Canada's Government to Create Financial Crimes Agency, Require Bank Policies to Tackle Scams

By Robb M. Stewart

OTTAWA--Canada's government will launch a new financial crimes watchdog as part of beefed-up efforts to tackle a surge in scams and fraud.

The Liberal government also plans to introduce legislative amendments that would require banks in the country to have policies to prevent and address fraud, and will explore other broad-reaching policies aimed at financial crime, Finance Minister Francois-Philippe Champagne said Monday.

The efforts are part of a national anti-fraud strategy that will be introduced in the coming federal budget, which Prime Minister Mark Carney's government plans to table Nov. 4.

"Fraud and financial crime are evolving rapidly, and so must our response," Champagne said.

Financial crimes are becoming increasingly sophisticated and harder to detect, and the government said that in 2024 the Canadian Anti-Fraud Centre reported that Canadians lost 643 million Canadian dollars, the equivalent of about $459 million, to fraud, a nearly 300% increase since 2020. It estimates that only 5% to 10% of scams are reported.

Champagne said a new financial crimes agency will be established to lead efforts in combating financial fraud and scams, including ghost texts and mysterious links, masked voiceover calls and phony bank emails.

The agency will bring together the expertise needed to investigate complex cases of money laundering, organized criminal activity and online financial scams, and to recover illicit proceeds, Champagne said. He said he would work with the ministers of justice and public safety to introduce legislation to stand up this agency by the spring of 2026.

Ahead of that, the government will introduce legislative amendments requiring banks to have policies on fraud, while giving consumers more control over their bank accounts, Champagne said. The government also will look at new policy sectors including technology and telecommunications to tackle financial fraud more broadly, he said.

Currently, the only legislative requirements in place include a limit of consumer liability for unauthorized credit card transactions at C$50 and above and an understanding under the Canadian Code of Practice for Consumer Debit Card Services that consumers aren't liable for losses in circumstances beyond their control, such as unauthorized use of the debit card.

The proposed amendments to Canada's Bank Act would require that banks have policies and procedures in place to detect and prevent fraud targeting consumers, and to collect data on financial fraud and report it to the Financial Consumers Agency of Canada. The changes also would require that banks obtain express consent from deposit holders before enabling account features that fraudsters can use to steal money, including transfer and payment abilities, and to allow banks customers to be able to disable these capabilities. Banks also would be required to allow personal deposit account holders to adjust transaction limits to protect themselves.

Champagne said the government additionally plans to work with banks and others to develop a voluntary economic abuse code of conduct. Such abuse, which includes restricting access to money, sabotaging employment or forcing debt, is a common form of gender-based violence and financial harm, the minister said. Champagne said seniors also are particularly vulnerable, especially when financial control or exploitation comes from family members or caregivers.

The Canadian Bankers Association, an industry body representing more than 60 domestic and foreign banks operating in the country, said banks take the issue of fraud, cyber security and data protection seriously. According to the association's website, banks have spent more than C$120 billion on technology over the last decade, including tech dedicated to security measures.

Major financial services, telecommunications and technology companies in September said they would come together with law enforcement and the federal government to form the Canadian Anti-Scam Coalition to combat the growth threat of scams targeting consumers. The alliance aims to unify efforts offer a coordinated response to scam operations.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

October 20, 2025 10:50 ET (14:50 GMT)