Prime Minister Stephen Harper's Conservative government is being "relentless" in its efforts to battle money laundering and funding to terrorist groups, Finance Minister Jim Flaherty said Wednesday.

Flaherty acknowledged the challenges in the fight during his address to the opening session of a meeting of the international Financial Action Task Force in Vancouver.

"Ironically, our ongoing efforts to maintain the stability and dependability of our financial systems can pose risks because, like everyone else, criminals prefer financial systems they can trust," Flaherty told the FATF, which was formed by the Group of Seven countries in 1989.

Flaherty pointed to recent legislation tabled by Prime Minister Stephen Harper's Conservatives and to the work of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as examples of Canada's commitment to the fight.

FINTRAC tabled its annual report in Parliament last week, identifying over $5 billion in suspicious transactions in the past year. The report said 33 cases representing $256 million were linked to suspected terrorist activity "and other threats to the security of Canada."

Both of those figures were substantial increases from the previous year's figures.

Last week the Conservatives introduced a bill in the House of Commons that would increase the reach of FINTRAC and boost the financial activities that banks, insurance companies, securities dealers and money service businesses would be required to identify and monitor.

Flaherty also noted that Toronto is now the headquarters of Egmont Group, a body that since 1995 has grown to encompass 101 financial intelligence units from around the world.

"I can assure you that Canada's new government is being relentless in its efforts to combat money laundering and terrorism financing," Flaherty said.

The Financial Action Task Force meeting in Vancouver is focused on new payment technologies and how terrorist organizations use dummy corporations to quietly move money around the globe.
 
Britain announced on Tuesday that it would use classified intelligence to freeze the assets of groups and individuals suspected of financing terrorist activities. Previously, law enforcement officials had to wait for the individuals to be arrested or put on a watch list before freezing assets.

Flaherty said he couldn't comment on whether Canada would follow the same path but said the recent legislative amendments will strengthen crime-fighting efforts.

with files from the Canadian Press