Financial Crime World

Canada’s Leadership in Global Efforts to Combat Money Laundering and Terrorist Financing

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Canada has taken a leading role in global efforts to combat money laundering and terrorist financing, reinforcing its domestic AML/ATF efforts through partnerships with international organizations and jurisdictions. As a founding member of the Financial Action Task Force (FATF), Canada plays a crucial role in setting international standards to prevent money laundering, terrorist financing, and the proliferation of weapons of mass destruction.

Partnerships with International Organizations

Canada’s partnership with FATF-Style Regional Bodies (FSRBs) allows it to monitor, influence, and support AML/ATF activities in regions of strategic interest. As Co-Chair of the Asia/Pacific Group on Money Laundering from July 2022 to July 2024, Canada is working closely with other member countries to implement FATF standards.

  • The Egmont Group of Financial Intelligence Units (FIUs) brings together FIUs from over 160 jurisdictions to enhance cooperation and information exchange in support of AML/ATF regimes.
  • Canada’s membership in the Egmont Group enables it to share intelligence and expertise with its international partners.

National Security and Public Safety Framework

Canada’s AML/ATF efforts are integrated into its broader national security and public safety framework, which addresses a range of threats, including:

  • Hostile activities by state actors
  • Cyber security
  • Space and emerging technologies
  • Countering violent extremism and terrorism
  • Border security
  • Environmental and health security
  • Organized crime

Money Laundering and Terrorist Financing Threats

Canada’s money laundering and terrorist financing threat environment is dynamic and constantly evolving, with new methods emerging over time. To stay ahead of these developments, the Regime conducts assessments and publishes strategic intelligence reports to promote awareness among reporting entities and the public regarding emerging risks.

  • Recent assessments have demonstrated a broad range of profit-oriented crime conducted by various threat actors in Canada, generating billions of dollars of illegal proceeds annually that could be laundered.
  • The terrorism threat landscape is complex, continuously evolving, diverse, and connected to larger geopolitical developments.

National Inherent Risk Assessment

The National Inherent Risk Assessment (NIRA) is the Regime’s primary tool for understanding ongoing money laundering and terrorist financing trends and methods. Conducted by a whole-of-government initiative, NIRA assesses inherent risks faced by key sectors and products within the Canadian economy, informs new policy responses, and provides risk information to industry.

  • The 2023 NIRA assessed the money laundering threat posed by 22 profit-oriented crimes and third-party money launderers, finding that transnational organized crime groups and professional money launderers remain the key money laundering threat actors in Canada.