Ottawa, November 28, 2013 — The Honourable Jim Flaherty, Minister of Finance, tabled in Parliament today the 2012–13 Annual Report of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Results Through Financial Intelligence. The report details the activities and operations the Centre carried out last year to help protect Canadians and the integrity of Canada's financial system.
Over the past 12 months, FINTRAC provided 919 disclosures of actionable financial intelligence to its regime partners to assist their investigations of money laundering, terrorist activity financing and threats to the security of Canada. FINTRAC's financial intelligence is used in hundreds of criminal investigations every year, including those where the alleged laundered proceeds are linked to drug offences, fraud, theft, tax evasion, corruption and human smuggling and trafficking.
In 2012–13, the Centre also produced strategic financial intelligence analysis and assessments on various groups, countries and activities of interest to Canada's security and intelligence community, as well as to government decision-makers.
"Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime is producing real and significant results for Canadians: deterrence, detection, charges, convictions and seizures," said FINTRAC's Director, Gérald Cossette. He added, "Working together, government, intelligence and national security agencies, law enforcement, prosecutors and thousands of businesses across the country are creating an environment that is increasingly hostile to those who seek to abuse our financial system or who threaten the safety of Canadians."
FINTRAC's ability to produce financial intelligence is inexorably linked to the information it receives from Canada's business sectors on the front lines in the fight against money laundering and terrorist activity financing. Their efforts in assessing risks, training staff, keeping records, identifying clients and filing nearly 20 million transaction reports in 2012–13 were all essential to the Centre's ability to provide financial intelligence to law enforcement and national security agencies.
FINTRAC's compliance program helps to ensure that individuals and businesses meet their legal obligations and provide the data needed to assist law enforcement and national security agencies in protecting Canada and Canadians. Last year, the Centre completed 1,157 compliance examinations. In most instances, these examinations allow for a discussion of how reporting entities are better able to meet their obligations. In serious cases of non-compliance, FINTRAC issues administrative monetary penalties. In 2012–13, the Centre issued 12 such penalties.
Over the past year, the Centre enhanced its examination process to align assessment and enforcement activities with the level of non-compliance observed and to communicate exam results in a more transparent manner. FINTRAC also established a new ‘major reporters' team as part of its compliance program. In the fall of 2013, this team began managing the Centre's relationship with the largest entities in Canada's financial sector.
"Through the delivery of an effective, national risk-based compliance program, the Centre ensures that reporting entities comply with their legal obligations, which helps create a deterrent effect for those intending to launder money or raise funds for terrorist activities," said Director Cossette. He added, "Our compliance program also ensures we receive the financial transaction reports that serve as the foundation for our analysis and the valued financial intelligence we provide to our regime partners."
FINTRAC is part of Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. The initiative is led by the Department of Finance. Federal partners include the Department of Justice, the Public Prosecution Service of Canada, Canada Border Services Agency, Canada Revenue Agency, the Royal Canadian Mounted Police, the Canadian Security Intelligence Service, Public Safety Canada, the Office of the Superintendent of Financial Institutions, and the Department of Foreign Affairs, Trade and Development.
