On July 31st, the federal Department of Finance
released its initial assessment of the inherent money laundering
and terrorist financing risks in Canada. The country
assessment responds to a key recommendation of the Financial Action
Task Force (FATF), the global standard setter for
anti-money laundering and anti-terrorist financing efforts, that
countries identify, assess, and understand their money laundering
and terrorist financing risks. According to FATF, countries
should use their assessments to ensure that the measures they are
taking to prevent or mitigate money laundering and terrorist
financing are commensurate with the risks identified. The
risk assessment is also intended to assist financial institutions
and other entities that are required to report suspicious
transactions under Canada's anti-money laundering and
anti-terrorist financing laws to understand the risks that are
present in Canada and their potential exposure to these risks.
