In 2022, Teranet published a pivotal paper on ownership transparency in registries, highlighting the importance of beneficial ownership transparency in combating financial crimes such as money laundering, tax evasion, and fraud. Since then, the landscape of financial crime in Canada has evolved significantly, with money laundering and fraud schemes becoming increasingly complex and widespread. We discuss key developments to address these challenges, including amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and the implementation of Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime Strategy 2023-2026, and the new transparency requirements in the Canada Business Corporations Act (CBCA). We also examine various initiatives that have been implemented in British Columbia, Ontario, and Quebec.
Despite some progress, Canada continues to lag behind international efforts in addressing financial crimes, particularly in the real estate sector, where complex ownership structures and mortgage fraud remain issues. This paper advocates for further measures, highlighting the importance of utilizing technological advancements to enhance registry transparency and security. It also stresses the need to improve interoperability between different registries to provide a comprehensive view of ownership structures and effectively address sophisticated financial crimes, including mortgage and real estate fraud.
By reaffirming our commitment to transparency and taking decisive action, we can create a more secure and trustworthy financial ecosystem in Canada. Delve into our insights on how Canada can strengthen its position in the global fight against financial crimes and uphold its reputation as a secure and transparent jurisdiction for business and investment.
