Why all the questions? Money Laundering and Terrorist Financing Act

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence agency whose mandate is to detect, prevent and deter money laundering, terrorist activity financing and other threats to Canada’s security. Financial institutions and other companies who facilitate financial transactions are required to keep records of their customers and their transactions and to report large cash transactions to FINTRAC.

What is money laundering? Money laundering is the process used to disguise money or other assets gained through criminal activity. By the end of the process the money looks like it was gained legitimately. It is estimated that between $500 billion to $1 trillion is laundered every year.

What is terrorist financing? Terrorist financing differs somewhat from money laundering as some of the sources of the financing are actually legitimate. These sources range from donations to charitable organizations, fund raising activities and membership drives. The funds are then routed to terrorist organizations using either informal networks or the international financial system.

FINTRAC is responsible for analyzing financial activities and reports in order to identify suspected money laundering or terrorist financing activities. Once identified FINTRAC discloses the information to the appropriate law enforcement agency.

What does this mean to our members?
Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), The Credit Union is required by law to have current ID for all members. That is why we may ask you from time to time to show us your birth certificate, driver’s license or other government issued identification, even if you have been a member for a long time. Depending on the type of transaction we may ask for more information about the transaction you are completing. We are doing this not to be nosy but to fulfill our obligations under the law and support the fight against money laundering and terrorist financing.

To find out more about more about PCMLTFA, FINTRAC visit FINTRAC’s website at:
www.fintrac-canafe.gc.ca or call toll free: 1-866-346-8722.