FINTRAC: Canada's Anti-Money Laundering Regime Update Reflects Strengthened Compliance Obligations

• The Financial Action Task Force has upgraded Canada's anti-money laundering regime assessment ratings.
• FINTRAC is responsible for ensuring compliance with requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
• Project Chameleon, a public-private partnership, aims to combat romance fraud by following the money.
• Pandemic-related fraud has increased, including mass marketing, mortgage, and romance scams.

Financial intelligence is a very powerful tool in detecting and targeting these types of profit-driven crimes.

The Financial Action Task Force has upgraded Canada's anti-money laundering regime assessment ratings, reflecting the country's strengthened regulatory environment. This development is significant for businesses operating in Canada, as it may impact their compliance obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The upgrade was a result of Canada's efforts to strengthen its comprehensive regime, which includes 13 federal departments and agencies working together to combat money laundering and terrorist activity financing. This collaboration extends to provincial and municipal law enforcement bodies, as well as private sector entities, with over 24,000 businesses playing a critical frontline role in preventing and detecting these illicit activities.

As Canada's anti-money laundering and anti-terrorism financing regulator, FINTRAC is responsible for ensuring compliance with requirements under the Act. This includes establishing a compliance program, identifying clients, keeping records, and reporting certain types of financial transactions. The agency has been working closely with Project Chameleon, a public-private partnership aimed at combating romance fraud by following the money. Financial intelligence is a powerful tool in detecting and targeting profit-driven crimes, and FINTRAC's efforts are yielding results through this innovative initiative.

The COVID-19 pandemic has led to an increase in various types of fraud, including mass marketing, mortgage, and romance scams. These illicit activities share a common goal: generating profit. FINTRAC has reported on the pandemic-related fraud it has seen, highlighting the need for continued vigilance and cooperation among financial institutions, law enforcement, and regulatory bodies. By working together, they can stay one step ahead of even the most sophisticated fraudsters and protect Canadians' financial security.

Lawyers and compliance officers should be aware that the Financial Action Task Force has upgraded Canada's anti-money laundering regime assessment ratings, indicating a strengthened regulatory environment. This may impact businesses' compliance obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Source: Original reporting via Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) Virtual keynote November 8-9, 2021