Canada’s laws on money laundering and proceeds of crime: the international context
| Date | 01 January 2004 |
| Published date | 01 January 2004 |
| DOI | https://doi.org/10.1108/13685200410809760 |
| Pages | 50-60 |
| Author | Daniel P. Murphy |
| Subject Matter | Accounting & finance |
Journal of Money Laundering Control Ð Vol. 7 No. 1
Canada's Laws on Money Laundering and
Proceeds of Crime: The International Context
Daniel P. Murphy
`The investigation, prosecution and suppression of
crime for the protection of the citizens and the
maintenance of peace and public order is an impor-
tant goal of all organised societies. The pursuit of
that goal cannot realistically be con®ned within
national boundaries. This has long been the case,
but it is increasingly evident today. Modern com-
munications have shrunk the world and made
McLuhan's global village a reality. The only
respect paid by the international criminal commu-
nity to national boundaries is when these serve as a
means to frustrate the eorts of law enforcement
and judicial authorities.'
1
INTRODUCTION
In this paper familiarity is assumed with Canada's
money laundering and proceeds of crime provisions.
2
It has to be understood that, in 1991, Canada enacted
the Proceeds of Crime (Money Laundering) Act.
3
In
2000 Canada enacted and, as a result of concerns
¯owing from events after 11th September, 2001,
quickly amended the new Proceeds of Crime
(Money Laundering) and Terrorist Financing Act
(hereinafter referred to as the PC(ML)TF Act).
4
The PC(ML)TF Act continues pre-existing
requirements for customer identi®cation, record
keeping and retention obligations. It adds new suspi-
cious or prescribed transaction and cross border
currency and monetary instrument reporting obli-
gations. These reports are sent to a new Financial
Transactions and Reports Analysis Centre of Canada
(FINTRAC). FINTRAC, the new ®nancial trans-
action analysis authority, or to borrow an interna-
tional concept, Canada's Financial Intelligence Unit
(FIU),
5
is given a compliance and ®nancial intelligence
function. The PC(ML)TF Act establishes speci®c
oences and a robust compliance provision.
The object of the PC(ML)TF Act illustrates Parlia-
ment's purpose for the expanded PC(ML)TF Act
scheme. The Act's purpose is found in s. 3, which states:
`3. The object of this Act is
(a) to implement speci®c measures to detect
and deter money laundering and the
®nancing of terrorist activities and to facil-
itate the investigation and prosecution of
money laundering oences and terrorist
activity ®nancing oences, including
(i) establishing record keeping and client
identi®cation requirements for ®nan-
cial services providers and other per-
sons or entities that engage in
businesses, professions or activities
that are susceptible to being used for
money laundering or the ®nancing
of terrorist activities,
(ii) requiring the reporting of suspicious
®nancial transactions and of cross-
border movements of currency and
monetary instruments, and
(iii) establishing an agency that is respon-
sible for dealing with reported and
other information;
(b) to respond to the threat posed by orga-
nised crime by providing law enforce-
ment ocials with the information they
need to deprive criminals of the proceeds
of their criminal activities, while ensuring
that appropriate safeguards are put in
place to protect the privacy of persons
with respect to personal information
about themselves; and
(c) to assist in ful®lling Canada's international
commitments to participate in the ®ght
against transnational crime, particularly
money laundering, and the ®ght against
terrorist activity.'
It should not come as a great surprise that the
development of this law did not develop out of
thin air. In this paper, to provide some context to
s. 3(c), Canada's international commitments and
related international developments will be examined.
It may be possible, as a result, to ®nd a reason why
such a scheme exists.
Developments in other countries
The USA's Racketeer In¯uenced and Corrupt Orga-
nizations (RICO) Statute was enacted as part of
Page 50
Journalof Money Laundering Control
Vol.7, No. 1, 2003, pp. 50± 60
#HenryStewart Publications
ISSN1368-5201
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