Financial Transactions and Reports Analysis Centre (FINTRAC) Definition
The Financial Transactions and Reports Analysis Centre (FINTRAC) is a Canadian governmental agency that is responsible for detecting, preventing, and deterring money laundering and terrorist financing activities. It is required by law to collect, analyze, and disclose financial information and intelligence with relevance to such offences.
Financial Transactions and Reports Analysis Centre Key Points
- FINTRAC is a Canadian government agency tasked with combating money laundering and terrorist financing.
- It operates under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
- FINTRAC collects, analyzes, and discloses financial information and intelligence on suspected money laundering and terrorist financing activities.
- It also ensures compliance with reporting obligations through evaluation and enforcement measures.
Who does FINTRAC serve?
FINTRAC serves its mandate by providing essential information to law enforcement and intelligence agencies in Canada and its international partners. It works closely with other entities such as banks, trust companies, loan companies, life insurance companies, and real estate brokerages.
What are the functions of FINTRAC?
FINTRAC operates by collecting and analyzing information from various financial transactions. It then disseminates intelligence related to these financial activities to Canadian law enforcement and other relevant agencies when it has reasonable grounds to suspect money laundering or terrorist financing activities.
Where does FINTRAC operate?
FINTRAC operates within the jurisdiction of Canada but it has international reach due to its cooperation with global organizations in fending off global financial threats. While its operations are based in Canada, its influence and impact is seen in the global financial landscape.
When was FINTRAC established?
FINTRAC was established in July 2000 under the Proceeds of Crime (Money Laundering) Act. Later on, the act expanded to include terrorist financing activities which fortified FINTRAC’s role in supporting the safety and integrity of Canada’s financial system.
Why is FINTRAC important?
FINTRAC plays a critical role in maintaining the integrity and security of the Canadian financial system. It helps detect, prevent, and deter money laundering and terrorist financing activities that could threaten Canada’s financial stability and security. It is also instrumental in upholding Canada’s international reputation for having a strong and secure financial system.
How does FINTRAC work?
FINTRAC works by facilitating the detection and prevention of money laundering and terrorist financing activities. It collects, analyses, and discloses financial intelligence to law enforcement agencies, ensuring accountability and transparency in all financial transactions. It also regulates all businesses and institutions mandated by law to report all financial transactions, providing direction and guidance to ensure proper compliance.
