Canada Poised to Implement Stricter Anti-Money Laundering Regulations

In response to mounting domestic and international pressures, Canada is on the verge of enacting more stringent anti-money laundering (AML) regulations. The Canadian Gaming Association (CGA), representing a sector often targeted by illicit financial activities, has been a vocal advocate for these reforms.

Their 2024 advocacy priorities include active participation in the Parliamentary Review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) to ensure that Canada’s AML laws align with the evolving landscape of the gaming industry.

International and Domestic Pressures for Reform

Internationally, the Financial Action Task Force (FATF) is scheduled to conduct a mutual evaluation of Canada’s AML and Anti-Terrorist Financing (ATF) regime in 2025-2026.

In anticipation, the Canadian government has proposed significant amendments to the PCMLTFA regulations. These include expanding the scope of reporting entities to encompass sectors such as factoring companies, cheque-cashing businesses, and certain financing and leasing companies.

Additionally, new reporting requirements mandate importers and exporters to declare that their goods are not connected to money laundering, terrorist financing, or sanctions evasion.

Political Shifts and Industry Advocacy

Domestically, the political climate is shifting towards a more rigorous stance on financial crimes. The Conservative Party of Canada, currently leading in polls with 45% support and a 24% lead over the nearest competitor, has signaled its intent to strengthen AML regulations.

Their policy platform acknowledges the presence of international criminal organizations in Canada and proposes legislative changes to combat money laundering and drug trafficking.

The CGA, meanwhile, continues to advocate for laws that reflect the unique challenges of the gaming industry. By collaborating with legislative bodies and regulators, the CGA aims to ensure that forthcoming AML measures are both effective and practical.

This is particularly important for sectors like Canadian online casinos, which often face scrutiny over financial transactions and compliance.

Preparing for a New Era of Financial Regulation

As Canada prepares for the FATF evaluation and navigates its internal political transitions, the anticipated AML reforms represent a concerted effort to fortify the nation’s defenses against financial crimes.

These measures are expected to enhance the robustness of Canada’s financial system, safeguarding it against the pervasive threats of money laundering and terrorist financing.