Mutual Evaluation of Canada: 6th Follow-up Report

In February 2014, the FATF recognised that Canada had made significant progress in addressing the deficiencies identified in the Mutual Evaluation of Canada and could be removed from the regular follow-up process. The decision by the FATF to remove a country from the regular follow-up process is based on procedures agreed in October 2009.

Canada was placed in the regular follow-up process as a result of non-compliant (NC) and partially compliant (PC) ratings for certain core and key Recommendations in its mutual evaluation report of February 2008.

The February 2014 follow-up report contains a detailed description and analysis of the actions taken by Canada to remove the deficiencies identified in respect of the core and key Recommendations rated PC or NC in the 2008 mutual evaluation report.

Key measures that have been taken include:

• Adapting the legal framework with key measures in the fields of Customer Due Diligence (CDD) through amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR), in particular with measures in relation to the circumstances in which customer due diligence has to take place, enhanced due diligence and ongoing due diligence.
• Strengthening its Financial Intelligence Unit, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), with additional resources and by reinforcing its compliance programme with a new range of administrative sanctions. Implementing a federal registration regime for money service businesses.
• Expanding the AML/CFT regime to additional Designated Non-Financial Business and Professions, in particular, British Colombia Notaries and dealers in precious metals and stones.