FINTRAC
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), is Canada’s financial intelligence unit. Many folks are aware of this acronym and heard of anti-money laundering, but what exactly does this mean?
FINTRAC reports to the Minister of Finance, who is accountable to Parliament for the activities of the Centre. FINTRAC was created in 2000 pursuant to the Proceeds of Crime (Money Laundering) Act (PCMLA). At the time of its creation, FINTRAC’s mandate was to assist in thedetection, prevention and deterrence of money laundering by analyzing and assessing financialtransactions and other information and making disclosures to police related to moneylaundering. FINTRAC also had the mandate of ensuring compliance with the PCMLA and its Regulations.
On December 24, 2001, the PCMLA was renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). At that time, FINTRAC’s mandate was expanded to include assistance in the detection, prevention and deterrence of the financing of terrorist activities. On December 14, 2006 the PCMLTFA was further amended to expand the number of people and entities subject to the Act, to strengthen its deterrence provisions through the creation of administrative monetary penalties, and to broaden the range and recipients of financial intelligence (“designated information”) which FINTRAC must disclose.
Responsibilities
FINTRAC assists in the detection, prevention and deterrence of money laundering and the financing of terrorist activities. Its major policy and program responsibilities are:
- Receiving financial transaction reports and voluntary information in accordance with the legislation and regulations;
- Safeguarding personal information under its control;
- Ensuring compliance of reporting entities with the legislation and regulations;
- Maintaining a registry of money services businesses in Canada;
- Producing financial intelligence relevant to investigations of money laundering, terrorist activity financing and threats to the security of Canada;
- Researching and analyzing data from a variety of information sources that shed light on trends and patterns in money laundering and terrorist activity financing; and
- Enhancing public awareness and understanding of money laundering and terrorist activity financing.
Financial Analysis and Disclosures
This personal information bank describes information received in reports from a variety of reporting entities (e.g. banks, trust companies, accountants, casinos, money services businesses). Reports are related to the following types of financial transactions: large cash transactions of $10,000 or more (except withdrawals); large virtual currency transactions of $10,000 or more; casino disbursements of $10,000 or more and electronic funds transfers of $10,000 or more ordered in Canada to a foreign country or vice versa. The bank also contains reports regarding suspicious transactions and attempted suspicious transactions as well as those dealing with terrorist assets. Furthermore, the bank contains reports provided by the Canada Border Services Agency relating to the importation or exportation of $10,000 or more in currency or monetary instruments or to the seizure of currency or monetary instruments.
Now, as of October 11, 2024, persons or entities in the mortgage sector will be subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) for mortgage lenders, brokers, and administrators. Mortgage transactions have always been subject to FINTRAC to ensure deposits, down payments, borrowers, etc. are subject to thorough investigation. After October 11, compliance, reporting, record keeping, know your client verifications will be enhanced. It is not yet known how this may affect a mortgage application but more details are soon to come.
Source FINTRAC canada.ca
Candace Perko, Mortgage Broker
