting the taxation of private corporations and the tax planning strategies involved. The report contains three recommendations; two for the Minister of Finance and one for the Government of Canada. As the lead Minister, the Minister of Finance tabled the Government's response.

In Budget 2018, the Government announced changes to limit the ability of high-income earners to use private corporations to hold large sums in passive investment portfolios and receive significant personal tax advantages. These changes were implemented via Bill C-74, Budget Implementation Act, 2018, No. 2, that received Royal Assent on June 21, 2018. The Minister of Finance tabled the Government's response in the Senate on February 21, 2019.

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^[1] 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.

^[2] Financial Action Task Force (2016). Anti-money laundering and counter-terrorist financing measures: Canada – MER Report. Mutual Evaluation Report.

^[3] House of Commons Standing Committee on Finance (2018). Confronting Money Laundering and Terrorist Financing: Moving Canada Forward.

^[4] House of Commons, "Statutory Review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act", .

^[5] These amendments include: obligations related to the 24-hour rule for reporting large transactions and requirements for prompt reporting on suspicious transactions, verifying beneficial ownership accuracy, client due diligence for life insurance companies, assessing the risks of new technologies, source of wealth for politically exposed persons, prepaid cards as well as virtual currency dealers.

^[6] Amendments to the Canada Business Corporations Act now require private corporations to create and maintain registers of individuals with significant control, eliminate the issuance of options and rights in bearer form and, under certain circumstances, provide police and tax authorities' access to beneficial ownership records.

^[7] These statistics are representative of a snapshot in time and it should be noted that ML charges are often added to the records management system near the conclusion of the investigative phase of the file. The statistics should not be interpreted to mean that the money laundering components of the investigation are not being considered as part of the primary investigative effort. 

^[8] Tier 1 and 2 projects are investigations focused on the highest priorities that pose the greatest threat of harm to Canada's political, economic, and social integrity.