Financial Crime World

Financial Crime Definition in Canada: Government Takes Aim at Money Laundering and Organized Crime

Introduction

Ottawa, Ontario - March 3, 2023 - Financial crimes pose a significant threat to the safety, security, and quality of life of Canadians. Organized crime relies on laundered proceeds to fuel their illegal activities, causing harm to individuals and communities and putting the integrity of Canada’s financial system and economy at risk.

The Fight Against Money Laundering and Organized Crime

The Financial Crime Coordination Centre (FC3) recently concluded its second annual Spin Cycle conference, bringing together over 1,000 investigators, prosecutors, and experts from across Canada to discuss emerging issues, best practices, and innovative solutions. The event supported the government’s efforts to strengthen the Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime through improved inter-agency collaboration and capacity building.

Key Takeaways

  • 18 presentations from domestic and international experts on topics such as:
    • Asset recovery
    • Information sharing
    • Parliamentary Review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act
  • Keynote address by Brock Martland, Senior Commission Counsel of the Cullen Commission of Inquiry into Money Laundering in British Columbia

Government Efforts to Combat Financial Crimes

The government is working closely with law enforcement and international partners to strengthen Canada’s response to money laundering and other financial crimes. Minister of Public Safety Marco Mendicino emphasized the importance of tackling organized crime by “turning off the taps” - targeting money laundering and financial crimes.

  • The Financial Crime Coordination Centre, a five-year pilot initiative, aims to bolster Canada’s response to complex and fast-moving financial crimes through stronger coordination across all levels of government.
  • FC3 has launched its Knowledge Hub Portal, providing access to key resources and subject matter experts, as well as raising awareness of AML efforts and best practices.

Investment in Strengthening the Federal AML/ATF Regime

Since 2019, the government has invested $319.9 million in strengthening the federal AML/ATF Regime, including:

  • $98.9 million for the RCMP’s Federal Policing capacity
  • Approximately $28 million over four years to create a Trade Fraud and Trade-Based Money Laundering Centre of Expertise at the Canada Border Services Agency

Future Plans

In Budget 2022, the government announced further measures to counter complex financial crimes, including:

  • Extending AML/ATF obligations to payment service providers and crowdfunding platforms
  • Developing a new Canadian Financial Crimes Agency (CFCA)
  • Implementing a public and searchable beneficial ownership registry before the end of 2023

International Recognition

An October 2021 assessment by the Financial Action Task Force affirmed that Canada made substantial progress in improving compliance with international AML/ATF standards since its last evaluation in 2016.