ARCHIVED - RPP 2006-2007
Financial Transactions and Reports Analysis Centre of Canada

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2.  Analysis Of Program Activities By Strategic Outcome

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2.1  Analysis by Program Activity

This section provides the description of FINTRAC's program activity Collection, Analysis and Dissemination of Financial Information. This program activity supports the achievement of the Centre's Strategic Outcome and Priorities. Also included are descriptions and expected results of the sub-activities that support the program and the performance measures that will be used to assess the Centre's program.

Strategic Outcome

Financial Intelligence that contributes to the detection and deterrence of money laundering and terrorist activity financing in Canada and abroad.

Program Activity Name

Collection, Analysis and Dissemination of Financial Information

Financial Resources ($ millions)

2006-2007	2007-2008	2008-2009
$33.6	$32.7	$31.8

Human Resources

2006-2007	2007-2008	2008-2009
212	228	226

Program Activity Expected Result

Technology-driven financial intelligence analysis and case disclosures that are widely accepted by law enforcement and intelligence agencies with a program that fosters compliance by the reporting entities.

Sub-Activities supporting the Program Activity

1.1 Program Sub-Activity: Technology driven Collection, Analytics, and Case Management
Description	Technology driven Collection, Analytics, and Case Management includes activities to obtain, develop and enhance IT systems and tools in support of the Centre's priorities.
Related Priorities	Deliver timely and high quality financial intelligence to law enforcement, CSIS, and foreign financial intelligence units. Ensure compliance with the PCMLTFA. Disseminate strategic information on money laundering and terrorist activity financing to partners, stakeholders, and the general public.
Expected Result	Effective, efficient and secure automated solutions to support the production of more timely and better tactical and strategic financial intelligence, and support compliance.
Indicators	a) Reporting Entity access to and use of new automated solutions. b) Client satisfaction with new automated solutions. c) Internal tracking of IT automated solution performance.
Performance Measurement Strategy	Analysis of internal systems data and monitoring, surveys and feedback from IT system users and reporting entities.

Financial Resources ($ millions)

2006-2007	2007-2008	2008-2009
$18.2	$15.5	$14.7

 

1.2 Program Sub-Activity: Financial Intelligence Analysis
Description	Financial Intelligence Analysis encompasses the production and disclosure of timely and relevant tactical financial intelligence that enhances the capacity of law enforcement, CSIS and foreign financial intelligence units to detect and deter money laundering, terrorist activity financing and other threats to the security of Canada. It also disseminates strategic information on money laundering and terrorist activity financing to partners, stakeholders, and the general public to enhance awareness and understanding of money laundering and terrorist activity financing and to inform the development of effective Canadian and multilateral counter-strategies.
Related Priorities	Deliver timely and high quality financial intelligence to law enforcement, CSIS, and foreign financial intelligence units. Disseminate strategic information on money laundering and terrorist activity financing to partners, stakeholders, and the general public.
Expected Result	Strategic financial intelligence and disclosures from tactical analysis that are widely accepted and used to combat suspected money laundering, terrorist activity financing and threats to the security of Canada.
Indicators	a) Feedback from partner agencies indicating that FINTRAC disclosures contributed to investigations/prosecutions of money laundering, terrorist financing and threats to the security of Canada. b) Feedback from internal and external (including international) recipients that indicates that FINTRAC's strategic analysis products contributed to their improved understanding of money laundering, terrorist financing and threats to security, especially in the Canadian context.
Performance Measurement Strategy	Analysis of internal systems data and feedback from disclosure and strategic analysis product recipients.

Financial Resources ($ millions)

2006-2007	2007-2008	2008-2009
$5.9	$7.1	$7.1

 

1.3 Program Sub-Activity: Compliance
Description	The Compliance function promotes and facilitates compliance with the law by reporting entities and detects and deters non-compliance. Key activities to accomplish this include awareness activities, the monitoring of data quality, a risk assessment function, examinations, and taking appropriate remedial action when non-compliance is detected.
Related Priorities	Ensure compliance with the PCMLTFA.
Expected Result	A higher level of compliance by reporting entities across Canada with their obligations as mandated by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
Indicators	a) Quality and volume of financial transaction reports submitted to FINTRAC by reporting entities. b) Compliance Improvement by reporting entities- Number of examinations completed and compliance issues identified. c) Number of compliance support functions provided to raise the awareness of reporting entities and assist them in meeting their obligations under the PCMLTFA.
Performance Measurement Strategy	Analysis of internal systems data and monitoring.

Financial Resources ($ millions)

2006-2007	2007-2008	2008-2009
$6.0	$7.1	$7.0

 

1.4 Program Sub-Activity: Domestic and International Relationships and Communications
Description	Domestic and International Relationships and Communications strengthens FINTRAC's relationships with domestic and international partners in support of the Centre's priorities. It includes domestic activities to build partnerships and increase understanding of disclosure recipients' strategic priorities; pursues access to domestic law enforcement and national security databases; advises on and support development of national policy initiatives; and works with relevant domestic partners to increase awareness of FINTRAC's compliance capabilities. Internationally this function seeks opportunities for the exchange of information by negotiating new information sharing agreements with foreign financial intelligence units (FIUs).
Related Priorities	Deliver timely and high quality financial intelligence to law enforcement, CSIS, and foreign financial intelligence units. Ensure compliance with the PCMLTFA. Disseminate strategic information on money laundering and terrorist activity financing to partners, stakeholders, and the general public.
Expected Result	Strong and mutually beneficial domestic and international relationships in support of strengthening deterrence and detection of money laundering and terrorist financing in Canada and abroad. Increased awareness and understanding of money laundering, terrorist activity financing and enhancements to Canada's AML/ATF regime among FINTRAC's stakeholders, partners and the general public.
Indicators	a) Extent and impact of FINTRAC involvement in key national fora such as Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) regime, the Public Security and Anti-Terrorism (PSAT) Initiative, the National Coordinating Committee on Organized Crime (NCC), the National Integrated Interagency Information System (N-III) Federal Partners Interoperability Working Committee, and with other key stakeholder and regulatory groups (e.g. OSFI, CBA); b) Extent and impact of FINTRAC involvement in key international fora such as Egmont Group of Financial Intelligence Units (FIUs) and the Financial Action Task Force (FATF); and c) Survey results indicating the percentage of the general public with a "good" or "very good" understanding of Canada's anti-money laundering and anti-terrorist financing regime.
Performance Measurement Strategy	Analysis of data from internal systems, survey, and monitoring.

Financial Resources ($ millions)

2006-2007	2007-2008	2008-2009
$3.5	$3.0	$3.0

2.2  Corporate Support

Corporate Support at FINTRAC consists of four sub-activities: Agency Management and Corporate services; Security and Privacy Protection; Accommodation; and IT Support and Maintenance. In each of these areas, the Centre continues to be actively engaged in advancing the principles of sound resource management and effective decision-making.

Corporate Support Activities
Description	FINTRAC's Corporate Support activities support all of the Centre's program activities and priorities. Corporate Support consists of: Agency Management and Corporate services; Security and Privacy Protection; Accommodation; and IT Support and Maintenance.
Related Priorities	Deliver timely and high quality financial intelligence to law enforcement, CSIS, and foreign financial intelligence units. Ensure compliance with the PCMLTFA. Disseminate strategic information on money laundering and terrorist activity financing to partners, stakeholders, and the general public.
Expected Result	Key Expected Results FINTRAC's financial results accurately reflect the Centre's financial position. Motivated and skilled workforce. High quality staff. FINTRAC's operations are within applicable policies, acts and guidelines. Corporate Support activities are efficient i.e. deliver services at reasonable cost and turn-around times relative to peers. Cost-effective and robust technology infrastructure. Robust security and protection of privacy of information.
Indicators	Key performance measures Financial statements confirm financial results. Knowledgeable observers are of the view that FINTRAC has high quality staff. Operational controls are in place and FINTRAC is operating within applicable policies, acts and guidelines. External reviews of FINTRAC's corporate support functions. Internal tracking of IM/IT infrastructure performance. Internal tracking of security incidents and breaches.
Performance Measurement Strategy	Analysis of internal systems data, monitoring and external reviews.

Financial Resources ($ millions)

2006-2007	2007-2008	2008-2009
$16.1	$17.1	$16.3

Human Resources

2006-2007	2007-2008	2008-2009
53.4	43	45

In support of FINTRAC's priorities, the Centre undertakes a number of ongoing management initiatives to strengthen organizational effectiveness, consistent with Treasury Board policies and the Management Accountability Framework. In 2006-07 these will include:

• The integration of human resources planning with business planning as the next phase of development for the Centre's planning, budgeting, and performance management framework. During the planning period, FINTRAC will complete its first employee engagement exercise and execute a human resource plan in accordance with the Centre's operational outlook. This will establish baseline information to allow for continued effective human resources planning.
• The ongoing maintenance and exercising of business continuity plans (BCP) as part of the BCP Program. The Centre will also be undertaking the development of an IT disaster recovery plan that will address the technical and procedural requirements to reinstate our IT systems impacted by an unplanned outage.

In addition, FINTRAC will continue to build on its commitment to being an exemplary employer and sustaining an effective, high performing and healthy work climate. In this regard, FINTRAC's Code of Conduct, and related awareness training in values and ethics, will continue to be a cornerstone of the Centre's operations.

Another very important foundation for FINTRAC as an organization is its commitment to the protection of personal information. Over the past year, the Centre has implemented Privacy Impact Assessments, conducted an internal audit of its measures designed to protect personal information and instituted privacy awareness sessions. In 2006-07, FINTRAC will continue to maintain a robust and effective security program, including a full suite of policies and procedures to protect privacy, and prevent the unauthorized disclosure of information.

As part of FINTRAC's comprehensive integrated information management framework, the Centre will be refining and implementing policies and solutions related to the archiving of its information holdings. These processes will ensure that FINTRAC's information holdings comply with all legislative requirements for the retention and disposition of documents.

FINTRAC also seeks to excel in the provision of administrative services including accommodations, procurement, asset management, mail services, information management and translation services. The Centre requires special security enhancements in the facilities it occupies. It pays all costs for the office space and facilities that it uses, and seeks to provide an affordable and productive work environment. In 2006-07, FINTRAC will continue implementation of its integrated facilities plan to ensure that the Centre's facilities meet security and employee requirements and contribute to organizational effectiveness.

3.  Supplementary Information

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3.1  Organizational Information

FINTRAC is established as an independent agency, reporting to Parliament through the Minister of Finance, who is responsible for the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its accompanying regulations. The organization is funded through appropriations. The Centre is headquartered in Ottawa and has small regional offices in Montreal, Toronto and Vancouver.

The Director, appointed by the Governor-in-Council, is the Chief Executive Officer of the Centre and has all the powers of a deputy head of a department. The Centre has separate employer status. The Director is required to report to the Minister of Finance from time to time, on the exercise of those powers and the performance of duties authorized under the Act.

FINTRAC's organizational structure was revised in late 2005-06 to support the Centre's evolving program delivery functions and to create a more streamlined, effective and cohesive organization to deliver on the organization's mandate. As a result, the Centre's Program Activity Architecture will be updated in 2006-07 to more accurately reflect FINTRAC's intermediate outcomes and the new accountability structure.

Figure 1 FINTRAC's Current Program Activity Architecture

The Senior Deputy Director, Operations has responsibility for the Financial Intelligence Analysis and Compliance sub-activities as well as defining the user requirements for technology driven collection, analytics, and case management systems.

The Financial Intelligence Analysis sub-activity includes all of FINTRAC's tactical financial intelligence and macro analysis functions for detecting money laundering and terrorist activity financing schemes.

The Compliance sub-activity includes FINTRAC's regional offices and is responsible for implementing the compliance program and undertaking regional outreach to law enforcement and other key partners.

The Deputy Director, Strategies and Partnerships leads the following sub-activities: Domestic and International Relationships and Communications, including Strategic Planning; Agency Management and Corporate Services; Security and Privacy Protection; and Accommodation. The sector carries out corporate management functions including: finance; administration; human resources; communications and security as well as managing relationships with domestic and international partners.

The Deputy Director, Information Management/ Information Technology (IM/IT) is responsible for the Technology Driven Collection, Analytics and Case Management and IT Support and Maintenance sub-activities. This sector develops and applies information management and information technology methodologies that support and advance all of FINTRAC's objectives. It designs, maintains, implements, secures and supports database management systems and systems solutions to meet internal and external end user requirements. In addition, ATIP services are part of IM/IT.

Legal Services are provided to the Centre by the General Counsel and three Senior Legal Counsel, who are employees of the Department of Justice. In addition, FINTRAC provides one FTE toward the administration of this office.

Figure 2 FINTRAC's Organization Chart

Table 1: Agency Planned Spending and Full Time Equivalents

($ millions)	Forecast Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009
Collection, Analysis and Dissemination of Financial Information	18.6	18.9	18.6	18.6
Corporate Support	12.1	12.2	12.1	12.1
Budgetary Main Estimates (gross)	30.7	31.1	30.7	30.7
Less: Respendable revenue
Total Main Estimates	30.7	31.1	30.7	30.7
Adjustments:
Supplementary Estimates:
Operating Budget Carry Forward	1.4
T.B. Submission asset replacement	1.4
Economic Increase	0.9
Budget Announcement:
ERC - Expenditure Review Exercise	(0.4)
ERC - Procurement Savings Exercise (1)	(0.1)	(0.4)
National Initiatives to Combat Money Laundering (2)		18.7	17.3	16.1
Egmont Group Secretariat (Money Laundering) (3)		.3	1.8	1.3
Other
Employee Benefit Plan (EBP)	0.3
Total Adjustments	3.5	18.6	19.1	17.4
Total Planned Spending	34.2	49.7	49.8	48.1
Total Planned Spending	34.2	49.7	49.8	48.1
Plus: Cost of services received without charge	1.2	1.7	1.8	1.8
Net cost of Program	35.4	51.4	51.6	49.9
Full Time Equivalents	180	265.4	271	271

(1) This reflects a reduction to the Centre’s planned spending as a result of Treasury Board Secretariat’s direction to departments for procurement savings in 2006-07.

(2) This reflects an increase to the Centre’s planned spending as a result of a Budget decision to enhance federal capacity in combating money laundering and terrorist financing. A portion of these resources may be deferred to future years as legislative and policy authorities are required prior to the implementation of operational changes.

(3) This reflects an increase to the Centre’s planned spending as a result of a Budget decision to fund the start-up of the Egmont Group Secretariat in Canada.

Table 2: Program Activities ($ millions)

Program Activity	Operating	Net	Total Main Estimates	Adjustments (planned spending not in Main Estimates)	Total Planned Spending
Collection, Analysis and Dissemination of Financial Information	18.9	18.9	18.9	14.7	33.6
Corporate Support*	12.2	12.2	12.2	3.9	16.1
Total	31.1	31.1	31.1	18.6	49.7

* Corporate Support includes: agency management and corporate services, IT support and maintenance, security and privacy protection, as well as all costs associated with FINTRAC's office space and facilities.

Table 3: Voted and Statutory Items listed in Main Estimates

2006-2007 ($ millions)
Vote or Statutory Item	Truncated Vote or Statutory Wording	Current Main Estimates	Previous Main Estimates
30	Program expenditures	28.1	27.7
(S)	Contributions to employee benefit plans	3.0	3.0
	Total Agency	31.1	30.7

Table 4: Services Received Without Charge

($ millions)	2006-2007
Worker's compensation coverage provided by Human Resources and Social Development Canada	1.7
Other
2006-2007 Services received without charge	1.7

Table 5: Summary of Capital Spending by Program Activity

($ millions)	Forecast Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009
Collection, Analysis and Dissemination of Financial Information	2.0	1.2	1.2	1.2
Corporate Support	0.2	0.2	0.2	0.2
Total	2.2	1.4	1.4	1.4

Table 6: Horizontal Initiatives

Over the next three years, FINTRAC will be involved in the following horizontal initiatives as a partner:

2006-07

1. Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) regime (partner)
2. Public Security and Anti-Terrorism (PSAT) Initiative (partner)

2007-08

1. Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) regime (partner)
2. Public Security and Anti-Terrorism (PSAT) Initiative (partner)

2008-09

1. Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) regime (partner)
2. Public Security and Anti-Terrorism (PSAT) Initiative (partner)

For further information on the above-mentioned horizontal initiatives see http://www.tbs-sct.gc.ca/est-pre/estime.asp

Table 7: Internal Audits and Evaluations

Internal Audits and Evaluations
There are currently no scheduled internal audits or evaluations planned to commence during the 2006-07 fiscal year.

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