Experts are calling for the establishment of a new agency in Canada to combat increasing financial fraud threats. The Prime Minister’s government recently proposed the formation of the Financial Crimes Agency (FCA) in their Spring Economic Update. This initiative aims to fulfill a long-standing promise made during the 2021 Liberal campaign, focusing on criminal activities such as money laundering, fraud, insider trading, and organized crime.
Rising Financial Crimes in Canada
Financial crimes represent a significant challenge in Canada. The Expert Panel on Money Laundering in British Columbia estimated that money laundering alone contributes approximately 2% to the country’s GDP, equating to more than $40 billion annually. Additionally, fraud losses surpassed $704 million in 2025, as reported by the law firm Gowlings.
Funding for the FCA
The Liberal government has outlined plans to allocate $352.7 million over five years for the FCA’s establishment. Following this initial period, an annual budget of $82.1 million will be provided to support its ongoing operations and activities. This agency is expected to report directly to the finance minister.
Global Context of Financial Fraud
- Fraud is a global issue affecting many G7 countries.
- Scams, including romance fraud and celebrity impersonation, are prevalent.
- All stakeholders must collaborate to effectively combat these crimes.
Steve Boms from the Financial Data and Technology Association of North America noted the widespread nature of such frauds. He emphasized that the FCA represents Canada’s response to a globally growing challenge.
Current Policing Landscape
Historically, the Royal Canadian Mounted Police (RCMP) has faced challenges in addressing financial crime. In the year 2024-25, the national police force allocated approximately $2.34 billion for policing various jurisdictions, yet only $799 million was dedicated to federal policing, which includes financial crime investigations.
Recent data indicates that the RCMP has prioritized national security threats and protective services, leading to a decline in resources for serious crimes, including financial offenses. This situation has created a backlog of intelligence leads concerning financial crimes that the RCMP lacks the capacity to investigate.
Need for a Dedicated Agency
Experts believe that the creation of the FCA is a critical step for Canada. Michael Ecclestone from The AML Shop highlighted that this marks the first establishment of a federal policing agency since the RCMP’s inception in the 19th century.
He pointed out that Canada’s prosecution rates for financial crimes, including money laundering, fall significantly short compared to other nations. The establishment of a dedicated agency like the FCA emphasizes the need for improved investigation and prosecution in this sector.
Challenges Ahead for the FCA
Despite the promise of a new agency, challenges remain. Bill C-29 outlines the need for the FCA to collaborate with existing resources, including the RCMP. Effective staffing and training are crucial for the agency’s success, as is the integration of civilian support staff.
Coordination Among Authorities
Successful implementation of the FCA will depend on seamless coordination with other federal authorities responsible for guarding against financial fraud and organized crime. Boms stressed that while the FCA’s creation addresses significant issues, existing systems must also be leveraged for enhanced protection against financial crimes.
