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Overview of the 2025 Kananaskis Summit's Illicit Finance-Related Initiatives
Denisse Rudich, G7 Research Group London
July 2, 2025
This year’s summit at Kananaskis on June 15–17, 2025, was the 50th anniversary of the G7, founded as a group of the world’s largest democracies that has evolved into a “platform for advanced economies to coordinate financial and economic policy, address issues of peace and security, and cooperate with international partners in response to global challenges.”
Despite US president Donald Trump lamenting the suspension of Russia from the club and his references to the G8 (when Russia was a member) and even G9 (G7+Russia+China) at the beginning of the Kananaskis Summit, G7 members and like-minded countries met this year in Canada to build stronger economies by:
Although the Israel-Iran crisis that erupted on June 13 threatened to overshadow the Kananaskis Summit, the G7 issued several documents and a chair’s summary that are relevant to tackling illicit finance or indicators of future sanctions. These are summarized below.
Of interest, the Chair’s Summary flagged the links between “crisis theatres in Ukraine, the Middle East and Indo-Pacific” as well as other “instances of crisis and conflict” in Africa and Haiti, without going into further specifics.
Ukraine: G7 leaders expressed support for President Trump’s peace efforts and stressed that they remain “resolute in exploring all options to maximize pressure on Russia, including financial sanctions.” At his closing press briefing, Canadian prime minister and chair Mark Carney highlighted that Canada had a package of sanctions on individuals, companies, vessels specifically targeting the shadow fleet “to exert maximum pressure on Russia.”
Middle East: Conflicts in the Middle East dominated the agenda on the summit’s first day, with leaders issuing a Statement on Recent Developments in between Iran and Israel. .They affirmed that Iran, which is subject to comprehensive sanctions, can never have a nuclear weapon, which continues to have implications for proliferation financing, and again noted the importance of the need to protect civilians. They also highlighted the potential implications for international energy markets and the possibility of coordinating with like-minded partners “to safeguard market stability.” In addition, G7 leaders discussed the evolving situation following the 2023 Hamas terrorist attacks and the need for a political solution to the Israeli-Palestinian conflict that achieves lasting peace, and called for a ceasefire in Gaza. During various press conferences held during the summit, several leaders stressed the need for a diplomatic solution to the conflict.
Indo-Pacific: G7 leaders addressed the need for a “free, open, prosperous and secure Indo-Pacific,” highlighting the need to have stable relations with China to tackle global challenges and promote peace and security. They also spoke about China’s destabilizing activities in the East and South China Seas and the need for peace across the Taiwan Strait. They further raised concerns about North Korea’s nuclear weapons and ballistic missiles program and the need to tackle its cryptocurrency thefts that fund these programs as well as the issued of abductions.
As indicated in the Chair’s Summary, G7 leaders stressed the importance of ongoing collaboration to counter migrant smuggling and illicit synthetic drug trafficking, particularly with origin and transit countries. Leaders specifically committed to dismantling transnational organized crime groups to counter migrant smuggling. This issue was addressed more concretely in the G7 Leaders’ Statement on Countering Migrant Smuggling.
Citing a threat to the safety of communities, G7 leaders reaffirmed their commitment to thwart and tackle migrant smuggling. This includes by implementing the 2024 G7 Action Plan to Prevent and Counter the Smuggling of Migrantsand carrying out work through the G7 Coalition to Prevent and Counter the Smuggling of Migrants. More specifically, leaders expressed a determination to strengthen border management and enforcement against smugglers and to “dismantle the transnational organized crime groups profiting from both migrant smuggling and human trafficking.” They also linked migrant smuggling to money laundering, corruption, and human and drug trafficking and also to human harms such as “physical abuse, sexual and gender-based violence, extortion, labour exploitation, and forced labour and criminality.” Leaders would work to prevent the “weaponization of migrants to undermine stability or as a hybrid warfare tactic.”
G7 leaders tasked their interior and security ministers “to double down” and:
Of note was the indication that G7 members would explore the possibility of using sanctions targeting human trafficking operators and migrant smugglers from source countries. Leaders expressed their commitment to “countering all forms of abuse and exploitation of migrants, ensuring protection of the most vulnerable, including refugees and forcibly displaced persons” in order to meet human rights obligations.
Recognizing that secure and responsible critical mineral supply chains underpin the security and the digital transition, leaders adopted the G7 Critical Minerals Action Plan. This issue has long been identified as being higher risk for illicit finance activity, including corruption and human rights abuses for profit. G7 leaders affirmed that they remain committed to the following key principles for resilient critical mineral supply chains: “transparency, diversification, security, sustainable mining practices, trustworthiness and reliability.” They further acknowledged the importance of traceability, trade and decent work and highlighted that G7 members would work to protect economies and national security against non-market practices and market disruption. At the same time, leaders identified need to work together to address barriers, such as delays in obtaining permits and approvals, market manipulation and price volatility, all of which expose the market to corruption and illicit activity.
As part of the Action Plan, the G7 committed to the following:
The Action Plan was endorsed by Australia, India and Korea, whose leaders were present at the Kananaskis Summit.
G7 leaders condemned all acts of transnational repression (TNR), citing national security, state sovereignty, international law and human rights concerns. They defined TNR as “an aggressive form of foreign interference whereby states or their proxies attempt to intimidate, harass, harm or coerce individuals or communities outside their borders.” Transnational repression has been associated with corruption and criminal activity, including cybercrime, and can manifest in the misuse of cyber tools or international standards to engage in surveillance and detain or repress targets, including by “leveraging extraterritorial law application and counterterrorism and investigative tools.”
G7 leaders expressed an intention to build on the 2018 Charlevoix Commitment on Defending Democracy from Foreign Threats to foster a common understanding of TNR, increase awareness, accountability and costs for those engaging in acts of TNR by:
The G7 has identified technological innovation as key to addressing global challenges.
Leaders committed advancing adoption of both AI and quantum technologies.
Artificial Intelligence: Leaders committed to driving forward innovation and secure, responsible and trustworthy human-centric AI adoption across both the public and private sectors by powering AI now and into the future, and closing down the gap in existing digital divides. This includes by:
Quantum Technologies: G7 leaders pledged to boost cooperation to unlock the full potential of quantum technology (including computing, sensing and communications) to grow economies, solve global challenges and keep communities secure. They committed to:
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g7@utoronto.ca This page was last updated July 02, 2025. |
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