FINA Committee Report

Supplementary Report of the Liberal Party of Canada

Terrorist financing is an important issue of national security. The government’s response to the threat of terrorism involves methods that merit both secrecy and responsible oversight. Unfortunately, this study into terrorist financing was constrained by the complete inability of the House of Common’s Standing Committee on Finance to access classified information, as well as insufficient subject matter expertise among Committee members in the area of national security. As a result, this study only scratches the surface.

Insufficient information and oversight

Canadians want their government to take a balanced approach that protects both public security and civil liberties. They understand that without collective security, the individual freedoms we cherish as Canadians cannot exist. At the same time, Canadians expect that the government will put in place safeguards to ensure that new powers to protect us are not abused.

Recent legislation pertaining to terrorist financing has expanded the government’s ability to share personal information across departments and agencies. The Committee heard concerns about the government’s treatment of this information as well as the need for greater oversight to protect the privacy rights of Canadians.

The Committee also heard about a lack of available information on Canada’s anti-terrorist financing regime, and a resulting inability to determine whether the regime is even meeting its objectives or not. For example, insufficient material was available on how FINTRAC analyzes financial intelligence and interacts with our national security agencies. More broadly, the Committee heard about the need for greater oversight of these security agencies.

It was clear throughout this study that the Parliament of Canada requires a national security committee comprised of members who have sufficient security clearance to access classified materials. Only then can Parliament provide the requisite oversight of our national security agencies. Such a committee could also conduct a proper study into terrorist financing.

Recommendations:

1. That a national security oversight committee comprised of parliamentarians be established, similar to the oversight committees of our allies in the Five Eyes alliance, to provide regular, ongoing oversight of our national security agencies.
2. That the Privacy Commissioner of Canada be asked to provide an annual public report on information sharing between departments and agencies.

Insufficient resources

The Committee heard that the investigation and disruption of terrorist financing activities is a key component of Canada’s response to the threat of terrorism. CSIS, the CBSA, the RCMP and the CRA – with the support of FINTRAC intelligence – all play an important role in this regard. However, the Committee also heard that the government’s ability to conduct such investigations and prosecute terrorist financing offences is being compromised by a lack of resources.

Of particular concern is the issue of insufficient resources and training at the RCMP. In June 2011, the Auditor General was already warning Canadians that the RCMP was “straining to deliver national police services” with its existing resources. Since then, the RCMP’s budget has been cut by 11.5 percent, adjusting for inflation, and is projected to be cut by a further 14.3 percent over the next four years. CRA faces similar cuts. In fact, most of the departments and agencies responsible for investigating and disrupting terrorist financing activities are being cut.

Departmental funding, adjusted for inflation
(100 = departmental funding in 2012-13)

Source: calculations using the Public Accounts, Departmental Performance Reports, Reports on Plans and Priorities, Supplementary Estimates, and CANSIM Table 326-0020

Recommendation:          

3. That the federal government reverse recent budgetary cuts that diminish the government’s ability to investigate and prosecute terrorist financing offences.