BENEFICIAL OWNERSHIP REGISTRIES AS AN ANTI-MONEY LAUNDERING TOOL: AN EVALUATION OF CANADA’S APPROACH IN ITS INTERNATIONAL AND COMPARATIVE CONTEXT

Abstract

Money laundering has been a significant issue in Canada. It is estimated that $45 billion to $113 billion is laundered annually in Canada. Shell corporations are chosen by launderers for their dirty money because they provide anonymity, encourage cash transactions and hide the financial transactions formed and government surveillance. The process involves depositing funds into shell companies, which is funneled through numerous other shell companies to effectively wash or “launder” the dirty money, posing serious risks to Canada’s economy and international financial security. Recently, Canada has adopted beneficial ownership rules at the federal level to ensure transparency. This thesis will holistically evaluate the BO rules by comparing Canada’s approach with other countries, examining its shortcomings and evaluating how it aligns with international recommendations. It will also suggest recommendations for improvement geared towards strengthening BOT to ensure that Canada plays a more effective role in the worldwide battle against corporate secrecy.