Canada’s Battle Against Money Laundering and Financial Crimes: A New Strategy (2023-2026)

Canada has announced a new strategy to strengthen its anti-money laundering (AML) and anti-terrorist financing (ATF) regime. The strategy, which covers the period 2023-2026, is designed to enhance Canada’s ability to detect, prevent, and respond to money laundering and terrorist financing activities.

Key Objectives

The Department of Finance Canada outlined several key objectives of the new strategy:

Enhanced regulatory frameworks: Establish a centralized AML/ATF registry for financial entities, implement new measures to improve customer due diligence, and increase cooperation and information sharing between law enforcement agencies, financial institutions, and regulatory bodies.
Better coordination among stakeholders: Increase engagement with stakeholders, including financial institutions, the private sector, and civil society, to promote best practices and awareness around AML/ATF compliance.
Advanced technology solutions: Boost investments in technology tools, such as artificial intelligence (AI), machine learning (ML), and data analytics, to support enhanced risk assessments and real-time transaction monitoring.

Centralized Registry and Improved Customer Due Diligence

Under the new strategy, Canada plans to:

Create a centralized AML/ATF registry for financial entities
Implement new measures to improve customer due diligence

The strategy emphasizes the importance of cooperation and information sharing among law enforcement agencies, financial institutions, and regulatory bodies:

Enhance information sharing to facilitate effective responses to money laundering and terrorist financing

Advanced Technology Solutions

To prevent financial crimes, the Department of Finance aims to:

Boost investments in technology tools, such as AI, ML, and data analytics, to support enhanced risk assessments and real-time transaction monitoring

Engaging Stakeholders

As part of the new strategy, the authorities will:

Engage stakeholders, including financial institutions, the private sector, and civil society, to create awareness and promote best practices around AML/ATF compliance

Global Leader in AML and ATF Efforts

With the new strategy in place, Canada hopes to:

Eliminate ‘safe harbors’ for illicit activities
Uphold international obligations
Ensure that its financial system remains resilient to the threats of money laundering and terrorist financing

The new strategy represents a significant step forward for Canada as it strives to maintain the integrity and stability of its financial system. This commitment will contribute essential elements to Canada’s role in the global fight against financial crimes, keeping illicit activities out of the country’s financial sector.