Financial Crime World

Canada Enhances Efforts to Combat Money Laundering and Terrorist Financing

Ottawa - The Canadian government has taken significant steps to strengthen its efforts to combat money laundering and terrorist financing.

Strengthened Regime

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) plays a crucial role in this effort by establishing an information sharing regime that allows for the analysis of reported data and dissemination of results to partners. This intelligence is used to support domestic and international investigations and prosecutions, as well as educate the public on money laundering and terrorist financing issues.

Comprehensive AML/ATF Regime

In addition to the PCMLTFA, other statutes contribute to a comprehensive Anti-Money Laundering/Anti-Terrorist Financing (AML/ATF) regime in Canada. For example:

  • The Income Tax Act requires trusts registration with CRA
  • The Canadian Business Corporations Act sets out beneficial ownership transparency requirements for federally incorporated companies

Inter-Departmental Coordination and International Cooperation

To ensure effective coordination and strategic planning, federal partners share responsibility for the outcomes of the Regime, which is governed by various inter-departmental committees comprising senior officials from each organization. The Advisory Committee on Money Laundering and Terrorist Financing (ACMLTF) also fosters collaboration between the public and private sectors to support emerging issues and overall AML/ATF policy.

International cooperation includes:

  • Information exchanges with other financial intelligence units from partner countries
  • Formal mutual legal assistance led by Justice Canada

Prevention and Detection

The second pillar of Canada’s efforts focuses on preventing individuals from placing illicit proceeds or terrorist-related funds into the financial system. Reporting entities, such as banks and other financial institutions, play a crucial role in implementing prevention and detection measures under the PCMLTFA.

  • Regulators, including FINTRAC and OSFI, supervise these entities to ensure compliance with AML/ATF regulations
  • Greater transparency of corporations and trusts is essential in preventing and detecting money laundering and terrorist financing

Disruption

The final pillar of Canada’s efforts involves disrupting money laundering and terrorist financing activities through financial investigations and intelligence analysis. Regime partners, including CSIS, CBSA, and the RCMP, work together with FINTRAC to identify and disrupt these illegal activities.

  • CRA also plays a key role in investigating tax evasion and detecting charities that may be involved in money laundering or terrorist financing

Conclusion

Canada’s ongoing commitment to combating money laundering and terrorist financing reflects its dedication to protecting the integrity of the international financial system and ensuring the security of its citizens.