The Canadian government is planning to establish a novel federal law enforcement body specifically focused on financial crimes, in a significant effort to revamp the investigation of money laundering and fraud within the country. Jess Davis, president of Insight Threat Intelligence, described the creation of this new federal police agency as a substantial development. The announcement made in the spring economic statement on Tuesday introduces the Financial Crime Agency, characterized by the Liberals as the inaugural federal law enforcement agency dedicated to probing severe and intricate financial crimes and reclaiming the proceeds of criminal activities.
Outlined in Bill C-29, which was discreetly introduced on Monday, the proposed agency will be endowed with police powers and is intended to spearhead investigations into Canada’s most complex and costly financial crimes, operating under the supervision of a commissioner. The primary objective of the agency, as per the update, is to uncover, track, and confiscate illicit funds to disrupt and dismantle drug trafficking, extortion, fraud, and other organized criminal networks posing threats to community safety and financial system integrity.
Traditionally, the Royal Canadian Mounted Police (RCMP) has been responsible for investigating high-level financial crimes and money laundering under its federal mandate. However, the Financial Crime Agency will be a distinct entity from the RCMP, staffed with its own police officers authorized to conduct search operations and make arrests. The agency may enlist the assistance of Mounties in its initial years, as stated in the bill. Additionally, the agency will comprise civilian investigators, financial and criminal intelligence specialists, asset recovery experts, and specialized prosecutors.
Renowned Canadian expert in terrorist financing and money laundering, Jess Davis, expressed that the agency aims to address the substantial issue prevalent in Canada. The Financial Transactions and Reports Analysis Centre of Canada identified $44 billion in transactions suspected to be related to money laundering, terrorist financing, or threats to national security in the 2023-24 fiscal year. This amount, if contributed to the legitimate economy, could potentially rank among the top 20 sectors boosting the country’s GDP.
Canadians have reported losses exceeding $704 million to fraud in 2025, with total reported losses surpassing $2.4 billion since 2022, according to the Canadian Anti-Fraud Centre. Given the widespread underreporting of financial fraud incidents, the actual figure is likely higher.
The initiative to establish the Financial Crime Agency is viewed by some as a response to the limitations of the RCMP in addressing financial crimes effectively. The RCMP’s broad mandate, encompassing federal policing duties and nationwide law enforcement, has strained its resources over the years. A report from the National Security and Intelligence Committee of Parliamentarians in 2023 recommended the creation of a standalone federal policing body, citing the RCMP’s multifaceted mandate as hindering its investigations into national security and financial crimes.
The government allocated nearly $353 million over five years starting in 2026-27, with an additional $82 million annually thereafter, to launch and sustain the Financial Crimes Agency. Further funding has been earmarked for the Public Prosecution Service of Canada and the Department of Finance Canada to support the agency’s operations and investigative activities. The government emphasized the importance of thorough scrutiny and evaluation of the legislation by all political parties to ensure accountability and effectiveness in achieving the agency’s objectives.