Canada has been removed from probation by the Financial Action Task Force (FATF) after toughening up its anti-money laundering and terrorist financing regime.
In its Mutual Evaluation of Canada report, the FATF says Canada has “made significant progress” in addressing deficiencies that were identified in a review carried out by the FATF in 2008; and, as a result, it can be removed from the follow-up process it was subjected to after that review found Canada to be non-compliant, or partially compliant, in certain core areas.
The report says that the key measures that have been taken include: tightening the circumstances in which customer due diligence has to take place, along with requirements for enhanced due diligence and ongoing due diligence; strengthening its Financial Intelligence Unit and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), with additional resources and by reinforcing its compliance program with a new range of administrative sanctions; implementing a federal registration regime for money service businesses; and, expanding the AML regime to additional businesses, such as notaries in B.C. and dealers in precious metals and stones.
The reports finds that Canada now adheres to all major FATF recommendations, although it notes that there are still a handful of minor deficiencies that need to be corrected. Nevertheless, it found that there has been enough progress to conclude that Canada’s compliance with its recommendations is now adequate.
Federal finance ministerJim Flaherty welcomed the FATF’s report, noting, “Money laundering and terrorist financing not only threaten the financial system, they enable crimes that pose harm to Canadians and threaten our quality of life. The FATF’s endorsement demonstrates that actions taken by our government are making a difference in protecting the integrity of the Canadian financial sector and protecting Canadians against crime.”