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 comparable to that in the United States, posing no significant barrier to foreign investment. The country has robust anti-corruption laws, including the Criminal Code and the Corruption of Foreign Public Officials Act, which are actively enforced, allowing for prosecution of corruption both domestically and abroad. Despite some concerns in sectors like construction and public procurement, Canada maintains transparent regulations and effective mechanisms to investigate and punish corrupt practices.

Canada has a strong economy characterized by its proximity to the U.S. market, a highly skilled workforce, and abundant natural resources, making it an attractive destination for foreign direct investment (FDI). In 2022, the U.S. accounted for 46% of total FDI in Canada, with a stock of $438 billion, while Canada’s FDI stock in the U.S. reached $683 billion. Despite a generally welcoming investment environment, Canada imposes restrictions in certain sectors, including residential real estate and telecommunications, which can complicate foreign investment.

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 regulations under the Investment Canada Act to ensure that significant foreign investments provide economic benefits and do not compromise national security. However, Canada imposes restrictions on foreign investment in certain sectors, including residential real estate, telecommunications, and cultural industries.