Presentations to Reporting Entities

Money Laundering and Terrorist Financing Overview

2008

Table of Contents

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Slide 1


Money Laundering and Terrorist Financing Overview

2008


Slide 2: Presentation Overview


  • Introduction to FINTRAC and money laundering and terrorist financing
  • FINTRAC's role as Canada's financial intelligence unit (FIU)
  • FINTRAC and reporting entities

Slide 3


Introduction to FINTRAC and Money Laundering and Terrorist Financing


Slide 4: FINTRAC


FINTRAC is Canada's financial intelligence unit. FINTRAC produces financial intelligence for law enforcement and national security agencies. The Centre is uniquely positioned to analyze millions of financial reports to produce this intelligence.

  • Created in 2000 under the PCMLTFA.
  • Plays an integral role in Canada's effort to combat organized crime and terrorism.
  • Independent agency reporting to the Minister of Finance and Parliament.
  • Operates at arm's length from law enforcement and other bodies.
  • Works in partnership with reporting entities.

Slide 5: FINTRAC's Mandate


  • FINTRAC was created to detect and deter money laundering and terrorist financing by providing critical information to support the investigation or prosecution of money laundering and terrorist activity financing offences.

Slide 6: What Is Money Laundering?


  • The United Nations defines money laundering as “any act or attempted act to disguise the source of money or assets derived from criminal activity”.
  • Essentially it is the process where “dirty money” is transformed into “clean money”.
  • More than just cash, it also includes valuable items (for example real estate, diamonds) and other kinds of funds (for example electronic funds).

Slide 7: Effects of Money Laundering


  • Crime/Victimization
    • Increased cost for law enforcement
  • Erosion of fair business practices
  • Economic instability
  • Undermines the social, political and economic structure
  • Undermines the integrity of financial institutions

Slide 8: Requirements for Money Laundering


  • A progressive relationship
    1. From a designated offence (or predicate offence or substantive offence);
    2. To possession of the proceeds of crime;
    3. To laundering the proceeds of crime;
    4. To a money laundering offence.
  • All previous steps are necessary for each subsequent step.

Slide 9: Criminal Objectives of Money Laundering


  • Possession and use of profits from crime
  • Profits used for:
    • Operating capital
    • Lifestyle / Acquisition of assets
    • Power and influence
    • Developing new markets
    • Maintaining existing markets

Slide 10: Methods of Money Laundering


  • Use of financial system
  • Physical movement of money (i.e. cash couriers)
  • Movement through trade systems