ARCHIVED - Financial Transactions and Reports Analysis Centre of Canada

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Section II: Analysis of Program Activities by Strategic Outcome

Strategic Outcome

FINTRAC's detection and deterrence of money laundering and terrorist financing contributes to the public safety of Canadians and helps protect the integrity of Canada's financial system.

Money laundering and terrorist financing are crimes that are transnational in nature and affect all Canadians. Money laundering is the process by which criminals disguise the proceeds of criminal activities as legitimate money. This erodes the integrity of the financial system and allows criminals to benefit from their activities. The financing of terrorist activities provides terrorists with the means to plot and carry out activities that threaten the public safety of Canadians. The detection and deterrence of the laundering of criminal proceeds and the financing of terrorist activities is vital to the public safety of Canadians and the integrity of their financial system.

The following section describes FINTRAC's program activities and identifies the expected result, performance indicators and targets for each of them. This section also contains a discussion of plans surrounding FINTRAC's program activities, explains how FINTRAC plans on meeting the expected results and presents the financial and non-financial resources that will be dedicated to each program activity. FINTRAC's program activities are:

• Detection and deterrence of money laundering and terrorist financing; and
• Internal services.

In order to measure FINTRAC's success against the Strategic Outcome, the following performance indicators and associated targets are in place:

Performance Indicators	Targets
The number of case disclosures and strategic products that assist and/or are used in investigation and other actions by law enforcement, intelligence agencies and prosecutors.	Stable or an increasing number of case disclosures used in investigations or other actions
Degree of involvement of reporting entities and other entities with obligations in the Anti Money Laundering / Anti-Terrorist Activity Financing (AML/ATF) regime.	Increasing number of participants in FINTRAC's information sessions, the number of hits on the Web site, and the number of calls to the Call Centre

In order to ensure that progress is made towards the achievement of the strategic objective, FINTRAC undertakes activities related to the collection of financial information and the production and dissemination of financial intelligence within the detection and deterrence of money laundering and terrorist financing program activity. In addition, the Centre undertakes activities to ensure compliance by reporting entities with their obligations under Part 1 of the PCMLTFA. Plans for 2010-11 include continuing to refine and improve the organization and its processes, as well as looking towards the future for opportunities enhance the impact of FINTRAC's unique contribution.

Program Activity 1.1: Detection and Deterrence of Money Laundering and Terrorist Financing

Program Activity 1.1: Detection and Deterrence of Money Laundering and Terrorist Financing

Human Resources (FTEs) and Planned Spending ($ Millions)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
268	42.3	189	26.9	184	26.3

Program Activity Expected Results	Performance Indicators	Targets
Law enforcement, intelligence agencies and prosecutors received timely and relevant tactical and strategic financial intelligence useful for further actions in investigations and other actions	Satisfaction expressed by law enforcement and security agencies with the usefulness of case disclosures and strategic information products.	On feedback forms, recipients of information rate the information as useful and timely.
Reporting entities are in compliance with the PCMLTFA and related regulations	Level of compliance by reporting entities with the PCMLTFA.	High level of compliance.

Program Activity Summary:

Within this program activity, FINTRAC undertakes activities related to the collection of financial information and the production and dissemination of financial intelligence. In addition, the Centre undertakes activities to ensure compliance by reporting entities with their obligations under Part 1 of the PCMLTFA.

The two sub-activities of this program activity are:

• Financial Intelligence: The financial intelligence sub-activity consists of activities related to the collection and analysis of financial information and the production and dissemination of financial intelligence.
• Compliance: FINTRAC's risk-based compliance program is comprised of awareness activities, monitoring/examinations and taking appropriate remedial action when non-compliance is detected.

This program activity is expected to contribute to FINTRAC's strategic outcome in the following ways:

• FINTRAC will develop tactical and strategic intelligence products that can be used by disclosure recipients for further action, contributing to actions that disrupt money laundering and terrorist financing activities. This contributes to the public safety of Canadians and the integrity of the financial system. FINTRAC will request feedback from disclosure recipients with a target of receiving feedback that information provided is timely and relevant.
• Deterring money laundering and terrorist financing by working with reporting entities and other key stakeholders helps to ensure the integrity of the financial system and contributes to the public safety of Canadians. FINTRAC's target is to achieve a high level of reporting entity compliance with PCMLTFA obligations.

Planning Highlights:

This program activity encompasses FINTRAC's financial intelligence and compliance activities. These activities are complemented by research and government relationships activities, both domestic and international. The effective and efficient production of financial intelligence, both tactical (case disclosures) and strategic (trends and typologies) necessitate research work, ongoing discussions with partners and stakeholders, negotiation of access to public and government databases and resources, communications with other FIUs.

In recent years, FINTRAC has evolved as an organization, taking new directions and making changes. It is now time for FINTRAC to complete the implementation of these changes and to refine and improve internally to ensure that the organization is best positioned to accomplish its mandate. To this effect, FINTRAC plans to undertake the following activities:

• Ensure that partners receive timely and relevant intelligence. FINTRAC will work with partners to prioritize their needs and develop products related to these priorities.
• Identify and communicate emerging money laundering and terrorist financing trends. FINTRAC will collaborate with partners and stakeholders to identify and develop relevant intelligence products and evaluate product effectiveness.
• A noted shift towards compliance enforcement was seen with the implementation of an administrative monetary penalties system. FINTRAC will continue to refine its compliance program through the improvement of its risk assessment model and will undertake projects to enhance the data quality of financial transaction reports.
• FINTRAC will work to strengthen relationships with key partners and strive for better integration with the intelligence community with a view to better align priorities and to be more effective in its contributions to partners.
• On an international level, FINTRAC plans to continue to develop relationships with foreign partners through the negotiation of agreements with FIUs for information exchange, the provision of technical assistance to developing FIUs and through active involvement in the Egmont Group of Financial Intelligence Units and the Financial Action Task Force (FATF).
• FINTRAC will continue to be innovative in its approach to operational processes by automating key business processes through technology driven solutions, identifying opportunities and inefficiencies and prioritizing and completing implementation plans.

Additional to the above planned activities, FINTRAC will undertake activities with a goal of best positioning the agency for the future:

• A report from the first PCMLTFA-mandated audit by the Office of the Privacy Commissioner of Canada (OPC) recognized the Centre's good work in protecting information in its database. Following the audit, FINTRAC has committed to exploring solutions to permanently delete information that should not have been received from its database holdings.
• FINTRAC will increase its ability to influence policy, legislative and regulatory directions of the AML/ATF regime over the longer term. In 2010-11 FINTRAC will prioritize issues and will begin to engage in discussions with the Department of Finance and other AML/ATF partners as appropriate.
• The 10 year evaluation of the AML/ATF regime is scheduled for completion by the end of the third quarter of the year. Recommendations stemming from this evaluation may identify opportunities for improvement.
• A Parliamentary review of the PCMLTFA will begin in 2011. The upcoming fiscal year will see FINTRAC preparing for this review.

Benefits for Canadians:

FINTRAC is an essential component of the community of organizations and functions that combat organized crime and terrorism under Canada's anti-money laundering and anti-terrorist financing (AML/ATF) regime. The Centre's role is to facilitate the detection and deterrence of money laundering and terrorist activity financing in Canada and abroad by analyzing reported transactions and other information and making case disclosures of financial intelligence to the appropriate law enforcement agency, security and intelligence agency, or foreign financial intelligence unit, when there are reasonable grounds for suspicion of relevance to the investigation or prosecution of money laundering or terrorist activity financing offences.

By ensuring the compliance of reporting entities with their obligations under the PCMLTFA, the Centre helps to create a formidable deterrent to those who would use legitimate financial channels to launder money or to finance terrorism. In Canada, banks and other entities with obligations under the PCMLTFA maintain internal compliance regimes that ensure that the trail of financial transactions can be followed, and that law enforcement agencies can effectively pursue cases of suspected money laundering and terrorist activity financing, thereby strengthening Canada's capacity to detect and deter money laundering and terrorist financing.

Money laundering and terrorist activity financing are transnational in nature, necessitating the participation of all countries for successful detection and deterrence. FINTRAC's work with international bodies such as the Egmont Group and the Financial Action Task Force contributes to the development of international AML/ATF policies and standards, the promotion of operational cooperation among financial intelligence units and the provision of technical assistance to developing FIUs. The operational links the Centre has forged with other FIUs throughout the world are a vital part of FINTRAC's contribution to the domestic and international fight against terrorism, money laundering and organized crime.

Program Activity 1.2: Internal Services

Program Activity 1.2: Internal Services

Human Resources (FTEs) and Planned Spending (Denomination)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
47	7.5	33	4.8	32	4.7

Program Activity Summary & Planning Highlights:

Under the internal services program activity are services that support the function of the organization and act as enablers for the organization's other program activity. Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services¹; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

The planning highlights for the Internal Services Program Activity include:

• Maintain and develop a reputation as an "employer of choice" with a diverse and dynamic workforce.
• Maintain and strengthen FINTRAC's unique expertise and skill sets with the help of employee development programs and encourage and support career progression.
• Implement the revised corporate risk profile into all aspects of FINTRAC's operations.
• Ensure the most efficient alignment of resources with business priorities and strategic directions.
• Align the Centre's internal controls with government priorities in each area.
• Review and update corporate policies and practices in light of FINTRAC's business strategies.
• Work with Library and Archives Canada to obtain Record Disposition Authorities (RDAs) for all FINTRAC-managed records.
• Update of the IM/IT strategic plan that is aligned with and fully supports FINTRAC business strategies and priorities.
• Alignment and use of Government of Canada Public Works' IM/IT shared services including Secure Channel Network (SC Net), Internet Access, Internal Credential Management Services (ICMS), Open Text (RDIMS & BPM).
• Support for the evolution of Government of Canada shared services through participation at the Treasury Board's Chief Information Officer Committee (CIOC), Heads of IT, and service management advisory boards.

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