Financial Crime World

Enhancing Anti-Money Laundering Efforts in Canada

Strengthening the Regime

Canada has taken steps to strengthen its anti-money laundering (AML) and anti-terrorist financing (ATF) regime by establishing an information sharing regime that enables the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to analyze information submitted by reporting entities and disseminate the results to regime partners. This move aims to prevent individuals from placing illicit proceeds or terrorist-related funds into the financial system.

Prevention and Detection

Strong Measures in Place

Canada has implemented strong measures to prevent money laundering and terrorist financing, including:

  • Reporting Entities: Banks and money services businesses are required to implement prevention and detection measures under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
  • FINTRAC Assessments: FINTRAC conducts AML/ATF assessments of federally regulated financial institutions to promote compliance with the law.
  • Office of the Superintendent of Financial Institutions (OSFI): OSFI focuses on the prudential implications of a financial institution’s AML/ATF compliance.

Greater Transparency

Greater transparency of corporations and trusts also contributes to preventing and detecting money laundering and terrorist financing. Requirements for financial institutions, money services businesses, life insurance dealers, and securities dealers to identify the beneficial owners of corporations and trusts with whom they do business help to foster greater transparency.

Disruption

Regime partners, including:

  • CSIS: Conducts financial investigations in relation to money laundering, terrorist financing, and other profit-oriented crimes.
  • CBSA: Supports CSIS and FINTRAC’s intelligence disclosures and analysis activities.
  • RCMP: Undertakes financial investigations in relation to money laundering, terrorist financing, and other profit-oriented crimes.

Ongoing Monitoring

FINTRAC discloses information to regime partners on a regular basis, with:

  • 2,057 Disclosures in 2019-20: Of these, 1,582 were associated with money laundering, while 296 dealt with cases of terrorist activity financing and other threats to national security.

Canada’s commitment to ongoing monitoring of transactions and enhanced customer due diligence measures demonstrates its determination to combat money laundering and terrorist financing and protect the integrity of the international financial system.