Canada’s Federal Agencies to Consult on Anti-Money Laundering and Counter-Terrorism Measures

The Canadian government has launched a public consultation to strengthen the country’s anti-money laundering and counter-terrorist financing regime in keeping with a commitment made to the budget for 2023.

Federal agencies solicit input on the fight against money laundering and terrorist financing, whilst the government also seeks comments on creating a new financial crimes agency. The Department of Finance released a consultation paper on June 06, Tuesday, intended to serve as the foundation for the parliamentary inquiry into the Proceed of Crime (Money Laundering) and the Terrorist Financing Act (PCMLTFA), due this year.

The government said, “Canada faces continually evolving risks and threats from money laundering and terrorist financing as criminals adopt new strategies to exploit economic sectors and emerging financial technologies,” The government added that the “Covid-19 pandemic changed the way people interact with the financial sector and accelerate the trend toward financial sector digitisation, which can pose new money laundering and terrorist financing risks.”

This consultation paper covered several topics related to anti-money laundering and anti-terrorist financing, and the government is seeking feedback regarding how different levels of legislation can work together more effectively on these issues. This includes “advancing a pan-Canadian beneficial ownership registry, exploring risks in the legal profession, and depriving criminals of their property.”

Additionally, the government is seeking comments regarding extending the PCMLTFA to cover new industries, including luxury goods, automated teller machines with white labels, horse racing betting, title insurance, mortgage insurance, auctions, owner sales of real estate, blockchain technology, financial crown corporations, and cryptocurrency. Moreover, the government is also seeking input on whether a new Canadian Financial Crimes Agency should be established, which would enforce financial crimes law, and whether sanctions evasion should be incorporated into the Financial Reports and Analysis Centre of Canada.

AML/ATF submissions are due on August 1. In conjunction with other initiatives, finance department initiated a public consultation on June 4, Tuesday, which included a review of the Royal Bank of Canada’s proposal to acquire HSBC Bank Canada, consolidation of Canada Mortgage Bonds within the government’s regular borrowing program, establishing and modernising Canadian transfer pricing rules, and reviewing reciprocal procurement procedures between Canada and other countries. Several new environmental investment tax credits are anticipated to be developed too.

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