Money Laundering

The RCMP is committed to protecting Canada’s Economic Integrity and detecting/deterring Organized Crime in all its facets.

In Canada, money laundering is a multi-billion dollar problem. Although impossible to determine the exact dollar figure; the International Monetary Fund (IMF) states that the total amount of money being laundered worldwide could be in the range of two to five percent of world Gross Domestic Product (GDP), approximately $900 billion to C$2.25 trillion.

Organized crime groups and individuals need to find ‘legitimate’ ways to spend the money that they generate from illicit activities. Not only does spending the illicit funds ‘clean’ the money; when money is moved this way, it makes it harder to detect.

What is Money Laundering :

1) It converts proceeds of crime to another less suspicious form.
2) It conceals the criminal origins and ownership of funds
3) It creates a legitimate explanation for the source of funds.

National Initiative To Combat Money Laundering (Antiterrorist Financing)

The mandate of the initiative is to implement specific measures to detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of money laundering and terrorist financing offences.

The RCMP Anti-Money Laundering Program provides an investigative assessment on money laundering intelligence; and monitors national and international money laundering trends and topologies.

International efforts

In 1989, the G7 identified money laundering as a significant international problem. As a result, the Group of 7 ( G7 ) countries founded the Financial Action Task Force on Money Laundering ( FATF ) at this summit. This task force is an inter-governmental body dedicated to developing policies to combat money laundering and terrorist financing.

FATF Mandate: setting standards, regulating and monitoring compliance, law enforcement efforts, legislation and financial regulations to combat money laundering. www.fatf-gafi.org

What can I do to help?

By reporting suspicious transactions you help to protect your communities.

Report suspicious monetary transactions to FINTRAC .

Anti-Money Laundering Partners

• Department of Finance ,
• FINTRAC ,
• RCMP Anti-Terrorism Financing Group,
• Canada Border Services Agency (CBSA) ,
• Canada Revenue Agency (CRA) ,
• Department of Justice (DOJ) , and
• Public Prosecution Service of Canada .
• Public Safety Canada (PSC) ,
• Canadian Security Intelligence Service (CSIS) , and the
• Office of the Superintendent of Financial Institutions .

Record keeping requirements for small and medium businesses

FINTRAC
The Financial Transactions and Reports Analysis Centre of Canada

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act requires that a report be filed with the Financial Transactions and Reports Analysis Centre ( FINTRAC ).

FINTRAC receives, analyzes, assesses and discloses financial intelligence on suspected money laundering, terrorist financing, and threats to the security of Canada.

Who must report to FINTRAC?

All financial entities, life insurance companies, securities dealers, foreign exchange outlets and money services businesses, which have detected a suspicious transaction, or conducted cash transactions or wire transfers in/out of Canada worth $10,000 and over. Records related to these transactions must be kept for a period of five years.

What information should be reported?

Information about the reporting entity as well as details about the person conducting the transaction.

When to file a report:

The deadline for reporting a suspicious transaction is 30 days after the transaction occurred. The deadline for reporting a cash transaction of over $10,000 is 15 calendar days after the transaction occurred.

Why report to FINTRAC?

If there are reasonable grounds to suspect that a transaction is related to a money laundering or terrorist financing offence, the law requires that a report be filed with FINTRAC.

For information on how to file a report: http://www.fintrac.gc.ca

If you suspect money laundering, Report it.

Disclosure provisions under Section 462.47 of the Criminal Code of Canada enables individuals to file a report without fear of liability. This section ensures that anyone filing a report will be protected from any civil or criminal liability, even if your suspicions prove to be wrong.

Contact your nearest RCMP Proceeds of Crime office, or your local law enforcement agency.

What Information do we need?

When contacting the authorities regarding a suspicious transaction, you may be asked to provide specific information, such as:

• Date, time, and location of the transaction.
• Name, age, address, telephone number, description of the person(s) involved in the suspicious transaction and their associates.
• The amount of the suspicious transaction.
• Bank, credit card, or other personal information about the subject that might be available.
• Description of vehicle and licence plate number associated with the suspicious transaction/activity.
• The circumstances, details, and events that raised your suspicion.
• The type of activity associated with the suspicious transactions (payment made by an unusually large volume of cash, use of nominees (associates), currency exchanged etc.

Sgt. Craig Sorrie
RCMP Money Laundering Program Coordinator
613-993-6047
craig.sorrie@rcmp-grc.gc.ca