Financial crime enforcement in Canada is undergoing its most significant structural transformation in generations. On April 27, 2026, the federal government introduced Bill C-29, the Financial Crimes Agency Act, proposing the creation of an entirely new federal law enforcement body dedicated exclusively to investigating serious financial crimes. If passed, it would represent the first new federal police agency established in Canada since the RCMP was founded in the 19th century.
Why a New Agency? The Problem with the Status Quo
For years, financial crime enforcement in Canada has been fragmented. The RCMP, provincial police forces, and various regulatory bodies have operated with overlapping mandates and inconsistent resources, leaving significant gaps in the investigation and prosecution of complex financial wrongdoing. A 2023 report by the National Security and Intelligence Committee of Parliamentarians found that the RCMP’s sprawling mandate was actively undermining its capacity to pursue financial crime files. Government documents have also revealed that the RCMP accumulated more intelligence tips about possible financial crimes than it had the resources to investigate.
The numbers tell a troubling story. The Canadian Anti-Fraud Centre reported that Canadians lost $643 million to fraud in 2024 alone, representing a nearly 300 percent increase since 2020. Because only an estimated 5 to 10 percent of fraud is ever reported, the true scale of financial crime in Canada is likely far greater. Meanwhile, the Financial Transactions and Reports Analysis Centre of Canada identified $44 billion in transactions during the 2023-24 fiscal year that raised grounds for suspicion of money laundering, terrorist financing, or threats to national security.
It is against this backdrop that the proposed Financial Crimes Agency was conceived. Rather than continuing to stretch the RCMP’s already strained resources, the government is betting on a purpose-built institution with a singular, focused mandate.
What Bill C-29 Actually Proposes
At its core, Bill C-29 creates the Financial Crimes Agency as a standalone federal law enforcement body operating under the oversight of the Minister of Finance. The agency’s statutory mandate is to investigate serious and complex financial crimes, contribute to the recovery of proceeds of crime, and participate in international efforts to counter financial crimes of a transnational nature.
The bill defines “financial crime” in sweeping terms. It captures any offence under an Act of Parliament relating to financial assets, including digital assets, or financial services and markets. This includes money laundering, trafficking or possession of proceeds of crime, any conduct adversely affecting the integrity or security of Canada’s economy or financial system, designated Criminal Code offences that generate proceeds of crime, and offences under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Critically, digital assets are expressly included within this definition, signalling that cryptocurrency-related conduct will now face dedicated federal criminal scrutiny alongside existing provincial securities oversight.
The Financial Crimes Agency would be led by a Commissioner who would hold the status of a peace officer throughout Canada. Designated employees would similarly be granted peace officer powers, authorizing them to conduct investigations and pursue the recovery of proceeds of crime. The Attorney General of Canada would retain authority to prosecute proceedings arising from Financial Crimes Agency investigations, preserving the traditional separation between investigative and prosecutorial functions. The government has proposed funding of $352.7 million over five years beginning in 2026-27, with $82.1 million in ongoing annual funding thereafter.
A Broader Sweep Than You Might Expect
One aspect of Bill C-29 that deserves close attention is the breadth of inter-agency information sharing it contemplates. The bill amends a significant number of federal statutes to permit various government bodies to share information with the Financial Crimes Agency. These include the Special Economic Measures Act, the Justice for Victims of Corrupt Foreign Officials Act, the Immigration and Refugee Protection Act, the Security of Canada Information Disclosure Act, and others.
This means the Financial Crimes Agency will not be operating in isolation. Immigration data, sanctions-related intelligence, biometric information, and foreign affairs disclosures could all flow into Financial Crimes Agency investigations. For businesses and individuals who may find themselves within the agency’s crosshairs, the depth of information potentially available to investigators marks a meaningful departure from the more siloed enforcement approach of the past.
The bill also allows the Attorney General of Canada to issue a fiat asserting exclusive federal jurisdiction over a matter, particularly where the underlying conduct is national or transnational in scope. Once such a fiat is served on a provincial Attorney General, it displaces that province’s prosecutorial authority over the relevant offence. This federal override mechanism could have significant implications for how and where charges are ultimately pursued.
What This Means for Individuals and Businesses
The practical implications of the Financial Crimes Agency, if Bill C-29 becomes law, are substantial. For financial sector participants, including banks, investment firms, cryptocurrency platforms, and payment processors, the agency represents a far more coordinated and potentially more assertive investigative counterpart than has previously existed at the federal level. Conduct that may previously have been handled through regulatory channels could escalate more quickly to a formal criminal investigation.
For individuals, the Financial Crimes Agency’s broad mandate means that a wider range of financial activity could attract the attention of federal investigators. Fraud, capital markets misconduct, sanctions-related offences, and any conduct touching digital assets all fall within the proposed scope. The agency is designed to concentrate resources and capability in a way that the current system has not been able to achieve, which will likely translate into more investigations, more charges, and more aggressive asset forfeiture proceedings.
It is also worth noting that Bill C-29 is part of a broader federal initiative. The government is simultaneously developing Canada’s first National Anti-Fraud Strategy, proposing amendments to the Bank Act that would require financial institutions to adopt specific fraud prevention policies, and moving to ban crypto ATMs in response to their documented links to illicit activity. The Financial Crimes Agency sits at the centre of this expanding enforcement ecosystem, and its reach will only grow as companion legislation takes shape.
The Road Ahead
Bill C-29 is currently at an early stage of the legislative process following its introduction on April 27, 2026. The Spring Economic Update 2026 committed the necessary funding to stand up the agency, suggesting strong government intent to see the legislation through. That said, the bill will face Parliamentary scrutiny, and questions remain about how the Financial Crimes Agency will coordinate with existing bodies, how quickly it will be staffed and operational, and how its exercise of peace officer powers will interact with rights protections under the Canadian Charter of Rights and Freedoms.
The Minister of Justice has tabled a Charter Statement in connection with Bill C-29, as required under the Department of Justice Act. The Statement indicates that the Minister has not identified potential effects on Charter rights and freedoms, though Charter considerations may evolve as Parliamentary study of the bill proceeds. For those who may be investigated or prosecuted under the new regime, the Charter remains a critical shield, and early legal advice will be essential.
The creation of the Financial Crimes Agency signals that Canada is moving toward a centralized, well-resourced, and assertive model of financial crime enforcement. Anyone who believes they may be the subject of a financial crime investigation, or who operates in a sector likely to attract Financial Crimes Agency scrutiny, should take the emergence of this agency seriously and seek legal guidance without delay.
Facing a Financial Crime Investigation in Toronto or Across Ontario? Contact Hicks Adams
If you or your business are under investigation for fraud, money laundering, proceeds of crime offences, or any other financial crime, the time to act is now. The proposed Financial Crimes Agency represents a new era of coordinated, well-funded federal enforcement, and the consequences of a conviction, including significant prison sentences, heavy fines, and the forfeiture of assets, are severe.
The Toronto criminal defence lawyers of Hicks Adams provide tenacious, strategic representation to individuals and businesses facing financial crime charges throughout Toronto, the Greater Toronto Area, and across Ontario. Whether you are dealing with an RCMP investigation today or preparing for the new enforcement landscape the Financial Crimes Agency will bring, we are here to defend your rights at every stage of the process. Contact us online or call 416-975-1700 to schedule a confidential consultation today.
