Posted first on SLAW here.
I have a vivid memory of being told I was callous for suggesting that an individual who was drafting a Statement of Claim to recover lost funds should instead report their losses to the authorities – they would likely never see their money again. To be fair (to me), they probably never did. That individual’s son convinced them to invest their savings, roughly $14,000, with his friend, a young 20-something crypto-investment “genius” who offered to use his know-how to make them rich, for free (no fees), while offering a 100% guarantee of returns. Sounds exciting! Except, that this situation resulted in the financial devastation of this family. Years later, in April 2026, when I read that the Federal government introduced Bill C-29, An Act to Establish The Financial Crimes Agency,[1] and the proposed amendments came with a significant budget to stand up the agency,[2] frankly, my first thought was that it was about time!
The Financial Fraud Loss Problem in Canada & the World
Financial fraud is a multi-trillion-dollar global problem (that’s with a ‘T’).[3] In 2025 alone, Canadians reported over $704M in fraud losses and between 2002-2005, combined losses amounted to roughly $2.4B (that’s with a ‘B’).[4] Keep in mind that these statistics only include reported incidents. There are likely many more victims who have not reported their losses out of embarrassment or because they’re unlikely to see any money back.
Currently, financial crime investigations can be disjointed with local police services and RCMP engaged in investigations at various levels, with FINTRAC, the Office of the Superintendent of Financial Institutions (OSFI), the Department of Finance, and other organizations operating within their own designated mandates. The financial experience and expertise between investigators can also vary. A sophisticated, centralized, well-funded and internally integrated agency tasked with the specialized skills to investigate financial crimes is good news and is largely a response to criticism that Canada’s strategy to combat financial crimes, like money laundering, lags behind other international law enforcement agencies.[5]
About the Proposed Financial Crimes Agency
If passed, the Act will create a specialized federal law enforcement agency to:
- recover proceeds of crime
- participate in global efforts to combat financial crime
- investigate serious and complex financial crimes[6]
Serious and complex crimes could include money laundering, trafficking, or any other crime that adversely impact the integrity of Canada’s financial system or capital markets.[7] Under the supervision of the Minister of Finance,[8] this specialized law enforcement agency will be able to enter into information-sharing arrangements and collaborate with other agencies to investigate financial crimes.[9]
Entities Should Consider Strengthening Programs Now
As the new centralized agency enhances in sophistication and sharpens its investigation and enforcement of financial crimes, it also means that entities that find themselves the targets of financial criminals and schemes should consider how to increase their corporate agility and be responsive to the new Financial Crimes Agency.
Start considering how your entity plans to:
- strengthen internal controls
- strengthen governance documentation
- strengthen information-sharing processes across various risk management groups
- strengthen fraud reporting
- strengthen investigative responses
- strengthen documentation processes
These strengthening considerations will help your organization better prepare for the Financial Crimes Agency launch. Even better, try combining these considerations with an agile approach to risk and good document (and product) design.[10] Enhancing institutional maturity will better position some organizations to be prepared to effectively respond when the Financial Crimes Agency comes knocking.
The Theme of this Story
The ongoing theme of this financial crime story is that, right now, it is far too easy for the 20-something crypto-investment “genius” to defraud individuals, leaving financial devastation in his wake. Even though people should be very skeptical of someone who promises quick returns with low/no-risk, people often ignore the red flags.[11] Financial fraud is getting more complex, more sophisticated, and happen at speed with targeted accuracy (thanks AI!). Will this situation rise to the level of the Financial Crimes Agency? Maybe. Or, maybe not. But, at least a centralized agency with strong collaborative powers can begin to put a dent in this $2 trillion dollar + global problem. And, it is about time.[12]
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[1] Long Title: An Act to establish the Financial Crimes Agency and to make consequential amendments to certain Acts and regulations
[2] Fasken. “Federal Spring Economic Update 2026: Highlights Affecting Financial Services” (4 May 2026) (bulletin), online: <https://www.fasken.com/en/knowledge/2026/05/federal-spring-economic-update-2026-highlights-affecting-financial-services>.
[3] Leyland Cecco, “Canada to create powerful financial crimes agency as US weakens its approach,” The Guardian (30 April 2026) (Online: theguardian.com/world/2026/apr/30/canada-financial-crimes-agency-us-weakens-approach-cryptocurrency-atms-money-laundering): “A 2024 report on the scale of financial crimes estimated that more than US$3tn in illicit funds had moved through the global financial system in the previous year. Among the largest culprits were money laundering for human and drug trafficking, as well as terrorist financing. A 2024 report from the US treasury department found those efforts had had “devastating economic and social impact” on citizens.”
[4] Competition Bureau Canada, News Release, “Fraud Prevention Month to bring hidden crime into the spotlight” (6 March 2026) (Government of Canada, Online: www.canada.ca/en/competition-bureau/news/2026/03/fraud-prevention-month-to-bring-hidden-crime-into-the-spotlight.html).
[5] Transparency International Canada. “Canada Falls from its Anti-Corruption Perch” (25 February 2020) (Transparency International, online: www.transparency.org/en/blog/canada-falls-from-its-anti-corruption-perch).
[6] Bill C-29, An Act to establish the Financial Crimes Agency and to make consequential amendments to certain Acts and regulations, 1st Sess, 45th Parl, 2026 (first reading) at s. 3(a)-(c).
[7] Ibid at s. 2.
[8] Ibid at s. 5.
[9] Ibid at s. 24(1)-(2).
[10] For more information about designing good policies, refer to Kerri Salata, “The Sheriff of Notconsideringyouham: Draft Better Policies by Starting With the User” (27 August 2025) (SLAW, Online: http://www.slaw.ca/2025/08/27/the-sheriff-of-notconsideringyouham-draft-better-policies-by-starting-with-the-user/).
[11] Some good resources for financial fraud include: “Protect Yourself from Fraud.” Ontario Securities Commission, 2025 (Online: https://www.osc.ca/en/investors/check-before-you-invest#:~:text=Warning%20signs%20of%20fraud,-Margaret%20believed%20in&text=You%20are%20
promised%20high%20returns,not%20registered%20to%20sell%20investments); “Warning on crypto and romance frauds.” Government of Canada, May 28, 2024 (Online: https://antifraudcentre-centreantifraude.ca/news-nouvelles/2024/2024-05-28-eng.htm); “How to report scams in Canada: a simple guide.” Canadian Bankers’ Association (Online: https://cba.ca/article/how-to-report-scams-in-canada).
[12] Other articles considered: Graeme A Hamilton, Zev Smith & Valerie Cheng, “Canada’s proposed Financial Crimes Agency: A new era of financial crime enforcement” (12 May 2026) (BLG, Online: https://www.blg.com/en/insights/2026/05/canadas-proposed-financial-crimes-agency-a-new-era-of-financial-crime-enforcement).
*This blog is not legal advice.