Canada strengthens anti-money laundering rules with upcoming regulatory changes
Canada will begin implementing new regulatory amendments to strengthen its anti-money laundering framework on 1 April, including allowing provincial and territorial civil forfeiture offices to receive financial intelligence disclosures from the country’s financial intelligence unit.
On 7 March, Canada’s Department of Finance said the amendments aim to combat money laundering linked to transnational crime and drug trafficking, particularly fentanyl, and will com ement Canada’s Border Plan and the recently announced Canada-US Joint Strike Force to combat organised crime.
‘The Government of Canada is committed to maintaining a strong Anti-Money Laundering and Anti-Terrorist Financing framework that maintains the integrity of Canada’s financial system,’ said Finance Minister Dominic LeBlanc. ‘These amendments will ensure that we remain effective and nimble in combatting financial crime and block any pathway for organized crime groups to use our financial system to finance their illegal, deadly drug trafficking operations.’
The measures include enhancing the Canada Border Services Agency’s authorities to detect and disrupt trade-based financial crime, creating a framework for private institutions to share information related to money laundering and sanctions evasion and im ementing new reporting requirements for beneficial ownership discrepancies.
Additionally, anti-money laundering obligations will be extended to ‘factoring companies, cheque cashing businesses, and financing and leasing companies to close a regulatory gap with financial services that criminals can exoit.’
The Minister of Finance will also update directives associated with North Korea and Russia to combat potential sanctions evasion and safeguard Canada’s financial sector.
These changes build on the government’s investments of more than $379 million over the last five years to enhance Canada’s anti-money laundering regime, including the launch of the Integrated Money Laundering Intelligence Partnership in February to support intelligence sharing between law enforcement and Canada’s major banks.
