Mr. Speaker, I am honoured to speak today on Bill C-25. The bill will strengthen the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to ensure that Canada continues to be a global leader in combatting organized crime and terrorist financing. This is just another example of Canada taking the threat of terrorism seriously.
Once passed by Parliament, these changes will make Canada's overall regime consistent with international standards. The bill targets either the financial rewards from underlying crimes, such as drug dealing, prostitution and extortion, or by stopping the flow of funds to terrorist groups.
Money laundering and the financing of terrorist activities are serious crimes that affect all Canadians. Criminals are constantly changing their tactics and finding new ways to avoid and evade the law. Therefore, we need to make laws that will keep up with criminals and, in fact, stay ahead of them.
The National Post has reported that Canada has long been a fundraising base for international terrorist groups, from the IRA and Hezbollah to the Iranian MEK. This can simply not continue.
The background on this is that the foundation of this tax regime was originally set out in the Proceeds of Crime (Money Laundering) Act and then adapted to the changing global reality of terrorism. It was renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in 2001.
I would like to touch on the government's four key amendments that it has set out to accomplish the updating of what it needs to do.
First, we are enhancing information sharing between the Financial Transactions and Reports Analysis Centre of Canada, more commonly known as FINTRAC, law enforcement and other domestic and international agencies. In fact, this group reports regularly through the House's finance committee and did so just this past month.
Second, we are creating a registry for money service businesses. This really speaks to ensuring we have some accountability within that registry.
Third, we are enabling legislation for enhanced client identification measures. We need to ensure we know who we are dealing with.
Fourth, we are creating an administrative and monetary penalty system to better enforce compliance with the act.
There is a need for why we need to do it. Financial Transactions and Reports Analysis Centre of Canada reported in early October, as I mentioned, to the finance committee that terrorist groups funnelled an estimated $256 million through our country last year. This is up from $180 million the year before and $70 million the year before that. We are starting to identify and the bill enhances what needs to be done.
There are up to 34 terrorist financing networks operating within the country. Another $4.75 billion was laundered by crime groups, which is up from the $2 billion in 2005. Recently there was the case of four Canadians with links to the University of Waterloo accused of funnelling money to the Tamil Tigers. This shows that Canada has a responsibility to its international partners to continue to crack down on terrorist financing. Canada will not be a safe haven for those who support terror.
How did we come to this legislation? As a founding member of the Financial Action Task Force, we are committed to implementing its regulations, including new ones released in 2003, which require this update to be made. Canada has committed to implementing the 40 recommendations of the FATF on money laundering and 9 special recommendations on terrorist financing. The bill brings our standards in line with the Auditor General's recommendations of 2004 and the Treasury Board report of 2004.
Finally, it also fulfills demands of the interim report of the Senate committee on banking to implement tougher measures on money laundering and terrorist financing.
In Canada there is a need to balance increased vigilance and monitoring with the fundamental need to protect the privacy of Canadian citizens. This is an issue we take very seriously in Canada.
As we did with this legislation, we will continue to consult widely with Canadians. In the future, we need to ensure that a better system does not come at a price of a loss of privacy for all of our citizens.
As a prelude to the bill, the Department of Finance issued a consultation paper entitled, “Enhancing Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime” in June 2005. Over 50 submissions from stakeholders were received followed by further face to face consultations.
As a result, the proposed bill contains amendments that seek to address industry concerns and minimize the compliance burden by tailoring wherever possible proposed new requirements to existing business practices.
The proposed legislation serves to meet Canada's international commitments to combat money laundering and terrorist financing while ensuring that our domestic regime remains robust and up to date.
Those who benefit from crime and steal hundreds of millions of dollars should not be allowed to drive armoured vehicles full of money and waltz over to their local banks. That is the last thing Canadians want in their country.
Criminals who are laundering money should do one thing. They should stew in jail about it. The government and its law and order package and its agenda will help prevent organized crime and terrorism from organizing in any of our communities.
Speaking to that, I come from a riding that is very close to three access points on the border. One of the commitments that we have made, both before the election and since we have taken government, is to ensure that security, whether it be RCMP or our security officers at the border, is funded, prepared and supported in order to ensure that Canadians, both in Niagara and across the country, are safe.