Canada Country Summary

FATF Status

Canada is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Canada was undertaken in 2021. According to that Evaluation, Canada was deemed Compliant for 11 and Largely Compliant for 23 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 5 of the Effectiveness ratings.

Canada experiences relatively low levels of corruption, comparable to those in the United States, and has established a robust legal framework to combat corruption and bribery. However, the country faces significant challenges from organized crime, including drug trafficking, human trafficking, and financial crimes, which exploit regulatory gaps and the complexities of criminal markets, necessitating continuous innovation and coordination in law enforcement and governance.

Canada's economy is characterized by strong fundamentals, making it an attractive destination for foreign direct investment (FDI), particularly from the United States, which is the largest investor in the country. The investment climate benefits from Canada's proximity to the U.S. market, a highly skilled workforce, and abundant natural resources, although it is tempered by regulatory frameworks such as the Investment Canada Act, which scrutinizes significant foreign investments for their economic net benefit and national security implications. Despite a generally welcoming environment, Canada imposes restrictions in key sectors like residential real estate and telecommunications, and recent regulatory changes aimed at the digital economy have raised concerns among investors about the overall investment climate.