Finance Minister François-Philippe Champagne speaks with reporters before a Liberal caucus meeting on Parliament Hill in Ottawa on October 8. On Monday, he announced new steps to combat financial crime. The Canadian Press
The federal government says it plans to tighten rules for banks to better protect Canadians from fraud and financial abuse. The proposed changes would require banks to get clear permission from customers before activating money transfer or payment features often used by scammers to steal funds.
The measures, announced ahead of the upcoming federal budget, aim to give consumers more control over their bank accounts and online transactions.
“Canadians deserve stronger protection from fraud and financial crime,” said a government source familiar with the plan.
More Control for Account Holders
Under the proposed legislation, Canadians would be able to turn off certain account features they don’t use or feel are risky. They could also set personal transaction limits to reduce potential losses if fraud occurs.
Officials say these updates would help stop unauthorized transactions before they happen, a growing concern as digital banking and e-transfers become more common.
Recent reports show a steady increase in online scams and fraudulent transactions, particularly those involving e-transfers and mobile payment apps.
“These measures will ensure Canadians have a say in how their money moves,” the government said in a statement.
Tackling Economic Abuse
The Liberals also announced plans to work with financial institutions and advocacy groups to create a voluntary Economic Abuse Code of Conduct.
This new code would establish clear rules for banks on how to handle cases where someone’s access to money or credit is being controlled by another person — often seen in abusive relationships.
Experts say financial control is a common tactic in domestic abuse, leaving victims trapped and without access to their own funds. The government hopes the code will guide banks in responding to these sensitive situations and ensure that vulnerable individuals receive proper support.
New Agency to Fight Financial Crime
The government says it also intends to create a Financial Crimes Agency by next spring. The agency will focus on investigating money laundering, online fraud, and scams, while working to recover stolen assets.
The Liberals first promised such an agency during their 2021 election campaign, but the project has faced delays. Officials say the agency will bring together experts from multiple departments to coordinate investigations and strengthen Canada’s ability to track down financial criminals.
“This will be a major step in cracking down on sophisticated fraud networks,” a spokesperson said.
Looking Ahead
The proposed reforms will be included in the upcoming federal budget and are expected to take effect later this year if passed.
Canadians who have lost money to scams or online fraud say the changes are long overdue. With digital banking becoming the norm, the government says protecting consumers’ financial security must now be a top priority.
