Canada

New Documents

The Group of 7 published a report outlining common public policy principles for establishing retail central bank digital currencies, covering a range of important matters related to financial stability, cybersecurity, inclusion and tackling illicit finance.

The finance ministers and central bank governors of the Group of 7 member countries issued a statement on central bank digital currencies and digital payments, highlighting the importance of international cooperation to ensure common regulatory standards.

News

Enforcement Actions

The Financial Transactions Reports and Analysis Centre of Canada issued an administrative monetary penalty against the Montréal, Quebec-based money services business for failure to comply with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and related regulations.

The Financial Transaction Reports and Analysis Centre issued an administrative penalty against the Montréal, Canada-based real estate broker for failure to comply with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and 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: 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 : 94/141
Score : 4.68/10

TRANSPARENCY INTERNATIONAL i

Rank : 11/179
Score : 77/100

Tax Justice Network i

Rank : 19/133
Score : 56/100