On April 27, 2026, the federal government introduced Bill C-29, the Financial Crimes Agency Act, marking a significant shift in Canada’s approach to financial crime enforcement. If passed, the legislation will establish the Financial Crimes Agency (FCA), a new specialized federal law enforcement body dedicated to investigating serious and complex financial crimes and contributing to the recovery of proceeds of crime. For years, Canada has faced criticism that its anti-money laundering and anti-fraud enforcement model has been too fragmented, with responsibilities spread across multiple agencies and relatively low rates of investigation, prosecution, and asset recovery in major financial crime cases. Bill C-29 is intended to change that. It signals a move toward a more centralized, specialized, and enforcement-focused model that treats financial crime not just as a regulatory issue, but as a matter of economic security and public confidence. What Bill C-29 Does At its core, Bill C-29 creates the Financial Crimes Agency as a new federal institution. The legislation gives the FCA a clear statutory mandate: to investigate financial crimes, contribute to the recovery of proceeds of crime, and participate in international efforts to counter crimes of a financial nature. The bill defines “financial crime” broadly. It includes offences involving money laundering, trafficking or possession of proceeds of crime, offences that affect the integrity or security of Canada’s economy or financial system, designated Criminal Code offences that generate proceeds of crime, and offences under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. That broad definition matters. It means the FCA is not limited to classic money laundering investigations. Its scope could extend to sophisticated fraud, investment scams, online financial crime, sanctions-related conduct, and other offences tied to illicit financial activity. The FCA will be headquartered in the National Capital Region, but the Commissioner will be able to establish offices elsewhere in Canada with ministerial approval. This gives the new agency a national footprint from the start. A New Enforcement Body with Real Police Powers One of the most important features of Bill C-29 is that the FCA is not being created as a policy or intelligence body alone. It is being designed as an operational law enforcement agency. The FCA will be led by a Commissioner appointed by the Governor in Council. The Commissioner will have the rank and powers of a deputy head and will also be a peace officer throughout Canada. The Commissioner will manage the agency under the direction of the Minister of Finance, and the Minister will be able to issue directions on matters that materially affect public policy or the strategic direction of the FCA. Those directions must be made public as soon as feasible. The legislation also allows the Commissioner to designate certain employees as investigations officers and, subject to regulations, as police officers. Employees designated as police officers will have peace officer powers across Canada. This is a material development. It confirms that the FCA will have frontline investigative authority rather than relying solely on referrals to existing police services. Bill C-29 also requires an arrangement between the FCA and the Royal Canadian Mounted Police for the RCMP to provide services and assistance to the new agency. In practice, that may help bridge operational gaps while the FCA builds its own capacity, and it reflects that the new agency is expected to work alongside — not wholly replace — existing enforcement institutions. Independent Investigations and Cross-Border Cooperation The bill gives the Commissioner authority to launch investigations in two ways: on the Commissioner’s own initiative, or at the request of, or in collaboration with, law enforcement agencies or public bodies in Canada or abroad. That authority is especially important in the modern financial crime environment, where fraud, laundering, sanctions evasion, and digital asset misconduct often involve multiple jurisdictions, fast-moving transactions, and layered corporate structures. The legislation also contemplates information-sharing arrangements and regulations governing the collection, retention, use, disclosure, and disposal of information. As a result, the FCA is likely to become a central node in Canada’s broader financial crime enforcement network, working with domestic and foreign partners where investigations intersect. Federal Prosecution Powers Could Expand Another noteworthy feature of Bill C-29 is its treatment of prosecutions. The legislation provides that the Attorney General of Canada may conduct proceedings for offences investigated under the Act if the alleged offence is a financial crime. It also allows the Attorney General of Canada to issue a fiat establishing exclusive federal authority over a prosecution in a province, taking into account factors such as whether the offence is transnational, spans more than one province, or engages the national interest. That is a meaningful power. It suggests the federal government wants the ability to centralize prosecution decisions in appropriate cases, particularly where investigations are complex, cross-border, or national in scope. Depending on how this power is used, it may become one of the more closely watched aspects of the legislation. Why This Matters for Business For businesses, financial institutions, fintech companies, payment service providers, crypto-asset businesses, and other organizations operating in higher-risk sectors, Bill C-29 is more than an institutional reform. It is a clear signal that financial crime enforcement in Canada is poised to become more specialized and more active. Organizations should expect: more sophisticated federal investigations into money laundering, fraud, and proceeds-of-crime issues; greater coordination between agencies; increased attention to transaction monitoring, sanctions compliance, and internal fraud controls; more scrutiny of complex structures, cross-border payment flows, and digital assets; and potentially stronger focus on asset tracing and recovery. In practical terms, this means legal, compliance, and investigations teams should be reviewing whether internal systems are robust enough to respond to heightened enforcement risk. Record retention, escalation protocols, suspicious activity reporting, internal investigations procedures, employee training, and privilege management may all become more important if the FCA begins operating as intended. Relationship with FINTRAC, the RCMP, and Other Agencies The FCA will not operate in a vacuum. Canada already has multiple bodies involved in financial crime risk, including FINTRAC, the RCMP, securities regulators, provincial Read more
