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.
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.
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.
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
By reporting suspicious transactions you help to protect your communities.
Report suspicious monetary transactions to FINTRAC .
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.
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.
Information about the reporting entity as well as details about the person conducting the transaction.
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.
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.
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.
When contacting the authorities regarding a suspicious transaction, you may be asked to provide specific information, such as:
If you suspect money laundering, report it: