As we previously discussed here, the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC” or the “Centre”) plays a crucial role in combating illegal activities like money laundering and terrorism financing.
The Centre operates under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “Act”), which lays out a complex web of reporting, record-keeping, and identity verification requirements. When these requirements are not met, enforcement measures, including Administrative Monetary Penalties (“AMPs”), come into play.
Part of our Customs, Trade & Indirect Tax Practice is dealing with matters arising out of Canada’s Anti-Money Laundering legislation (more formally, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “Act”), and the Canadian governmental entity that is charged with enforcement activities in this area: the Financial Transactions and Reports Analysis Centre (“FINTRAC”).
How does the FINTRAC system work?
FINTRAC allows Canada to monitor the financial transactions for purposes of attempting to identify illegal activities, prevent money laundering, and the financing of terrorist organizations.
A recent case from the Federal Court of Appeal (“FCA”), dealing with an Administrative Monetary Penalty (“AMP”) issued under this legislation, got us thinking about the secrecy shrouding the old English Star Chamber, and whether the current government’s predilection for hiding unfavourable information has been slowly filtering down through Canada’s vast government administration, and potentially to our judicial system – and the huge detrimental effects that might entail for our country.
