Canada

New Documents

The Financial Transactions and Reports Analysis Centre of Canada published revised guidance on anti-money laundering and counterterrorist financing risk assessments for reporting entities.

Jeremy Rudin, Canada’s Superintendent of Financial Institutions issued remarks at the 2021 RBC Capital Markets Canadian Bank CEO Conference on effective regulation and supervision of financial institutions, including a focus on technology risks and the pandemic response.

News

Enforcement Actions

The Financial Transactions and Reports Analysis Centre of Canada imposed an administrative penalty of CA$206,250 on the Montreal, Canada-based money services business for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The Financial Transactions and Reports Analysis Centre of Canada received payment for an administrative monetary penalty issued against the Montreal, Quebec-based lottery company for deficiencies under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related 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