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 establish strict prohibitions against corruption and bribery, with robust enforcement mechanisms ensuring that violations are investigated and prosecuted. Although concerns exist regarding corruption in sectors like construction and public procurement, Canada maintains transparent regulations and reliable judicial processes to combat corruption effectively.

Canada's economy is 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. In 2023, Canada experienced an average inflation rate of 3.9%, a decrease from 6.8% in 2022, attributed to lower energy prices and supply chain improvements, although food and housing prices remained high.

Canada offers a generally welcoming investment climate, characterized by strong economic fundamentals, a skilled workforce, and abundant natural resources. The country actively encourages foreign direct investment (FDI) while maintaining regulatory frameworks such as the Investment Canada Act, which reviews significant foreign investments for economic benefits and national security. However, certain sectors, including residential real estate and telecommunications, have restrictions that may complicate foreign investment.