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Ottawa, October 25, 2001
2001-094

FINTRAC Receives Increased Funding to Combat Terrorist Financing

Secretary of State (International Financial Institutions) Jim Peterson, on behalf of Finance Minister Paul Martin, today announced that an additional $10 million will be provided this year to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as part of the Government’s fight against terrorism.

"FINTRAC is assuming an important role in Canada’s efforts to combat money laundering and terrorist financing," Secretary of State Peterson said. "To carry out these tasks effectively, it must have more resources to track and identify terrorist transactions."

FINTRAC Director Horst Intscher added: "With our mandate to analyze financial transactions in search of money laundering, we are uniquely positioned to take on the additional challenge of identifying terrorist financing. The additional funding will help us deliver quickly on that new mandate."

The new funding will allow FINTRAC to hire additional analysts and purchase enhanced technology to tackle terrorist financing.

FINTRAC was established in July 2000 with a mandate to collect, analyze, assess and disclose information in order to assist in the detection, prevention and deterrence of money laundering. It operates at arm’s length from law enforcement agencies. On November 8, 2001, it will begin to receive suspicious transaction reports from financial institutions and intermediaries, analyze the reported information, and disclose suspicions of money laundering to police authorities and others under the Proceeds of Crime (Money Laundering) Act (PCMLA).

Bill C-36, which is currently before the House of Commons, proposes to amend the PCMLA, including expanding FINTRAC’s mandate. These changes include:

• financial service providers that are required to report suspicions of money laundering would also be required to report suspicions of terrorist-financing activity to FINTRAC;
• FINTRAC’s role would be broadened to include the analysis of these reports and the disclosure of key identifying information to law enforcement and intelligence authorities; and
• FINTRAC would also share information about terrorist-financing activities with its international counterparts, subject to safeguards with respect to its treatment and disclosure.

For further information on the role of FINTRAC, visit their Web site at www.fintrac.gc.ca. A background paper on the proposed expansion of FINTRAC’s mandate can be found on the Department of Finance Web site, which is listed below.

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