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 Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Canada was undertaken in 2021. According to that Evaluation, Canada was deemed Compliant for 11 and Largely Compliant for 23 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 5 of the Effectiveness ratings.

Corruption in Canada is low and does not hinder foreign investment, with the country adhering to various international anti-corruption conventions. The Criminal Code and the Corruption of Foreign Public Officials Act provide a robust legal framework against corruption, bribery, and related offenses, with strict enforcement leading to effective investigations and prosecutions. While concerns exist regarding corruption in specific sectors like construction and public procurement, the Canadian government has established mechanisms to address and penalize corrupt practices.

Canada boasts a robust economy characterized by strong fundamentals, a highly skilled workforce, and abundant natural resources, making it an attractive destination for foreign direct investment (FDI), particularly from the United States, which accounts for 46% of total FDI. The country experienced an average inflation rate of 3.9% in 2023, a decrease from 6.8% in 2022, driven by lower energy prices and supply chain improvements, although food and housing costs remain high.

Canada's investment climate is characterized by a strong relationship with the United States, which accounts for 46% of total foreign direct investment (FDI) in the country, totaling $438 billion as of 2022. The Canadian government actively encourages foreign investment through a stable environment, legal protections, and access to abundant natural resources, although certain sectors such as residential real estate and telecommunications have restrictions on foreign ownership. Recent regulatory changes, including the Online Streaming Act and the Online News Act, have raised concerns among technology companies about the investment climate.