Canada’s Financial System Still Vulnerable to Money Laundering and Terrorist Financing, Experts Warn

A trillion-dollar global challenge persists as money laundering and terrorist financing continue to plague financial systems worldwide. Despite efforts by the financial services industry to adapt and evolve, Canada remains vulnerable to increasingly sophisticated methods employed by criminals.

The Consequences of Vulnerability

• Unaffordable housing
• Surge in criminal activity
• Growth of political and religious extremism

The vulnerability of Canada’s financial system is not just a concern for regulatory agencies but has far-reaching consequences that affect the entire nation. It is essential to address this issue through innovation, cooperation, and strengthened laws and regulations.

The Need for Innovation and Cooperation

Regulatory agencies have been working to refine legislative frameworks aimed at combating financial crimes. However, more is needed from both public and private sector players. This requires:

• Strengthened laws and regulations
• Development of collaborative operating models
• Governance structures that incorporate emerging technologies such as:
  • Artificial intelligence
  • Privacy-enhancing techniques

A Shift in Approach Required

The shift from a compliance-oriented approach to an enforcement mindset is crucial in effectively addressing money laundering and terrorist financing. To this end, Deloitte plans to launch a series of forums for leaders to discuss the way forward.

Join the Conversation

We urge all interested parties to take action and join the conversation. For an in-depth look at anti-money laundering and terrorist financing efforts in Canada, read on to explore the challenges facing the country’s financial system and the steps being taken to combat these threats.