The Canadian Press

Canada’s financial transactions watchdog says its services are in greater demand than ever, yet the federal government has cut its budget by 8% in the last two years.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) referred 556 cases to domestic or foreign police and other agencies in 2008-09.

In tabling the centre’s annual report in Parliament, Finance Minister Jim Flaherty cited the devastating effects of white-collar crime and lauded the centre’s role in “strengthening the integrity of Canada’s financial sector.”

The centre’s director, Jeanne Flemming, said FINTRAC is able to produce “more financial intelligence, more quickly” than ever in the face of growing demand.

However, the Conservative government, which has made anti-crime legislation a centrepiece of its agenda, has cut the centre’s 2009-2010 budget to $48 million from $54.9 million in 2007-08.

The little-known centre, with a staff of 295, analyzes financial transaction reports and discloses financial intelligence to domestic and foreign agencies.

Its 2008-09 investigations covered 474 suspected money-laundering, 52 suspected terrorist financing and 30 combined cases.

The bulk of its financial intelligence, 68%, was passed along to the RCMP. The breakdown for other agencies was:

• Canada Revenue Agency, 27%;
• Municipal police forces, 27%;
• Foreign financial intelligence units ,17%;
• Canada Border Services Agency, 14%;
• Canadian Security Intelligence Service, 10%; and
• Provincial police services, 10%.

The percentages don’t add up to 100 because some cases are referred to multiple agencies.

The centre, which played a key role in an international cash-smuggling investigation called operation Mantis, says following the money trail has become an ever more important link in fraud, terrorist, drug-trafficking and other criminal investigations.

“Demand for financial intelligence is growing,” said a statement from the centre. “Police agencies are making use of financial intelligence when conducting their investigations.”

The annual report came on the same day Canada’s privacy watchdog expressed concern that the national anti-money laundering agency is collecting too much information about personal financial dealings.

In her annual report released Tuesday, Privacy Commissioner Jennifer Stoddart said the centre must scale back its data gathering.