Thank you, Mr. Chairman.
As you know, my name is Michel Aubin. I am the director general of Criminal Intelligence Service Canada's central bureau.
The committee has asked me here today to provide an update on four items. The first relates to the total number of reported organized crime groups in Canada. Second, I was asked to address the number of organized crime groups based on their levels of threat. Third, you requested information on the types of criminal activities pursued by organized crime and which ones are the most prevalent. Lastly, I was asked to provide an update on the efforts to replace or upgrade the automated criminal intelligence information system, which is known as ACIIS.
Prior to providing these answers, I think it's important for me to first briefly comment on how CISC collects information and produces its criminal intelligence assessments. The intention is to provide you, the committee members, with the necessary context in appreciating the integrity of the information and also in some measure understanding related limitations.
Criminal Intelligence Service Canada has 10 provincial bureaus. Each one has intrinsic working relationships with local policing agencies and other important members of the law enforcement community. Provincial bureaus are responsible for collecting and analyzing information on serious and organized crime in their areas and for developing provincial intelligence assessments accordingly.
When these reports are developed, they are used to promote an intelligence-led policing model at the provincial level. Additionally, the provincial assessments are then submitted to the central bureau so that our strategic analysts and intelligence officers can provide a national overview of the strategic direction and scope of organized and serious crime in Canada.
The machinery behind all of this, and the primary tool that allows law enforcement to collect and share information on a common platform, is the automated criminal intelligence information system, or ACIIS. The system links information on organized and serious crime across Canada and is a fundamental resource in our efforts to combat the multi-jurisdictional nature of illicit activity in our communities. ACIIS is integral to our threat assessment reporting process and is a critical means of sharing information between member agencies.
I have an update on a number of reported organized crime groups in Canada. The total number has steadily fluctuated between approximately 700 and 900 within the past five years. The fluctuation is largely reflective of problems with information sharing on ACIIS. Since 2005, the concept of organized crime within law enforcement across Canada has broadened to include not only tightly knit groups, but also more loosely associated, ethnically diverse, and integrated criminal networks.
On the second point, you requested statistics on the number of organized crime groups based on their level of threat. I'm going to do my best to answer this; however, it is important for me to ensure the integrity of operations and to respect the third party rule in the collection of information from our member agencies. While I'm unable to offer specific numbers, I am able to provide percentages and to offer some important insight into high-level threat groups.
Three per cent of organized crime groups represent the highest national threat. They involve groups with an international, interprovincial, or cross-jurisdictional scope and who enjoy an important share of certain organized crime business lines. The majority of these groups are based in Canada's three criminal hubs: British Columbia, Ontario, and Quebec.
Ninety-seven per cent of organized crime groups fall within a national threat category that is representative of provincial or more localized threats in scope.
All groups, whether national, provincial, or local, represent significant threats to public safety. Organized crime is a network and distributed problem that needs to be addressed through a network and cross-jurisdictional response. Currently, ACIIS is the dedicated national repository in achieving this network approach.
The committee also requested information on the types of criminal activities pursued by organized crime and which ones are the most prevalent. CISC has divided the criminal marketplace into three business lines: illicit drugs, other illicit goods and services, and financial crimes.
As in previous years, illicit drugs continue to dominate. They account for 57% of the criminal marketplace activities share. Cocaine, cannabis, and synthetic drugs, such as ketamine, are dominant within this business line. In particular, we are seeing a moderate expansion with respect to ketamine, pharmaceutical opiates such as OxyContin, and heroin trafficking outside of the traditional criminal hubs.
In 2011 we reported that financial crime accounted for approximately 11% of the criminal marketplace activity. Payment card fraud continues to represent by far the most prevalent market, and continues to expand. Other illicit goods and services account for the remaining 32%. Theft, contraband such as alcohol and tobacco, and the sex trade are the most significant markets of organized crime.
As far as an update on ACIIS, this system was built in 1976. It was initially intended for 50 users across Canada. Today we have well over 3,000 users located in 1,400 different sites across Canada using the database. In addition to obvious capacity issues, intelligence and operational communities are unable to take advantage of the significant technological innovation that is currently available.
In the absence of a replacement for ACIIS, some police agencies and provinces are currently considering an alternative system in a localized environment. Crime is not confined by geography, so it is imperative for all law enforcement to be able to continue to share and access real-time information across jurisdictions and provincial boundaries to a national repository. There is a need to replace ACIIS. How this could be addressed needs to be considered under the new government framework for national police services.
The reality of policing in 2012 is one of increasing complexity and constant change. The value of information and intelligence today arises from how fast law enforcement can gather, understand, and move information.
Innovation in technology and globalization have enabled organized crime to flourish across municipal, provincial, and national borders. Crime groups are uninhibited by jurisdictions and victimize Canadians in very profound ways. Although drug trafficking remains a primary activity among organized crime, many have expanded their scope and have become involved in more than one type of criminal activity. They're also becoming more sophisticated and diversified, as I'm sure you've heard during your study.
In closing, CISC and its member agencies are working hard to share information to promote an integrated, intelligence-led policing model in Canada. We have recently formalized a working relationship with our counterparts in operational units. It's actually a national strategy. By having the intelligence and operation units working in tandem, we are well positioned to exchange information and mitigate the negative impact that organized crime groups have on our communities. However, it is critical for law enforcement to have the technological solutions that will allow them to further enhance public safety.
I would like to thank you again for inviting us to appear today. We will be pleased to answer any questions you may have.