What is FINTRAC and why is it fining some of Canada's biggest banks?
FINTRAC is Canada’s primary financial intelligence unit, reporting to the minister of finance. It is also the country’ anti-money laundering and anti-terrorist financing supervisor. Based in Ottawa, with three regional offices across the country, its mandate is to ensure the compliance of businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Actand associated regulations. FINTRAC also collects financial intelligence for police, law enforcement and national security agencies to assist in the investigation of money laundering and terrorist activity financing offences or threats to the security of Canada. It can impose administrative financial penalties, as it did with the two banks, or make a non-compliance disclosure to law enforcement. “Proceeding in one manner prevents proceeding in the other,” according to FINTRAC’s website.
No, it is independent and operates at “arm’s length” from police and others to whom it discloses financial intelligence. FINTRAC is one of 13 federal departments and agencies that play a role in Canada’s anti-money-laundering and anti-terrorist-financing regime.
No, the banks did not launder money and are not accused of doing anything criminal. These are civil penalties FINTRAC has at its disposal to make sure the banks are doing all they can to sniff out and report suspicious transactions that might indicate money laundering or terrorist financing. Under FINTRAC’s mandate, the financial penalties are not meant to be punishments but, rather, inducements to bring banks and individuals into compliance with the act, which is aimed at stopping money laundering and terrorist financing. FINTRAC only needs “reasonable grounds to believe” that requirement has been
Read more on financialpost.com
