Canada

New Documents

The governments of the United States, Canada, the United Kingdom and the European External Action Service announced coordinated sanctions in response to the May 23, 2021 forced landing of a commercial Ryanair flight by Belarus.

The Financial Transactions and Reports Analysis Centre of Canada published a special bulletin regarding ideologically motivated violent extremism and related terrorist financing following the addition of four groups to the Criminal Code list of terrorist entities.

News

Enforcement Actions

The Financial Transactions and Reports Analysis Centre of Canada issued an administrative penalty of CA$59,235 against the Chilliwack, British Columbia-based real estate broker for failure to comply with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The Financial Transactions and Reports Analysis Centre issued an administrative penalty against the Montréal, Canada-based dealer in precious metals and stones for non-compliance with Park 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.


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: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 methodology

Technical Effectiveness
Compliant : 11 High : 0
Largely Compliant : 18 Substantial : 5
Partially Compliant : 6 Moderate : 5
Non-Compliant : 5 Low : 1

BASEL i

Rank : 94/141
Score : 4.68/10

TRANSPARENCY INTERNATIONAL i

Rank : 12/180
Score : 77/100

Tax Justice Network i

Rank : 19/133
Score : 56/100