Thank you, Mr. Chair, for inviting Stéphane Cousineau and me, on behalf of FINTRAC, to speak with you regarding the committee's study of the Security of Canada Information Sharing Act.
I can assure you that we will be as forthcoming as we can with our answers today; however, I know you understand that we cannot provide classified information in this public venue. We are also limited by legislation in what we can say about specific information that FINTRAC holds.
I would like to take a few minutes to describe FINTRAC's mandate and the role we play in helping to protect Canadians and the integrity of the Canadian financial system, as well as the comprehensive measures we have adopted in our privacy framework to safeguard the personal information of Canadians. I will also focus on the centre's responsibilities under the Security of Canada Information Sharing Act.
FINTRAC was created in 2000 by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. As Canada’s financial intelligence unit, FINTRAC facilitates the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of personal information under its control.
The legislation establishes obligations for financial services entities, real estate brokers, money services businesses, casinos and many other business sectors. These obligations require them to establish an internal compliance program; identify clients; monitor business relationships; keep certain records; and report specific types of financial transactions to FINTRAC, including suspicious transactions, international electronic funds transfers of $10,000 or more and large cash transactions of $10,000 or more.
As part of Canada’s anti-money laundering and anti-terrorist financing regime, FINTRAC houses supervisory, compliance and intelligence functions. Our supervisory function involves assessing and enforcing the compliance of regulated businesses with their legal obligations. Our intelligence function enables us to produce financial intelligence for our police, law enforcement and national security partners.
As a result of the financial transaction reports received from regulated businesses across the country through its supervisory function, FINTRAC can provide financial intelligence that assists our partners in combatting money laundering, terrorism financing and threats to the security of Canada. FINTRAC also produces strategic intelligence about trends and typologies of money laundering and terrorist financing.
FINTRAC's role under the Security of Canada Information Sharing Act is limited, given that the provisions of FINTRAC's governing legislation set out narrow disclosure provisions and take precedence over any other legislative provisions related to the reception and communication of information. To be very clear, we can only receive information in accordance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. As well, FINTRAC can only disclose information as specified under the same act to the appropriate police or national security agency when it has reasonable grounds to suspect that it would be relevant to investigating or prosecuting a money laundering or a terrorist activity financing offence, or that it would be relevant to threats to the security of Canada.
Section 5 of SCISA does not change in any way when, or to whom, FINTRAC discloses financial intelligence. The centre may only disclose financial intelligence when the legislated thresholds have been met, and only to recipients listed in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Given this, to date, FINTRAC has not received or collected any information under SCISA.
Before concluding, I would like to touch on the protection of personal information. FINTRAC's first priority is to safeguard the information it receives, including financial transaction reports under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Indeed, the obligation to do so is set expressly in FINTRAC's mandate. Clear principles for the protection of privacy are set out in its governing legislation, which respects both the Canadian Charter of Rights and Freedoms and the Privacy Act, and are reinforced by FINTRAC's own operational policies and security measures.
FINTRAC does not have access to the bank accounts of Canadians. It does not have any legal authority or the technical means to monitor the financial activities of individuals. It develops the financial intelligence that it discloses to its police, law enforcement, and national security partners exclusively from the information received from reporting entities and partners as specified under its legislation.
In addition, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act requires that the Office of the Privacy Commissioner conduct a review every two years of the measures FINTRAC takes to protect the information held. FINTRAC is the only government institution subject to this type of mandatory audit by the Office of the Privacy Commissioner.
The protection of Canadians’ privacy is the key reason FINTRAC was created. We understand very clearly that, to maintain our credibility and the confidence of Canadians, we need to continually demonstrate that we take the protection of personal information and the limits of our mandate seriously. The protection of privacy is a clear priority for FINTRAC. We’re determined to help protect Canada and Canadians, while meeting our obligations under the Privacy Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Security of Canada Information Sharing Act.
Thank you, Mr. Chair.
I would be more than happy to answer your questions.