FinTRAC reviewing allegations of two men sharing another employee’s personal information

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Canada’s anti-money-laundering watchdog has put two officials, including a senior intelligence officer, on indefinite leave during a continuing human-resources review of the men.

Barry MacKillop, Financial Transactions and Reports Analysis Centre of Canada’s deputy director of intelligence, and Daniel Lambert, assistant director of modernization, integration and targeted trends analysis, were escorted out of the watchdog’s Ottawa office by security last month, according to four people familiar with the matter.

The two men were put on leave on or around Feb. 15 and had their work devices confiscated by FinTRAC officials, three of the sources said.

FinTRAC is looking into allegations that the two men shared another employee’s personal information, according to two of the individuals. The sources did not disclose the nature of the personal information.

The Globe and Mail is not identifying the sources because they are not authorized to speak publicly about the matter.

Mr. MacKillop and Mr. Lambert could not be reached for comment.

FinTRAC in a statement declined to comment on the status of the two men.

“Given the right to privacy of the individual(s) involved, FinTRAC cannot provide any details, at this stage, in relation to this employment issue, including the actions that it has taken in this matter,” the watchdog said.

It is already a challenging time for FinTRAC, which has a mandate to detect, prevent and deter money laundering and terrorist financing. The federal financial intelligence unit is grappling with the fallout from a recent cyberattack that has left some businesses unable to submit financial reporting for weeks.

FinTRAC said in a subsequent statement that the personnel issues and the security breach are unrelated matters. Further, according to one of the sources, the human-resource issue is not a national security breach.

When asked what impact, if any, Mr. MacKillop and Mr. Lambert’s leaves have on FinTRAC’s operations, the watchdog’s initial statement says it “remains fully operational as it relates to supporting the money laundering and terrorist financing investigations of Canada’s law enforcement and national security agencies.”

As the deputy director of intelligence, Mr. MacKillop was responsible for tactical, as well as targeted strategic financial intelligence, according to his LinkedIn profile. His intelligence work touched on various aspects of financial crime, including human trafficking, child exploitation and the illegal wildlife trade. He has previously held various positions at Public Safety Canada.

Mr. Lambert functioned as Mr. MacKillop’s deputy at FinTRAC. He also worked at Public Safety Canada, where he served as chief of counterterrorism policy, according to his LinkedIn profile.

Although Mr. MacKillop’s government voice mail states that he is out of the office and directs callers to contact another colleague at FinTRAC, Mr. Lambert’s message provides no indication that he is away from work.

FinTRAC, meanwhile, is sharpening its focus on enforcement, as Canada prepares for a coming evaluation by the Financial Action Task Force, a global body that sets standards to combat financial crime.

Canada is currently serving a two-year term as vice-president of the organization and is also co-chair of a related body known as the Asia-Pacific Group on Money Laundering.

The federal government is in the process of updating FinTRAC’s governing legislation, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

A government consultation on strengthening Canada’s anti-money-laundering and anti-terrorist financing regime wrapped up last August, and financial-crime experts are eager for an update about the government’s plans for legislative reform.

Some are urging Finance Minister Chrystia Freeland to provide those details when she unveils the federal budget on April 16.