2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada: Overview

To remain relevant and effective, Canada's anti-money laundering and anti-terrorist financing (AML/ATF) Regime must continuously monitor and adapt to its dynamic risk environment.

The 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada, also referred to as the "National Risk Assessment," represents the Government of Canada's understanding of money laundering and terrorist financing risks at the national level. It builds on Canada's understanding of risks identified in the National Risk Assessment reports published in 2015 and 2023.

The National Risk Assessment Report is regularly updated and informs Canada's risk-based approach to combatting money laundering and terrorist financing. It helps ensure that Canada's AML/ATF framework and operational activities are responsive and proportionate to evolving risks.

Similar to previous reports, the 2025 National Risk Assessment is an inherent risk assessment that assigns ratings to the inherent money laundering and terrorist financing threats and vulnerabilities in Canada before the application of mitigation measures.

The 2025 National Risk Assessment includes an additional "residual risk lens" to highlight the policy, supervisory, and law enforcement measures implemented by Canada's federal, provincial, and territorial governments, along with private sector efforts. The application of a residual risk lens serves to contextualize Canada's inherent risk environment by highlighting existing risk mitigation measures to respond to these risks. This supports a more nuanced understanding of overall risk to better target Canada's ongoing efforts to combat money laundering and terrorist financing.

The National Risk Assessment does not assess risks specific to individual organizations or regions. It is intended to support a shared understanding of the most pressing money laundering threats and vulnerabilities in Canada and is supplemented by ongoing threat, sectoral, and institutional level risk assessments.

Canadian businesses regulated under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), known as "reporting entities," are required to conduct a risk assessment as part of their compliance program. Reporting entities are encouraged to consult the National Risk Assessment and the Financial Transactions and Reports Analysis Centre of Canada's (FINTRAC) quick reference to key information on how to use the Assessment to support effective compliance programs.