Canada launches anti-fraud strategy & Financial Crimes Agency

The Canadian government has outlined new measures aimed at combating financial crime, protecting vulnerable populations, and increasing consumer protection in the financial sector.

According to figures from the Canadian Anti-Fraud Centre, Canadians reported losses of CAD $643 million to fraud in 2024, marking a nearly 300 per cent increase since 2020, while authorities estimate that only 5-10 per cent of scams are reported.

National anti-fraud strategy

As part of its plan, the government intends to implement the country's first whole-of-government National Anti-Fraud Strategy. Legislative changes will compel banks to introduce policies specifically designed to prevent and address fraud, while also offering consumers greater control over their bank accounts. The government will also consider expanding these policy actions to cover sectors such as technology and telecommunications.

The measures outlined will contribute to existing industry-led initiatives, including those by the Canadian Anti-Scams Coalition.

"Through Budget 2025, we are taking bold steps to protect Canadians-especially those most at risk-from exploitation and abuse. Whether it's launching a new Federal Anti-Fraud Strategy, establishing a dedicated Financial Crimes Agency to combat financial crimes, or addressing economic abuse, our government is committed to safeguarding the financial security of every Canadian," said François-Philippe Champagne, Minister of Finance and National Revenue.

The new legislative changes and strategy come in response to increasingly sophisticated fraudulent activities, including unsolicited messages, calls, and emails designed to mimic legitimate financial institutions or service providers. The government highlighted that seniors, newcomers, and other vulnerable groups are disproportionately impacted by such crimes.

Financial Crimes Agency

In addition to legislative reforms, the government plans to establish a national Financial Crimes Agency. This new body will be dedicated to investigating complex cases such as money laundering, organised criminal activity, and online scams, as well as recovering illicit proceeds. Legislation to establish the agency is expected to be introduced by spring 2026, following coordination between the Ministers of Finance and National Revenue, Justice, and Public Safety.

The Financial Crimes Agency will be the first national organisation in Canada dedicated to both tackling sophisticated financial crime and recovering the proceeds from these offences.

At present, federal legislative provisions for consumer protection against fraud are limited. Consumers are liable for a maximum of CAD $50 for unauthorised credit card transactions, and the Canadian Code of Practise for Consumer Debit Card Services provides that consumers are not liable for losses due to unauthorised card use in circumstances beyond their control.

Combating economic abuse

Beyond combating financial fraud broadly, the government also aims to address economic abuse-a form of financial harm that includes restricting access to money, sabotaging employment, or forcing individuals into debt. Seniors and those experiencing gender-based violence are particularly at risk, particularly when economic abuse is perpetrated by family members or caregivers.

To counter this, the government is working with Canada's financial sector and stakeholders to establish a voluntary Code of Conduct for the Prevention of Economic Abuse. The Financial Consumer Agency of Canada will oversee the code, which will set expectations for how banks and other financial institutions can identify and support victims and prevent such abuse.