Fintrac Fingers Canada As Money Laundering Haven

by Mike Godfrey, for LawAndTax-News.com, Washington

13 May 2004

Speaking at a conference sponsored by the Investment Funds Institute of Canada on Monday, Sandra Brown, senior officer at the Financial Transactions and Reports Analysis Centre (Fintrac) suggested that Canada represents something of a haven for money launderers.

According to a Globe and Mail report, Ms Brown explained that the country is seen as an attractive prospect for those seeking to launder illegal assets due to its strong banking system and privacy laws, and to the fact that prison terms for such offences are relatively lenient.

The news service went on to reveal that although the Canadian authorities suspect that some $17 billion of criminal proceeds are laundered through the country's financial and other institutions each year, in the fiscal year which ended March 31, 2003, Fintrac uncovered just $500 million.

Under Canada's current anti-money laundering laws, financial institutions must report all transactions over $10,000, and any unusual or otherwise suspicious transactions. Fintrac collects the information, and passes suspicious cases on to the Royal Canadian Mounted Police and other law enforcement agencies.

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