Financial Crime World

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Global Threats Require Global Response: Canada Leads International Efforts to Combat Money Laundering and Terrorist Financing

The global nature of money laundering and terrorist financing threats demands a coordinated international response. To effectively address these complex and evolving security challenges, Canada works closely with a network of international organizations and key allies.

International Partnerships

Canada is a founding member of the Financial Action Task Force (FATF), which sets global standards for anti-money laundering (AML) and anti-terrorist financing (ATF) compliance. It also collaborates with the International Monetary Fund (IMF) and the World Bank to combat money laundering and terrorist financing. In addition, Canada participates in the G7 and G20 Summits, where it shares expertise and best practices with other countries to address these global threats.

National Security Context

Canada’s national security framework prioritizes protecting its citizens at home and abroad. AML/ATF measures are integrated into this broader framework to prevent, detect, and counter sanctions evasion, as well as to combat organized crime and terrorist financing.

  • The transnational nature of modern criminal networks underscores the need for cooperation across jurisdictions to effectively address these threats.
  • Canada’s AML/ATF efforts are designed to disrupt and prevent money laundering and terrorist financing, ultimately protecting its citizens and national interests.

Money Laundering and Terrorist Financing Threats

Canada’s threat environment is constantly evolving, with new methods emerging over time. To stay ahead of these developments, the country conducts assessments and publishes strategic intelligence reports to promote awareness among reporting entities and the public about emerging risks.

  • Recent assessments have shown that Canada faces a broad range of profit-oriented crime, generating billions of dollars in illegal proceeds annually that could be laundered.
  • The terrorism threat landscape is also complex, diverse, and connected to larger geopolitical developments.

National Inherent Risk Assessment

The National Inherent Risk Assessment (NIRA) is Canada’s 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.

  • The latest assessment found that transnational organized crime groups and professional money launderers remain the key money laundering threat actors in the Canadian context.
  • Canada’s first NIRA was published in 2015, with an update released in 2023.

Conclusion

As a global leader in combating money laundering and terrorist financing, Canada continues to work closely with international partners to stay ahead of these evolving threats and protect its citizens and national interests.