Financial Action Task Force reviewed the anti-money laundering and terrorist financing framework
The Financial Action Task Force has released its report following the mutual evaluation of Canada’s anti-money laundering and terrorist financing framework, which highlights the work done by legal regulators to bolster their AMLTF framework in the past 10 years.
The regulators’ work has been supported with major preventive, supervisory, educational, and disciplinary measures. Moreover, the report acknowledges constitutional principles that are foundational to justice administration in Canada and that govern AMLTF regulation.
“This acknowledgement reflects years of sustained collaboration by Canada’s law societies to build a robust framework that contributes to the integrity of Canada’s AMLTF regime,” the Federation of Law Societies of Canada said in a statement.
Law societies urged greater disclosure of information from law enforcement to enhance the effectiveness of the regulatory framework. The federation acknowledged that the AMLTF regime’s effectiveness must be maintained through constant attention, improvement, and collaboration among regulators, law enforcement, and other authorities in the face of changing financial crime risks and global standards.
“Law societies are an integral part of Canada’s anti-money laundering framework. Through a comprehensive regulatory regime, they help safeguard the integrity of legal services while preserving the independence of the legal profession, solicitor-client privilege and the rule of law,” the Federation of Law Societies of Canada said. “The Federation looks forward to continuing this work in support of a strong, effective and internationally respected AMLTF regime that addresses the priorities identified in the evaluation, protects the public, and reinforces confidence in Canada’s legal profession.”
Canada’s minister of finance and national revenue, François-Philippe Champagne, recognized the “strong legal framework, operational improvements, and hawkish pursuit of bad actors” that aided in improving the nation’s FATF evaluation.
“This outcome represents not only an improvement of Canada’s last evaluation in 2016 but a validation of the work the government is undertaking with agencies and provinces together to better protect Canadians against fraud and the financial system against nefarious activity,” Champagne said in a statement.
He noted that the government is cracking down on extortion through dedicated financial intelligence liaison officers coordinating with local police; financial intelligence resources addressing extortion; a Countering Extortion partnership with financial institutions, government, and law enforcement; and the release of strategic intelligence on the movement and hiding of extortion money by criminals.
“While the report validates the steps Canada has already taken, our commitment to meeting global standards and maintaining an effective and robust AML/ATF/CPF system remains unwavering. The government will review and action the recommendations made in the Mutual Evaluation Report to cement its leadership position in the fight against financial crime,” Champagne said.
Last year, the Federation of Law Societies of Canada published its anti-money laundering compliance report in preparation for the FATF review.
