On October 20, 2025, Canada’s Finance Minister announced plans to seek heightened anti-fraud regulatory and enforcement measures ahead of the country’s upcoming federal budget. The initiative includes two major developments:
- National anti-fraud strategy – A national strategy to adopt increased anti-fraud initiatives, expected to include new fraud detection and reporting requirements for Canadian banks and a voluntary code of conduct to address economic abuse.
- Creation of a financial crimes agency – A new centralized agency will be established to investigate complex financial crimes such as money laundering and large-scale fraud. It will complement FINTRAC, Canada’s financial intelligence unit, and will be established via legislation expected in Spring 2026.
Why US businesses should pay attention
- Cross-border scrutiny: US companies with Canadian ties may face increased compliance obligations and regulatory visibility.
- US regulatory spillover: Canadian investigations could trigger follow-on actions from US regulators, especially in areas like money laundering and investor fraud.
- Information sharing and joint enforcement: The US and Canada share a common interest in anti-fraud enforcement, signaling the potential for increased cross-border enforcement collaboration.
Next steps for businesses
- Audit Canadian exposure: Review subsidiaries, vendors and financial systems with links to Canada.
- Update compliance programs: Align AML and fraud controls with evolving Canadian standards.
- Prepare for inquiries: Establish internal protocols and cross-border response teams.
Canada’s move signals a potential escalation in cross-border financial crime enforcement. US businesses should act now to stay ahead of the curve.