OTTAWA, Canada—Canada has introduced legislation to establish a new federal Financial Crimes Agency, marking a significant escalation in the country’s effort to combat money laundering, fraud and other illicit finance risks.
The proposed law, Bill C-29, received its first reading in Parliament last week and would create a specialized national enforcement body with authority to investigate complex financial crimes and help recover criminal proceeds, consolidating capabilities that are currently spread across multiple agencies.
The move follows years of criticism that Canada’s anti-money laundering framework is fragmented and underpowered, with enforcement responsibilities divided among entities such as FINTRAC and the Royal Canadian Mounted Police. The new agency is designed to centralize expertise and provide a more coordinated response to increasingly sophisticated financial crime threats, The Guardian noted.
Government officials have said the Financial Crimes Agency will serve as the country’s lead enforcement body, bringing together law enforcement and civilian expertise to tackle organized crime, large-scale fraud and online scams, while strengthening the recovery of illicit funds. The initiative builds on commitments outlined in Budget 2025 and broader anti-fraud and AML reforms.
Industry and anti-corruption groups have largely welcomed the legislation, calling it a “much-needed” step toward improving enforcement, though they stressed the agency will need strong coordination with existing regulators and adequate funding to be effective. With the governing Liberals holding a parliamentary majority, the bill is expected to advance quickly through the legislative process.