Canada urged to improve prosecution of complex money laundering

A new international watchdog report indicates that while Canada is making progress in combating criminal efforts to disguise illicit cash, the country needs to improve its ability to investigate and prosecute complex money laundering cases.

The peer review assessment, conducted by the Financial Action Task Force and the Asia-Pacific Group on Money Laundering, noted that Canada has developed a “mature and nuanced understanding” of money laundering and terrorist financing threats. The report also commended Canada for strong inter-governmental coordination and its effective use of financial intelligence to support criminal investigations and international efforts.

However, the report calls for improvements in the supervision of non-financial sectors. Specifically, it highlights the need for better oversight of real estate and dealers in precious metals and stones, noting that organized criminal groups involved in drug trafficking often use real estate to launder proceeds of crime.