Report on Plans and Priorities

Supplementary Tables

Horizontal Initiative: National Initiative to Combat Money Laundering (NICML)

Lead Department: Department of Finance Canada

Start Date: June 2000

End Date: 2009-2010

Total Funding Allocated: 329,989 ($ thousands)

Description: 

The 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 re-named the Proceeds of Crime (Money Laundering) and Terrorist Financing 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):

The NICML is a horizontal initiative comprised of both funded: Department of Finance Canada, Department of Justice Canada, Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Canada Border Services Agency (CBSA) – Immigration and Customs, Canda Revenue Agency (CRA), and Royal Canadian Mounted Police (RCMP); and non-funded partners: Public Safety and Emergency Preparedness Canada (PSEPC) and Canadian Security Intelligence Service (CSIS). An interdepartmental ADM-level group and working group, consisting of all these partners and led by the Department of Finance, 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	Names of Programs	Total Allocation ($ thousands)[1]	Planned Spending for 2005-2006 ($ thousands)	Expected Results for 2005-2006
Finance	NICML	3,000	300	Finance is responsible for the development of anti-money laundering and anti-terrorist financing policy, including the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations. Finance coordinates the activities under the Initiative, and has a key role in liaison and consultations with stakeholders. As well, Finance heads Canadian delegations to international anti-money laundering assemblies e.g., Financial Action Task Force (FATF).
Justice	NICML	11,400	1,200	Justice is responsible for undertaking prosecutions, specifically, in the case of the Initiative, those arising out of investigations to which FINTRAC disclosures have contributed. As well, Justice provides legal advice on policy issues and to police forces. In cases where law enforcement agencies desire additional information from FINTRAC, Justice takes the application for a Production Order to court to obtain approval.
FINTRAC	NICML	203,285	21,300	FINTRAC is an independent agency that receives, collects, analyses, assesses and discloses financial transaction information to assist in the detection, prevention and deterrence of money laundering and terrorist financing activities. FINTRAC operates at arm’s length from the police, federal departments and agencies, and international partners to which it can provide financial intelligence. FINTRAC is also involved in various outreach programs to raise awareness on money laundering and terrorist financing issues.
CCRA	NICML	29,284	0
CIC	NICML	2,820	0
CBSA[2]	NICML	22,500	4,500	CBSA Customs officers are responsible for the enforcement of the cross-border currency reporting program, which includes conducting searches, questioning individuals, and seizing non-reported or falsely reported currency and suspected proceeds of crime. In addition, FINTRAC discloses information to CBSA Immigration, which plays a key role in denying the use of Canadian territory to criminals and persons who pose security threats to Canada.
CRA[3]	NICML	11,000	2,200	FINTRAC discloses information to CRA when it suspects that the information would be relevant to an investigation and/or prosecution of money laundering or terrorist financing activities offences and if it determines that the information is relevant to a tax or duty evasion offence. The information received may serve as a lead for CRA to possibly initiate a new investigation or as additional information to an ongoing investigation.
RCMP	NICML	46,700	4,900	The RCMP, through its Money Laundering Units, is the major recipient of disclosures from FINTRAC. When intelligence is received, an investigative assessment is conducted to determine if a criminal investigation is warranted. The intelligence may add information on existing targets or provide new leads to existing investigations. The RCMP also provides voluntary information to FINTRAC to support its intelligence gathering process.
Total		329,989	34,400
1 For five years (2000/2001 – 2004/2005). See table below for break down by year. [return] 2 CBSA planned spending for 2005-2006 includes funds originally allocated for Citizenship and Immigration Canada (CIC) and the former Customs operations of Canada Customs and Revenue Agency (CCRA). [return] 3 The Customs operations of the former CCRA have been transferred to the CBSA. [return]

Results to be achieved by Non-Federal Partners (if applicable): 

Not Applicable

Contact: 

Lynn Hemmings (992-0553)

Approved by: 

Diane Lafleur

Date Approved: 

February 11, 2005

National Initiative to Combat Money Laundering, Allocation by Year ($ thousands)

Department/Agency	2000-01	2001-02	2002-03	2003-04	2004-05	2005-06	2006-07	2007-08	2008-09	2009-10	Total
Finance	300	300	300	300	300	300	300	300	300	300	3,000
Justice	600	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	11,400
FINTRAC	17,985	22,500	20,000	15,000	21,300	21,300	21,300	21,300	21,300	21,300	203,285
CCRA	5,284	6,000	6,000	6,000	6,000	0	0	0	0	0	29,284
CIC	20	700	700	700	700	0	0	0	0	0	2,820
CBSA	0	0	0	0	0	4,500	4,500	4,500	4,500	4,500	22,500
CRA	0	0	0	0	0	2,200	2,200	2,200	2,200	2,200	11,000
RCMP	2,600	4,900	4,900	4,900	4,900	4,900	4,900	4,900	4,900	4,900	46,700
Total Allocation	26,789	35,600	33,100	28,100	34,400	34,400	34,400	34,400	34,400	34,400	329,989