OTTAWA — Canada is making progress in combating illicit financial flows, but must step up efforts to investigate and prosecute complex money laundering cases, according to a new report by an international watchdog. The finding was highlighted in an independent review conducted jointly by the Financial Action Task Force (FATF) and the Asia-Pacific Group on Money Laundering.
The report notes that Canada has a clear understanding of the threats and vulnerabilities surrounding money laundering and terrorist financing. However, international agencies are calling on Canada to strengthen oversight in non-financial sectors, including real estate, precious metals, and stones.
Organized crime groups involved in drug trafficking heavily invest their proceeds of crime into the real estate market. The report also warns of high vulnerabilities in large banks, private corporations, and online gambling platforms.
In response to these risks, Canada is introducing legislation to establish a specialized Financial Crimes Agency. Canadian Finance Minister François-Philippe Champagne welcomed the report, stating that the government will review and act upon its recommendations.
