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Canada Launches Digital Crackdown with New Financial Crimes Agency

By  |  October 20, 2025
Canada, AML, FINTRAC, AI

Canada is taking major steps to strengthen its defenses against digital and financial crimes, with the federal government announcing plans to establish a new financial crimes agency and to introduce sweeping amendments to the Bank Act aimed at curbing online fraud and scams. The announcement was made Monday by Finance Minister François-Philippe Champagne, according to Bloomberg.

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    The forthcoming amendments will require banks to play a more proactive role in preventing fraud. Per Bloomberg, one of the most significant changes will oblige financial institutions to obtain the “express consent” of customers before activating certain money-transfer features on their accounts. This move is intended to give consumers more control over their banking tools and reduce unauthorized transfers.

    In another consumer protection measure, bank customers will soon have the ability to independently adjust transaction limits on their accounts. This feature is designed to make it harder for scammers to rapidly withdraw funds from compromised accounts. The changes reflect the government’s recognition of how quickly online and AI-driven fraud schemes have evolved.

    According to Bloomberg, the measures are being introduced as a direct response to a surge in fraud-related losses across Canada. Data from the Canadian Anti-Fraud Centre shows that Canadians reported losses of C$643 million (US$458 million) last year, although authorities believe that represents only a fraction of the real total—perhaps just 5% to 10% of what victims actually lose, since many cases go unreported.

    The new financial crimes agency, which is slated to launch in the first half of 2026, will consolidate expertise from across government and law enforcement. The agency will be tasked with investigating complex crimes such as money laundering and online financial scams, as well as recovering illicit proceeds from criminal networks, according to Bloomberg.

    Further details on the initiative and related funding are expected to be included in Champagne’s upcoming federal budget, scheduled for release on November 4. The government’s latest moves signal an intensified effort to modernize Canada’s financial oversight framework and to safeguard citizens from increasingly sophisticated fraud schemes.

    Source: Bloomberg