Canada to launch Financial Crimes Agency and ban crypto ATMs to tackle money laundering

The Canadian government has introduced legislation to establish the Financial Crimes Agency (FCA), a specialized law enforcement body designed to investigate and prosecute money laundering and fraud.

This move follows a public inquiry that highlighted Canada's lack of a cohesive strategy against illicit financing, News.Az reports, citing The Guardian.

Unlike the existing intelligence unit, Fintrac, which only reports on suspicious activities, the FCA will have the mandate to arrest and prosecute criminals—filling a gap left by the Royal Canadian Mounted Police (RCMP), which experts say has struggled with a lack of resources and expertise in complex financial cases.

In a dual-track approach to security, Canada also announced a ban on cryptocurrency ATMs. Despite having the highest number of these machines per capita globally, officials argue they have become primary tools for scammers and organized crime to launder proceeds. Proponents of the bill, including anti-corruption groups like Transparency International, view the agency as a necessary bulwark against a global surge in illicit funds, which reached an estimated $3 trillion in 2024.

The Canadian initiative stands in sharp contrast to recent shifts in the United States. While Canada is shoring up its enforcement, the U.S. administration has faced criticism for pardoning high-profile figures like Binance founder Changpeng Zhao and diverting thousands of federal personnel away from white-collar crime units toward immigration enforcement. While experts note that Canada is still playing catch-up to the US in terms of overall prosecution capacity, the creation of the FCA signals a new, aggressive priority in protecting the Canadian economy from predatory financial behavior.

News.Az 

By Leyla Şirinova