The federal Liberals are set to establish a new financial crimes agency to combat online scams as part of a comprehensive national anti-fraud strategy, according to Finance Minister François-Philippe Champagne’s announcement on Monday. The strategy will be unveiled on November 4 in conjunction with the fall budget release, Champagne revealed during a press conference. The move comes as the minority government seeks support in Parliament to advance its financial agenda.
Champagne emphasized the necessity of this initiative, stating, “As fraud tactics evolve, more Canadians are falling victim to these crimes.” Various sophisticated financial scams, including ghost texts, phishing links, and fraudulent bank emails, are increasingly posing a significant threat to Canadians, he noted.
In 2024, Canadians reportedly suffered losses totaling around $643 million due to fraudulent activities, marking a substantial surge compared to previous years, as indicated by the Canadian Anti-Fraud Centre. Only a small fraction of these scams, estimated at five to 10 percent, are reported.
As part of the proposed measures, the government intends to amend the Bank Act to mandate that banks implement policies to prevent and address fraud effectively. Champagne stressed the complexity of combating financial crimes in the modern era, expressing his aspiration for Canada to lead in this endeavor.
While the exact cost of establishing the new financial crimes agency remains undetermined, Champagne’s spokesperson, John Fragos, informed CBC that the upcoming budget will not specify a designated amount for this purpose. The announcement was made in the presence of Public Safety Minister Gary Anandasangaree, Wayne Long, secretary of state for Canada Revenue Agency and financial institutions, and Stephanie McLean, secretary of state for seniors.
The latest pre-budget announcement from the Liberals coincides with renewed calls from the Conservatives for a fiscally conservative budget. Conservative Leader Pierre Poilievre criticized the current government, accusing them of depleting Canadians’ financial resources. Poilievre urged Prime Minister Mark Carney to prioritize tax cuts and keep the deficit below $42 billion.
Although the parliamentary budget officer projected a significant increase in the budget deficit this year, recent remarks by the head of the International Monetary Fund highlighted Canada’s comparatively strong fiscal position among G7 nations. Champagne referenced this assessment to underscore Canada’s fiscal resilience and potential for strategic investments.
Despite the ongoing discussions about fiscal management, details about the upcoming budget, including the possibility of substantial deficits and potential budget cuts, are anticipated. Poilievre recommended various measures to reduce the deficit, including resource development, expenditure reductions, and tax cuts across different sectors.
The Bloc Québécois also outlined its budget priorities, emphasizing essential demands for increased federal health transfers, infrastructure investments, and support for various social programs. The party’s proposals aim to address key needs within Quebec and are deemed financially sustainable by their finance critic, Jean-Denis Garon.
In light of these developments, the Liberals may secure the necessary support to pass the budget with the backing of the New Democrats, who have seven seats in the House. Interim NDP Leader Don Davies advocated for substantial investments in job creation, healthcare, and housing during recent discussions with Prime Minister Carney.