Thank you, Mr. Chair.
I want to thank the committee for inviting FINTRAC to participate in your review of the declaration of emergency.
I would like to begin by explaining briefly the Centre’s role in protecting Canadians and Canada’s economy.
FINTRAC’s mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities.
FINTRAC was established as an administrative financial intelligence unit and not a law enforcement or investigative agency. We do not have the authority to monitor or track financial transactions in real time, freeze or seize funds, ask any entity to freeze or seize funds, or cancel or delay financial transactions. This did not change under the Emergencies Act.
As Canada’s anti-money laundering and anti-terrorism financing regulator, we are responsible for ensuring the compliance of more than 24,000 businesses that have requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Businesses subject to this act are required to fulfill a number of obligations, including reporting certain transactions to FINTRAC, such as international electronic funds transfers and suspicious transactions.
With the reporting that we receive, we are able to generate actionable financial intelligence for Canada’s police, law enforcement and national security agencies. Last year our financial intelligence contributed to over 376 major, resource-intensive investigations and many hundreds of other individual investigations at the municipal, provincial and federal levels across the country.
Mr. Chair, under the emergency economic measures order, certain businesses were required to take specific actions in relation to the financial activity of individuals who were engaged in the blockades. For example, crowdfunding platforms and payment service providers were required to register with FINTRAC when they were in possession or control of property that was owned, held or controlled by an individual or entity that was engaged in an activity that was prohibited in the emergency measures regulations. These same businesses were also required to report certain types of transactions when thresholds set out in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations were met.
Following the invocation of the Emergencies Act, FINTRAC was contacted by a number of crowdfunding platforms and payment service providers to discuss registration. In addition to engaging in these preregistration discussions, we also prepared guidance for businesses potentially affected by the Emergencies Act. We modified our own IT systems to allow for the registration of these new entities.
Given that it normally takes about 30 days to complete the registration process with FINTRAC, we did not have the opportunity to formally register any entities in relation to the Emergencies Act prior to its revocation.
In terms of our role as Canada’s financial intelligence unit, I am prohibited under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act from discussing any information that we receive or any specific financial intelligence that we disclose. I can say, however, that we were actively engaged throughout this period in fulfilling our mandate and supporting the money-laundering and terrorist activity financing investigations of Canada’s police, law enforcement and national security agencies.
I can also say that it was clear that businesses were very much aware of the Emergencies Act and the need to be extra diligent in relation to their anti-money laundering and anti-terrorist financing obligations.
Thank you, Mr. Chair. We are available for any questions you may have.