Departmental Results Report 2017–18: 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 the following FSDS goals:

  • low-carbon government
  • effective action on climate change
  • clean energy
  • sustainably managed lands and forests

This supplementary information table presents available results for the department's actions pertinent to these goals. Last year's supplementary information table is available on the departmental website. This year, the Department of Finance Canada is also noting which UN 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 goals
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 GHG emissions are reported by Public Services and Procurement Canada (PSPC). The Department actively worked with PSPC to promote and support ongoing greening of building operations, leading to a reduction in GHG emissions.
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 has two executive vehicles that will be replaced 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 use of electric vehicle charging stations was promoted.
Support the transition to a low-carbon economy through green procurement
  • Integrate environmental considerations into procurement management purchasing 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
  • The Director of the Corporate Administrative Services Division and the Team Leader of the Procurement and Materiel Management Division will have performance objectives supporting green procurement activities. Target: 100%
  • The Department will use common-use procurement instruments for IT hardware purchases (i.e., desktops, computers, laptops and tablets). Target: 90%
  • Departmental functional specialists in procurement and materiel management will complete the green procurement course. Target: 100%
  • The Department will purchase copy paper, commercial printing and/or envelopes containing a minimum 30% recycled content and be certified to a recognized environmental standard to reduce the environmental impact of its production. Target: 90%
  • The Director of the Corporate Administrative Services Division, the Team Leader of the Procurement and Material Management Division, and the Manager, Facilities have performance objectives supporting green procurement and sustainable operations activities Results: 100%
  • The Department used common-use procurement instruments for IT hardware purchases (i.e., desktops, computers, laptops and tablets). Results: 99%
  • All functional specialists in procurement and materiel management completed the green procurement course. Results: 100%
  • The Department purchased copy paper, commercial printing and/or envelopes containing a minimum 30% recycled content. Results: 100%
  • Environmental considerations are embedded in the Department's procurement activities.
  • Goods were purchased through PSPC or Shared Services Canada standing offers and supply arrangements that included environmental performance specifications.
  • When contracting for services, the procurement processes incorporated electronic solicitation and bidding, use of scanning technology to issue contracts, electronic invoicing, and payment by direct deposit. In addition, 90% of all supplier payments were made via direct deposit.
Demonstrate innovative technologies Not applicable Not applicable Not applicable Not applicable
Promote sustainable travel practices
  • Promoting the use of the Department's video conferencing, teleconference and telepresence facilities
  • Supporting and promoting sustainable commuting options for employee travel to work, such as walking, cycling, public transit and carpools
12.5 Not applicable
  • The Department promoted the use of its video conferencing, teleconference and telepresence facilities throughout the fiscal year. It also supported and promoted sustainable commuting options for employee travel to work such as walking, cycling, public transit and carpools.
  • The building provided priority parking for registered carpool participants.
  • The Department participated in Ottawa's Commuter Challenge, encouraging alternative forms of transportation. 
  • During Canada's Environment Week, commuting by bicycle was promoted, and employees were provided with bike tune-ups on-site, at no charge.
Understand climate change impacts and build resilience Not applicable Not applicable Not applicable Not applicable
Improve transparency and accountability Not applicable Not applicable Not applicable Not applicable
Develop policy for low-carbon government Not applicable Not applicable Not applicable Not applicable
Additional departmental sustainable development activities and initiatives related to low-carbon government
Additional departmental activities and initiatives Starting points, targets and performance indicators 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. 
  • A waste audit conducted during 2017–18 found that 63% of waste is diverted from landfill, a 4% improvement from 2016.
  • 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.
  • A presentation on the 2016–2019 FSDS was provided by Environment and Climate Change Canada.
  • In addition, employees participated in a Green Office Challenge with employees of the Treasury Board of Canada Secretariat.
  • The Department maintained its existing printer ratios and paper usage. 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 Support the Government of Canada's commitment that carbon pollution pricing be implemented in all provinces and territories by putting 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 by the end of 2018 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.
 
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 (these revenues will tend to decline over time if the levy helps incentivize consumers to purchase fewer fuel-inefficient vehicles).
Results will be assessed in fall 2018, once the Public Accounts of Canada 2017–18 are published.
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)
  • 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 2016, the amount of investment in Class 43.1/43.2 assets decreased relative to 2015. 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.
  • Budget 2018 extended this measure for five years, to property acquired before 2025.
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 incentives for the protection of Canada's ecologically sensitive land, including habitat used by species at risk, through ongoing tax assistance for donations of ecologically sensitive land under the Ecological Gifts Program, and the continued protection of land which has been donated 15.1
  • To measure success in conserving ecologically-sensitive land, the area protected by the Ecological Gifts Program is tracked. As of March 2016, 179,466 hectares of land were under protection.
  • Performance will be evaluated on the basis of the amount of increase to the total cumulative land area that is conserved under the Ecological Gifts Program.
As of March 2018, the area protected by the Ecological Gifts Program in Canada amounted to 190,393 hectares of land.
Support the passage by Parliament of the Budget 2017 Ecological Gifts measures 15.1 Passage of the legislation Bill C-63, which included a measure to enhance the protection of ecologically sensitive land donated to conservation charities and broaden the types of donations permitted, received Royal Assent on December 14, 2017.

4. Report on Integrating Sustainable Development

During the 2017–18 reporting cycle, the Department of Finance Canada considered the environmental effects of 117 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, 8 of these departmental proposals were found to have positive or negative effects on progress toward achieving the 2016 to 2019 FSDS goals and targets. For example, the SEA on the extension of the Mineral Exploration Tax Credit for flow-through share investors announced in Budget 2018 concluded that mineral exploration, as well as new mining and related processing activities that could follow from successful exploration efforts, can be associated with a variety of environmental impacts to soil, water and air and, as a result, could have an impact on the targets and actions in the 2016–19 Federal Sustainable Development Strategy. All such activity, however, is subject to applicable federal and provincial environmental regulations, including project-specific environmental assessments where required.

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

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
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.3: Commitments to International Financial Organizations
Description This program provides encashment of demand notes to allow the International Development Association (IDA) to disburse concessional financing for development projects and programs in the world's poorest countries.
Results achieved The payment during the reporting period was made on time and without errors.
Comments on variances No variance
Audits completed or planned An internal audit of the International Financial Institutions' Governance Framework is expected to be completed by November 2019.
Evaluations completed or planned An evaluation of Canada's Payments to IDA was completed in 2017–18.
Engagement of applicants and recipients During the reporting period, Canadian officials engaged with IDA management and consulted with other IDA donors in preparation for the upcoming negotiations for the 19th replenishment of IDA, which are set to start in fiscal year 2018–19.
Performance information (dollars)
Type of transfer payment 2015–16
Actual spending
2016–17
Actual
spending
2017–18
Planned
spending
2017–18
Total
authorities available for use
2017–18 Actual spending
(authorities used)
Variance (2017–18 actual minus
2017–18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 441,610,000 441,620,000 441,610,000 441,610,000 441,610,000 0
Total program 441,610,000 441,620,000 441,610,000 441,610,000 441,610,000 0

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 2013–14
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: 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 2017–18 met all legislative requirements for financial support to provinces.
Comments on variances The increase in actual spending from 2016–17 to 2017–18 is attributable to the legislated annual program growth, calculated by multiplying the 2016–17 program payout by the 2.09% escalator derived using gross domestic product (GDP) data available in the fall of 2016.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2017–18 financial audit, and there were no issues for this program.
An internal audit of the Major Federal Transfer Programs' Governance Framework is expected to be completed by June 2020. 
Evaluations completed or planned Not applicable
Engagement of applicants and recipients With regard to the 2017–18 payments, provincial finance ministers were informed of the amounts in advance of the December 2016 Finance Ministers' Meeting.
Performance information (dollars)
Type of transfer payment 2015–16 Actual
spending
2016–17 Actual
spending
2017–18 Planned
spending
2017–18 Total
authorities available for use
2017–18 Actual
spending (authorities used)
Variance (2017–18 actual minus
2017–18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 17,341,310,000 17,880,415,000 18,253,657,000 18,253,657,000 18,253,657,000 0
Total program 17,341,310,000 17,880,415,000 18,253,657,000 18,253,657,000 18,253,657,000 0

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 2013–14
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: 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 2017–18 met all legislative requirements for financial support to territories.
Comments on variances The increase in actual spending from 2016–17 to 2017–18 reflects the incorporation of new and updated data for territorial expenditure requirements and revenue capacities into the program's legislated formula.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2017–18 financial audit, and there were no issues for this program.
An internal audit of the Major Federal Transfer Programs' Governance Framework is expected to be completed by June 2020. 
Evaluations completed or planned Not applicable
Engagement of applicants and recipients With regard to the 2017–18 payments, territorial finance ministers were informed of the amounts in advance of the December 2016 Finance Ministers' Meeting.
Performance information (dollars)
Type of transfer payment 2015–16
Actual spending
2016–17
Actual spending
2017–18
Planned spending
2017–18
Total authorities
available for use
2017–18
Actual spending
(authorities used)
Variance
(2017–18 actual minus 
2017–18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 3,561,034,002 3,602,979,726 3,681,830,727 3,681,830,727 3,681,830,727 0
Total program 3,561,034,002 3,602,979,726 3,681,830,727 3,681,830,727 3,681,830,727 0

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 2013–14
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
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 2017–18 met all legislative requirements for financial support to provinces and territories.
Comments on 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. Since the GDP growth computed in November 2016 was below 3%, the CHT increase for 2017–18 was the guaranteed level of 3%. As well, in March 2018, deductions were made from the 2017–18 CHT, as directed by the Minister of Health, for violations of the extra-billing and user charges provisions of the Canada Health Act.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2017–18 financial audit, and there were no issues for this program.

An internal audit of the Major Federal Transfer Programs' Governance Framework is expected to be completed by June 2020. 
Evaluations completed or planned Not applicable
Engagement of applicants and recipients With regard to the 2017–18 payments, provincial and territorial finance ministers were informed of the amounts in advance of the December 2016 Finance Ministers' Meeting.
Performance information (dollars)
Type of transfer payment 2015–16
Actual spending
2016–17
Actual spending
2017–18
Planned spending
2017–18
Total authorities available for use
2017–18   
Actual spending (authorities used)
Variance
(2017–18 actual minus 2017–18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 34,024,617,855 36,057,581,263 37,149,703,000 37,123,933,953 37,123,933,953 (25,769,047)
Total program 34,024,617,855 36,057,581,263 37,149,703,000 37,123,933,953 37,123,933,953 (25,769,047)

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
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: 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 2017–18 met all legislative requirements for financial support to provinces and territories.
Comments on variances The increase in actual spending from 2016–17 to 2017–18 is attributable to the legislated annual 3% escalation of the CST program.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2017–18 financial audit, and there were no issues for this program.

An internal audit of Major Federal Transfer Programs' Governance Framework is expected to be completed by June 2020. 
Evaluations completed or planned Not applicable
Engagement of applicants and recipients With regard to the 2017–18 payments, provincial and territorial finance ministers were informed of the amounts in advance of the December 2016 Finance Ministers' Meeting.
Performance information (dollars)
Type of transfer payment 2015–16
Actual spending
2016–17
Actual spending
2017–18
Planned spending
2017–18
Total authorities
available for use
2017–18
Actual spending
(authorities used)
Variance
(2017–18 actual minus
2017–18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 12,959,181,000 13,347,956,000 13,748,395,000 13,748,395,000 13,748,395,000 0
Total program 12,959,181,000 13,347,956,000 13,748,395,000 13,748,395,000 13,748,395,000 0

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
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description The statutory subsidies provide a source of funding to provinces in accordance with their terms of entry into Confederation.
Results achieved Timely and accurate payments in 2017–18 met all legislative requirements for financial support to provinces.
Comments on variances Actual spending was slightly higher than planned spending in 2017–18 because of the inclusion of updated data for the 3 provinces (Manitoba, Saskatchewan and Alberta) that have the computation of a portion of their payments based on population estimates.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2017–18 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable
Performance information (dollars)
Type of transfer payment 2015–16
Actual spending
2016–17
Actual spending
2017–18
Planned
 spending

2017–18
Total authorities
available for use

2017–18
Actual
spending
(authorities used)

Variance
(2017–18 actual minus
2017–18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 34,362,809 42,355,839 42,355,839 42,355,897 42,355,897 58
Total program 34,362,809 42,355,839 42,355,839 42,355,897 42,355,897 58

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
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description The Youth Allowances Recovery is a recovery from the province of Quebec of an income tax point transfer (3 percentage points) that is related to the discontinued Youth Allowances Program. Since the program for which it received this tax transfer no longer exists, the value of these tax points is reimbursed to the Government of Canada each year. 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 2017–18 met all legislative requirements.
Comments on variances The variance between planned recoveries and actual recoveries is attributable to a prior-year adjustment and to a revised estimate of the 2017–18 recovery, made in March 2018.

In March 2018, revised estimates of both the prior year (2016–17) and the current year (2017–18) summed to an overall recovery for 2017–18 that was greater than the recovery for fiscal year 2016–17.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2017–18 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable
Performance information (dollars)
Type of transfer payment 2015–16
Actual spending
2016–17
Actual spending
2017–18
Planned spending
2017–18
Total authorities
available for use
2017–18
Actual spending
(authorities used)
Variance
(2017–18 actual minus
2017–18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments (810,613,866) (804,534,285) (888,654,000) (856,507,839) (856,507,839) 32,146,161
Total program (810,613,866) (804,534,285) (888,654,000) (856,507,839) (856,507,839) 32,146,161

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
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description In the 1960s, Quebec was the only province that opted to receive a tax point transfer in lieu of the federal cash support being given to provinces for certain social programs such as hospital insurance and social welfare. The federal income taxes paid by Quebec residents were lowered by 13.5 percentage points, and Quebec income taxes were increased by an equivalent amount. Today, those social programs are supported by the major federal transfers paid to provinces and territories. Since Quebec's major transfer payments are calculated in the same way as those of the other provinces and the province's tax revenues continue to be augmented by the tax point transfer in lieu of federal cash support, the value of the tax point transfer is recovered from the province's transfer payments to ensure consistent treatment across the country.
Results achieved Timely and accurate payments and recoveries in 2017–18 met all legislative requirements.
Comments on variances The variance between actual recoveries and planned recoveries is attributable to prior-year adjustments resulting from revisions to the estimated value of federal tax points for prior open years and to a revised official estimate of the 2017–18 recovery, made in February 2018.

The recovery for 2017–18 was greater than the recovery for 2016–17 because the value of the estimated tax points was greater in 2017–18.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2017–18 financial audit, and there were no issues for this program.
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable
Performance information (dollars)
Type of transfer payment 2015–16
Actual
spending
2016–17
Actual
spending
2017–18
Planned
spending
2017–18
Total authorities available for use
2017–18
Actual
spending (authorities used)
Variance
(2017–18 actual minus
2017–18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments (3,640,752,000) (3,646,468,000) (4,022,927,000) (3,882,984,000) (3,882,984,000) 139,943,000
Total program (3,640,752,000) (3,646,468,000) (4,022,927,000) (3,882,984,000) (3,882,984,000) 139,943,000

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
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.3: Commitments to International Financial Organizations
Description Payments for Canada's commitment to the G8-led Multilateral Debt Relief Initiative
Results achieved The payment during the reporting period was made on time and without errors.
Comments on variances No variance
Audits completed or planned A planned internal audit of International Financial Institutions' Governance Framework is expected to be completed by November 2019. 
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Payments under this program are set under a previously negotiated schedule, with periodic technical adjustments made on a 3-year basis to account for fluctuations in interest rate and currency value. No changes were required during the reporting period. Consequently, 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.
Performance information (dollars)
Type of transfer payment 2015–16
Actual
spending
2016–17
Actual
spending
2017–18
Planned
spending
2017–18
Total authorities
available for use
2017–18
Actual spending
(authorities used)
Variance
(2017–18 actual minus
2017–18 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

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
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description Additional Fiscal Equalization payments to Nova Scotia are related to its 2005 Offshore Arrangement. In Budget 2007, the Government of Canada introduced a new formula for Equalization (the current formula). Nova Scotia was guaranteed that the current formula would not reduce the sum of its Equalization payments and 2005 Equalization offset payments, 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 2017–18 met all legislative requirements for financial support to Nova Scotia.
Comments on variances Actual spending was higher than planned spending because the official calculation to determine the amount of the transfer payment was made after the 2017–18 Departmental Plan was prepared.

The increase in actual spending from 2016–17 to 2017–18 was due to lower growth of combined Equalization and 2005 Offshore Equalization Offset payments in the current formula, compared with the formula that was in place before 2007.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2017–18 financial audit, and there were no issues for this program.

An internal audit of the Major Federal Transfer Programs' Governance Framework is expected to be completed by June 2020. 
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable

Performance information (dollars)
Type of transfer payment 2015–16
Actual spending
2016–17
Actual spending
2017–18
Planned spending
2017–18
Total authorities
available for use
2017–18
Actual spending
(authorities used)
Variance
(2017–18 actual minus
2017–18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 88,186,000 10,598,000 (27,918,000) 16,407,000 16,407,000 44,325,000
Total program 88,186,000 10,598,000 (27,918,000) 16,407,000 16,407,000 44,325,000

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
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description Additional Fiscal Equalization Offset payments to Nova Scotia are related to its 2005 Offshore Arrangement. In 2005, the Government of Canada signed offshore arrangements with Nova Scotia and Newfoundland and Labrador. These arrangements guaranteed that 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 2017–18 met all legislative requirements for financial support to Nova Scotia.
Comments on variances The decrease in actual spending between 2016–17 and 2017–18 is attributable to a decrease in Nova Scotia's offshore oil and gas revenues.  
Audits completed or planned The Office of the Auditor General of Canada has completed its 2017–18 financial audit, and there were no issues for this program.

An internal audit of Major Federal Transfer Programs' Governance Framework is expected to be completed by June 2020. 
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable
Performance information (dollars)
Type of transfer payment 2015–16
Actual spending
2016–17
Actual spending
2017–18
Planned spending
2017–18
Total authorities
available for use

2017–18
Actual spending
(authorities used)

Variance
(2017–18 actual minus
2017–18 planned)
Total grants 0 0 0 0 0 0
Total contributions 0 0 0 0 0 0
Total other types of transfer payments 36,779,000 33,255,000 19,957,000 19,957,000 19,957,000 0
Total program 36,779,000 33,255,000 19,957,000 19,957,000 19,957,000 0

General information

Name of transfer payment program Grant to Alberta
Start date 2017
End date 2017
Type of transfer payment Grant
Type of appropriation Appropriated through the Estimates
Fiscal year for terms and conditions 2017–18
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description To support provincial actions that will stimulate economic activity and employment in Alberta's resource sector.
Results achieved Not applicable
Comments on variances Actual spending was higher than planned spending because the grant was approved after the 2017–18 Departmental Plan was prepared.
Audits completed or planned Not applicable
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable
Performance information (dollars)
Type of transfer payment 2015–16
Actual spending
2016–17
Actual spending
2017–18
Planned spending
2017–18
Total authorities
available for use
2017–18
Actual spending
(authorities used)
Variance
(2017–18 actual minus
2017–18 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 30,000,000 30,000,000 30,000,000
Total program 0 0 0 30,000,000 30,000,000 30,000,000

General information

Name of transfer payment program Funding for Home Care Services and Mental Health Services (Budget Implementation Act, 2017, No. 1)
Start date 2017–18
End date 2017–18
Type of transfer payment Other transfer payment
Type of appropriation Statutory commitment
Fiscal year for terms and conditions 2017–18
Strategic Outcome A strong economy and sound public finances for Canadians
Link to the department's Program Alignment Architecture Sub-Program 1.2.1: Fiscal Arrangements with Provinces and Territories
Description Budget 2017 committed to provide provinces and territories with an additional $11 billion over 10 years to support better home care and mental health initiatives. The portion for 2017–18, $300 million, was included in the Budget Implementation Act, 2017, No. 1, and paid by the Department of Finance Canada. Amounts for future years will be administered by Health Canada.
Results achieved Timely and accurate payments in 2017–18 met all legislative requirements for financial support to provinces.
Comments on variances Actual spending was higher than planned spending because Budget Implementation Act, 2017, No. 1 received Royal Assent after the 2017–18 Departmental Plan was prepared.
Audits completed or planned The Office of the Auditor General of Canada has completed its 2017–18 financial audit, and there were no issues for this program.

An internal audit of the Major Federal Transfer Programs' Governance Framework is expected to be completed by June 2020. 
Evaluations completed or planned Not applicable
Engagement of applicants and recipients Not applicable
Performance information (dollars)
Type of transfer payment 2015–16
Actual spending
2016–17
Actual spending
2017–18
Planned spending
2017–18
Total authorities
available for use
2017–18
Actual spending
(authorities used)
Variance
(2017–18 actual minus
2017–18 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 0 300,000,000 300,000,000 300,000,000
Total program 0 0 0 300,000,000 300,000,000 300,000,000

Evaluations

Evaluations completed, or planned to be completed, in 2017–18
Title of evaluation Link to the department's Program Alignment Architecture Status on March 31, 2018 Deputy head approval date
Canada's Payments to the International Development Association
  • 1.2.3 Commitments to International Financial Organizations
In progress August 2018

Fees

Owing to legislative changes, the 2017 to 2018 fees results will be published in a separate report. The Fees Report is currently under development, and the link to the Fees Report, once tabled in Parliament, will appear on this web page by March 31, 2019.

Horizontal initiatives

General information

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

Lead department: Department of Finance Canada

Federal partner departments: Canada's AML/ATF Regime includes funded and non-funded partners. The funded partners are the Department of Finance Canada, the Department of Justice Canada, the Public Prosecution Service of Canada, the Financial Transactions and Reports Analysis Centre of Canada, the Canada Border Services Agency, the Canada Revenue Agency, the Canadian Security Intelligence Service, and the Royal Canadian Mounted Police. The non-funded partners are Public Safety Canada, the Office of the Superintendent of Financial Institutions Canada, and Global Affairs Canada.

Non-federal and non-governmental partners: Not applicable

Start date of the horizontal initiative: June 2000

End date of the horizontal initiative: Ongoing

Description of the horizontal initiative: Canada's AML/ATF Regime is a horizontal initiative comprising 11 federal partner organizations, led by the Department of Finance Canada.

The regime was formally established in 2000 as the National Initiative to Combat Money Laundering, as part of the government's ongoing effort to combat money laundering in Canada. Legislation adopted that year, the Proceeds of Crime (Money Laundering) Act, created a mandatory reporting system for suspicious financial transactions, large cross-border currency transfers, and certain prescribed transactions. The legislation also established the Financial Transactions and Reports Analysis Centre of Canada, with a mandate to ensure compliance of reporting entities, to collect and analyze financial transaction reports, and to disclose pertinent information to law enforcement and intelligence agencies.

In December 2001, the Proceeds of Crime (Money Laundering) Act was amended to include measures to fight terrorist financing and was renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The National Initiative to Combat Money Laundering was expanded, and its name was formally changed to Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime.

Canada's AML/ATF Regime is regularly reviewed to ensure that it remains effective, addresses emerging risks, and maintains Canada's international leadership in the fight against money laundering and terrorist financing. Reviews are informed by various evaluations, consultations with industry, assessments of money laundering and terrorist financing risks, as well as international considerations, including the activities of the Financial Action Task Force and the actions of G7 partners.

As a result of reviews, changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the regime as a whole have been implemented over the years. The most significant changes were made following the Parliamentary Reviews of 2005–06 and 2012–13.

Governance structures: An Assistant Deputy Minister Steering Committee on Money Laundering and Terrorist Financing, led by senior officials and consisting of all partners, provides input and advice on AML/ATF policy. In addition, general advice on Canada's AML/ATF Regime is provided by the Advisory Committee on Money Laundering and Terrorist Financing, a broad-based advisory group composed of public and private sector representatives.

Total federal funding allocated (from start to end date) (dollars): 1,022,482,984

Total federal planned spending to date (dollars): 998,387,518

Total federal actual spending to date (dollars): 1,002,861,002

Date of last renewal of the horizontal initiative: Not applicable

Total federal funding allocated at the last renewal, and source of funding (dollars): Not applicable

Additional federal funding received after the last renewal (dollars): Not applicable

Funding contributed by non-federal and non-governmental partners (dollars): Not applicable

Fiscal year of planned completion of next evaluation: Not applicable

Shared outcome of federal partner departments: To detect and deter money laundering and the financing of terrorist activities, and to facilitate the investigation and prosecution of money laundering and terrorist financing offences

Performance indicator(s): An effective regime that respects domestic legal and constitutional frameworks and is consistent with international standards

Target(s): Improved level of compliance and effectiveness

Data source and frequency of monitoring and reporting: The Performance Measurement Framework is being updated with indicators and data sources by the newly created regime-wide Performance Measurement Working Group.

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

In 2017–18, the regime partners:

  • launched a Parliamentary Review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which is expected to result in recommendations to strengthen Canada's ability to counter money laundering and terrorist financing
  • undertook major public consultations on the development of new policies, regulations and regulatory guidance
  • strengthened the private sector's understanding of, and compliance with, its obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act
  • produced actionable intelligence for law enforcement on suspected money laundering and terrorist financing activities
  • achieved significant results in investigating and prosecuting money laundering and terrorist financing offences

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

Name of theme: Not applicable

Performance highlights: The regime is modernizing its policy framework and risk assessment to account for new technologies, emerging money laundering and terrorist financing risks, and evolving international standards. Fiscal year 2017–18 saw the launch of the Parliamentary Review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which included a study by the House of Commons Standing Committee on Finance in addition to a consultation paper released by the Department of Finance Canada. The review is expected to result in recommendations to strengthen the act over the next several years.

The regime continues to achieve progress on strengthening compliance of the private sector with their statutory obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, with overall levels of compliance increasing. The Financial Transactions and Reports Analysis Centre of Canada uses a range of outreach and compliance mechanisms to ensure that reporting entities understand their obligations and maintain effective AML/ATF programs.

The regime is becoming more effective at generating actionable intelligence for law enforcement agencies to counter money laundering, terrorist financing, and abuse of the charities registration system. The number of disclosures has increased considerably, and feedback on these disclosures is highly positive. Regarding investigations, the Royal Canadian Mounted Police is making large investments in training, while ensuring that federal policing investigations include a money laundering component. Meanwhile, the Public Prosecution Service of Canada continues to devote significant efforts to the prosecution of money laundering and proceeds of crime cases.

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

Performance information
Federal departments Link to the department's Program Alignment Architecture or Program Inventory Horizontal initiative activities Total federal allocation
(from start to end date) (dollars)
2017–18
Planned spending (dollars)
2017–18
Actual spending (dollars)
2017–18
Expected results
2017–18
Performance indicators
2017–18   Targets Date to achieve target 2017–18 Actual results
Department of Finance Canada Financial Sector Policy Policy Development and Oversight of Anti-Money Laundering and Anti-Terrorist Financing Regime 4,392,000 244,000  244,000 ER 1.1 PI 1.1 T 1.1 March 2018 AR 1.1
Department of Justice Canada Justice Policies, Laws and Programs Criminal Law Policy Section and International Assistance Group 7,800,000 100,000a Not applicable Not applicable Not applicable Not applicable March 2018 Not applicable
Public Prosecution Service of Canada (PPSC) Drug, National Security and Northern Prosecutions Program Drug, National Security and Northern Prosecutions Program 23,190,310b 2,108,210 6,685,269c ER 3.1 PI 3.1 T 3.1 March 2018 AR 3.1
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) Financial Intelligence Program Financial Intelligence Program 633,688,581 20,295,108 21,107,905 ER 4.1 PI 4.1 T 4.1 March 2018 AR 4.1
Compliance Program Compliance Program 18,390,144 17,968,321 ER 4.2 PI 4.2 T 4.2 March 2018 AR 4.2
Internal Services Internal Services 6,309,374 7,148,412 Not applicable Not applicable Not applicable March 2018 Not applicable
Royal Canadian Mounted Police (RCMP) Federal Policing Federal Policing Project-Based Investigations
General Investigations
169,433,965 9,680,397d 9,680,397 ER 5.1 PI 5.1 T 5.1 March 2018 AR 5.1
Internal Services Internal Services 13,058,821 1,531,182 1,531,182
Canada Revenue Agency (CRA) Domestic Compliance Small and Medium Enterprises 36,923,800e 2,578,651 1,553,153 ER 6.1 PI 6.1 T 6.1 March 2018 AR 6.1
Charities Charities – Public Safety and Anti-Terrorism 41,195,507 4,103,445 8,141,485f ER 6.2 PI 6.2 T 6.2 March 2018 AR 6.2
Canada Border Services Agency (CBSA) Risk Assessment Intelligence
Targeting
92,800,000 1,700,000 1,700,000 ER 7.1 PI 7.1 T 7.1 March 2018 AR 7.1
Admissibility Determination Highway Mode
Air Mode
Rail Mode
Marine Mode
Postal
Courier Low Value Shipment
1,100,000 1,100,000 ER 7.2 PI 7.2 T 7.2 March 2018 AR 7.2
Recourse Recourse 300,000 300,000 ER 7.3 PI 7.3 T 7.3 March 2018 AR 7.3
Internal Services Internal Services 600,000 600,000 ER 7.4 Not applicable Not applicable March 2018 AR 7.4
Total for all federal departments Not applicable Not applicable 1,022,482,984 69,040,511 77,760,124 Not applicable Not applicable Not applicable Not applicable Not applicable
a 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. Although its responsibilities have remained the same since the inception of the regime, 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.
b Amounts exclude accommodation premiums of 13%.
c Planned spending represents the appropriation provided to the PPSC for the prosecution of AML/ATF cases. The variance between planned and actual spending is attributable to:
  • the increasing number and complexity of AML/ATF cases referred for prosecution (from 4,208 in 2005–06 to 7,207 in 2017–18)
  • the increasing number of full-time equivalents assigned to these cases (from 7.9 in 2005–06 to 29.2 in 2017–18)
  • the increased cost of legal staff assigned to AML/ATF cases (up 27% between 2006 and 2014, and expected to increase to 34% once the collective agreement for legal services to 2018 is signed)
Because employees' hours are recorded on a per-file basis and not according to each charge, the PPSC is unable to separate the amount spent on proceeds of crime and money laundering charges from the charges related to the predicate offences.
d Under the RCMP Federal Policing (FP) Service Delivery Model, the resources allocated to AML/ATF activities and to all other FP-specific or horizontal initiatives are delivered through broader FP investigative teams across the country. This model enables FP to better align resources to the highest priorities and threats to the safety and security of Canadians. Consequently, it is expected that in any given year FP's allocation of funds to AML/ATF activities will fluctuate in line with evolving priorities.
e The CRA's total allocation and planned spending include employee insurance benefit plan premiums of 20% and exclude accommodation premiums of 13%.
f
Since 2016–17, the CRA has reported on all Charities Anti-Terrorism spending, in addition to funding received through the AML/ATF Regime. Higher actual spending in this program for 2017–18 reflects a change in methodology to include expenditures funded from internal resources and additional funding provided in Budget 2016.

ER 1.1

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. This work will be informed by internal research and policy development, consultations with private sector stakeholders, the National Inherent Risk Assessment, and the Financial Action Task Force's mutual evaluation of Canada.
  • leading 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 regulatory amendments.
  • participating in interdepartmental and horizontal initiatives related to the mandates of AML/ATF Regime partners.
  • coordinating the government's response to the Financial Action Task Force's mutual evaluation of Canada, in collaboration with all AML/ATF Regime partners.
  • heading the Canadian delegation to, and actively participating as a member of, the Financial Action Task Force and other regional groups. Activities will involve contributing to the Financial Action Task Force's country review process under the fourth round of assessment and to key international policy development initiatives, including collaboration with key allies, such as the G7.

PI 1.1

  • Level of activity and outputs of steering committees, and working-level committees with a focus on money laundering and terrorist financing
  • Alignment and significance of legislative and regulatory changes to identified regime gaps and AML/ATF priorities
  • Number and type of outreach consultation activities with public/private sector advisory groups on the risks of money laundering and terrorist financing
  • Level of participation in international meetings of AML/ATF organizations, committees, initiatives (meetings attended, nature of contribution)

T 1.1

The Department of Finance Canada's contribution to the AML/ATF Regime consists chiefly of policy development and coordination, including leadership on horizontal regime governance. Relevant targets include:

  • regular meetings with the private sector through the Advisory Committee on Money Laundering and Terrorist Financing, conferences and other activities
  • regular attendance at, and participation in, meetings of the Financial Action Task Force and regional and working groups

AR 1.1

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

The Department:

  • provided ongoing assistance to the House of Commons Standing Committee on Finance in support of the Parliamentary Review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This assistance included preparing briefing materials for the committee, responding to follow-up enquiries, and testifying before the committee. The committee is expected to issue a report in fall 2018.
  • released a discussion paper soliciting stakeholder comments on measures to strengthen Canada's AML/ATF Regime, and on areas where action is being considered by the government. This consultation process, supplementing the committee's study, concluded in May 2018.
  • advanced public and private sector cooperation through the Advisory Committee on Money Laundering and Terrorist Financing by convening working groups on legislation and regulation, risk assessment, and FINTRAC guidance and policy interpretations.
  • led interdepartmental regime-level decision-making through the Assistant Deputy Minister Steering Committee on Money Laundering and Terrorist Financing.
  • started work to revise the 2015 National Inherent Risk Assessment to account for Canada's evolving money laundering and terrorist financing risks, in consultation with its regime partners.
  • led the development and coming into force in June 2017 of regulatory amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. These new provisions concerned domestic politically exposed persons, online casinos, heads of international organizations, group-wide compliance programs, and risk assessments of new technologies. These amendments were enacted in response to recommendations from the previous Parliamentary Review ending in 2012.
  • concluded an agreement in principle among the federal, provincial and territorial finance ministers in December 2017 to amend their respective corporate statutes, require corporations to hold accurate and up-to-date information on beneficial owners, and eliminate the use of bearer shares.
  • provided Canada's first Follow-Up Report to the Financial Action Task Force on measures that Canada is taking to address gaps and deficiencies identified in its 2016 Mutual Evaluation.
  • led the Canadian delegation to the Financial Action Task Force and the Asia Pacific Group on Money Laundering and participated as a cooperative and supporting nation in the Caribbean Financial Action Task Force. Canada also contributed to global standard-setting and joint action on international AML/ATF issues through its participation in the G7 and G20.

ER 3.1

The PPSC will continue to provide legal advice and support to the Royal Canadian Mounted Police and other law enforcement agencies during the course of investigations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and under provisions of the Criminal Code relating to the proceeds of crime, money laundering and terrorist financing, and to undertake prosecutions that arise out of those investigations.[1]

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 Financial Action Task Force as required.

PI 3.1

  • 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 possession of proceeds of crime charges under the Criminal Code where PPSC counsel provided legal advice
  • Number of new money laundering charges under the Criminal Code referred to the PPSC during the fiscal year
  • Number and percentage of files involving 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 where PPSC counsel provided legal advice
  • Number of new charges under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act referred to the PPSC during the fiscal year
  • Number and percentage of files involving new charges under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act where PPSC counsel provided legal advice
  • Nature of liaison and outreach activities with AML/ATF Regime partners and other stakeholders

T 3.1

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

AR 3.1

In 2017–18, the PPSC dealt with 7,215 new AML/ATF Regime-related charges: 7,177 involved the possession of proceeds of crime; 28 involved money laundering under the Criminal Code; and 10 involved the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. There were no charges related to terrorism financing in 2017–18.

The PPSC provided legal advice on a number of files involving new charges. Provision of legal advice was recorded in 3% of the possession of proceeds of crime files, 15% of the money laundering files, and 100% of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act files.

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

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

ER 4.1

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.

PI 4.1

  • Percentage of disclosure recipients indicating FINTRAC's disclosure provided information that was helpful to the investigation
  • Percentage of disclosure recipients indicating that information provided was actionable

T 4.1

  • 80% of disclosure recipients indicate disclosure provided information that was helpful to the investigation

AR 4.1

  • 93% of disclosure recipients indicated that FINTRAC's disclosure provided information that was helpful to the investigation
  • 92% of disclosure recipients indicated that the information provided was actionable

In 2017–18, FINTRAC provided 2,466 disclosures of actionable financial intelligence to its regime partners, an increase of 22% from the previous fiscal year and 49% over the past 3 fiscal years. Of these, 1,821 involved only money laundering, 447 involved terrorist activity financing and other threats to the security of Canada, and 198 involved all three areas.

FINTRAC continually seeks feedback on its disclosures from partners at the municipal, provincial and federal levels. In 2017–18, FINTRAC received 662 disclosure feedback forms, with the level of positive feedback from partners continuing to exceed expectations.

FINTRAC also produced strategic financial intelligence for federal policy and decision-makers, businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, international partners and other stakeholders. In 2017–18, important areas of focus for FINTRAC's strategic intelligence were the laundering of illicit proceeds from the trafficking of fentanyl and the Democratic People's Republic of Korea's use of the international financial system.

ER 4.2

As part of Canada's AML/ATF Regime, FINTRAC seeks to deter money laundering and terrorist financing by improving the compliance behaviours of reporting entities that have obligations for reporting, record-keeping, identity verification and other requirements under Part 1 and Part 1.1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations.

PI 4.2

  • Non-compliance among reporting entities is detected and addressed, and entities have access to timely and accurate information

T 4.2

  • Non-compliance among reporting entities is detected and addressed: 100% of cases where corrective actions taken are commensurate with the level of non-compliance detected
  • Entities have access to timely and accurate information: 90% of general enquiries answered within established time frames

AR 4.2

  • Percentage of cases in which corrective action was established to address non-compliance: 100%
  • Percentage of general enquiries answered within established time frames: 85%

FINTRAC uses a range of assistance and enforcement activities to ensure that all reporting entities fulfill their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. These activities include examinations and follow-up examinations, the issuance of compliance assessment reports, the monitoring of financial transaction reports, observation letters and validation reviews, as well as other awareness and assistance activities. These activities are planned and undertaken on the basis of risk, with a larger proportion of the FINTRAC's higher-intensity assessment activities assigned to medium- and higher-risk reporting entity sectors.

In 2017–18, FINTRAC conducted 500 compliance examinations. The largest number of examinations focused on the real estate sector (172), followed by financial entities (66), and money services businesses (64). Through these examinations, FINTRAC noted progress in overall compliance levels.

FINTRAC also conducted 40 follow-up examinations of businesses that had significant deficiencies in their initial examinations. In these follow-up examinations, FINTRAC identified improvement in 63% of cases.

In addition, FINTRAC responded to 6,652 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. FINTRAC was able to respond to enquires within 5 business days 85% of the time.

ER 4.3

FINTRAC's Internal Services groups support the work of the Financial Intelligence and Compliance Programs by providing key corporate services.

PI 4.3

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

T 4.3

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

AR 4.3

In 2017–18, FINTRAC's Internal Services supported the work of the Financial Intelligence and Compliance Programs by providing effective Communications, Legal Services, Human Resources, Financial Management, Information Management and Technology, and Security services.

ER 5.1

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 money laundering and terrorist financing in Canada. This will be achieved through active investigations in the areas of highest risk and by leveraging the information and expertise of national and international partners.

Collaboration

In 2017–18, 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 are aligned. 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 Anti-Money Laundering Strategy. 

The newly established Assistant Deputy Minister Anti-Money Laundering Advisory Committee on Operational Effectiveness, co-led by the RCMP and FINTRAC, will focus on the operational challenges faced by key Government of Canada partners responsible for investigating and prosecuting threats of money laundering. Specifically, this committee will identify gaps or challenges that hinder the ability to investigate and prosecute financial crimes in Canada.

The RCMP will continue to work with 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 Anti-Money Laundering 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 training course is available to members of all RCMP Divisions. 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 money laundering.

PI 5.1

Investigation

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

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
  • 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

T 5.1

Investigation

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

Collaboration

  • Three joint meetings to set priorities will be held by the RCMP and FINTRAC
  • The RCMP will hold three meetings of the Federal Policing Criminal Operations Money Laundering Working Group
  • The RCMP aims to examine 75% of high-risk traveller files for possible terrorist financing components by seeking FINTRAC's assistance through Voluntary Information Records
  • The RCMP will participate in the annual meeting of the Five Eyes Terrorist Financing Working Group

Training

  • The RCMP plans to deliver 4 sessions of the Proceeds of Crime – Money Laundering training course and 2 Anti-Terrorist Financing training courses. A total of 60 investigators are expected to be trained, including approximately 46 RCMP investigators and analysts

AR 5.1

Investigation

The RCMP continued to prevent, detect and disrupt money laundering and terrorist financing that threatened the Canadian economy and the security of Canadians. In 2017–18, 37% of all active federal operations in serious and organized crime and financial crime involved money laundering offences, and 23% of Tier 1 and Tier 2 projects had a money laundering component.[3]

Collaboration

During 2017–18, the RCMP successfully engaged its domestic and international law enforcement partners and regulatory entities to take a more holistic approach to enforcement and crime prevention.

The RCMP and FINTRAC held 4 joint meetings to set priorities for money laundering initiatives. The RCMP and FINTRAC led an Assistant Deputy Minister Advisory Committee on Operational Effectiveness, which developed a list of significant issues and challenges that impede the ability of law enforcement to successfully investigate and prosecute money laundering offences, as well as proposed solutions. Recommendations were provided to the regime's Assistant Deputy Minister Steering Committee, and implementation will be advanced in parallel with other measures to strengthen the regime stemming from the Parliamentary Review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. In addition to meetings to discuss money laundering initiatives, the RCMP and FINTRAC also held quarterly meetings to discuss terrorist financing.

As well, 3 ad hoc meetings were held to discuss disclosures relating to specific priority terrorist financing files. Furthermore, the Federal Policing Criminal Operations Money Laundering Working Group held 4 meetings, to ensure that their operational priorities were aligned and to improve collaboration between the Divisions and National Headquarters.

The RCMP also continued working with FINTRAC on high-risk traveller files. The RCMP provided Voluntary Information Records to FINTRAC on 100% of high-risk traveller files.

Finally, the RCMP participated in the Five Eyes Terrorist Financing Working Group.

Training

The RCMP strengthened its money laundering capacity and that of other law enforcement organizations through training. The Proceeds of Crime – Money Laundering training course was delivered as planned during 2017–18. The RCMP exceeded its targeted number of investigators trained by delivering the training to approximately 100 candidates, including candidates from other partner agencies such as the Canada Border Services Agency, the Seized Property Management Directorate of Public Services and Procurement Canada, and FINTRAC. This training helped the RCMP further implement its strategy to combat money laundering, while enhancing its flexibility and adaptiveness to respond to money laundering threats. Regarding terrorist financing, the RCMP delivered 3 courses in 2017–18. The RCMP exceeded its targeted number of investigators trained by offering training to approximately 82 candidates, of which 62 were members of the RCMP, 11 were from other domestic agencies, and 9 were from international organizations.

The following examples illustrate the success of the RCMP's actions, in collaboration with key Government of Canada partners, to identify and investigate money laundering:

  • In one investigation, 16 charges were laid and $1.076 million in cash was seized
  • In another investigation, an individual was arrested and charged with fraud and money laundering exceeding $3 million and involving over 100 false identities used to obtain credit cards and other loans from Canadian financial institutions

ER 6.1

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 money laundering and terrorist financing activities

The Domestic Compliance Programs Branch (DCPB) of the CRA will continue to process all disclosures from FINTRAC on a priority basis. The DCPB 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 2017–18. 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 positively impact the quality and success of future compliance actions.

PI 6.1

  • Total number of audits completed

T 6.1

  • 90 audits

AR 6.1

In 2017–18, the CRA's Criminal Investigations Division (CID) completed 60 audits, which resulted in $39.3 million in federal tax reassessments.

CID received 200 FINTRAC disclosures between April 1, 2017, and March 31, 2018, a 23% increase from the previous fiscal year. CID reviewed every FINTRAC disclosure received for potential tax evasion or fraudulent activity. If CID determined that the disclosure showed potential for a criminal investigation, the disclosure was referred to 1 of the 6 Criminal Investigations Division offices across the country for further analysis. In total, 50 disclosures were referred to CID offices during the fiscal year. The remainder of the disclosures were forwarded to the Small and Medium Enterprises Directorate or the Offshore Aggressive Tax Planning Directorate for civil compliance reviews or actions. CID also analyzed all FINTRAC disclosures to identify possible new trends related to international tax avoidance or tax evasion.

CID recognizes the importance of the financial information received by FINTRAC in facilitating its criminal investigations. Accordingly, CID placed considerable emphasis on sending Voluntary Information Records to FINTRAC for many of the cases that were reviewed or accepted for criminal investigation. The CRA sent 65 Voluntary Information Records to FINTRAC in 2017–18 and received disclosures in 93% of cases.

In 2017–18, while the Small and Medium Enterprises Directorate (SMED) completed 60 of the 90 audit cases projected, the actual federal tax reassessed of $39.3 million was significantly higher than the projected $9 million. These favourable recoveries stem from the SMED's thorough review of all disclosures received from FINTRAC as well as the high risk and complexity of the referrals selected for audit. The decrease in the number of cases completed, and the resulting salary underutilization, are attributable to a decrease in the number of disclosures received in 2016–17 and the resulting low inventory. The referrals have since increased, and for the 2018–19, the SMED expects to complete 90 cases and achieve federal tax reassessments of $9 million.

ER 6.2

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 Proceeds of Crime (Money Laundering) and Terrorist Financing Act and by changes to the Income Tax Act authorizing broader information sharing between AML and ATF agencies. Under these authorities, intelligence provided to the CRA assists in its mandate to protect the integrity of the registration system for charities, 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 Financial Action Task Force and the United Nations.

PI 6.2

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

T 6.2

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

AR 6.2

With respect to its domestic anti-terrorist financing responsibilities, the CRA's Charities Directorate continued its core activities of reviewing applications for charitable registration, monitoring registered charities, carrying out regulatory activities, and exchanging information under legal authorities with Canada's AML/ATF Regime partners. Specifically, the Charities Directorate:

  • reviewed 2,207 new applications for registered charitable status, 11 of which were selected for detailed examination. During 2017–18, 10 organizations were awarded charitable status, 4 applications were abandoned, and 5 applications were withdrawn or denied (note that files are not necessarily resolved in the same fiscal year they are selected for examination).
  • worked on 16 audits where a risk of terrorism financing had been identified. During 2017–18, 2 organizations had their charitable status revoked, and a third organization was sanctioned and required to enter into a compliance agreement to maintain their charitable status.
  • received 24 disclosures from, and made 7 disclosures to, Canada's AML/ATF Regime partners.

The Charities Directorate continued its work toward enhancing outreach efforts to educate charities on the risk of terrorist abuse, and how they can protect themselves from this risk. Internationally, the Charities Directorate contributed to technical assistance, capacity building, and compliance initiatives led by the Financial Action Task Force. Most notably, a representative of the Charities Directorate acted as an assessor during the 2017–18 Financial Action Task Force's Mutual Evaluation of Saudi Arabia, which is seeking membership in the Financial Action Task Force.

ER 7.1

The CBSA will continue to be involved in tactical and strategic analysis and assessments of intelligence related to money laundering and terrorist financing activities.

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

In all modes of operation, Border Services Officers will continue to seize unreported and falsely reported currency and monetary instruments arriving at or departing from ports of entry.

PI 7.1

  • Number of relevant strategic or intelligence reports or documents produced related to money laundering or terrorist financing
  • Number of Joint Force Operations completed with the RCMP and other government departments
  • Number of compliance reports accepted at CBSA ports of entry and forwarded to FINTRAC
  • Number of currency and monetary instrument seizures carried out by Border Services Officers

T 7.1

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

AR 7.1

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

The CBSA continued to engage with federal partners to identify threats and risks related to money laundering and terrorist financing threats through the Public Safety Canada Threat Resourcing Working Group and the National Risk Assessment Committee, led by the Department of Finance Canada. Although CBSA does not have a legal authority to investigate or lay charges under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, it conducted research and analysis in support of a strategic risk assessment of trade fraud, including trade-based money laundering. It also engaged and raised awareness of money laundering and terrorist financing threats and risks to international trade systems with FINTRAC, Public Safety Canada and foreign government partners.

During 2017–18, the CBSA produced 15 strategic or intelligence reports or documents related to money laundering and terrorist financing.

ER 7.2

In all modes of operation, Border Services Officers maintain the administrative responsibility to collect cross-border currency and monetary instrument reports from inbound and outbound travellers and entities; these reports are forwarded to FINTRAC. 

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

PI 7.2

  • Number of compliant reports accepted at ports of entry by the CBSA and forwarded to FINTRAC
  • Number of currency and monetary instrument seizures carried out by Border Services Officers

T 7.2

  • Screening of 100% of travellers. All travellers are asked whether they are carrying funds over $10,000

AR 7.2

  • The CBSA accepted and forwarded 66,012 compliant reports to FINTRAC
  • Border Services Officers completed 1,828 currency and monetary instrument seizures, with a value of $31.3 million
  • 100% of travellers were asked whether they were carrying funds over $10,000

ER 7.3

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

PI 7.3

  • Percentage of enforcement appeals received, including those under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, that are acknowledged within 10 days

T 7.3

  • 90%

AR 7.3

  • Overall, CBSA Recourse Directorate improved its performance against its targets while rendering more decisions
  • 84% of enforcement appeals are acknowledged within 10 calendar days, compared with 80% in 2016–17

ER 7.4

  • Provide functional direction to the regions on the administration and enforcement of Part 2 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act
  • Provide critical strategic planning, priority setting and coordination for the Cross-Border Currency Reporting Program
  • Continue to work closely with other key government departments on matters related to money laundering and terrorist financing
  • Continue to be involved in international conferences and workshops that require the presence of cross-border law enforcement expertise

AR 7.4

The CBSA provided policy direction to the regions through policy manuals, operational bulletins, Standard Operating Procedures, and training.

The CBSA provided consistent strategic advice, priority setting, and coordination related to the Cross-Border Currency Reporting Program to ensure the efficient and effective administration and enforcement of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated regulations.

The CBSA continued to work closely with other government departments within the AML/ATF Regime on matters related to money laundering and terrorist financing. These included the Department of Finance Canada, the RCMP, FINTRAC and the Department of Justice Canada.

The CBSA participated in international conferences and workshops that required the presence of cross-border law enforcement expertise to keep up to date on international money laundering and terrorist financing activities.

Internal audits

Internal audit engagements completed in 2017–18
Title of internal audit Completion date
Coordinated Audit of Physical Security Access at The James Michael Flaherty Building November 2017

Response to parliamentary committees and external audits

Response to parliamentary committees

  • On April 13, 2017, the House of Commons Standing Committee on Finance released its fifteenth report entitled Canada's Housing Markets: Benefits, Barriers and Bringing Balance. The report examines issues pertaining to the Canadian residential real estate market, in particular the impact of the housing market on the Canadian Financial System and the challenges of access to residential home ownership. The report contains 5 recommendations. The Department of Finance Canada presented the government's response to the House of Commons on August 16, 2017.
  • On September 11, 2017, in response to the audit findings and recommendations contained in Report 2—Customs Duties of the 2017 Spring Reports of the Auditor General of Canada, the Department of Finance Canada presented its Detailed Action Plan to the House of Commons Standing Committee on Public Accounts.
  • On September 11, 2017, in response to the audit findings and recommendations contained in Report 7—Fossil Fuel Subsidies of the 2017 Spring Reports of the Auditor General of Canada, the Department of Finance Canada presented its Detailed Action Plan to the House of Commons Standing Committee on Public Accounts.
  • On June 15, 2017, the House of Commons Standing Committee on Canadian Heritage released its sixth report entitled Disruption: Change and Churning in Canada's Media Landscape. The report examines:
    • how Canadians, and especially local communities, are informed about local and regional experiences through news, broadcasting, and digital and print media
    • the unintended consequences of news media concentration
    • the erosion of local news reporting
    • the impact of new media
    The report contains 20 recommendations. The Department of Finance Canada, Canadian Heritage, and Innovation, Science and Economic Development Canada presented the government's response to the House of Commons on October 16, 2017.

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)

  • 2017 Spring Reports of the Auditor General of Canada, Report 2—Customs Duties

    This audit examined whether the Department of Finance Canada, Global Affairs Canada, and the Canada Border Services Agency adequately managed customs duties according to their roles and responsibilities.

    One recommendation was directed to the Department of Finance Canada. The Department agreed with the recommendation to review the Customs Tariff. The Department will continue with its proactive approach to tariff policy in support of various government priorities; in doing so, it will review tariff items that could be modified, taking into account, among other things, Canada's tariff policy objectives and international obligations.
  • 2017 Fall Reports of the Commissioner of the Environment and Sustainable Development, Report 2—Adapting to the Impacts of Climate Change

    This audit examined whether:
    • Environment and Climate Change Canada, in collaboration with federal partners, had taken appropriate measures regarding the federal government's adaptation to climate change impacts
    • selected federal departments had taken appropriate measures to adapt to climate change impacts in their areas of responsibility

      One recommendation was directed to central agencies, including the Department of Finance Canada. The Department agreed to work with other central agencies to ensure that the explicit and proactive consideration of climate change impacts is incorporated into existing guidance and tools used in the reviews of programs, plans, and policies with adaptation elements.

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 2017–18 requiring a response.

1 The PPSC is not an investigative agency and therefore does not determine who will be investigated and for what activities.

2 Tiered files are high-priority investigations. Tier 1 are the highest-priority files requiring significant oversight and direction from National Headquarters. Tier 2 files require some oversight and direction from National Headquarters.  

3 The statistics are representative of a snapshot in time, and the money laundering charges are often added to the records management system near the conclusion of the investigative phase of the file, once enough information is obtained to support money laundering charges. 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.