Title: Strengthening Canada’s Response to Financial Crime: An Overview
Subtitle: Understanding the Threat and Efforts to Combat Financial Crimes in Canada
Canada faces the growing challenge of financial crimes that threaten the safety and security of its residents. In this article, we provide an overview of financial crimes in Canada and the measures taken by the government to strengthen its response.
The Threat of Financial Crimes in Canada
Financial crimes, including money laundering, fraud, and cybercrimes, pose a significant challenge to Canada. According to the Royal Canadian Mounted Police (RCMP), reports of economic crime totaled an estimated $1.3 billion in 2021 [RCMP, 2022]. Under-reporting is common due to fear of retaliation and investigation complexities.
Types of Economic Crimes
- Money laundering
- Fraud
- Cybercrimes
Most Common Economic Crime: Fraud
The RCMP indicates that fraud is the most common type of economic crime reported [RCMP, 2022].
The Canadian Government’s Response
Establishment of the Integrated Financial Crime and Intelligence Unit (IFCU)
In response to the growing threat of financial crimes, the Canadian government established the Integrated Financial Crime and Intelligence Unit (IFCU) in 2010. The IFCU is a collaborative effort between the RCMP and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Their mission is to identify, investigate, and disrupt the financing of criminal activities in Canada.
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) Amendments
The Canadian government introduced the PCMLTFA amendments in 2019 to further strengthen existing anti-money laundering and anti-terrorist financing frameworks. The amendments introduced new requirements for reporting entities to better identify and report suspicious transactions and enhance public-private partnerships.
Public Awareness Campaigns
The Canadian Anti-Fraud Centre launched a nationwide campaign, “Don’t Get Scammed,” in 2022 to increase awareness of various fraud schemes and educate the public.
Countering Cybercrime and Cyberattacks
In 2021, Public Safety Canada announced funding for projects aimed at countering cybercrime and cyberattacks, especially those targeting small and medium-sized enterprises (SMEs).
Conclusion
Given the complex and ever-evolving nature of financial crimes, the Canadian government remains dedicated to finding innovative and effective solutions. By working alongside law enforcement agencies, private sector partners, and other stakeholders, Canadians can rest assured that their safety and security remain a top priority.