Finance Committee on June 20th, 2018

[Jennifer O'Connell, Liberal, Pickering—Uxbridge, ON]

Thank you.

[The Chair, Liberal, Wayne Easter]

We'll have to end it there.

Mr. Kelly is next.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

The director of FINTRAC, when appearing at the committee, talked about the administrative burden of FINTRAC and her stated goal of reducing the administrative burden of compliance. Do you support the director in that?

[Bill Morneau, Liberal, Toronto Centre, ON]

I think that we constantly have to be thinking not only about our objective of ensuring we have the information but also about making sure that businesses aren't inappropriately burdened with administrative complexity.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

We've heard that compliance is a huge burden on various industries, including real estate, which you identified in your opening remarks. We've also heard that some of the reporting requirements seem arbitrary and don't target suspicious activity, merely activity that meets a threshold. Do you support addressing this issue and ensuring that we target suspicious behaviour, rather than just meeting threshold targets?

[Bill Morneau, Liberal, Toronto Centre, ON]

I think it will be important for us to hear back from the committee, so if the committee has observations on the kind of information that's being currently asked for and the approach to doing that, we'll be pleased to take those thoughts into consideration.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

In your response to Mr. Albas's question—I want to make sure I understood you correctly—you said you support the goal of establishing a beneficial ownership registry. Is that correct?

[Bill Morneau, Liberal, Toronto Centre, ON]

I've made clear over a period of years that we need to have the understanding of the beneficial owners of corporations and trusts in our country.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Should this be publicly accessible, or if not publicly, then by whom?

[Bill Morneau, Liberal, Toronto Centre, ON]

This is an area where we are, as I said, working with the provinces to make sure the information is available. Ensuring that the information is available is the first step. Obviously having this information is what will enable us to—

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

We'll have it, though. What would be your recommendation of the type of registry that's established? Should it be publicly accessible or not?

[Bill Morneau, Liberal, Toronto Centre, ON]

We'll continue to work with the provinces to get to a conclusion that will be able to be engineered for the entire country. Again, I'd be happy to hear from the committee on your ideas based on the insights you've gained from your witnesses.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

You have an opportunity for your own input now. You can tell us what you prefer.

[Bill Morneau, Liberal, Toronto Centre, ON]

Yes, and I will have continuing opportunity for input, as you can imagine.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Would the CRA have access to this registry?

[Bill Morneau, Liberal, Toronto Centre, ON]

We clearly are seeking to make sure that we have information on organizations so that we can ensure that they're compliant with our tax laws, so that is obviously the intent.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Would the Ethics Commissioner have access?

[Bill Morneau, Liberal, Toronto Centre, ON]

If you have recommendations for us in terms of the information and where you think it should be accessible, we'll be happy to listen to that. We'll always have to balance the issue of privacy against the issue of the accessibility of that information and the reasons for the information.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Do you have any thoughts on where the balance between privacy and the public interest might lie with politically at-risk people like parliamentarians?

[Bill Morneau, Liberal, Toronto Centre, ON]

As a parliamentarian, I am sure you have a point of view on this, and we'd be happy to hear your point of view.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

How much time do we have left?

[The Chair, Liberal, Wayne Easter]

You have about a minute.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

Dan, I think, has a question.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Yes. Thank you again, Mr. Chair and Mr. Kelly.

Minister, you added the common reporting standards onto credit unions, and they're complying. When I talk to many credit unions, they say they find that the FINTRAC, because they were added in in terms of compliance, has been very burdensome.

You appointed the new director for FINTRAC. She has come to this committee, and she has said that she's going to work on this. Are you going to help support her in order to make the regime better and less burdensome on the small credit unions? Oftentimes they are the only financial institutions in rural areas.

[Bill Morneau, Liberal, Toronto Centre, ON]

I think you've heard us, right up to the Prime Minister, say that we think better is always possible. To the extent we can improve a situation, we will certainly try to do that.