Canada Releases 2025 Assessment on ML and TF Risks

Key insights highlighted in the assessment include:

➡️ Organised Crime & Enablers: Organised Crime Groups (OCGs) and specialised third-party launderers are the primary threat actors, facilitating billions in illicit proceeds annually;

➡️ Main Threats Identified: Illegal drug trafficking was highlighted as the highest risk, followed by fraud, trade-based money laundering, and tax crimes;

➡️ Vulnerabilities: High-risk sectors include systemically important banks, private corporations, express trusts, crypto assets, and certain money service businesses (MSBs) due to high accessibility, rapid transactions, and reduced transparency;

➡️ Mitigation: Since 2018, Canada invested nearly $470m to improve intelligence, enforcement, and public-private partnerships; and

➡️ Future Risks: Emerging concerns include foreign interference, AI-enabled fraud, and growing links between organised crime and terrorism.

✅ Firms and reporting entities in Canada should review the assessment to align financial crime transformation programmes with evolving risks and ensure risk-based controls frameworks remain proportionate and effective.