Canada passes new terrorism law.

Canadian Privacy Commissioner Jennifer Stoddart now has new oversight responsibilities under the recently enacted Proceeds of Crime and Terrorist Financing Act (Bill C-25). Under the new law, the commissioner's office is now required to regularly review the Financial Transactions and Reports Analysis Centre's (FINTRAC) compliance with Canada's Privacy Act.

FINTRAC is Canada's financial intelligence unit, a specialized agency created in July 2000 to collect, analyze, and disclose financial information and intelligence on suspected money laundering and terrorist activities financing.

The Privacy Act grants the privacy commissioner the authority to audit the personal information-handling practices of federal departments and agencies. However, the Proceeds of Crime and Terrorist Financing Act specifically mandates that the privacy commissioner review and report to Parliament on FINTRAC's activities every two years. The Commissioner's Office had plans underway to conduct an audit of FINTRAC in 2007-08, pursuant to its authority under the Privacy Act, prior to the passage of the new terrorism law.

"We understand the need to address suspected money laundering and terrorist financing activities, but we do have concerns about the potential impact on privacy rights resulting from an increase in the amount of personal information collected and disclosed by FINTRAC," Stoddart said. "In light of this, I am pleased to see that we will have increased oversight over these activities."

As a result of the passage of the new terror Bill C-25, the number of organizations required to monitor and collect information about their clients and customers will increase, the amount of personal information being collected will expand, and more transactions will be subject to scrutiny and reporting. FINTRAC also will be able to share more information with more organizations.