Canada

Sanctions

No

FATF AML Deficient List

No

Higher Risk

US Dept of State Money Laundering Assessment 
Not on EU White list equivalent jurisdictions

Please reload

ANTI-MONEY LAUNDERING

 

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 Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Canada was undertaken by the Financial Action Task Force (FATF) in 2016. According to that Evaluation, Canada was deemed Compliant for 11 and Largely Compliant for 18 of the FATF 40 Recommendations.

 

 

US Department of State Money Laundering assessment (INCSR)

Canada is categorised by the US State Department as a Country/Jurisdiction of Primary Concern in respect of Money Laundering and Financial Crimes.

OVERVIEW

 

Money laundering activities in Canada involve the proceeds of illegal drug trafficking, fraud, corruption, counterfeiting and piracy, and tobacco smuggling and trafficking, among others.  Foreign-generated proceeds of crime are laundered in Canada, and professional, third-party money laundering is a key concern.  Transnational organized crime groups and professional money launderers are key threat actors. 

 

Although the legislative framework does not allow law enforcement to have direct access to Canada’s FIU databases, financial intelligence is received and disclosed effectively.  The government should take steps to increase enforcement and prosecution.

 

SANCTIONS

 

There are no international sanctions currently in force against this country.

 

BRIBERY & CORRUPTION

Rating                                                                           (100-Good / 0-Bad)
Transparency International Corruption Index                           81
World Governance Indicator – Control of Corruption             96

Corruption does not represent a substantial obstacle to doing business in Canada. The country possesses clear-cut regulations and transparent, reliable courts. Numerous corruption investigations raise concern about corruption, illegal financing and kickbacks in the construction sector and in public procurement. Nevertheless, the government has well-functioning mechanisms in place to investigate and punish corruption and abuse of office. The Criminal Code of Canada is the principal anti-corruption legislation, prohibiting corruption, bribery, influence peddling, extortion and abuse of office. Facilitation payments, gift-giving and foreign bribery are criminalized under the Corruption of Foreign Public Officials Act (CFPOA) and are uncommon in practice. The law’s extended jurisdiction permits Canadian courts to prosecute corruption committed by companies and individuals abroad. Canada's anti-corruption legislation is vigorously enforced, and companies and officials guilty of violating Canadian law are being effectively investigated, prosecuted and convicted. For further information - GAN Integrity Business Anti-Corruption Portal

 

ECONOMY

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Venezuela and Saudi Arabia and is the world’s fifth-largest oil producer.

The 1989 US-Canada Free Trade Agreement and the 1994 North American Free Trade Agreement (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, and electric power, and a top source of US uranium imports.

Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the early intervention by the Bank of Canada and the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-15, despite the recent drop in oil prices.

Agriculture - products:

wheat, barley, oilseed, tobacco, fruits, vegetables; dairy products; fish; forest products

Industries:

transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum, natural gas

Exports - commodities:

motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity, aluminum

Exports - partners:

US 76.7% (2015)

Imports - commodities:

machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable consumer goods

 

Imports - partners:

US 53.1%, China 12.2%, Mexico 5.8% (2015)

Investment Climate  -  US State Department

Canada and the United States have one of the largest and most comprehensive investment relationships in the world. U.S. investors are attracted to Canada's strong economic fundamentals, its proximity to the U.S. market, its highly skilled work force, and abundant resources. The United States accounts for over 49 percent of Canada’s total stock of foreign direct investment (FDI). U.S. stock of foreign direct investment in Canada reached $386 billion in 2014, the most recent year available; while Canada’s foreign direct investment stock in the United States totaled more than $261 billion. The stock of global foreign direct investment in Canada stood at $631 billion at the end of 2014, a decrease of 3% from 2013.

U.S. foreign direct investment in Canada is subject to the provisions of the Investment Canada Act (ICA), the World Trade Organization (WTO), and the 1994 North American Free Trade Agreement (NAFTA). Chapter 11 of NAFTA contains provisions such as “national treatment” designed to protect cross-border investors and facilitate the settlement of investment disputes. NAFTA does not exempt American investors from review under the ICA, which has guided foreign investment policy in Canada since its implementation in 1985. The ICA provides for review of large acquisitions by non-Canadian investors and includes the requirement that these investments be of “net benefit” to Canada. Fewer than 10 percent of foreign acquisitions are subject to ICA review, and the Canadian government has blocked investments on only three occasions.

Canada announced in December 2012 that future acquisitions of Canadian oil sands businesses by a state-owned enterprise (SOE) will only be of net benefit to Canada in “exceptional circumstances” as part of the government’s new SOE guidelines. Canada’s 2013 Budget Implementation Bill brought into force other previously announced SOE measures including a separate monetary review threshold for SOE investments and a broader and clarified definition of an SOE. The rules were developed in response to a substantial increase in SOE investment in Canada since 2008, and followed Canada’s approval of two Chinese-SOE acquisitions of Canadian oil sands businesses.

Although foreign investment is a key component of Canada’s economic development, restrictions remain in key sectors. Under the Telecommunications Act, Canada maintains a 46.7 percent limit on foreign ownership of voting shares for a Canadian telecomm services provider. Canada amended the Telecommunications Act in June 2012 to exempt foreign carriers with less than 10 percent market share from ownership restrictions in an attempt to increase competition in the sector. Canada limits foreign ownership of Canadian air carriers to 25 percent of voting equity. Investment in cultural industries also carries restrictions, including a provision under the ICA that foreign investment in book publishing and distribution must be compatible with Canada’s national cultural policies and be of net benefit to Canada. Canada is open to investment in the financial sector, but barriers remain in retail banking.

 

Country Links
Office of the Superintendent of Financial Institutions
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC - CANAFE)
Detailed company search - Canadian Company

Canadian Securities Administrators (CSA)

Investment Industry Regulatory Organization of Canada (IIROC)

Mutual Fund Dealers Association (MFDA)

Ontario Securities Commission (OSC)

Financial Services Commission of Ontario

Autorité des marchés financiers (Québec)

British Columbia Securities Commission (BCSC)

Financial Institutions Commission - Province of British Columbia

Other Useful Links
FATF
US State Department
Transparency International
World Bank
CIA World Factbook

KnowYourCountry Limited has achieved ISO 9001:2015 Certification for the provision of on-line information of money laundering and sanction information on a country by country basis

© 2019 - KnowYourCountry Limited