Financial Crime World

Canada Enhances Efforts Against Money Laundering and Terrorist Financing

The Canadian government has strengthened its measures to prevent, detect, and disrupt money laundering and terrorist financing activities through ongoing monitoring of transactions and enhanced customer due diligence (CDD) measures.

Strengthened Measures Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Under the PCMLTFA, financial institutions and other reporting entities are required to submit information to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). This information is analyzed by FINTRAC and shared with international partners to support investigations and prosecutions.

  • The PCMLTFA also establishes an information sharing regime that allows for the dissemination of intelligence to domestic and international law enforcement agencies, as well as the public.
  • This includes trends and typologies reports on money laundering and terrorist financing issues.

Comprehensive Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) Regime

In addition to the PCMLTFA, other statutes contribute to a comprehensive AML/ATF regime in Canada. For example:

  • The Income Tax Act requires trusts to register with the Canada Revenue Agency (CRA).
  • The Canadian Business Corporations Act sets out beneficial ownership transparency requirements for federally incorporated companies.

Effective Coordination of AML/ATF Efforts

To ensure effective coordination of AML/ATF efforts, various inter-departmental committees have been established, involving senior officials from each organization. The Advisory Committee on Money Laundering and Terrorist Financing (ACMLTF) also provides a public-private forum to discuss emerging issues and overall AML/ATF policy.

International Cooperation

Canada’s cooperation with international partners is crucial in combating money laundering and terrorist financing. FINTRAC shares information with other financial intelligence units from partner countries, while Justice Canada leads mutual legal assistance efforts.

  • The government has committed to creating a publicly accessible beneficial ownership registry of federally incorporated businesses by 2023.
  • FINTRAC’s annual case disclosures show that the agency made over 2,000 disclosures to Regime partners in 2019-20, with 1,582 associated with money laundering and 296 related to terrorist activity financing.

International Leadership

The Canadian government has played a leading role in international efforts against money laundering and terrorist financing through its membership in organizations such as the Financial Action Task Force (FATF) and the Egmont Group of Financial Intelligence Units.

“We are committed to protecting Canada’s financial system from money laundering and terrorist financing,” said a government spokesperson. “Our ongoing monitoring of transactions and enhanced CDD measures will help prevent and detect these illicit activities, and our cooperation with international partners will ensure that we are working together to address these global threats.”