Money Laundering

Overview

Canada is active in the international fight against money laundering, mainly through the Financial Action Task Force (FATF) on money laundering, established in 1989 by the G7. The FATF’s membership has now grown to 36 members (34 jurisdictions and 2 regional organizations). The FATF's 40 Recommendations on Money Laundering, drafted in 1990 and updated in 1996 and 2003, are world standards. After 2001, the FATF widened its scope to address terrorist financing with nine Special Recommendations. The FATF's 40+9 Recommendations form a comprehensive package through which the world community addresses the challenges of financial crime and terrorist financing. Among other issues, the FATF is now examining whether new guidelines could be developed to deal with the issue of the financing of the proliferation of weapons of mass destruction.

Domestic Initiatives

Canada has worked hard to establish a domestic regime that reflects international standards. A number of significant enhancements have come into effect since Canada’s 2008 FATF mutual evaluation report and based on FATF assessments, Canada is now considered to be compliant with 36 of the 49 Recommendations and is in the top tier of FATF jurisdictions. Canada’s main agency for monitoring money laundering is the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Established in July 2000, the Centre collects, analyses, assesses and shares information, to help detect, prevent and deter money laundering and financing of terrorist activities here and abroad.

International Initiatives

As a founding member of the FATF, Canada is actively engaged in its work, including the FATF peer evaluation program and research on money laundering and terrorist financing trends and typologies. The Department of Finance is the lead agency representing Canada at the FATF and works in close cooperation with other departments and agencies, including DFAIT, DoJ, Public Safety, CSIS, CRA, PPSC, CBSA, RCMP, FINTRAC, and OSFI on developing standards to combat money laundering and terrorism financing.

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