Archived - Report on Plans and Priorities

Supplementary Tables

Horizontal Initiative:

Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime-formerly the National Initiative to Combat Money Laundering (NICML)

Lead Department:

Department of Finance Canada

Start Date:

June 2000

End Date

: 2009-10

Total Funding Allocated:

$429,006 (thousands)

Description:

The National Initiative to Combat Money Laundering (NICML) was formally established in 2000 as part of the government's ongoing effort to combat money laundering in Canada. Legislation adopted that year, the Proceeds of Crime (Money Laundering) Act (PCMLA), created a mandatory reporting system for suspicious financial transactions, large cross-border currency transfers, and certain prescribed transactions. The legislation also established the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to collect and analyze these financial transaction reports and to disclose pertinent information to law enforcement and intelligence agencies. In December 2001, the PCMLA was amended to include measures to fight terrorist financing activities and renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).

The NICML was expanded and is now known as Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. In December 2006, Bill C-25 amended the PCMLTFA to ensure Canada's legislation remains consistent with international anti-money laundering and anti-terrorist financing standards as set out by the Financial Action Task Force (FATF) and is responsive to areas of domestic risk. Amendments include enhanced client identification requirements, the creation of a registration regime for money services businesses, and the establishment of an administrative and monetary penalties regime to deal with lesser infractions of the Act.

Shared outcome(s):

To detect and deter money laundering and the financing of terrorist activities, and to facilitate the investigation and prosecution of money laundering and terrorist financing offences.

Governance structure(s):

Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime is a horizontal initiative comprised of both funded and non-funded partners. The funded partners include the Department of Finance Canada, the Department of Justice Canada, the Public Prosecution Service of Canada, FINTRAC, the Canada Border Services Agency (CBSA)-Immigration and Customs, the Canada Revenue Agency (CRA), and the Royal Canadian Mounted Police (RCMP); non-funded partners include Public Safety and Emergency Preparedness Canada (PSEPC), the Office of the Superintendent of Financial Institutions (OSFI), and the Canadian Security Intelligence Service (CSIS). An interdepartmental ADM-level group and working group, consisting of all partners and led by the Department of Finance Canada, has been established to direct and coordinate the government's efforts to combat money laundering and terrorist financing activities.

Federal Partners Involved in Each Program	Name of Program	Total Allocation ($ thousands)	Planned Spending for 2007-08 ($ thousands)	Expected Results for 2007-08
Department of Finance Canada	Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime	3,000	300	1. Consultations with public and private sector stakeholders to refine regulatory proposals. 2. Published regulations pursuant to the amended PCMLTFA. 3. Finalizing of the FATF mutual evaluation of the anti-money laundering and anti-terrorist financing regime. 4. Effective oversight of Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. 5. Support for the 2006-07 Canadian presidency of the FATF.
Department of Justice Canada	Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime	9,300	100	The Criminal Division of the Department of Justice Canada plays a significant role in the regime. For 2007-08, it is anticipated that the Criminal Division will use the resources it receives to carry out work related to the FATF, including attending FATF-related international meetings, which will total five (5) over the relevant period. Attendance at the meetings is of particular importance during 2007, as Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime is being evaluated this year against the FATF's 40+9 recommendations and our presence is necessary to ensure proper discussions of the Canadian evaluation report. In addition, the Criminal Division will be the relevant authority to respond to all legal issues that develop out of that evaluation. Resources will also be allocated to ensure the Criminal Division's continued involvement in policy development relating to money laundering and terrorist financing. Finally, the Human Rights Law Section will receive money to deal with any ancillary constitutional issue raised during the prosecutions.
Public Prosecution Service of Canada	Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime	6,900	2,300	The Public Prosecution Service of Canada (PPSC) plays a significant role in the regime. For 2007-08, it is anticipated that information provided to law enforcement by FINTRAC will result in more prosecutorial legal advice being provided to law enforcement. It will also result in additional charges being laid for money laundering and terrorist financing offences and thus result in an increased workload for prosecutors. The PPSC also has responsibilities related to the PCMLTFA. The planned work includes applications for Production Orders, increases in border seizure and forfeiture work associated with suspected proceeds of crime, and prosecutions related to offences created within the Act. In addition, resources will be used to provide training to law enforcement personnel and prosecutors and for the development and coordination of policy as it relates to money laundering and terrorist financing. Finally, PPSC resources will carry out work related to the FATF, including attending the FATF international meeting.
FINTRAC	Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime	266,591	38,595	Technology-driven financial intelligence analysis and case disclosures that are widely used by law enforcement and intelligence agencies with a program that fosters compliance by the reporting entities. Implementation of amendments contained in Bill C-25.
CBSA	Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime	55,952	7,525,826	The CBSA is responsible for administering Part 2 of the PCMLTFA, "Reporting of Currency and Monetary Instruments." The Cross-Border Currency Reporting (CBCR) Program requires that travellers report the importation and exportation of currency and monetary instruments equal to or greater than CAD$10,000. Part 2 also provides for the enforcement element of the CBCR Program, which includes conducting searches, questioning individuals, and seizing non-reported or falsely reported currency and suspected proceeds of crime.
CRA	Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime	8,800	2,200	Projected number of audits is 105, with a projected federal tax recovery of $8,956,905.
RCMP (Money Laundering Units)	Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime	57,103	7,978	Enhanced national and international opportunities for the detection and investigation of money laundering activities. Development of FINTRAC disclosures, as well as other intelligence, to a point where resources from Integrated Proceeds of Crime Units or elsewhere in the RCMP could then be directed towards investigations in an effort to increase seizures. Increased resource level in Canada's three major urban centres (Vancouver, Toronto, and Montreal) to help build up the investigative capacity in those centres to conduct investigations on leads related to Canada's anti-money laundering regime.
RCMP (Anti-Terrorist Financing Team)	Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime	21,360	5,340	Through the gathering and analysis of financial intelligence, the Anti-Terrorist Financing Team will focus on converting that intelligence into proactive investigations, thus enhancing our ability to detect and deter terrorist financing activities.
Total		429,006	52,899

Results to be achieved by non-federal partners (if applicable):

Not applicable

Contact:

Lynn Hemmings, Chief
Financial Crimes Section
613-992-0553

Approved by:

Serge Dupont, Assistant Deputy Minister
Financial Sector Policy Branch
613-995-5798

Date Approved:

February 15, 2007

Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime, Allocation by Year ($ thousands)

Dept./Agency	2000-01	2001-02	2002-03	2003-04	2004-05	2005-06	2006-07	2007-08	2008-09	2009-10	Total
Department of Finance Canada	300	300	300	300	300	300	300	300	300	300	3,000
Department of Justice Canada	600	1,200	1,200	1,200	1,200	1,200	2,400	100	100	100	9,300
Public Prosecution Service of Canada								2,300	2,300	2,300	6,900
FINTRAC	17,985	25,468	26,820	22,081	21,406	22,562	27,387	38,595	32,634	31,654	266,591
CBSA1	4,298	4,298	4,298	4,298	4,298	4,298	7,589	7,525	7,525	7,525	55,952
CRA							2,200	2,200	2,200	2,200	8,800
RCMP (Anti-Terrorist Financing Team)							5,340	5,340	5,340	5,340	21,360
RCMP (Anti-Money Laundering Units)	2,600	4,900	4,900	4,900	4,900	4,900	7,683	7,978	7,171	7,171	57,103
Total Allocation	25,783	36,166	37,518	32,779	32,104	33,260	52,899	64,338	57,570	56,590	429,006
1 Funding from 2000 to 2006 was for the former Canada Customs and Revenue Agency, and Citizenship and Immigration Canada.