Good morning, Mr. Chair and members of the committee.
I'm pleased to be here today to discuss the financing of terrorism and CSIS's role as a partner in Canada's efforts to counter financing of terrorism.
I would like to begin today by giving members a brief overview of the mandate of the Canadian Security Intelligence Service. As members will know, everything CSIS does is rooted in its mandate, which is clearly articulated in the CSIS Act. Through our national security mandate, we are authorized to collect and analyze information on threats to the security of Canada, which, for the purpose of our investigations, are defined in the act and, of course, include terrorism. This investigative function is complemented by our mandate to advise government; the information we collect is only useful to the extent that it is assessed and shared.
Certainly, in today's world of instant transactions and online banking, financial intelligence continues to be an important component of our investigation. Piecing together the financial trail of those engaged in threat related activity is an essential element in protecting Canada and Canadians.
The service leverages financial intelligence as part of its all-source collection to inform national security investigations from a variety of partners and has a unit dedicated to financial intelligence. This unit is specifically mandated to assist our operational branches with the interpretation and analysis of financial intelligence lawfully collected in the conduct of our investigations.
Financial intelligence can be useful in generating investigative leads, surfacing suspicious activity carried out by those under investigation, or contributing to the overall analysis of threat related activity. CSIS also works closely with government partners who disclose information relevant to the service's investigations. Our most important partner in this regard is FINTRAC, which is authorized to proactively provide intelligence to CSIS if it is determined that it could be relevant to a service investigation of a threat to national security.
Being able to follow the money is a vital component to intelligence operations and CSIS benefits from this level of information sharing. That said, unlike FINTRAC specifically investigating terrorist financing, we are interested in terrorist financing as a tool that facilitates terrorist activities.
In addition to our investigative functions, the CSIS Act authorizes CSIS to advise government of threats to Canada. One important tool in this regard is the production of intelligence assessments and reports, which are disseminated to our partners across the Government of Canada. These assessments enhance the government's situational awareness and understanding of threats in foreign policy discussions, support decision makers responsible for administering and enforcing Canadian law, and identify emerging issues and trends in the global threat landscape.
Of note, this information may be shared with our anti-terrorist financing partners, including FINTRAC, the Canadian Border Services Agency, the Canada Revenue Agency, and the RCMP to further their own investigations and pursue possible enforcement measures where appropriate.
CSIS, on the other hand, has no mandate to enforce the laws concerning financing and terrorism. We have well established mechanisms though to share operational information and to deconflict with our partners.
Terrorist groups raise funds in a variety of ways; they move money using a variety of financial sectors, take advantage of increasingly complex and sophisticated global financial systems, including online financial systems, and receive funds from individual donors.
ISIL, for example, funds its operations through a variety of activities in Syria and Iraq, such as selling black market oil, taking over banks, extortion, kidnapping, taxing economic activity in their areas of control, and smuggling. ISIL also receives funds from individual donors. These diverse fundraising methods and complex financing networks pose particular challenges when investigating terrorist financing and enforcing related laws.
Government agencies, including CSIS, must be able to keep up with this dynamic environment to ensure that Canadian interests and safety are protected.
I thank the honourable members for their time today.
We'll endeavour to provide answers to any questions that you may have.