Money Laundering in Canada

Money Laundering in Canada
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Money Laundering in Canada
Crimes related to finances lead to a significant deleterious effect on the economic state of a country in dimensions of inflation, tax revenue, and state of security. Coherently, the government of Canada is increasing its steadfastness in preventing money-related crimes and bring perpetrators to justice. The government is increasing investment and delegation of various professionals to mitigate the increasing trend of the problem in the country. According to Pelteir-Rivest and Lanoue (2015), the growing rate of financial crimes is a derivative of the growing wave of globalization. The anti-money laundering (AML) regime in Canada has numerous initiatives in regulation, prevention and legislation to ensure that the delegate mandates of AML are fulfilled. The Canadian government also implemented the Financial Task Force (FATF) proposition to ensure decreased cases of money laundering. The present study reviews the different approaches and establishments which the Canadian authorities employ to fight against financial fraud and associated obstacles. Withal, although the Canadian government is increasingly becoming vigilant against money laundering, issues of privacy, privileges given to the high and mighty, and lack of proper research in the country render it challenging to investigate effectively white-collar crimes of this nature.
In Canada, the Proceeds of Crime Act made activities involving money laundering a crime in 1989. According to Gottschalk (2015), money laundering enables the benefits of criminal business and illicit substance offenses to become legal instead of remaining illegals as they should. The Act encourages vigilance by ensuring that those who report money laundering activities to authorities are immune from prosecution in the event that they are involved in a business or association conducting or planning to conduct the crime. The government also ensures that the private sector is not immune to investigation through the Act to Facilitate Combating the Laundering of Proceeds Crime that requires the corporations to have in-depth records of their customers (Boulez, 2015). The records are essential and required for the submission during criminal investigation processes. In the case of financial institutions such as banks, insurances and credit unions, the institutions provide the information to the Banker’s Association to ease determining and accessing the point of reference.
The Canadian government increased the effectiveness of the Anti-Laundering enforcement in 2004 through the establishment of the Financial Transaction and Task Force Analysis Center (FINTRAC). Peltier-Rivest and Lanoue (2015) inform that the FINTRAC became the agent that enforced policies that FATF passed. The significant goals of FINTRAC include detection of crimes, prevention of money-related offenses and deterring potential money laundering cases. Nevertheless, there is a connection of the agency with cases of terrorism because it helps determine the financiers of terror activities. As such, FINTRAC is the financial intelligence institution of Canada and employs the method of evaluat...