Canada’s upcoming Financial Crimes Agency (FCA) will prioritize tracing digital assets as part of its mission to combat illicit finance. Rob Stewart, deputy minister of the proposed agency, emphasized the importance of tracking cryptocurrency transactions, citing the growing use of virtual currencies by organized-crime groups to move money across borders. The FCA, which could launch as early as next year pending the passage of Bill C-29, aims to enhance Canada’s capabilities in prosecuting complex money-laundering cases and supervising high-risk businesses like cryptocurrency exchanges.
Stewart highlighted the need for staff skilled in forensic accounting, digital forensics, and blockchain analysis to ensure the agency’s success. He noted that criminals are increasingly consolidating cash, converting it to crypto, moving it to other jurisdictions, and then washing it back into the system. Unregistered money-services businesses, such as cryptocurrency exchanges, and stablecoins like Tether were identified as areas requiring additional enforcement, with some exchanges openly flouting laws by displaying ‘No KYC’ signs.
The FCA’s workforce, expected to be around 230 to 250 people, will include peace officers and regular officers. The RCMP will provide temporary support with 150 staff, and a commissioner will oversee the operation. Stewart also mentioned Ottawa’s recent legislation to ban cryptocurrency ATMs, which he described as a tool favored by street-level fraudsters. Despite recent efforts, he stressed that more work is needed to enhance information sharing and improve the fight against financial crime.