## Framework Administered Account for Selected Fund Activities: Government of Canada Subaccount

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### Background and purpose
- In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for Selected Fund Activities (the “SFA Instrument”).
- This paper requests Executive Board approval to establish the Government of Canada Subaccount for Selected Fund Activities (the “Subaccount”) under the terms of the SFA Instrument.
- The Fund, represented by the Managing Director, and the Government of Canada (“Canada”) have reached understandings to finance capacity building, training and related activities. The Managing Director has established the essential terms and conditions of the Subaccount, with which Canada concurs.

### Scope of activities to be financed
- The Subaccount resources will be used to finance projects that seek to enhance the capacity of Fund members to formulate and implement policies in the macroeconomic, fiscal, monetary, financial and related statistical fields.
- Eligible activities include training programs and projects that strengthen the legal and administrative framework in these core areas.

### Terms and conditions (essential)
- Resources of the Subaccount shall consist of amounts contributed to the Subaccount by Canada and earnings that accrue as a result of investment of these amounts (net of any costs associated with such investments).
- Canada and the Fund shall reach understandings upon operational features related to the activities to be financed from the Subaccount, consistent with the SFA Instrument and with the understandings that have been reached between Canada and the Fund.
- Resources will be placed in the Subaccount by Canada on the basis of Letters of Understandings signed between Canada and the Fund relating to specific activities to be undertaken.
- The Subaccount will permit Canada to transfer resources from the Subaccount to any subaccount under the SFA Instrument.
- To help defray the expenses incurred by the Fund in the management of the Subaccount, reimbursement equal to 7 percent of the expenses financed by the Subaccount will be paid to the Fund from the Subaccount.

### Governance and implementation
- The Fund is represented by the Managing Director in reaching and implementing understandings with Canada on the nature, design, and implementation of activities and the method by which costs will be financed from the Subaccount.
- The essential terms and conditions of the Subaccount are consistent with the terms and conditions of the SFA Instrument, and the activities to be financed are consistent with the purposes of the Fund.
- It is proposed that the Executive Board approve the establishment of the Subaccount.

### Inventory of Subaccounts under the SFA Instrument (attachment highlights)
- The Attachment lists 31 Subaccounts established under the Framework Administered Account for Selected Fund Activities, including regional technical assistance centers, country subaccounts, topical trust funds, and partnerships with multilateral institutions.
- Examples include: “Central America, Panama, and the Dominican Republic Technical Assistance Center (CAPTAC-DR) Subaccount”; “Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Subaccount”; “East Africa Regional Technical Assistance Center (AFRITAC East) Subaccount”; “United States Subaccount for Selected Fund Activities”; “Japan Subaccount for Selected Fund Activities”; “World Bank Subaccount for Selected Fund Activities”; and “Republic of South Sudan Macroeconomic Capacity Building Subaccount”.

*Source: Prepared by the Legal and Finance Departments, and the Office of Technical Assistance Management; Approved by Sean Hagan, Andrew Tweedie, and J.R. Rosales; March 13, 2012.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2012/_031312a.pdf_