Evidence of meeting #4 for Finance in the 39th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was information.
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
In our minds, there is a potential for abuse when anyone who we believe should be subject to the legislation is not subject to it. This is not for the moment, or at all, to say that lawyers are or are not involved in money laundering or terrorist financing. We don't know; we don't have that information reported to us.
Conservative
The Chair Conservative Brian Pallister
Nor would you be able to obtain it under the status quo situation.
Mr. McKay, we'll go over to you, sir. You've got five minutes.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
Thank you, Mr. Chair.
Recently Human Rights Watch released a report on fundraising by alleged terrorist groups in the Sri Lankan community. The report was vigorously denied by the Tamil organizations. I'm assuming--correct me if I'm wrong--that you've read the report. I'd be interested in your comments as to whether there is substance to the report.
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
Yes, I have read the report. I'm not sure it's appropriate for FINTRAC to get into whether there is substance in the matter. What I can say is that the RCMP and CSIS have indicated they are concerned and are investigating their concerns in relation to that issue.
Liberal
John McKay Liberal Scarborough—Guildwood, ON
I'm assuming that FINTRAC, in its investigations, has come across financing, particularly financing by Tamil groups, and I'm assuming--and you can correct me if I'm wrong-- that that information has been forwarded to CSIS or the RCMP. Is that a fair assumption?
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
Hypothetically, if we had such information about suspicions of terrorist financing in relation to the Sri Lankan community, yes, it would be forwarded to the RCMP or CSIS, but as I indicated earlier, I can't discuss any specific cases or even make allusions to whether, in relation to a group or entity, we have made any particular disclosure.
Conservative
Conservative
Luc Harvey Conservative Louis-Hébert, QC
Is it, yes or no, important to have the RCMP in attendance during your interventions?
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
It is important for the police to be there. The information that is provided to us on a voluntary basis tells us what the targets of the police force are and helps us to begin our analysis. From that point onward, we can relay the information and widen our network.
Conservative
Luc Harvey Conservative Louis-Hébert, QC
I will ask you to give me brief answers, because during the last round, I did not have time to put all my questions.
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
I am sorry. I will try to be brief.
Conservative
Luc Harvey Conservative Louis-Hébert, QC
That is all right.
We are talking about whistleblowing. Your main source of information must be the banks and their transactions.
Suppose I take a container, stuff it with $100 bills without telling you about it. Of course, you never saw anything. Right or wrong?
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
A good legal answer would be that this depends on the circumstances.
Conservative
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
Quite right. Even if the transaction only involved a few hundred dollars, if the bank suspects anything it must let us know.
Conservative
Luc Harvey Conservative Louis-Hébert, QC
But if I cleverly conceal all this in a container on palettes, with some fish on top, no one will see anything.
We have heard about Indian reserves, cigarette taxes, etc. In what ways can you intervene at this time?
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
To ensure that the reporting entities are following the legislation, we have already gone to reserves and we will continue to do so.
Conservative
Luc Harvey Conservative Louis-Hébert, QC
Do you currently have any information to the effect that there are still problems with cigarette taxes?
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
We are not directly involved in tax evasion. It is not a part of our mandate. Only money laundering...
Conservative
Luc Harvey Conservative Louis-Hébert, QC
Tax evasion is not really a part of your mandate. Basically, you are only interested in money laundering.
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
Of course, there could be a close connection.
Conservative
Luc Harvey Conservative Louis-Hébert, QC
Sometimes, there is a link.
Do you think that exchange offices are also a source of problems? There are many such establishments, like the Instant Change offices etc., where you can cash a cheque. There is a process called double endorsement.
General Counsel, Legal Services, Financial Transactions and Reports Analysis Centre of Canada
Non-regulated entities do cause problems both at the provincial and federal levels.
Conservative