Organized crime persists in Canada not due to RCMP inattention, but because the system was structured to detect illicit funds rather than prevent or stop them.
That system is FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada, a federal intelligence unit mandated to collect suspicious transaction reports and forward them to law enforcement. However, FINTRAC lacks the authority to make arrests. This gap between monitoring and enforcement has allowed billions of dollars to enter the legitimate economy.
In 2025, an estimated $65.2 billion in illicit funds moved through Canada’s financial system, representing an 18% annualized growth rate since 2023. The national risk assessment estimates the annual total ranges from $45 billion to $113 billion. These figures reflect not just a problem, but a systemic failure.
Ottawa’s response, announced in the Spring 2026 Economic Update and through legislation tabled on April 27, is the creation of Canada’s first Financial Crimes Agency. This dedicated federal body will have the authority to investigate, arrest, and prosecute financial crimes.
The agency is allocated $352.7 million over five years starting in 2026-27, with $82.1 million in ongoing annual funding. Finance Minister François-Philippe Champagne described it at the Payments Canada Summit in May as part of a broader ‘follow-the-money’ strategy targeting extortion and organized crime. In effect, Canada is now taking a more proactive approach after years of limited enforcement.
These conditions have developed over many years. Canada’s 2025 National Risk Assessment identified organized crime groups and their third-party professional laundering networks as the primary threats.
The main sources of illicit proceeds are illegal drug trafficking, fraud, commercial trade fraud, and tax crimes. Groups such as outlaw motorcycle gangs like the Hells Angels, Asian Triads, and Latin American drug cartels have established operations in Canada, moving funds through front companies, complex layering structures, and increasingly, digital assets.
The extent of this infiltration was documented by the Cullen Commission, the 2022 public inquiry into money laundering in British Columbia. The Commission produced over 1,800 pages and 101 recommendations after hearing from nearly 200 witnesses.
Commissioner Austin Cullen, a B.C. Supreme Court Justice, found that billions of dollars per year were laundered through the province’s real estate market, casinos, and luxury goods sector. An expert panel estimated that between $800 million and $5.3 billion passed through B.C.’s real estate market alone, increasing house prices by about 5%. B.C. casino operators accepted large cash buy-ins for years with minimal reporting requirements.
When RCMP investigators attempted to address organized crime’s presence in government casino venues, their unit was disbanded. The Cullen Commission concluded this was a systemic failure rather than an oversight.
These events are recent and form the immediate context for the federal government’s current initiatives.
The situation with crypto ATMs is a recent example of this ongoing issue. Canada has about 4,000 crypto ATMs, the highest number per capita globally. Government studies cited in the Spring 2026 Economic Update found that 85 to 98 percent of crypto ATM transactions are linked to illicit activity.
The Canadian Anti-Fraud Centre estimates that Canadians lost between $142 million and $284 million to fraud involving these machines in 2024. CBC News’s “Feeding Fraud” investigation detailed how fraud rings used them to move scam proceeds. The Spring Update proposed a national ban, which would align Canada with New Zealand and, in effect, the UK, which has introduced a licensing regime but issued no licences.
Léon Moubayed, a partner at Davies Ward Phillips and Vineberg specializing in investigations and white-collar defence, stated that Canada has the necessary laws but lacks effective enforcement. Jessica Davis, president of Insight Threat Intelligence, described the new Financial Crimes Agency as ‘exciting,’ highlighting its unprecedented role in Canada.
The RCMP, which will receive $1.7 billion in Budget 2025 for organized crime and financial crimes initiatives, including 1,000 new personnel, has historically lacked the specialized expertise and resources to prosecute complex financial cases. The FCA aims to address this gap by combining civilian and police expertise.
Whether the new agency will be effective remains to be seen. The Cullen Commission’s 101 recommendations were submitted in 2022, but the institutional response has been limited.
The Macdonald-Laurier Institute noted in late 2025 that Canada’s enforcement structure remains ‘fragmented and chronically under-resourced,’ and that major organized crime figures are rarely prosecuted. Establishing a new agency with a clear mandate, budget, and arrest powers is a significant step, but similar optimism accompanied the creation of FINTRAC in 2000.
The central question is whether Ottawa will now pursue financial crime cases to their conclusion, or simply produce another lengthy report on the issue.
