Dept of Finance Consultation – Anti-Money Laundering & Anti-Terrorist Financing

The Consultation

The Department of Finance’s consultation on Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) Regime is open until August 1, 2023.

The Consultation Paper

While the consultation paper is very long, there is one question specifically tailored to the non-profit sector. In Chapter 6 – Information Sharing, section 6.2 – Public-to-Private Information Sharing, the consultation paper asks for feedback on Non-Profit Sector Outreach.

The paper comments that Canada’s non-profit sector “plays a key role in our society and provides valuable services to Canadians.” At the same time, “some of the features” of the sector – raising funds, disbursing funds, providing international aid, working amidst natural disasters and conflict – “can also be exploited by bad actors for illegitimate purposes.”

As such, Finance wants to create an effective means of communication between itself, CRA and the sector to ensure that charities understand risks of money laundering and terrorist financing, and to receive feedback.

The Question

The key question is:

How could the government improve outreach and engagement with the non-profit sector on AML/ATF matters?

The Examples

One example in the paper is “developing a new forum” for non=profits, Finance, CRA and financial institutions to “engage on strategic issues.” The paper points to international examples:

• UK Tri-Sector Working Group: “a platform for dialogue aimed at addressing the challenges of delivering aid in high-risk contexts” (see UK House of Commons International Development Committee Report at p7); it includes NGOs, banks, government departments and regulators
• United States: Treasury Department and non-profit sector working group; Treasury’s private sector outreach seeks to “identify terrorist financing risks, clarify obligations and best practices, facilitate compliance with US law, and help promote charitable giving while reducing the threats of terrorist abuse”
• New Zealand Charities Sector Group: “discuss priorities, issues and perspectives, with the aim of strengthening the collective understanding of the charitable sector and Charities Services’ work”

The Deadline

The consultation closes on August 1, 2023.

To submit your feedback, you can email fcs-scf@fin.gc.ca with “Consultation Submission” as the subject line, or you can mail to:

The Existing Consultation Mechanisms

The two main existing consultation mechanism for CRA are:

1.Technical Issues Working Group (TIWG)

The Technical Issues Working Group…

…provides a forum to discuss trends and technical issues in the charitable sector, to explore workable solutions, and expand the directorate’s understanding of the sector.

The TIWG includes CRA, Department of Finance and members with charitable sector experience (umbrella organizations lawyers, accountants, registered charities).

CCCC is a member of the current TIWG.

2. Advisory Committee on the Charitable Sector (ACCS)

The ACCS…

…is a consultative forum for the Government of Canada to engage in meaningful dialogue with the charitable sector, to advance emerging issues relating to charities, and to ensure the regulatory environment supports the important work that charities do.

The ACCS includes CRA, Department of Finance and up to 17 members with experience in the charitable sector (umbrella organizations, professional associations, academics, lawyers, registered charities).