Canadian government steps up anti-fraud efforts including new Financial Crimes Agency
The Government of Canada is to introduce the first cross-government national anti-fraud strategy and set up a new agency to tackle financial crime.
The moves – which aim to tackle what is described as “an ever-growing threat to the financial wellbeing of Canadians everywhere” – will form part of the upcoming federal Budget 2025, to be tabled on 4 November.
The government will use the set-piece event to introduce legislative amendments requiring banks to have policies to prevent and address fraud, while giving consumers more control over their bank accounts, according to a Department of Finance announcement on 20 October. It will also “explore new policy actions” across sectors including technology and telecommunications “to tackle financial fraud more broadly”.
The new Financial Crimes Agency will be the country’s first authority “dedicated to investigating sophisticated financial crimes and recovering illicit proceeds from criminals”. The aim is to introduce legislation to ‘stand up’ the agency – which will “unite the expertise needed to investigate complex cases of money laundering, organised criminal activity and online financial scams, and to recover illicit proceeds” – by spring 2026.
The measures will, the government stated, “build upon” industry-led initiatives to combat fraud and scams, such as a recently launched Canadian Anti-Scams Coalition (CASC), and constitute “decisive action to ensure that Canadians can feel confident that their financial systems are secure and resilient”.
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Criminals ‘increasingly sophisticated’
“From ghost texts and mysterious links, to masked voiceover calls and phony bank emails, fraud and financial crimes are becoming increasingly sophisticated and harder to detect – and remain an ever-growing threat to the financial well-being of Canadians everywhere,” the Department of Finance stated, adding that “seniors, newcomers and other vulnerable populations are disproportionately affected”.
Canadians lost CAN$643m (US$460m) to fraud in 2024, representing nearly a 300% increase since 2020, while only 5-10% of scams are reported, according to the Canadian Anti-Fraud Centre (CAFC). The CAFC – which is jointly managed by the Royal Canadian Mounted Police, Competition Bureau Canada and Ontario Provincial Police – gathers intelligence on fraud and helps with enforcement and prevention efforts.
The announcement highlights that, at present, the only federal legislative consumer protection requirement for fighting fraud is a limit of consumer liability for unauthorised credit card transactions of CAN$50; and, in addition, a Canadian Code of Practice for Consumer Debit Card Services stipulates that consumers are not liable for losses in circumstances beyond their control, such as unauthorised debit card use.
Canada already has the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which is the country’s financial intelligence unit and anti-money laundering/counter the financing of terrorism supervisor.
The Canadian Anti-Scams Coalition was “informally created” just over 12 months ago. Described by the Canadian Bankers Association as the “country’s first unified cross-sector initiative to combat the growing threat of scams targeting Canadian consumers“, members will this autumn launch a “comprehensive national education campaign, marking a new collaborative approach to fighting scams in Canada”, according to an announcement on 9 September.
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‘Economic abuse’ focus
The announcement was made by minister of finance and national revenue François-Philippe Champagne alongside public safety minister Gary Anandasangaree, secretary of state responsible for the Canada Revenue Agency and financial institutions Wayne Long, and secretary of state responsible for seniors Stephanie McLean.
The announcement also stated that the government will work with banks and other interested organisations to develop a voluntary code of conduct for the prevention of economic abuse.
“Economic abuse – such as restricting access to money, sabotaging employment or forcing debt – is a common yet under-recognised form of gender-based violence and financial harm,” it explained. “Seniors are also particularly vulnerable, especially when financial control or exploitation comes from family members or caregivers. Economic abuse can destroy lives and independence.”
“Canada’s financial institutions play a critical role in detecting signs of abuse early and providing safe pathways for victims and survivors,” the announcement added.
The planned code of conduct, to be overseen by the Financial Consumer Agency of Canada, will “set clear expectations for how financial institutions can identify, prevent and respond to economic abuse”. Voluntary codes of conduct already in existence include one for the delivery of banking services to seniors.
The Budget will be the first under the government of Mark Carney, who was elected as prime minister in April.
This story first appeared on Global Government Forum’s sister title Global Government Fintech: Canadian gov steps up anti-fraud efforts including new financial crimes agency
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About Ian Hall
Ian is Global Government Finance editor. He has formerly held roles including UK director of Euractiv (2011-2018), editor of Public Affairs News (2007-2011) and news editor of PR Week (2000-2007). He was shortlisted for ‘Editor of the Year’ at the British Society of Magazine Editors (BSME) Awards in 2010. He began his career in the Balkans at English-language weekly the Sofia Echo (Bulgaria: 1998-1999).
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