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Proceedings of the Standing Senate Committee on
Banking, Trade and Commerce

Issue 12 - Minutes of Proceedings


OTTAWA, Wednesday, December 6, 2006
(25)

[English]

The Standing Senate Committee on Banking, Trade and Commerce met at 4:03 p.m., this day, in room 160-S, Centre Block Building, the Chair, the Honourable Jerahmiel S. Grafstein, presiding.

Members of the committee present: The Honourable Senators Angus, Biron, Fitzpatrick, Goldstein, Grafstein, Massicotte, Meighen, Moore and Tkachuk (9).

In attendance: June Dewetering and Sheena Starky, Research Officers, Library of Parliament.

Also in attendance: The official reporters of the Senate.

Pursuant to the Order of Reference adopted by the Senate on November 28, 2006, the committee began its study of Bill C-25, to amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Income Tax Act and to make a consequential amendment to another act.

APPEARING:

The Honourable James Michael Flaherty, P.C., M.P., Minister of Finance.

WITNESSES:

Department of Finance Canada:

Serge Dupont, Assistant Deputy Minister;

Diane Lafleur, Director;

Lynn Hemmings, Chief, Financial Sector Division.

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC):

Glynnis French, Deputy Director, Strategies and Partnerships;

Yvon Carrière, Senior Counsel;

James Butcher, Assistant Director, Regional Operations and Compliance.

Office of the Superintendant of Financial Institutions Canada:

Nicolas Burbidge, Senior Director;

Keith Martin, Director.

At 4:04 p.m., Minister Flaherty made a statement and, together with the other witnesses, answered questions.

At 5:30 p.m., Ms. French and Mr. Burbidge each made a statement and, together with the other witnesses, answered questions.

At 6:10 p.m., the committee adjourned to the call of the Chair.

ATTEST:


OTTAWA, Thursday, December 7, 2006
(26)

[English]

The Standing Senate Committee on Banking, Trade and Commerce met at 10:50 a.m., this day, in room 505, Victoria Building, the Chair, the Honourable Jerahmiel S. Grafstein, presiding.

Members of the committee present: The Honourable Senators Angus, Biron, Eyton, Fitzpatrick, Goldstein, Grafstein, Massicotte, Meighen, Moore and Tkachuk (10).

In attendance: June Dewetering and Sheena Starky, Research Officers, Library of Parliament.

Also in attendance: The official reporters of the Senate.

Pursuant to the Order of Reference adopted by the Senate on November 28, 2006, the committee continued its study of Bill C-25, to amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Income Tax Act and to make a consequential amendment to another Act.

WITNESSES:

Royal Canadian Mounted Police:

Raf Souccar, Assistant Commissioner, Federal and International Operations;

Denis Constant, Chief Superintendent, Director General, Financial Crime;

Richard Reynolds, Director, National Security Operations Branch.

Canadian Bar Association:

Simon Potter, Past President;

Tamra Thomson, Director, Legislation and Law Reform.

Federation of Law Societies of Canada:

Kenneth G. Nielsen, Q.C., Chair, Committee on Anti-Money Laundering;

Jim Varro, Policy Counsel.

Canadian Life and Health Insurance Association:

Jean-Pierre Bernier, Vice President and General Counsel.

At 10:50 a.m., Mr. Souccar made a statement and, together with the other witnesses, answered questions.

At 12:25 p.m., Mr. Nielsen and Mr. Potter each made a statement and, together with the other witnesses, answered questions.

At 1:00 p.m., Mr. Bernier made a statement and answered questions.

At 1:10 p.m., the committee adjourned to the call of the Chair.

ATTEST:


OTTAWA, Wednesday, December 13, 2006
(27)

[English]

The Standing Senate Committee on Banking, Trade and Commerce met at 4:10 p.m., this day, in room 9, Victoria Building, the Chair, the Honourable Jerahmiel S. Grafstein, presiding.

Members of the committee present: The Honourable Senators Angus, Biron, Eyton, Goldstein, Grafstein, Harb, Hervieux-Payette, P.C., Massicotte and Tkachuk (9).

Also present: The Honourable Senators Nolin and Day (2).

In attendance: June Dewetering and Sheena Starky, Research Officers, Library of Parliament.

Also in attendance: The official reporters of the Senate.

Pursuant to the Order of Reference adopted by the Senate on November 28, 2006, the committee continued its study of Bill C-25, to amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the Income Tax Act and to make a consequential amendment to another Act.

WITNESSES:

Certified General Accountants Association of Canada:

Everett Colby, Chair, CGA-Canada Tax and Fiscal Policy Committee.

Credit Union Central of Canada:

Gary Rogers, Vice President, Financial Policy.

Office of the Privacy Commissioner of Canada:

Jennifer Stoddart, Commissioner;

Hedy Kirkby, Legal Counsel;

Carman Baggaley, Senior Policy Analyst.

At 4:10 p.m., Mr. Colby made a statement and answered questions.

At 4:30 p.m., Mr. Rogers made a statement and answered questions.

At 4:55 p.m., Ms. Stoddart made a statement and, together with the other witnesses, answered questions.

At 5:45 p.m., it was agreed that the committee proceed to clause-by-clause consideration of Bill C-25.

It was agreed to group the clauses.

It was agreed that the title stand postponed.

It was agreed that clause 1 to 9 carry.

It was agreed that clause 10 to 20 carry.

It was agreed that clause 21 to 30 carry.

It was agreed that clause 31 to 39 carry.

It was agreed that clause 40 to 47 carry.

It was agreed that the title carry.

Is was agreed that Bill C-25 be adopted without amendment but with the following observation:

"While the Committee is reporting Bill C-25 without amendment, we wish to observe that certain recommendations contained in our October 2006 report, entitled Stemming the Flow of Illicit Money: A Priority for Canada, have not been implemented in Bill C-25. In doing so, we note that Commissioner Dennis O'Connor — in his 12 December 2006 report, the O'Connor Commission Report on Policy Review — concluded that the federal government should extend independent review to the national security activities of a number of entities, including the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). He further concluded that the Security and Intelligence Review Committee (SIRC) is ``the most appropriate body to review the national security activities'' of the entities identified by him. The Committee wishes to highlight recommendation 14 in our October 2006 report, which suggests periodic review of the operations of the FINTRAC by the SIRC. The Committee will continue to monitor the full range of issues related to money laundering and terrorist financing in 2007 as we continue our work on statutory review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.''

Is was agreed that the Chair report Bill C-25 without amendment to the Senate.

At 5:50 p.m., the committee adjourned to the call of the Chair.

ATTEST:

Line Gravel

Clerk of the Committee


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