Global Nature of Money Laundering and Terrorist Financing Threats Requires Coordinated International Response

Canada plays a leading role in combating global money laundering and terrorist financing threats by working closely with international organizations, allies, and partners to prevent, detect, and deter these illegal activities.

Collaboration Through International Partnerships

Through its strong network of international relationships, Canada works to identify global trends, share information, and develop best practices to counter money laundering and terrorist financing. This collaboration reinforces and strengthens Canada’s domestic efforts to combat these threats.

Key International Partnerships

Canada is a member of several key international organizations, including:

• Financial Action Task Force (FATF): sets international standards to prevent money laundering, terrorist financing, and the proliferation of weapons of mass destruction.
• Egmont Group: a cooperative effort between G7 countries to share information on money laundering and terrorist financing.
• European Union’s Financial Intelligence Unit (FIU): works to combat money laundering and terrorist financing through information sharing and coordination.

National Security Context

Canada’s national security framework prioritizes protecting the safety and security of Canadians at home and abroad. AML/ATF measures are integrated into this framework to prevent, detect, and counter sanctions evasion, as well as to disrupt and prevent money laundering and terrorist financing.

Money Laundering and Terrorist Financing Threats

Canada’s threat environment is constantly evolving, with new methods emerging over time. To keep pace with these developments, FINTRAC conducts assessments and publishes strategic intelligence reports to promote awareness of 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 may be laundered.
• Terrorism Threat Landscape: is complex, diverse, and connected to larger geopolitical developments.

National Inherent Risk Assessment

Canada’s National Inherent Risk Assessment (NIRA) serves as the primary tool for understanding ongoing money laundering and terrorist financing trends and methods. This comprehensive initiative assesses inherent risks faced by key sectors and products within the Canadian economy, informs new policy responses, and provides risk information to industry.

• 2023 NIRA: assessed the money laundering threat posed by 22 profit-oriented crimes, as well as the threat posed by third-party money launderers.
• Key Findings: transnational organized crime groups and professional money launderers remain the key money laundering threat actors in the Canadian context.

Conclusion

Canada’s efforts to combat global money laundering and terrorist financing threats are critical to ensuring the safety and security of Canadians at home and abroad. Through its international partnerships, national security framework, and comprehensive risk assessments, Canada is well-positioned to prevent, detect, and deter these illegal activities.