dailyloe.com – Canada plans to establish a new law enforcement agency to tackle financial crime. This decision contrasts with the U.S., where federal investigators face challenges in pursuing fraudsters.
The bill for the Financial Crimes Agency (FCA) completed its first reading in parliament this week. Introduced by the governing Liberals, the majority party is expected to expedite the legislation through both government levels.
The FCA will investigate and prosecute financial crimes, addressing Canada’s lack of a cohesive anti-money laundering strategy. Jessica Davis, a former intelligence analyst, emphasized the significance of this new agency.
Alongside the FCA, Canada will ban cryptocurrency ATMs. Officials indicate these ATMs have been exploited by scammers and criminals for money laundering.
Canada currently has nearly 4,000 cryptocurrency ATMs, the highest per capita globally. The financial transactions and reports analysis centre (Fintrac) has been Canada’s financial intelligence unit for over 25 years.
In the previous year, Fintrac identified $45 billion in transactions linked to money laundering and other financial crimes. Jessica Davis noted the uncertainty surrounding the true extent of financial crime in Canada.
Fintrac does not conduct arrests; it refers investigations to police and prosecutors. The establishment of the FCA will shift investigative responsibilities away from Fintrac and the Royal Canadian Mounted Police.
Davis pointed out that the RCMP has struggled to effectively investigate financial crimes. The creation of the FCA aims to enhance Canada’s approach to combating financial crime.
