Canada’s FinTech Compliance: New Financial Crimes Agency Act

Canada Establishes New Financial Crimes Agency

Canada’s new Financial Crimes Agency Act (Bill C-29), introduced on April 27, 2026, marks a significant shift in the country’s approach to combating financial crime. This legislation creates a standalone federal law enforcement agency with a focused mandate and extensive investigative powers.

The agency will have explicit authority over digital assets and cross-border financial crime. Its broad definition of ‘financial crime’ includes offenses under federal acts, money laundering, and conduct threatening Canada’s economic security.

Compliance Shifts for FinTechs and FIs

This development significantly alters the compliance landscape for Canadian financial institutions, FinTechs, and money services businesses. They face new requirements:

• Enhanced Due Diligence: Greater scrutiny in correspondent and counterparty checks.
• Higher Evidentiary Standards: Transaction monitoring programs must meet more rigorous proof requirements.
• AML/Fraud Convergence: Integration of anti-money laundering and fraud functions is crucial.
• Digital Asset Risk: Promptly address risks associated with digital assets through appropriate screening and monitoring controls.

The FCA will operate under the Minister of Finance, with a Commissioner holding peace officer status. This Commissioner can initiate investigations independently or in collaboration with other agencies.

What’s Next for Canadian Compliance

The bill signals a narrowing gap between regulatory expectations and enforcement actions. Institutions must now prioritize well-designed compliance programs.

These programs need to generate defensible decisions at every stage to avoid potential enforcement actions. The focus is on a more consolidated and robust fight against financial crime across the nation.