Canada

Canada tables legislation to establish Financial Crimes Agency

By , , and

The Government of Canada has introduced Bill C-29, (Bill) to establish Canada’s “Financial Crimes Agency” (Agency) under the oversight of the Minister of Finance. The agency’s 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.

The creation and development of the Agency has been a longstanding commitment of the Government, which was first proposed in the 2021 platform of the Liberal Party, with subsequent budgets earmarking funding for feasibility studies. While the proposed mandate of the Agency has shifted over time from investigating “all forms of major financial crime” to focusing on “money laundering charges, prosecutions and convictions and asset forfeiture”, the Bill has provided the Agency with flexibility to establish criteria to determine the focus of its investigations.   

The Bill defines “Financial Crime” very broadly as: any offence, under an Act of Parliament, relating to financial assets — including digital assets — or financial services or markets, including:

(a) an offence under any Act of Parliament involving

(i) laundering, trafficking or possession of proceeds of crime, or

(ii) any conduct that adversely affects, or has the potential to adversely affect, the security or integrity of Canada’s economy or financial system or of any financial market in Canada;

(b) a designated offence, as defined in subsection 462.‍3(1) of the Criminal Code, from which proceeds of crime are obtained or derived directly or indirectly; and

(c) an offence under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.‍ 

The Agency will be headquartered in the Ottawa region, with the authority to establish offices throughout Canada. Importantly, the Bill sets out the following grants of authority:

  • The Agency has authority to investigate any financial crime or any offence under any Act of Parliament committed in relation to a financial crime.
  • The Agency has authority to begin investigations or at the request of another Canadian or foreign law enforcement agency or public body with the authority to conduct investigations.
  • The Commissioner has authority to establish “criteria” regarding which matters may be investigated under the Act, providing broad discretion for the investigative mandate to respond to developments in financial crime.
  • The Attorney General of Canada can supersede the jurisdiction of a provincial Attorney General over a proceeding by issuing a fiat if the matter is transnational in nature, committed in more than one province, or involves the national interest. 

The Bill also amends several other Acts to provide authority for multiple government agencies to share information with the Agency. For example, the Bill proposed to amend the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act in order to permit the Minister of Foreign Affairs to work with the Agency to enforce Canada’s economic sanctions and to collect information from and disclose information to the Agency.

In its Spring Economic Update, the Government of Canada has now committed to financing the Agency to the tune of CAD 352.7 million over five years starting in 2026-27, earmarked to be delivered to the Agency, the Public Prosecution Service of Canada; and the Department of Finance Canada. The Government also announced its intention to explore new criminal justice reforms to support the investigation and prosecution of complex financial crimes.

The Bill was tabled before the House of Commons on Monday, April 27 and its first reading was completed. It is now at its second reading, which will introduce debate in the House of Commons on the policy rationales behind the Agency and any constitutional or jurisdictional concerns, which may arise under the fiat provisions. If the Bill is approved on the second reading, it will be referred to a committee for detailed study. The Bill may be subject to amendments throughout the Parliamentary process.

Participants in Canada’s financial markets, and entities subject to AML and sanctions regulatory considerations, should continue to watch the progress of the Bill and how the Agency may change the future enforcement landscape of financial crimes, including AML and sanctions compliance, in Canada.

Categories:
Tags:
Author

Julia Webster is a disputes and international trade lawyer. She advises companies on trade remedies, free trade agreements, blocking measures, customs compliance, anti-corruption laws, economic sanctions, AML compliance, supply chain ethics, and cross-border M&A. Julia is a tested advocate and has significant commercial and trade litigation experience. She has appeared before the Canadian International Trade Tribunal, the Federal Court, the Federal Court of Appeal, the Ontario Superior Court of Justice and a number of administrative tribunals across Canada. She has also counseled companies on sensitive internal investigations which have included cross-border document reviews and multi-jurisdictional legal proceedings.

Author

John Pirie leads Baker McKenzie’s Disputes Group in Canada and he is a member of the group’s North American Steering Committee. He also sits on the Management Committee for the Canadian office. John acts for clients in complex business disputes and white-collar engagements. Widely recognized as a leading trial, arbitration and appellate advocate, he has been lead counsel in a range of complex litigation and arbitration matters. Among other recent accolades, in 2025 John was listed by Benchmark Litigation as one of Canada’s “Top 50 Trial Lawyers” and he was the recipient of Benchmark’s “White-Collar/Enforcement Litigator of the Year” award. John is certified by the Law Society of Ontario as a Specialist in Civil Litigation, and he is a Fellow of the Litigation Counsel of America.

Author

Usman Sheikh is Chair of the Blockchain & Fintech Practice. He is a Transactional Partner in Baker McKenzie's Toronto office and is also a member of the Firm's Litigation and Government Enforcement Practice Group. A highly regarded thought leader on blockchain and distributed ledger technology, Usman has briefed the offices of several prime ministers, as well as ministers, on blockchain's disruptive power, and is regularly invited to speak to business leaders and at global blockchain conferences throughout the world.

Author

Michael serves as the head of the Financial Services Regulatory Practice for Canada and is a Transactional Partner in Baker McKenzie's Toronto office. His practice focuses on financial regulation and compliance for fintechs, financial institutions and market participants and their business in Canada. When not acting for clients, Michael lectures students at the University of Montreal on corporate and securities laws and in preparing for case competitions. He is a co-author of the Annotated Bank Act (2023 edition) and the Jurisclasseur en valeurs mobilieres, a leading publication on securities laws. Michael is a chartered professional accountant and has worked as an inspector with the Autorité des marches financiers (AMF) and an auditor with the Office of the Auditor General of Canada.

Related Posts