Canada New FINTRAC rules help stop extortion by tracking money

Canada is fighting extortion. New rules will help banks find criminal money, making it harder for criminals to get paid.
By Newsroom | Crime, Government |

Rising Extortion Threats Prompt Federal Action

Recent reports highlight a growing concern over extortion crimes, particularly targeting businesses in Canadian communities. Federal officials, in response to appeals from local leaders and police, are launching a new strategy aimed at disrupting these criminal activities. The move comes as residents and business owners express increasing unease due to threats that often involve demands for payment under the shadow of violence.

Details of the Federal Response

The federal government has announced a series of measures designed to combat extortion. A key component involves enhancing the capabilities of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

  • FINTRAC will focus its financial intelligence resources on tackling extortion.

  • This effort includes increasing resources and tools to aid in financial crime investigations.

  • A new partnership is being established between FINTRAC and financial institutions, such as banks, credit unions, and cryptocurrency service providers.

  • This partnership aims to improve information sharing and provide guidance on identifying extortion-related transactions.

Focus on Financial Intelligence and Guidance

The strategy emphasizes a "follow the money" approach, aiming to disrupt the financial operations of criminal groups.

'Enough is enough': Canadian intelligence experts to focus on extortion crime, federal minister says - 1

  • FINTRAC will share intelligence on how criminals launder money obtained through extortion.

  • Specialized financial intelligence officers will be deployed to provide expertise, strengthen information sharing, and ensure intelligence supports enforcement actions.

  • FINTRAC will issue a Targeted Indicator Profile (TIP) to financial institutions.

  • This TIP will offer practical advice on recognizing patterns and behaviors commonly linked to extortion.

Local Impact and Concerns

The increased focus on extortion follows specific concerns raised by communities, particularly in the Peel Region of Ontario.

  • According to Peel Regional Police, 476 extortion crimes were reported in the region in the past year.

  • Mayors of Brampton and Caledon have publicly requested federal assistance in developing a strategy to address rising extortion threats against businesses, with a particular mention of businesses owned by members of the South Asian community.

  • Victims typically receive threats of violence if ransom demands are not met, often accompanied by indications that the perpetrators know the victims' personal details, such as where they live or work.

Expert Analysis

While the specifics of the "Targeted Indicator Profile" (TIP) remain to be detailed, its intent is to equip financial institutions with better tools to identify suspicious transactions. The emphasis on FINTRAC and information sharing signals a strategic shift towards disrupting criminal proceeds, which can be a critical step in dismantling organized crime. The involvement of financial institutions, including those dealing with cryptocurrency, reflects the evolving nature of financial crime.

Read More: New Epstein Files Show Interest in Toxic 'Zombie' Plants That Can Block Free Will

Conclusion and Next Steps

The federal government's announcement represents a concerted effort to address the escalating issue of extortion. By bolstering FINTRAC's capacity and fostering collaboration with the financial sector, the aim is to make it more difficult for criminals to operate and profit from these predatory tactics. The success of this strategy will likely depend on the effectiveness of the information sharing mechanisms and the practical application of the guidance provided to financial institutions. Continued monitoring of extortion crime statistics in affected regions will be crucial to assessing the impact of these new measures.

Sources Used:

Frequently Asked Questions

Q: What is Canada doing about extortion crimes?
The government is using a new plan to stop extortion. This plan focuses on tracking the money criminals get from these crimes. It will help police catch them.
Q: How will FINTRAC help stop extortion?
FINTRAC, which tracks money, will get more help and tools. It will work with banks and crypto companies to find money from extortion. This helps police investigate better.
Q: What are the new rules for banks and crypto companies?
Banks and crypto companies will work with FINTRAC. They will get guidance on how to spot money used in extortion. This helps them report suspicious activity faster.
Q: Why is the government focusing on tracking money?
Criminals often use money to fund their activities. By tracking where the money goes, police can stop them from getting paid and break up their groups. This is called a 'follow the money' strategy.
Q: How many extortion crimes happened in Peel Region?
In the last year, Peel Regional Police reported 476 extortion crimes. This shows why the government needs to take action to protect people and businesses.
Q: What kind of threats do extortion criminals make?
Criminals often threaten people with violence if they don't pay money. They sometimes show they know personal details about the victims, like where they live or work, to scare them.