EARLY CANADIAN ANTI-MONEY LAUNDERING REGULATIONS

EARLY CANADIAN ANTI-MONEY LAUNDERING REGULATIONS
It was in the 1980s that money laundering began attracting major interest as the drug abuse problem in western society became increasingly significant and the authorities became very aware of the huge profits generated from drug trafficking. As a result, governments began creating legislation specifically aimed at depriving drug traffickers of their illicit gains.

The initial step in any country’s money laundering prevention program is the development of domestic regulations aimed at strengthening enforcement and disrupting the flow of the proceeds of crime. This involves identifying potentially high-risk financial crime areas and effectively deploying enforcement resources to these areas. Keep in mind that high-risk areas are not necessarily defined geographically and that industry, sector or type of financial institution can also be used to categorize them. By reviewing the nature and extent of money laundering activities in various regions throughout the country, the number of investigations and prosecutions in particular regions, and the location of existing task forces addressing financial crime, it becomes apparent where the regulators should focus their attention.