The Canadian Minister of Finance has recently announced the creation of a new financial crime agency designed to combat fraud and money laundering, and recover proceeds from criminal activities.

Announcement on 20 October 2025

On this day, Canadian Finance Minister Francois-Philippe Champagne unveiled plans for a national anti-fraud strategy alongside the budget announcement in November. The strategy will mandate banks to develop policies to prevent and address fraud.

In addition, the federal government of Canada intends to establish a new financial crime agency, which will serve as the primary enforcement body to tackle financial crimes.

Canada’s Fight Against Financial Crime

Data indicates that Canadians lost approximately USD 643 million to financial crime in 2024, marking a significant increase from 2020. However, only between 5% and 10% of such incidents are reported to authorities.

The Canadian Bankers Association (CBA), representing around 60 banking institutions, estimates that the true annual impact is closer to USD 11 billion, or about 0.53% of Canada’s gross domestic product.

According to the Finance Minister, fraud has become more pervasive across various sectors as scammers exploit new channels such as text messages, emails, and social media. To address these challenges in financial services, a comprehensive anti-fraud strategy is being introduced along with the establishment of a specialized agency. These measures necessitate legal amendments and new legislation.

Furthermore, the government aims to work with banks and stakeholders to develop a voluntary code of conduct aimed at preventing economic abuse. This initiative seeks to establish clear guidelines for financial institutions on how to detect, prevent, and respond to such abuses in order to better protect Canadians.

The Minister of Finance emphasized that although Canada currently has several agencies monitoring fraud, a dedicated entity is needed to address the growing complexity and prevalence of financial crime, particularly its impact on vulnerable groups like seniors.