Canada

New Documents

Canada’s Office of the Superintendent of Financial Institutions announced that the Financial Transactions and Reports Analysis Centre of Canada will become the primary agency conducting anti-money laundering-related assessments of financial institutions. 

The finance ministers and central bank governors of the G7 member countries issued a joint statement on the widespread adoption of digital payments, highlighting risks related to financial stability, consumer protection, taxation, cybersecurity, money laundering and terrorist financing.

News

Enforcement Actions

The Financial Transactions and Reports Analysis Centre of Canada issued an administrative monetary penalty against the Ontario, Canada-based precious metals and stones dealer for committing three violations related to anti-money laundering and counterterrorist financing requirements.

The Financial Transactions and Reports Analysis Centre of Canada issued an administrative monetary penalty against the Quebec, Canada-based real estate broker for committing five violations in relation to anti-money laundering and counterterrorist financing requirements.


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 : 79/125
Score : 4.92/10

TRANSPARENCY INTERNATIONAL i

Rank : 12/180
Score : 77/100

Tax Justice Network i

Rank : 19/133
Score : 56/100