AML – casting a wider net – Lexology

Why now?

In September 2016, the Financial Action Task Force (FATF) published its mutual evaluation report on Canada’s Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) framework. The evaluation identified several areas where Canada’s AML and ATF framework could be strengthened and made more effective.

The Panama Papers and the Paradise Papers of 2016 and 2017 respectively, further illustrated how corporate vehicles, including trusts, can be used to conceal the true ownership of assets for the purposes of money laundering, terrorist financing, tax evasion and avoidance.

In response, and as part of its regular five-yearly reviews of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), on February 7, 2018 the Canadian Department of Finance (The Department) released a consultation paper containing proposed amendments and recommendations to Canada’s AML/ATF regime.

What are these proposed changes?

The key provisions of the consultation paper where reporting entities are likely to be most impacted are summarized below.

Closing

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