Canada

TECHNICAL COMPLIANCE ANNEX
Recommendation 40 – Other forms of international cooperation
In the 2008 MER, Canada was rated LC with these requirements (para. 1551–1612). The main
deficiency raised was related to FINTRAC as a supervisory authority. 161
General Principles
Criterion 40.1— Canada’s competent authorities can broadly provide international cooperation
spontaneously or upon request related to ML/TF 162 . Referring to FINTRAC as FIU, PCMLTFA allows
the Centre to disclose information to a foreign FIU spontaneously and makes reference to a
disclosure of designated information “in response to a request.”
Criterion 40.2— a) Competent authorities have the legal basis to provide international cooperation
(see criterion 40.1).
b) Nothing prevents competent authorities from using the most efficient means to cooperate.
Technical compliance Annex
c) FINTRAC as a FIU and as a supervisor, OSFI, CBSA, and RCMP use clear and secure gateways,
mechanism or channels for the transmission and execution of requests.
d) FINTRAC as an FIU has put in place processes for prioritizing and executing requests and answers
in five business days if the Centre has transaction information in its database and FINTRAC as a
supervisory authority processes the request and provides a response in a matter of days. In regard to
TF, RCMP prioritize, assign and respond to such requests in the most efficient and effective manner
on a National Level. It has not been established that LEA and supervisor authorities have clear
procedures for the prioritization and timely execution of bilateral requests.
e) Competent authorities have clear processes for safeguarding the information received. FINTRAC
policies and procedures for the safeguard of information apply to both the FIU and the supervisory
side of FINTRAC. All supervisory information received by OSFI is subject to the same standard of
confidentiality as domestic information (OSFI Act, s.22). RCMP has policies for handling requests and
sharing or exchanging criminal intelligence and information with foreign partners and agencies
(RCMP Operational manual Chapter 44.1s).
Criterion 40.3— Under the Privacy Act, competent authorities need bilateral or multilateral
arrangements to cooperate with foreign counterparts where a disclosure of personal information
about an individual is involved. FINTRAC as a FIU, RCMP and CBSA have signed a comprehensive
network of MOUs and letters of agreement with foreign counterparts, but FINTRAC as a supervisory
authority has entered into two MOUs so far. The Canadian authorities indicated that these bilateral
agreements were signed mostly in a timely way. Examples of MOUs signed promptly have been
161 FINTRAC as a supervisory authority had the legal capacity to exchange information with foreign
counterparts but had not put the arrangements and agreements in place.
162 FINTRAC as a FIU: PCMLTFA, section56; FINTRAC as a supervisory authority: PCMLTFA, section.65.1; RCMP:
Privacy Act and Memoranda of understanding or Letters of agreements; CBSA: PCMLTFA, art.38 and 38.1 and
Custom Act; OSFI: OSFI Act, section 22.
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