The Canadian Center for Financial Transactions and Reports Analysis (FINTRAC) ensures the detection, prevention, and deterrence of money laundering and financing terrorist activities, and protecting personal information under its control. It is an independent agency that provides security agencies information about investigations or prosecutions regarding money laundering and terrorist financing activities, called financial intelligence. The center analyzes financial transaction reports submitted by many organizations, such as banks, securities sellers, money services businesses, insurance institutions, to which the law should submit reports.
The Canadian Center for Financial Transactions and Reports Analysis (FINTRAC) is also a member of the Egmont Financial Intelligence Units Group, including FinCEN and NCA.
How FINTRAC Works?
FINTRAC is an institution that prosecutes money laundering and terrorist financing activities. Therefore, gathering and evaluating information to detect, prevent, and Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) is the most crucial purpose and obligation of FINTRAC.
One of FINTRAC's obligations is to collect personal information and to ensure privacy and security. Therefore, it must comply with the regulations under Canadian privacy law. Besides, individuals can access and make changes to their personal information. One of FINTRAC's responsibilities is to raise awareness of the public against money laundering activities. Besides, with the increase in money laundering activities, institutions and organizations that play a role in preventing terrorist financing need to take measures for AML/CTF activities.
Canada references the Criminal Code and the Proceeds of Crime, and the Terrorist Financing Act (PCMLTFA) to prevent money laundering and terrorist financing. All persons, institutions, and organizations must comply with the Criminal Code's obligations, and all institutions that are liable to PCMLTFA regulations must have a compliance program. PCMLTFA is legislation created to detect money laundering and terrorist financing, which is dependent on the auditing of the reports of institutions such as financial institutions, accountants, casinos, precious metal and stone dealers, money service businesses, real estate, and insurance companies. The Canadian Center for Financial Transactions and Reports Analysis (FINTRAC), an organization responsible for protecting personal data, must comply with the PCMLTFA guidelines.
On the other hand, one of the essential points to know about FINTRAC is that FINTRAC does not have the authority to collect evidence, investigate, accuse, arrest, seize, and create criminal lists. It is responsible for the examination and supervision of the reporting organizations. Also, it notifies the competent authorities to detain or arrest the individual.
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