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 on one. 

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 reports back regularly about its progress in addressing the techical compliance deficiencies.  FATF 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

5th Round of Mutual Evaluations

Below are the planned assessment dates for Canada in the 5th round of mutual evaluations.  These dates remain subject to change.

Canada

Assessment Body
FATF-APG
Last evaluation
2016-06-01 00:00
Possible onsite period
2025-11-01 00:00
Possible Plenary discussion
2026-06-01 00:00

Other related content 

  • 1 Oct 2021

    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.

  • 15 Sep 2016

    Canada's measures to combat money laundering and terrorist financing 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.

  • 27 Jun 2016

    Outcomes of the Plenary meeting of the FATF, Busan Korea, 22–24 June 2016 Delegates discussed improving transparency and beneficial ownership, and the global response to terrorist financing. The FATF adopted a new Standard for non-profit organisations, issued a statement on Iran and discussed the mutual evaluation reports of Austria, Canada and Singapore. During the list meeting under the Korean Presidency, delegates also heard an update of AML/CFT improvements in Myanmar and Papua New Guinea.

  • 17 Feb 2014

    Mutual Evaluation of Canada: 6th Follow-up Report In February 2014, the FATF recognised that Canada had made significant progress in addressing deficiencies identified in the February 2008 mutual evaluation report and decided that the country should be removed from the regular follow-up process. This follow-up report provides an overview of the main changes made to the AML/CFT system in Canada since the 2008 mutual evaluation.

  • 14 Feb 2014

    Outcomes from the meeting of the FATF Plenary, Paris 12-14 February 2014 The FATF Plenary updated its statements identifying high-risk and non-cooperative jurisdictions. The Plenary adopted the follow-up reports to the mutual evaluations of Aruba Kingdom of the Netherlands, Austria, Canada, Luxembourg, Mexico and the Netherlands and reviewed the voluntary tax compliance programmes in several jurisdictions.

  • 29 Feb 2008

    Mutual Evaluation of Canada The Financial Action Task Force (FATF) has completed an assessment of the implementation of anti-money laundering and counter-terrorist financing (AML/CFT standards in Canada.

  • 29 Jun 2007

    FATF Annual Report 2006-2007 This report provides an overview of the Plenary year from 1 July 2006 to 30 June 2007, under the Presidency of Mr. Frank Swedlove from Canada.