Madam Speaker, there is also the work I did with the member across, but I did not catch what he said. We spent some time on the mighty OGGO committee, and I know he probably wants to see me there again.
Everyone in this House knows the sacrifices families make for us to be here, and their strength helps us do the important work we all do. I remember my wedding day 23 years ago. In my reception toast to my wife, Gurpreet, I said that she makes me a better person. Without her support, I would not be here.
My kids, Hasina and Daya, stepped up and they pounded the pavement. My sister, Nav, knocked on thousands of doors once again. She is the best sister in the world, always ready to stand up for her little brother. Of course, I can never forget the sacrifices my parents made. My dad, like so many Canadians, left his homeland at a young age to make a good life here. He worked as a steelworker in England and then in Canada, and he was a dump truck owner-operator. He worked hard. My mom worked tirelessly as a seniors care aide. We had a very modest upbringing with endless opportunities before us, so I thank them and I love them.
Going back to the bill, it is a huge honour to represent the city that raised me and, most importantly, to be their voice in this House to talk on this today, Bill C-2, with respect to the strong and effective anti-money laundering and anti-terrorist financing measures included in it. They are integral components of a secure Canada-United States border. These measures not only protect our financial system but also safeguard our communities from the devastating impacts of crime and terrorism.
Money laundering supports and perpetuates crimes by allowing criminals, such as fentanyl traffickers, to benefit from their illicit activities. Terrorist financing enables terrorist activities in Canada, the United States and abroad, posing a significant threat to global security. To combat these threats, Canada has established a robust anti-money laundering and anti-terrorist financing regime, underpinned by federal statutes, including the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Banks and other businesses and professionals with obligations under this act are on the front lines of the fight against financial crime. The bill would require that these businesses and professionals report certain financial transactions to the Financial Transactions and Reports Analysis Centre of Canada, as well as implement compliance programs to identify clients, monitor business relationships and keep records.
Over the last few years, the centre has identified an alarming trend regarding the difficulties reporting entities are having in maintaining effective anti-money laundering controls, as have our partners in markets where Canadian institutions operate. This led the Financial Transactions and Reports Analysis Centre of Canada to issue its largest-ever administrative monetary penalties in 2023 and 2024.
The government takes financial crimes seriously. If left unchecked, these kinds of deficiencies risk undermining the effectiveness of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in the fight against financial crimes.
The bill proposes a comprehensive set of amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations to ensure reporting entities maintain strong controls that are effective in detecting and deterring money laundering and other financial crimes. The first part of these measures includes strengthening the administrative monetary penalty framework, enhancing the compliance of reporting entities, more effectively punishing serious criminal non-compliance and strengthening supervision and the anti-money laundering and anti-terrorist financing framework in general.
These changes are needed to ensure strong anti-money laundering and anti-terrorist financing controls, as well as that non-compliance is not treated as the cost of doing business. Recent trends also highlight the importance of close coordination between the financial sector regulators. In December 2024, the Financial Transactions and Reports Analysis Centre of Canada signed a memorandum of understanding with regulators in the U.S. to ensure strong money laundering controls of cross-border banks.
In Canada, the Financial Institutions Supervisory Committee facilitates consultation and the exchange of information on matters relating to the supervision of federal financial institutions. Making the Financial Transactions and Reports Analysis Centre of Canada a member of this committee would enable better coordination across agencies in Canada in fighting financial crimes.
Ensuring strong controls of reporting agencies is necessary but not sufficient in our fight against financial crime. We must also take decisive action to directly target the evolving means and methods used by criminals to launder their illicit proceeds. British Columbians know the harms money laundering can cause. Five years ago in Richmond, the operator of an underground bank was shot and killed in broad daylight. In response to this and other concerns about money laundering in B.C., the provincial government established the Cullen commission. The measures proposed in the bill would complement the commission's recommendations to the province.
Of course, British Columbians are concerned about another matter addressed by Bill C-2, fentanyl trafficking and other profit-driven crimes. These criminal activities generate large cash proceeds, and cash remains a preferred method of payment for criminals as it is autonomous and easily transferable. Organized crime networks and drug traffickers exploit money mules to make small deposits in cash in multiple accounts at numerous financial institutions to avoid detection and mandatory reporting.
Criminals also launder their illicit cash proceeds through the purchase and resale of luxury and high-value goods, as well as through large cash payments to service providers who are controlled or influenced by a criminal organization. Large cash payments for goods or services may also be used to evade taxation. For these reasons, many countries, including the United States and other G7 partners, maintain restrictions on large cash transactions.
The second part of the financial crime amendments in the bill addresses the use of cash for money laundering by prohibiting the acceptance by businesses and other professionals of cash payments, deposits or donations over $10,000, except by regulated deposit-taking institutions; and prohibiting deposits by individuals who are not the owner of the account, i.e., third party deposits.
In 2025 and 2026, Canada will undergo an international peer review by the Financial Action Task Force, the international anti-money laundering and anti-terrorist financing standard-setting body. The proposed measures would help address issues identified by the Financial Action Task Force and support a positive review.
The bill is a key part of the government's agenda, and I urge my hon. colleagues to join me in supporting its quick passage. I am happy to take any questions.