Finance committee  What is going to make the relationships with our reporting entities even stronger? I think FINTRAC and others need to continue to work in a climate of mutual respect and trust. It's a huge endeavour--collecting all this information, analyzing it, and disclosing it.

Finance committee  For the most part--I'd like to say for the whole part--they are very positive. We like to take a cooperative approach when it comes to compliance, and I'll give you an example. When FINTRAC was introducing the first of the reporting requirements, which would have been four or five years ago, we phased them in.

Finance committee  I'm not trying to be evasive. My lawyer is sitting here. By law, we cannot reveal the fact that we've made any specific disclosures. Our legislation prohibits us from doing that. We take the protection of the privacy of the information extremely seriously, and there are penalties for those who work in FINTRAC who would disclose such information.

Finance committee  I'll start, and we'll let Paul finish up if he has additional comments. The prevention and deterrence functions are mutually reinforcing. So if we can detect and help law enforcement to increase their investigations and prosecutions; if we can put in place, with our reporting entities, the means by which you can't walk around with hockey bags full of criminal proceeds and deposit them without reporting; if we can put in place mechanisms whereby those on the front line, and they know best, have a place to report transactions about which they're suspicious, about which there's something not quite right--and we can look across the financial services sectors, it's not just one bank or one money services business, it's combinations of banks, money services businesses, casinos--if we can put together mechanisms such as those, we deter.

Finance committee  As I mentioned in my presentation, there are a few changes. We've learned a lot over the last three years. We'd like to see the registration of the money services business. We'd like to be able to include more information in our disclosures to law enforcement and security agencies.

Finance committee  The vast majority of it is through the deposit-taking institutions--so the banks, the credit unions, and the caisses populaires.

Finance committee  When we have reasonable grounds to suspect that the transactions would be relevant to the prosecution or investigation of threats to the security of Canada, including terrorist activity financing, we must disclose this to the RCMP and CSIS--and we have.

Finance committee  I apologize that I haven't looked at all case disclosures that we have produced--they're very tactical in nature and focused--with a view to analyzing them across a broad spectrum. The threat question is probably more appropriately posed to CSIS. On the financing side, we have seen patterns of transactions very similar to those in money laundering, but for much smaller amounts.

Finance committee  Yes, but I think you're asking me to comment on the scope of terrorist activity financing in Canada.

Finance committee  The 24 cases of suspected terrorist activity financing that we disclosed in 2004-05 would support that there is terrorist activity financing in Canada.

Finance committee  Do you mean what areas of Canada?

Finance committee  Terrorists and those who raise funds in support of terrorism use a variety of means. They use the legitimate financial services sector and the unregulated financial services sector. If I went down the list, I guess I could try to tick them off. Of all the sectors we monitor or that report transactions to us, the vast majority are moving through the legitimate financial services sector--so the deposit-taking institutions.

Finance committee  We receive, analyze, and disclose, but we're not an investigative agency.

Finance committee  Our focus is on terrorist activity financing. We have made disclosures in relation to terrorist activity financing.

Finance committee  Last year.