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'The investigation, prosecution and suppression of crime for the protection of the citizens and the maintenance of peace and public order is an important goal of all organised societies. The pursuit of that goal cannot realistically be confined within national boundaries. This has long been the case, but it is increasingly evident today. Modern communications have shrunk the world and made McLuhan's global village a reality. The only respect paid by the international criminal community to national boundaries is when these serve as a means to frustrate the efforts of law enforcement and judicial authorities.'1
INTRODUCTION
In this paper familiarity is assumed with Canada's money laundering and proceeds of crime provisions.2 It has to be understood that, in 1991, Canada enacted the Proceeds of Crime (Money Laundering) Act.3 In 2000 Canada enacted and, as a result of concerns flowing from events after 11th September, 2001, quickly amended the new Proceeds of Crime (Money Laundering) and Terrorist Financing Act (hereinafter referred to as the PC(ML)TF Act).4
The PC(ML)TF Act continues pre-existing requirements for customer identification, record keeping and retention obligations. It adds new suspicious or prescribed transaction and cross border currency and monetary instrument reporting obligations. These reports are sent to a new Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). FINTRAC, the new financial transaction analysis authority, or to borrow an international concept, Canada's Financial Intelligence Unit (FIU),5 is given a compliance and financial intelligence function. The PC(ML)TF Act establishes specific offences and a robust compliance provision.
The object of the PC(ML)TF Act illustrates Parliament's purpose for the expanded PC(ML)TF Act scheme. The Act's purpose is found in s. 3, which states:
'3. The object of this Act is
(a) to implement specific measures to detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of money laundering offences and terrorist activity financing offences, including
(i) establishing record keeping and client identification requirements for financial services providers and other persons or entities that engage in businesses, professions or activities that are susceptible to being used for money laundering or the financing of terrorist activities,
(ii) requiring the reporting of suspicious financial transactions and of cross-border movements of currency and monetary instruments, and
(iii) establishing an...