Government of Canada Publishes Updated Assessment of Money Laundering and Terrorist Financing Risks

The Government of Canada recently published its 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada (the “2025 Assessment”), which builds on earlier assessments and details the most pressing money laundering and terrorist financing risks at a national level. This latest assessment will inform Canada’s risk-based approach to combatting money laundering and terrorist financing through policymaking, resource allocation, and priority setting. 

Reporting entities subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) are expected to use the 2025 Assessment to develop their risk-based approach and implement appropriate mitigation measures.

As with previous assessments, the 2025 Assessment assigns ratings to the inherent money laundering and terrorist financing threats in Canada before mitigation measures are applied. It includes a new “residual risk lens” to highlight the policy, supervisory, and law enforcement measures implemented by Canada’s federal, provincial, and territorial governments, along with private sector efforts. This is intended to contextualize Canada’s inherent risk environment by highlighting existing risk mitigation measures.

For further information about the 2025 Assessment or reporting entity compliance requirements more generally, please contact any member of our Financial Services Regulatory.