ARCHIVED - Financial Transactions and Reports Analysis Centre of Canada - Report

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Section II - Analysis of Program Activities by Strategic Outcome

Strategic Outcome: A Canadian financial system resistant to money laundering and terrorist financing

FINTRAC's role of assisting in the detection, prevention and deterrence of the laundering of criminal proceeds and the financing of terrorist activities is a vital component of Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime and supports the achievement of the Centre's strategic outcome of a Canadian financial system resistant to money laundering and terrorist financing.

The following section describes FINTRAC's program activities and identifies the expected results, 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.

Program Activity: Financial Intelligence Program

Program Activity Description

FINTRAC's Financial Intelligence Program, mandated by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), is a component of the broader national security and anti-crime agenda. The program contributes to the public safety of Canadians and strives to disrupt the ability of criminals and terrorist groups that seek to abuse Canada's financial system while reducing the profit incentive of organized crime. The main methods of intervention used by the program include receiving and analyzing reported financial transactions and other information the Centre is authorized to collect under the PCMLTFA. The program produces trusted and valued financial intelligence products including tactical case disclosures on suspected money laundering, terrorist activity financing and other threats to the security of Canada, as well as strategic intelligence such as money laundering and terrorist financing trends reports, country and group based financial intelligence assessments, and vulnerability assessments of emerging financial technologies or services. The program's products are relied upon and sought after by Canadian law enforcement at the federal, provincial and municipal levels, by counterpart agencies and domestic and international intelligence bodies, and by policy and decision makers working to identify emerging issues and vulnerabilities in the Anti-Money Laundering and Anti-Terrorist Financing Regime.

Financial Resources ($ millions)

2012-13	2013-14	2014-15
23.4	22.4	21.6

Human Resources (Full-Time Equivalent - FTE)

2012-13	2013-14	2014-15
147	147	147

Program Activity Expected Results

Program Activity Expected Results	Performance Indicators	Targets
Disclosures of financial intelligence make an important contribution to investigations of money laundering and terrorist financing	Percentage of feedback forms indicating that a disclosure was useful in support of key partner priority investigations.	70%
	Percentage of feedback forms indicating that a proactive disclosure was useful in intelligence and investigative efforts of key partners.	50%
Strategic financial intelligence products align with the priorities of investigators, intelligence analysts, policy and decision makers	Percentage of strategic intelligence produced in support of a partner priority or a request.	70%

Planning Highlights

This program activity encompasses all of FINTRAC's financial intelligence activities. These activities are complemented by research, partnership and government relationship activities, both domestically and internationally. In order to achieve the expected results, FINTRAC plans to undertake the following activities during the 2012-13 fiscal year:

• Continue to ensure that partners receive quality financial intelligence products that address their needs and priorities.
• Identify and communicate money laundering and terrorist financing trends, methods and issues.
• Collaborate with partners and stakeholders to evaluate product effectiveness.
• Seek opportunities to develop new relationships, both domestically and internationally, to strengthen FINTRAC's role in combating money laundering and terrorist financing.

Program Activity: Compliance Program

Program Activity Description

FINTRAC's Compliance Program is responsible for ensuring compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations. The compliance program utilizes a risk based approach to deliver enforcement, relations and support activities that help ensure compliance with legislative and regulatory obligations that apply to individuals and entities operating in Canada’s financial system.

Financial Resources ($ millions)

2012-13	2013-14	2014-15
23.4	22.4	21.6

Human Resources (Full-Time Equivalent - FTE)

2012-13	2013-14	2014-15
147	147	147

Program Activity Expected Results

Program Activity Expected Results	Performance Indicators	Targets
Non-compliance among reporting entities is detected and addressed	Percentage of cases where compliance behaviour is improved	Upward trend. Methodology to be set in 2012-13
Entities have access to timely and accurate information	Percentage of general inquiries answered within established timeframes	90%

Planning Highlights

FINTRAC's compliance program is made up of numerous activities, of which the most prominent are: undertaking awareness activities to ensure understanding among reporting entities of their legal obligations under the PCMLTFA; providing technical support to facilitate reporting; building relations with regulators and key stakeholders; taking responsible enforcement actions, which include reports monitoring and compliance assessment functions; maintaining a money services business (MSB) registry; and taking appropriate remedial action when non-compliance is detected, which may result in administrative penalties, or disclosure of non-compliance to law enforcement.

During the planning period, FINTRAC will undertake the following activities to support the Centre's compliance priorities:

• Raise awareness among reporting entities of  their legislative obligations under the PCMLTFA;
• Provide timely technical support to reporting entities to facilitate reporting;
• Enhance relations with regulators and key stakeholders;
• Provide feedback to reporting entities on the quality of prescribed financial transaction reports; and
• Expand enforcement and reports monitoring activities across sectors and take appropriate remedial action when non-compliance is detected, which may include administrative monetary penalties or non-compliance disclosures.

Program Activity: Internal Services

Financial Resources ($ millions)

2012-13	2013-14	2014-15
8.3	7.9	7.6

Human Resources (Full-Time Equivalent - FTE)

2012-13	2013-14	2014-15
51	51	51

Planning Highlights

The priority for internal services over the planning period will be to focus on promoting excellence in the Centre's workforce and to strengthen business and people management frameworks. To realize these objectives, FINTRAC will undertake the following activities:

• Maintain a reputation as an "employer of excellence" with employee recruitment and engagement initiatives that strengthen the Centre's expertise in alignment with business priorities.
• Promote awareness of organizational expectations and improve people management by focusing corporate learning, recruitment, retention, performance management and recognition initiatives on the Centre's core leadership competencies.
• Review and update corporate policies and practices in support of FINTRAC business priorities and Government of Canada policies and legislation.
• Enhance corporate information and reporting systems to strengthen alignment of resources with business priorities and support executive decision-making.
• Develop an Investment Management Framework to strengthen the Centre's oversight capacity and ensure sound stewardship of financial resources.
• Continue to develop, refine and implement business continuity and emergency management frameworks to mitigate the impact of service disruptions for the Centre.
• Continue to develop the integrated security program to ensure protection of the Centre's information, assets and resources.
• Enhance operational effectiveness and improve the Centre's security posture by consolidating its headquarters operations to a single location. To complete the relocation, construction and fit-up projects are being managed by PWGSC. The sub-project which consists of the procurement, acquisition and installation of equipment, as well as the physical move of FINTRAC employees, will be managed by FINTRAC.

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