The Financial Transactions and Reports Analysis Centre of Canada (Fintrac) has recently increased its focus on anti-money laundering efforts targeting opioid trafficking. This is a huge increase in its power to combat violent crime. This smart initiative is a response to an increasingly opioid-wracked nation crisis. It takes on the serious crime that threatens public safety across Canada.
Fintrac’s financial intelligence is the bedrock of hundreds of ongoing investigations into money laundering crimes. This includes the creation of vital probes into human trafficking, auto theft, and terrorist financing. The agency’s work has made possible 211 major investigations and hundreds more domestic and foreign probes across Canada. Fintrac aggressively pushes to share this crucial financial intelligence with its partner agencies such as the Royal Canadian Mounted Police (RCMP) and Canada’s spy agency. This collaboration enhances federal law enforcement’s capacity to disrupt and dismantle transnational criminal organizations.
During 2022-2023, Fintrac increased enforcement by issuing 23 notices of violation for non-compliance with applicable legislation and regulations. Combined, these violations resulted in over $25 million in penalties. These moves are a continuation of the agency’s efforts to ensure compliance and deter willful violations in the financial industry and beyond. This week, Fintrac has gone a long way to improve its capabilities. Most recently, they’ve established a rapid intelligence production team with a focus on prioritizing disclosures related to illicit opioids.
Fintrac’s partnership goes all the way to the office of Kevin Brosseau, Canada’s new fentanyl czar. The agency has provided a financial crime expert to help combat the illicit financing associated with fentanyl. The joint initiative aims to raise awareness of money laundering risks associated with the illegal opioids trade. Ultimately, it will guide businesses to adopt measures that are most effective at mitigating these risks.
The agency has not shied away from criticizing the FDA and the opioid crisis for over two years now. In 2018, Fintrac warned stakeholders that traffickers were using Canadian money services businesses to obtain fentanyl from abroad. Traffickers are laundering their proceeds through banks and credit unions, often based in rural America. This trend is very concerning, especially with the downstream financial impact. These worries were repeated by the U.S. administration, who cited the issue to help push a tariff against Canada.
Fintrac’s director, Sarah Paquet, emphasized the moral obligation of combating financial crimes, stating, “Combating money laundering and terrorist financing is a moral and social imperative.” She highlighted the fact that crimes such as drug trafficking, fraud, and auto theft are far more serious threats to our communities. Moreover, human trafficking and online child sexual exploitation threaten our most vulnerable citizens.
The agency’s annual report highlights its extensive role in assisting investigations linked to money laundering, marking a pivotal moment in Canada’s approach to tackling these pressing issues. Fintrac has provided a robust framework for intelligence sharing and accountability. So now, it is increasing its efforts to go after opioid misusers and other such criminal activities.
