Proceeds of Crime (Money Laundering) and Terrorist Financing Act Receives Royal Assent

The Honourable Jim Flaherty, Minister of Finance, today announced that Bill C-25, amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, has received Royal Assent, ensuring Canada continues to be a global leader in combating organized crime and terrorist financing.

“Canada’s New Government will continue to be relentless in its battle against money laundering and terrorism financing,” said Minister Flaherty. “One of the best ways of putting these criminals out of business is to starve them of the funds they need to finance their activities. This new legislation will improve our ability to act decisively.” 

The amendments make Canada’s anti-money laundering and anti-terrorist financing regime consistent with new Financial Action Task Force (FATF) standards. They also follow recommendations made in the 2004 Auditor General’s Report and in a 2004 Treasury Board evaluation of the regime.

The amendments include:

The Government has already ensured adequate funding for key partners by announcing, in Budget 2006, $64 million in additional funding over the next two years for FINTRAC, the RCMP, the Canada Border Services Agency and the Department of Justice.

In July, Minister Flaherty announced that Toronto had been selected as the permanent headquarters of the secretariat of the Egmont Group, an organization of 101 of the world’s financial intelligence units, including FINTRAC. Canada’s New Government will contribute $5 million over the next five years to help the secretariat get established.

For the first time ever, Canada has assumed the Presidency of the FATF. The FATF is an international body that develops and promotes policies to combat money laundering and terrorist financing.