Financial Crime World

GLOBE’S EYES ON MONEY LAUNDERING, TERRORIST FINANCING THREATS

As global financial transactions become increasingly digital, it has never been more crucial to have a coordinated international response to money laundering and terrorist financing threats.

A Global Effort

Canada is at the forefront of this effort, working closely with a network of international organizations and key allies to effectively address complex and evolving security threats. Through international cooperation, Canada can better identify global trends, share information, and develop best practices to prevent, detect, and deter money laundering and terrorist financing.

Some key partners Canada is working with include:

  • The Financial Action Task Force (FATF)
  • The Egmont Group of Financial Intelligence Units
  • The Five Eyes Partnership
  • Other international organizations

A Changing Threat Landscape

Money laundering and terrorist financing threats are constantly evolving, with new methods and schemes emerging over time. In recent years, criminal actors have adapted to the COVID-19 pandemic by leveraging online schemes and fraud to generate funds.

Canada’s National Security Framework prioritizes protecting the safety and security of Canadians at home and abroad. AML/ATF measures and tools play a critical role in preventing, detecting, and countering sanctions evasion, as well as disrupting and preventing money laundering and terrorist financing.

Assessing the Risk

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

Canada’s most recent NIRA update, published in 2023, found that:

  • Transnational organized crime groups and professional money launderers remain the key money laundering threat actors in the Canadian context.
  • The largest money laundering schemes generate billions of dollars in illegal proceeds annually.

Staying Ahead of the Threat

To stay ahead of these evolving threats, FINTRAC conducts assessments and publishes strategic intelligence reports to promote awareness among reporting entities and the public regarding emerging risks. Recent special bulletins have highlighted areas such as:

  • Professional money laundering through trade and money services businesses
  • Indicators for the laundering of proceeds from:
    • Romance fraud
    • Child sexual exploitation
    • Human trafficking

As Canada continues to navigate this complex threat landscape, it is clear that international cooperation, strategic intelligence, and a whole-of-government approach are essential in staying ahead of the evolving threats posed by money laundering and terrorist financing.