Canada

Member since 1990

Since the 2016 assessment of the effectiveness of Canada's measures to combat money laundering and terrorist financing, the country reported back to the FATF in 2021 on the actions it had taken to strengthen its AML/CFT framework.  As a result of this report, the FATF rerated the Canada on 6 of the 40 Recommendations.  

Today, the country is compliant with 11 Recommendations and largely compliant with 23 of them. It remains partially compliant on 5 Recommendations and non-compliant one one. 

Canada's progress in strengthening measures to tackle money laundering and terrorist financing

This follow-up report analyses Canada's progress in addressing the technical compliance deficiencies identified in its 2016 Mutual Evaluation.

In 2016, the FATF and APG assessed the effectiveness of Canada's measures to combat money laundering and terrorist financing, and their compliance with FATF Recommendation.  The report concluded that Canada has a strong anti-money laundering and combating the financing of terrorism (AML/CFT) regime which achieves good results in some areas but requires further improvements to be fully effective.

Following this mutual evaluation, Canada report back regularly about its progress in addressing the techical compliance deficiencies.  FATF and may rerate the country to reflect this progress, but this follow-up process does not focus on effectiveness. The effectiveness of Canada's actions to combat money laundering and terrorist financing will be assessed in the 5th round of mutual evaluations. 

Ratings

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Canada - Follow-up Report 2021

R.1 - Assessing risk & applying risk-based approach
LC
R.2 - National cooperation and coordination
C
R.3 - Money laundering offence
C
R.4 - Confiscation and provisional measures
LC
R.5 - Terrorist financing offence
LC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
LC
R.7 - Targeted financial sanctions related to proliferation
LC
R.8 - Non-profit organisations
PC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
LC
R.11 - Record keeping
LC
R.12 - Politically exposed persons
LC
R.13 - Correspondent banking
LC
R.14 - Money or value transfer services
C
R.15 - New technologies
LC
R.16 - Wire transfers
LC
R.17 - Reliance on third parties
C
R.18 - Internal controls and foreign branches and subsidiaries
LC
R.19 - Higher-risk countries
C
R.20 - Reporting of suspicious transactions
LC
R.21 - Tipping-off and confidentiality
LC
R.22 - DNFBPs: Customer due diligence
PC
R.23 - DNFBPs: Other measures
LC
R.24 - Transparency and beneficial ownership of legal persons
PC
R.25 - Transparency and beneficial ownership of legal arrangements
NC
R.26 - Regulation and supervision of financial institutions
LC
R.27 - Powers of supervisors
C
R.28 - Regulation and supervision of DNFBPs
PC
R.29 - Financial intelligence units
PC
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
LC
R.32 - Cash couriers
LC
R.33 - Statistics
C
R.34 - Guidance and feedback
LC
R.35- Sanctions
LC
R.36 - International instruments
C
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
C
R.40 - Other forms of international cooperation
LC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

Effectiveness

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Canada - Mutual Evaluation 2016

IO1
SE
IO2
SE
IO3
SE
IO4
ME
IO5
LE
IO6
ME
IO7
ME
IO8
ME
IO9
SE
IO10
SE
IO11
ME

HE = high level of effectiveness   |   SE = substantial level of effectiveness    |   ME = moderate level of effectiveness   |   LE = low level of effectiveness

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