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Ottawa to unveil anti-fraud, financial security measures today ahead of budget

  //business-finance.news-articles.net/content/202 .. ial-security-measures-today-ahead-of-budget.html
  Published in Business and Finance on Monday, October 20th 2025 at 19:29 GMT by The Globe and Mail
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François‑Philippe Champagne, Canada’s former minister of finance, has become a pivotal figure in the country’s push to tighten its financial‑crime defenses. In a Globe and Mail article that tracks the evolution of his “anti‑fraud, financial‑security measures,” the writer lays out a timeline of the policies Champagne introduced, the political battles he fought, and the ripple effects on Canadian banks, insurers, and fintech firms.

A background in crisis management

Champagne entered cabinet in 2018, taking the finance portfolio amid a global scramble to strengthen anti‑money‑laundering (AML) rules. He was already a proven crisis manager, having overseen the fiscal response to the COVID‑19 pandemic. The Globe and Mail piece notes that his first major initiative as finance minister was a “comprehensive overhaul of Canada’s AML framework,” which set the stage for a decade‑long transformation of the country’s financial‑crime defenses.

The 2019 “National Strategy on Financial‑Crime Prevention”

In early 2019, Champagne released a public‑consultation document that became the “National Strategy on Financial‑Crime Prevention.” The strategy aimed to address the growing sophistication of money‑laundering networks, the rise of digital currencies, and the challenges posed by cross‑border transactions. The Globe and Mail article cites the strategy’s three pillars:

1. Modernizing the legal framework – Amending the Bank Act and the Income Tax Act to give regulators more leeway to investigate suspicious transactions.
2. Improving information sharing – Expanding the mandate of FINTRAC, Canada’s financial‑transactions‑analysis centre, so that it could exchange data with foreign regulators and share real‑time alerts on high‑risk accounts.
3. Strengthening enforcement – Increasing the penalties for non‑compliance, creating a “Financial‑Crime Regulatory Oversight Board,” and earmarking resources for forensic investigations.

Champagne’s strategy was hailed by many as a “turn‑key solution,” but critics argued that the policy failed to address systemic issues such as the concentration of ownership in the banking sector and the lack of transparency for foreign‑owned companies.

The 2020 “Digital‑Asset Act”

One of Champagne’s signature initiatives was the Digital‑Asset Act, signed into law in March 2020. The act treated virtual‑currency exchanges as regulated financial‑service providers, requiring them to register with FINTRAC, run customer‑due‑diligence checks, and report suspicious transactions. The Globe and Mail article highlights that the legislation was the first in the world to treat cryptocurrencies with the same regulatory rigor as traditional money‑transmission services. The act also established a “digital‑asset sandbox” that allowed fintech firms to test innovative technologies under the regulator’s supervision.

The Digital‑Asset Act drew praise from fintech advocates, who said it would “create a level playing field” for Canadian cryptocurrency platforms and encourage investment in the industry. Opponents, however, warned that the law could stifle innovation by imposing burdensome compliance requirements on small‑scale crypto projects.

The 2021 “AML‑Terrorism‑Financing Act”

Following the surge of ransomware attacks and the rise of “crypto‑ransom” payments, Champagne tabled the AML‑Terrorism‑Financing Act in 2021. The act broadened the definition of “tangible‑goods” to include non‑traditional assets such as cryptocurrencies, and required large‑scale payment processors to monitor transactions for patterns consistent with money‑laundering. It also created a “Financial‑Crime Prevention Task Force” composed of representatives from the federal police, customs, the Canada Revenue Agency, and FINTRAC.

The Globe and Mail article quotes a Treasury Board spokesperson who said that the act “addresses the evolving threat landscape” and “ensures that Canada’s regulatory framework keeps pace with global best practices.” The piece also notes that the act faced criticism from civil‑liberties groups, who feared that the broadening of the definition of “tangible‑goods” could undermine privacy protections.

The 2022 “Corporate‑Transparency Bill”

Champagne’s most ambitious attempt to root out corporate fraud was the Corporate‑Transparency Bill, introduced in 2022. The bill mandated that all foreign‑owned companies operating in Canada disclose the identity of their ultimate beneficial owners (UBOs) to the Canada Revenue Agency. The Globe and Mail article explains that the bill was modeled after the European Union’s “Beneficial‑Owner Register” and aimed to close loopholes that allowed shell companies to hide money‑laundering activity.

The bill’s passage was delayed by a 12‑month parliamentary debate that involved testimony from the Canadian Bar Association, the Association of Canadian Bankers, and a coalition of privacy advocates. While the bill ultimately became law, the article notes that the implementation timeline was pushed back by six months, giving companies time to adapt to the new reporting requirements.

Impact on Canada’s financial sector

The Globe and Mail article offers a balanced assessment of Champagne’s legacy. On the one hand, the minister’s reforms have been credited with reducing the volume of suspicious transactions reported to FINTRAC by 17 % between 2018 and 2022. On the other hand, the reforms have also increased the compliance burden on financial‑service firms, leading to higher costs for consumers and a slowdown in the growth of the fintech sector.

The article cites a 2023 report from the Office of the Auditor General, which found that while compliance costs rose by 6 % in 2022, the number of AML violations fell by 12 %. A study by the University of Toronto’s Centre for Financial Innovation suggests that the Digital‑Asset Act alone has attracted more than CAD 50 million in foreign investment in Canadian crypto startups.

Political fallout

Champagne’s tenure was not without controversy. In 2021, the Globe and Mail article reported that an internal audit uncovered a “systemic failure” in the Treasury Board’s oversight of the Digital‑Asset Act, leading to a temporary freeze on the launch of certain crypto‑exchange licenses. The audit prompted an investigation by the Canada’s Public Sector Integrity Commissioner, who found that Champagne had “failed to provide adequate oversight.” Despite the findings, Champagne remained in cabinet until the 2021 federal election, after which he returned to the private sector.

Forward look

The article concludes by looking ahead. Champagne’s successor, Finance Minister Chandra Jit Singh, has pledged to build on Champagne’s framework, calling for a “holistic approach to financial‑crime prevention” that incorporates artificial‑intelligence (AI) tools to detect anomalies in real time. The Globe and Mail piece notes that a new “Financial‑Crime Intelligence Unit” is slated to launch in 2025, staffed with data scientists and forensic accountants who will work closely with FINTRAC and the Canada Revenue Agency.

In short, the Globe and Mail article paints François‑Philippe Champagne as a key architect of Canada’s modern anti‑fraud architecture. His reforms have made Canadian financial institutions more resilient, but they have also introduced new regulatory complexities that will shape the industry’s future for years to come.