FINTRAC Annual Report 2023–24

FINTRAC’s Annual Report

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) released its Annual Report for 2023–24, highlighting significant strides in combating money laundering, terrorist financing, and financial crimes. As Canada’s financial intelligence unit, FINTRAC’s dual mandate encompasses producing actionable intelligence for law enforcement and ensuring business compliance with anti-money laundering (AML) and anti-terrorist financing (ATF) regulations.

Enhanced Intelligence Contributions

During the fiscal year, FINTRAC produced over 4,600 financial intelligence disclosures based on 1,783 unique cases. These disclosures provided critical insights for investigations across Canada, revealing connections within criminal networks and uncovering illicit financial flows. Notable cases included the dismantling of a major drug trafficking network in New Brunswick and Ontario, and contributions to “Project Vector,” which disrupted an auto theft ring connected to organized crime.

FINTRAC’s intelligence is not confined to domestic investigations. It collaborated internationally with foreign financial intelligence units (FIUs), issuing 97 unique disclosures. These efforts underscore FINTRAC’s importance in transnational crime investigations, particularly those involving drug trafficking and sanctions evasion.

Public-Private Partnerships: A Model for Success

A hallmark of FINTRAC’s operations is its innovative public-private partnerships, targeting specific financial crime areas such as human trafficking, online exploitation, and wildlife trade. Project Protect, for example, focused on human trafficking for sexual exploitation, generating 147 disclosures, 43% of which were proactive. Similarly, Project Guardian targeted the laundering of proceeds from fentanyl trafficking, contributing to numerous high-profile arrests and seizures.

These partnerships demonstrate the effectiveness of collaboration between financial institutions, law enforcement, and regulatory bodies in tackling complex financial crimes. By leveraging shared resources and intelligence, FINTRAC has created a framework for more efficient and impactful interventions.

A Modernized Compliance Approach

In 2023–24, FINTRAC advanced its transition to risk-based supervision, emphasizing risk awareness and mitigation over technical compliance. This shift has allowed FINTRAC to better align its oversight with vulnerabilities identified in Canada’s financial sectors. More than 600 businesses underwent compliance assessments, which included targeted examinations and follow-ups to address deficiencies.

The Centre issued 12 administrative monetary penalties totaling over $26 million, the highest in its history, and referred 14 cases of non-compliance to law enforcement for potential criminal investigation. These measures reinforce FINTRAC’s commitment to safeguarding Canada’s financial system.

Global Leadership and Innovation

FINTRAC’s influence extends beyond Canada’s borders. As a member of the Egmont Group and other international coalitions, it played a pivotal role in combating money laundering globally. This included efforts to disrupt Russia-linked financial crimes following the invasion of Ukraine, as well as establishing a unified approach to detecting illicit fentanyl financing through the North American Drug Dialogue’s Illicit Finance Working Group.

Technology has been central to FINTRAC’s modernization strategy. By adopting real-time reporting and advanced analytics, the Centre aims to enhance its intelligence-gathering capabilities and provide faster, actionable insights to law enforcement.

Protecting Canadians and Strengthening Accountability

FINTRAC’s work is deeply tied to protecting Canadians from the devastating impacts of financial crimes. In 2023–24, its intelligence supported investigations into human trafficking, drug trafficking, and online child exploitation, among other crimes. These efforts not only disrupt criminal enterprises but also deliver justice and aid to victims.

Looking forward, FINTRAC’s commitment to transparency and accountability will be instrumental. By publishing detailed guidance and maintaining open communication with businesses, it ensures clarity in regulatory expectations while fostering a culture of compliance.

The 2023–24 Annual Report underscores FINTRAC’s critical role in protecting Canada’s financial system and communities. Through robust intelligence production, strategic partnerships, and a forward-thinking compliance regime, FINTRAC continues to lead the fight against financial crimes. As threats evolve, its focus on modernization and collaboration ensures it remains a global leader in financial intelligence and regulatory enforcement.

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