New Documents

Canada amended the Special Economic Measures (Russia) Regulations to add 47 individuals and 26 entities to the sanctions list for their roles in providing military technology and expertise to Russia, or for ongoing human rights violations.

The government of Canada published a report that explores the use of ​​​​​artificial intelligence, or AI, by financial institutions and the four main principles for its use and regulation.


Enforcement Actions

The  Financial Transactions and Reports Analysis Centre of Canada imposed a monetary penalty on the Ontario, Canada-based currency exchange for failures to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The Financial Transactions and Reports Analysis Centre of Canada imposed a monetary penalty of CA$33,000 against the Ontario-based financial institution for noncompliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

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)


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


Rank : 34/110
Score : 4.67/10


Rank : 11/179
Score : 77/100

Tax Justice Network i

Rank : 19/133
Score : 56/100