Insolvency Practitioners Providing Trustee in Bankruptcy Services

FINTRAC Interpretation Notice No. 7 - Insolvency Practitioners Providing Trustee in Bankruptcy Services (paragraph 5(j) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and subsections 34(1), sections 35 and 36 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations). The purpose of this notice is to clarify the application of the PCMLTFA relating to insolvency practitioners offering bankruptcy services. Insolvency practitioners provide trustee in bankruptcy services. These services are not triggering activities for any obligations under the PCMLTFA. Trustee in bankruptcy services or insolvency practitioners are not covered as services or as an entity under thislegislation. However, if you are an insolvency practitioner and you are an accountant or an accounting firm, you may have obligations relating to other activities.

FINTRAC ANNUAL REPORT 2010 - Ten Years of Connecting the Money to the Crime

During 2010, FINTRAC, as Canada’s financial intelligence unit, celebrated its tenth anniversary. (Refer to the publication FINTRAC ANNUAL REPORT 2010 - Ten Years of Connecting the Money to the Crime.)

FINTRAC made 579 (up from 556 in 2008-09) disclosures of information suspected to be relevant to investigations of money laundering, terrorist financing, and/or threats to the security of Canada. Turnaround time on cases improved 17%, and requests for assistance went up 36%. By using electronic media for case disclosures, it sharply reduced delivery times, and provided a more flexible product for law enforcement and intelligence partners to work with.

FINTRAC published a new series of strategic intelligence assessments focusing on terrorist groups and countries arousing national security concerns, as well as reports informing partners about current and emerging typologies and trends in money laundering and terrorist financing. It was also the Canadian lead for the FATF typology project about the use of new payment methods for money laundering purposes.

The Office of the Privacy Commissioner (OPC) issued a report praising the Centre's management of personal information, and recommended the appointment of a Chief Privacy Officer. FINTRAC was pleased to implement this and other OPC recommendations.

(See Highlights from FINTRAC's 2010 Annual Report.)

Egmont AML/CFT Awareness Video

The Egmont Group of Financial Intelligence Units has released a short animated video to advance awareness and understanding of money laundering and terrorist activity financing. The Egmont AML/CFT Awareness Video is available in English, French and Spanish versions. For more information, read the Egmont News Release online.

Prepaid cards can be fenced for up to 80% of their value

Drug traffickers, terrorists and other criminals have found a simple and ingenious way to launder their dirty money. Prepaid cards, especially gift cards, can be fenced for up to 80% of their value, according to Canada's FINTRAC. Popular sites such as eBay, Craigslist and various card-exchange sites have made “e-fencing” an incredibly easy way to launder dirty money for about a 20% cost, much less than what traditional, human fences would charge. FINTRAC cites one ring of thieves who were caught in Florida in 2007 after buying US$24,000 worth of gift cards from one Wal-Mart and US$18,000 from another Wal-Mart. FINTRAC also reports that British experts allege that prepaid cards have been used to move terrorist funds around the world and finance terrorist attacks. (Read the article "Card Tricks" in the January-February 2011 edition of CAmagazine, also available online.)

AML/ATF Regime On-line Survey

To assist in the 10 Year Evaluation of Canada’s Anti- Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime, FINTRAC is requesting input from key stakeholders on the AML/ATF Regime through the use of an on-line survey.

Address (English): short.capra.net/amlatf-en
Username: participant
Password: jRQ?67B

FINTRAC Director discusses anti-money laundering / anti-terrorist financing measures in federal budget

At presentations to the OSFI (Office of the Superintendent of Financial Institutions) conference and the Canadian Institute Anti-Money Laundering Conference in April 2010, Jeanne M. Flemming, the Director of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) discussed three anti-money laundering / anti-terrorist financing measures which were announced by the Minister of Finance in the recent federal budget.

The three measures are:
• an increase in FINTRAC’s operating budget,
• amendment to regulations under the Criminal Code to make tax evasion a predicate offence for money laundering, and
• amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act giving new authority to the Minister of Finance to issue directives to advise the financial sector of foreign jurisdictions and entities that pose a money laundering or terrorist financing risk, and to require appropriate countermeasures.

The full text of the speeches is available here and here.

Money Laundering and Terrorist Financing Typologies and Trends in Canadian Casinos

The Financial Transactions and Reports Analysis Centre of Canada has published the following report on its Web site: Money Laundering and Terrorist Financing Typologies and Trends in Canadian Casinos.