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 exhibits a relatively low level of corruption, comparable to that of the United States, and has established a robust legal framework to combat corruption and bribery, which is effectively enforced. Despite these strengths, the country faces significant challenges from organized crime, including drug trafficking, human trafficking, and financial crimes, which exploit regulatory gaps and require continuous innovation in law enforcement and governance to address.

Canada's economy is characterized by a strong investment climate, particularly due to its robust economic fundamentals, skilled workforce, and proximity to the U.S. market, which attracts significant foreign direct investment (FDI), primarily from the United States. In 2023, Canada experienced a deceleration in inflation to an average of 3.9%, down from 6.8% in 2022, aided by lower energy prices and improved supply chains, although food and housing costs remain high. While Canada actively encourages FDI and offers a stable environment for investors, it imposes certain restrictions in key sectors, such as telecommunications and residential real estate, which may complicate the investment landscape for foreign entities.