Government of Canada Commences Consultation on Strengthening Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime

The Government of Canada has launched a public consultation to consider ways to improve Canada’s anti-money laundering and anti-terrorist financing regime (the “AML/ATF Regime”). A Consultation Paper has been issued, which includes instructions for submitting comments.

Although the Consultation Paper poses specific questions and raises issues for public comment, all feedback relevant to the scope of the consultation is welcome.

The deadline for submitting responses in relation to the consultation is August 1, 2023.

Support for Future Policy Measures

Consistent with requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), a Parliamentary Review of the PCMLTFA must be conducted this year (a review is required every five years). The purpose of the review is to ensure the AML/ATF Regime remains current in response to market developments and evolving risks.

The Parliamentary Committee plans to release a report of its review to inform future policy measures designed to bolster the AML/ATF Regime. The consultation process and the feedback received are intended to support the development of these future policy measures.

Scope of Consultation

Among the topics covered by the Consultation Paper, and in respect of which comments will be received, are:

• federal, provincial and territorial collaboration to combat financial and profit-motivated crimes;
• criminal justice measures to combat money laundering and terrorist financing;
• the mandate and structure of a new lead enforcement agency in financial crime;
• information sharing between public and private sector entities to facilitate more targeted detection and disruption of illicit activities, including information sharing between the Financial Transactions and Reports Analysis Centre (FINTRAC) and reporting entities under the PCMLTFA, as well as between FINTRAC and other regulatory authorities;
• measures to enhance the legislative and regulatory framework to combat money laundering and terrorist financing risks, and regulatory tools and oversight to enforce compliance with the PCMLTFA; and
• measures to ensure national and economic security in light of increasing threats to Canada and its economy, including expanding FINTRAC’s mandate to contribute to Canada’s sanctions and counter-proliferation framework.

Looking Forward

Goodmans Financial Services Regulatory Group will continue to monitor developments related to the AML/ATF Regime and provide further updates.

For additional information, please contact any member of our Financial Services Regulatory Group.

The author would like to thank Cathy Costa-Faria, Associate for her assistance in writing this Update.