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 standards are set out in its 40 recommendations on combating money laundering and the financing of terrorism and proliferation. The FATF standards were most recently updated in February 2012. The revisions, made with input from governments, the private sector, and civil society, provide authorities with a stronger framework to act against criminals and address new threats to the international financial system.  Of note, standards to combat the financing of the proliferation of weapons of mass destruction were added during this review.

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’s compliance is now considered to be 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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