Financial Crime World

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Canada’s Fight Against Money Laundering and Terrorist Financing: A Collaborative Effort

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Toronto, Canada - In a bid to strengthen its defenses against money laundering and terrorist financing, Canada has established the Anti-Money Laundering and Terrorist Financing (ACMLTF) regime, co-chaired by the Department of Finance Canada and private sector member Scotiabank. The initiative brings together representatives from all reporting entity sectors, regulatory bodies, and international partners to share knowledge, expertise, and best practices in combating these threats.

A Proactive Approach

The ACMLTF meets bi-monthly to provide a platform for stakeholders to contribute to the development of legislation, regulations, guidance, and policy interpretations. For instance:

  • Industry contacts were consulted during the development of regulatory amendments to ensure that requirements did not impose undue administrative burdens on the private sector while remaining consistent with government policy.
  • The Guidance and Policy Interpretation Working Group consults with reporting entities on new and revised guidance related to regulatory amendments published in 2019.

Enhancing Governance

Canada’s governance structure, now co-led by the Department of Finance Canada and Public Safety Canada, supports inter-departmental and private sector engagement on various initiatives. Work is underway to:

  • Improve strategic planning and priority-setting to align efforts more effectively.
  • Develop a clear national strategic vision via a revised Charter and Strategy.

Prevention and Detection

The second pillar of Canada’s anti-money laundering and terrorist financing regime focuses on prevention and detection. Reporting entities implement various customer due diligence measures to prevent illicit activities, while FINTRAC generates actionable intelligence for law enforcement agencies through its risk-based compliance program.

FINTRAC provides guidance to businesses to help them comply with their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The agency also undertakes outreach and engagement activities to raise awareness among reporting entities about their ML/TF risks and obligations.

Compliance Facilitated, Non-Compliance Detected

FINTRAC’s risk-based compliance program ensures that Canadian businesses fulfill their requirements under the PCMLTFA. Effective reporting entity compliance provides FINTRAC with information used to generate actionable financial intelligence for law enforcement agencies.

The agency’s Compliance Framework provides guidance to businesses on how to comply with their obligations under the PCMLTFA. FINTRAC also undertakes outreach and engagement activities, such as:

  • Working groups
  • Conferences
  • Training sessions

In 2019-20, FINTRAC finalized a new five-year Compliance Engagement Strategy, which prioritized engagement activities in the real estate, casino, and money services business sectors. The agency’s efforts have resulted in increased awareness among reporting entities and improved compliance with PCMLTFA requirements.

By fostering collaboration between government agencies, private sector players, and international partners, Canada is better equipped to combat money laundering and terrorist financing threats, ultimately protecting its financial system and national security.