Financial Crime World

Canada’s Financial Intelligence Unit Warns of Growing Threat of Terrorist Financing

Warning Issued by FINTRAC

OTTAWA, December 15, 2022 - The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has issued a new Operational Alert, warning businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act of potential terrorist activity financing activities.

Findings from FINTRAC’s Analysis

According to FINTRAC’s analysis of financial intelligence disclosures from 2019 to 2022:

  • The majority of terrorist activity financing with a Canadian nexus is focused on domestic terrorism, including ideologically motivated violent extremism.
    • Lone actors, cross-border networks, and organized groups are involved in these activities, often using entities listed under the Criminal Code.
  • The centre found that outgoing funds transfers to jurisdictions of concern for terrorist activity financing are a primary means of transferring money.
    • Daesh and Hizballah were identified as the most frequently recognized international terrorist entities.

Indicators for Identifying Suspicious Transactions

FINTRAC’s new Operational Alert provides businesses with indicators to help identify suspicious transactions related to terrorist activity financing. These include:

  • Assessing these indicators in combination with knowledge of clients and other factors surrounding transactions.
  • Determining if there are reasonable grounds to suspect that a transaction is linked to the commission or attempted commission of a terrorist activity financing offence.

Commitment to Combating Terrorist Financing

“We are committed to working with our federal partners, law enforcement across the country, Canadian businesses, and international allies to combat the financing of terrorist activities here in Canada and around the world,” said a FINTRAC spokesperson. “As the threat from terrorism continues to evolve, it is more important than ever that we follow the money to effectively target these heinous crimes and keep Canadians safe.”

Financial Intelligence Disclosures

FINTRAC generates actionable financial intelligence for Canada’s police, law enforcement, and national security agencies through the reporting received from businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. In 2021-22, the centre provided:

  • Over 2,292 financial intelligence disclosures in support of investigations related to money laundering, terrorist activity financing, and threats to Canada’s security.
  • Contributions to 335 major investigations and hundreds of individual investigations across the country.

Resources and Guidance

The centre’s latest Operational Alert is available on its website, along with other resources and guidance for businesses and law enforcement agencies.