FINTRAC failing in duty to limit money laundering in Canada, says auditor general

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Photo by Getty ImagesCanada’s auditor general says the federal government’s primary financial intelligence unit is not effectively carrying out its duties to limit money laundering in the country.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) delayed providing intelligence to law enforcement agencies, which limited its ability to help detect, prevent and deter money laundering and the financing of terrorist activities, a report by the auditor general said.This advertisement has not loaded yet, but your article continues below.“It took FINTRAC an average of about four months to provide financial intelligence when law enforcement flagged a concern,” it said. “If law enforcement agencies do not receive timely, actionable intelligence, this limits their ability to freeze assets, intercept transactions or apprehend suspects.”Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againMoney laundering and terrorism financing involve moving money by concealing its origin, destination and purpose. Between $45 billion and $113 billion gets laundered through Canada each year, according to a Criminal Intelligence Service Canada estimate in 2020.The report said the share of intelligence that FINTRAC generates and shares with law enforcement declined to 23 per cent between 2024 and 2025 from 38 per cent between 2021 and 2022.Such intelligence is key and involves carefully analyzing financial records, transactions and banking data, which FINTRAC receives from its reporting entities, to identify suspicious patterns or unusual money movements that might indicate criminal activities, the report said.FINTRAC is also responsible for ensuring businesses such as banks, casinos and mortgage lenders comply with Canada’s anti-money laundering laws. FINTRAC began performing more light-touch and automated supervisory assessments of businesses because of the growing number of businesses under its supervision, the report said.This advertisement has not loaded yet, but your article continues below.“While quicker, these assessments provided FINTRAC with a lower level of assurance that businesses were complying with anti-money laundering laws and regulations, compared with more thorough and resource-intensive examinations,” it said.In response to the report, FINTRAC said it will help enhance its programs and operations and continue to strengthen its oversight on the 38,000 businesses it regulates.It said its financial intelligence contributed to 348 major investigations as well as many hundreds of other individual investigations at the municipal, provincial and federal levels across the country.FINTRAC also said a recent evaluation conducted by the Financial Action Task Force (FATF), an international body that sets global standards for combatting money laundering, said it is able to quickly provide financial intelligence disclosures to law enforcement when the information is assessed as urgent.“FATF determined that 40 per cent of cases assessed as urgent resulted in a FINTRAC disclosure in less than 10 days,” a FINTRAC spokesperson said in a statement. “The remaining 60 per cent of urgent cases resulted in a disclosure in 11-30 days. FINTRAC works closely with law enforcement agencies to determine the level of urgency.”This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.