Canada’s Proposed Financial Crimes Agency: Highlights and Takeaways for CPAs
June 24, 2026
When the federal government released its 2026 Spring Economic Update on April 28, the announcement of the “Canada Strong Fund” captured most of the attention. What was also of note was the release of more detail on the government’s proposal to establish a Financial Crimes Agency (FCA), tasked with investigating and recovering the proceeds of complex financial crimes.
First announced in the 2025 federal budget, the legislation establishing the agency, Bill C-29, was introduced in the House the day before the release of the spring economic update and has made its way to committee after passing second reading.
The establishment of the Financial Crimes Agency is, in part, a response to criticism from global anti-money laundering (AML) and terrorist financing watchdog the Financial Action Task Force (FATF). The FATF has been critical of Canada’s low recovery rate of the proceeds of crime and weak enforcement.
With Canada’s evaluation under discussion during the FATF plenary session in Paris from June 17 to 19 and the review well under way, Canada’s approach to combatting financial crime is back under the microscope. And while early reporting suggests that Canada may avoid being “grey-listed” by FATF, federal and provincial governments are all taking action to shore up their anti-money laundering (AML) regimes.
As criminal enterprises become more sophisticated in laundering money across international borders, Canada needs to keep pace. Cryptocurrency, techniques for masking beneficial ownership and investment in liquid luxury markets are just a few examples of how money can be moved untracked and undetected by organizations or regulators.
The establishment of the FCA would mark a significant shift in the financial crime landscape in Canada. With CPAs playing a critical role in protecting Canada’s capital markets, it is important for CPAs to understand the agency’s proposed mandate, its legislated powers and its impact on CPAs’ roles and responsibilities in safeguarding our financial system.
What is the mandate of the FCA?
The FCA is a new specialized federal law-enforcement body that will report to the Minister of Finance with the core mandate to strengthen Canada’s capacity to investigate serious financial crimes, recover proceeds of crime and coordinate domestically and internationally on financial threats. The agency will focus only on high-impact cases and will establish its own criteria for determining which matters it investigates. [C-29, s. 17]
The agency will be overseen by a Commissioner appointed to hold office for a term of up to five years and will hold the rank and powers of a deputy head of a department. [C-29, s. 8 (1,2,9)] The legislation lays out broad powers for the Commissioner to launch investigations on their own initiative, or at the request of, or jointly with, domestic or foreign law-enforcement bodies or public authorities [C-29, s. 16 (2)]. The Commissioner is not mandated to consult with other Canadian law-enforcement agencies when it launches its own investigations, only required to do so if the Commissioner considers it “appropriate.” [C-29, s. 16 (3)], granting the agency operational independence from local law enforcement.
Further strengthening the role and powers granted to the FCA is fiat power under the Attorney General of Canada, granting the attorney general federal prosecutorial jurisdiction over a case brought to it by the FCA when the case involves transnational crime, multi-provincial offences and cases that intersect with the broader “national interest.” [C-29, s. 22(2)] How this authority will interact with provincial jurisdiction over financial crime is yet to be determined.
It is important to note that the legislation for establishing the FCA grants the agency both investigative powers and police powers.
The FCA Commissioner has the authority to designate investigative officers, charged with conducting investigations and the recovery of proceeds of crime. [C-29, s. 18 (1)] The legislation also grants the Commissioner with the power to designate any employee of the agency a police officer. The Commissioner themselves will be designated a peace officer, and all employees of the agency designated police officers will be considered a peace officer in every part of Canada, with all the powers, authority, protection and privileges that entails. [C-29, s. 9 (2), 19 (1,2)]
The legislation does not explicitly mention any of the other bodies in Canada’s combatting financial crime constellation, such as the Office of the Superintendent of Financial Institutions (OFSI) or the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). However, the legislation does grant the Commissioner the authority to enter agreements with other bodies for the purposes of information sharing. [C-29, s. 24 (2)]
How does the FCA compare globally?
The establishment of the FCA marks a new approach to combatting financial crime for Canada, which in some ways aligns with the approaches of other jurisdictions, and in other ways represents an outlier in approach.
In the United Kingdom, the UK Financial Intelligence Unit (UKFIU) is situated within the National Crime Agency (NCA) and is responsible for leading investigations into complex money laundering, financial crime and terrorist financing cases. While the UKFIU has investigative authority, it also has policing powers as an extension of being a part of the NCA. Japan follows a similar model with the Japan Financial Intelligence Center (JAFIC) as a division of the National Police Agency.
In Germany, financial crime is managed through the Central Office for Financial Transaction Investigations (FIU) with the outcome of its investigations transferred to law enforcement or intelligence agencies. This structure is similar to other European jurisdictions, including France and Italy, where financial crime and money laundering is investigated by a separate body, but law enforcement authority is granted to national or regional police services.
In the United States, FinCEN, a bureau of the U.S. Department of the Treasury is responsible for the collection, analysis and dissemination of financial intelligence in the service of combatting financial crime though a wide range of other organizations, including the Federal Bureau of Investigations (FBI), the Securities and Exchange Commission and the Internal Revenue Service.
The proposed structure of the FCA in Canada as a standalone federal agency with both investigative and policing powers would make the Agency relatively unique among its international peers.
What does it mean for CPAs?
The principles of the CPA Code of Professional Conduct can help CPAs navigate AML efforts and combat financial crime. Specifically, rule 213 covers the responsibility of CPAs not to associate with activity that they know, or should know, to be unlawful. Rule 201 reinforces the importance of acting in a manner which will maintain the good reputation of the profession and serve the public interest at all times.
While the legislation establishing the FCA includes amendments to several pieces of legislation, including the Criminal Code, the Privacy Act and the Financial Administration Act, there are no amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLFTA). Under the PCMLFTA, CPAs and firms engaged in specific triggering activities are required to fulfill certain obligations, such as reporting any suspicious transactions to FINTRAC. That requirement will not change with the establishment of the FCA, nor will the requirements for implementing a compliance program, verifying the identify of persons or entities for certain activities, record keeping, and awareness of the Money Laundering and Terrorist Financing risk typologies.
CPAs will always need to exercise their professional judgement and balance the requirements between Rule 213 and Rule 208, which impose obligations regarding preserving the confidentiality of information concerning client, or former client, affairs. Given that officers of the proposed FCA will be granted investigative and police powers, CPAs would be required to cooperate fully with any FCA investigation in the same manner as they would any other police investigation. In all cases, consultation with legal representation is recommended.
Conclusion
The establishment of the FCA joins a slate of recent announcements, including the creation of a national anti-fraud strategy and the banning of cryptocurrency ATMs, to signal Canada is taking greater action to combat financial crime. All these efforts are to the good, as they reinforce Canada’s financial crime infrastructure as FATF completes its final report on Canada. At the same time, with the legislation still moving through parliament and the complex logistical requirements of setting up such an operation, it could be years before the FCA is on the front lines in the fight against financial crime.
In terms of what it would mean for the profession, the roles and responsibilities of every CPA may not be directly impacted by the establishment of the FCA. However, as leaders in maintaining the integrity of Canada’s financial markets, it is important for CPAs to continue to understand how this new proposed entity could impact Canadian business, capital markets and the profession’s role in protecting the public.