Finance Minister Jim Flaherty says a report released today by the Financial Action Task Force (FATF) shows Canada has made steady progress in combatting money laundering and terrorist financing since an assessment made in 2007.

“The FATF evaluation was done eight months ago, and we have made considerable progress since that time to identify and shut down this criminal activity,” Flaherty said in a release. “When the actions the government has taken recently are fully implemented, Canada will be compliant with virtually all of the FATF’s recommendations.”

Flaherty said the FATF report shows Canada has a solid regime in place in terms of legal structure, law enforcement powers, international cooperation and anti-terrorist-financing standards.

“This is consistent with the very positive assessment of Canada’s financial sector released by the International Monetary Fund earlier this month,” said Flaherty.

The FATF notes that amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related regulations address the deficiencies it identified in the June 2007 report.

Flaherty noted Budget 2008 provides $10 million over two years for the Canadian Security Intelligence Service and the Canada Revenue Agency’s Charities Directorate to bolster existing capacities to combat terrorist financing.

The FATF is an international body that develops and promotes policies to combat money laundering and terrorist financing.

A summary of the report is available on the FATF Web site at www.fatf-gafi.org. The full report will be posted on the FATF Web site in mid-March.