Canada

TECHNICAL COMPLIANCE ANNEX – Key Deficiencies
Summary of Technical Compliance – Key Deficiencies
Compliance with FATF Recommendations
Recommendation Rating Factor(s) underlying the rating
1. Assessing risks & applying a
risk-based approach
2. National cooperation and
coordination
LC • Lawyers, legal firms and Quebec notaries are not legally
required to take enhanced measures to manage and mitigate
risks identified in the NRA.
C • The Recommendation is fully met.
3. Money laundering offence C • The Recommendation is fully met.
4. Confiscation and provisional
measures
LC • The legal provisions do not allow for the confiscation of
property equivalent in value to POC.
5. Terrorist financing offence LC • CC, s. 83.03 does not criminalize the collection or provision of
funds with the intention to finance an individual terrorist or
terrorist organization.
6. Targeted financial sanctions
related to terrorism & TF
7. Targeted financial sanctions
related to proliferation
LC • Persons in Canada are not prohibited from providing financial
services to entities owned or controlled by a designated
person or persons acting on behalf or at the discretion of a
designated person.
• No authority has been designated for monitoring compliance
by FIs and DNFBPs with the provisions of the UNAQTR, CC and
RIUNRST.
LC • No mechanisms for monitoring and ensuring compliance by
FIs and DNFBPs with the provisions of the RIUNRI and
RIUNRDPRK.
• Little information provided to the public on the procedures
applied by the Minister to submit delisting requests to the UN
on behalf of a designated person or entity.
Technical compliance Annex
8. Non-profit organisations C • The Recommendation is fully met .
9. Financial institution secrecy
laws
C • The Recommendation is fully met.
10. Customer due diligence LC • Exclusion of financial leasing, factoring and finance
companies from scope of AML/CTF regime.
• Minor deficiency of existence of numbered accounts whose
use is governed only by regulatory guidance.
• Minor deficiency of limited application, to natural persons
only, of requirements to reconfirm identity where doubts
arise about the information collected.
• No explicit legal requirements to check source of funds.
• No requirement to identify the beneficiary of a life insurance
payout.
• Minor deficiency of exceptions to the timing requirements for
verifying identity are not clearly justified in terms of what is
reasonably practicable or necessary to facilitate the normal
Anti-money laundering and counter-terrorist financing measures in Canada - 2016 © FATF and APG 2016
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