FINTRAC’s 2009 Annual Report

Big Brother is watching us. For Canadians, our privacy is invaded to a point of sillyness. This is not about terrorism, this is all about money.

Terrorism, was used as justification, and now the door is open. I can tell you that everyone who plays games with money, is going to have tax problems. CRA is the catch basin for all of this. Just look at the last word of this article.

It will be good for Tax Audit Solutions, as a provider of corporate governance and audit ready bookkeeping.

The power of the computers and the internet works both for and against us.

Dan White

www.tax-audit-solutions.com

FINTRAC’s 2009 Annual Report
By admin | November 19th, 2009
« Canadian MSB Agrees to Pay Over USD 19 Million to Manhattan U.S. Attorney’s Office
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Released November 17, 2009, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) annual report highlights that more financial intelligence is being produced now than at any time in the organization’s past.

During the 2008-2009 fiscal year, FINTRAC reported making 556 case disclosures to various federal, provincial and municipal police agencies, the Canada Revenue Agency, Canada Border Services Agency, the Canadian Security Intelligence Service and to foreign financial intelligence units. That figure represents nearly three times the volume of disclosures made in their preceding fiscal year. Gone is the focus in previous annual reports on the dollar value of its disclosures.

Of the 556 case disclosures made:

* 474 were for suspected money laundering,
* 52 were for suspected terrorist activity financing and/or threats to the security of Canada, and,
* 30 were for both suspected money laundering and suspected terrorist activity financing and/or threats to the security of Canada.

Still, about 60% of FINTRAC’s cases are originated by Voluntary Information Reports (VIRs) – requests from law enforcement for assistance with their cases. Only 13% of the 556 cases were originated by Suspicious Transaction Reports (STRs) sent by entities subject to the requirement to report.

152 of the cases were disclosed to the Canada Revenue Agency to assist in the collection of taxes on criminal profits. FINTRAC reports that these efforts resulted in $4 million in additional tax assessments.

FINTRAC discloses financial intelligence to law enforcement and other security agencies when it feels there are reasonable grounds to suspect that the information they are providing could aid in the investigation of money laundering and terrorist financing activities.

FINTRAC’s compliance efforts have also escalated – with 455 examinations conducted on its own in the year (compared with 277 in the prior year), and 176 conducted by other regulators on its behalf (compared with 257 in the prior year). FINTRAC continued to rely on questionnaires as part of its compliance efforts, with more than 700 sent out this year, and an increased number expected next year for new reporting entity sectors: including dealers in precious metals and stones, and real estate developers.

As a consequence of its compliance examinations, FINTRAC referred 19 cases of serious and persistent cases of suspected non-compliance disclosures to law enforcement (it did so 5 times in its 2007/2008 fiscal year, and 12 times in the preceding year).

FINTRAC’s progress in financial intelligence and compliance has been recognized by the Financial Action Task Force (FATF) in its follow-up assessments to 2008 mutual evaluation report on Canada.
This entry was posted in AML Compliance and tagged compliance examinations, disclosures, FINTRAC, money laundering and tax.

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