Canada

New Documents

The Financial Transactions and Reports Analysis Centre of Canada issued a summary of its financial intelligence disclosures.

The government of Canada updated its sanctions regulations pertaining to Russia by adding new prohibitions under section 3.9 of the legislation.

Enforcement Actions

The Financial Transactions and Reports Analysis Centre of Canada imposed a fine of CA$ $33,000 on the Montréal, Canada-based money services business for noncompliance with its anti-money laundering and counterterrorist financing obligations.

The Financial Transactions and Reports Analysis Centre of Canada imposed an administrative monetary penalty of CA$ 222,750 on the Vancouver-based precious metals and stones dealer for noncompliance with the Canadian law against money laundering and terrorist financing.


Important Facts

  • The U.S. State Department labels Canada as a major money laundering jurisdiction. The majority of the country’s illegal proceeds are primarily derived from drug trafficking, fraud, corruption, counterfeiting and piracy, and tobacco smuggling. Foreign-generated proceeds of crime are laundered in Canada, including funds with links to transnational organized crime groups and professional money launderers. Primary money laundering methods and vehicles in the country include: bulk cash smuggling, money services businesses/currency exchanges, casinos, real estate, wire transfers, offshore corporations, credit cards, foreign accounts, funnel accounts, hawala networks and the use of digital currency. Also, the illicit drug market is the largest criminal market in Canada. Entities subject to know your customer and suspicious transaction report requirements include banks and credit unions; life insurance companies, brokers, and agents; securities dealers; casinos; real estate brokers and agents; agents of the Crown (certain government agencies); money services businesses; accountants and accountancy firms; precious metals and stones dealers; and notaries in Quebec and British Columbia. Canada has special regulatory requirements involving interactions with politically exposed persons for regulated entities.
-Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 methodology

Technical Effectiveness
Compliant : 11 High : 0
Largely Compliant : 23 Substantial : 5
Partially Compliant : 5 Moderate : 5
Non-Compliant : 1 Low : 1

Canada's technical compliance was re-rated in a Oct. 1, 2021 follow-up report

BASEL i

Rank : 34/110
Score : 4.67/10

TRANSPARENCY INTERNATIONAL i

Rank : 11/179
Score : 77/100

Tax Justice Network i

Rank : 19/133
Score : 56/100