The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has released its second annual report. Between April 1, 2002 and March 31, 2003, FINTRAC experienced a significant increase in the number of reports it receives.

According to the annual report, FINTRAC made 103 case disclosures of suspected money laundering or terrorist activity financing to Canadian law enforcement and security intelligence agencies over the last fiscal year. These cases involve transactions totalling more than $460 million and represent a significant increase over the previous year. Since March 2002, the Centre has received and made use of 2.2 million transactions reports.

“These numbers show that we take money laundering and terrorist financing seriously,” said Maurizio Bevilacqua, Secretary of State (International Financial Institutions). “That is why we continue to guard against the abuse of Canada’s financial systems by organized criminals and terrorist groups. By establishing FINTRAC, this government has made significant progress in building an anti-money laundering and anti-terrorist financing regime.”

In 2002-2003, increased reporting from financial institutions, credit unions, foreign exchange dealers and other reporting entities aided the effort to detect and deter money laundering and terrorist financing activities both within Canada and abroad.

These entities are now required by law to report to FINTRAC suspicious transactions and large cash transactions that take place within their institutions.

Over the last year, other requirements came into force under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Canadians must now produce identification when undertaking certain activities — such as opening a bank account, purchasing a life insurance policy, or cashing in large winnings at a casino.

FINTRAC is an independent federal government agency whose mandate is to collect, analyze, assess and, where appropriate, disclose information to law enforcement and intelligence agencies to assist in the detection, prevention and deterrence of money laundering and the financing of terrorist activities.