In a bold move that contrasts sharply with the US approach, Canada is set to create a **powerful new Financial Crimes Agency (FCA)** to investigate and prosecute money laundering and other financial crimes. The legislation, introduced by the governing Liberals, also includes a **ban on cryptocurrency ATMs**, which have been exploited by scammers and criminals.

## Key Details

The FCA will have the authority to both investigate and prosecute financial crimes, a significant upgrade from the current system where the financial intelligence unit Fintrac only analyzes transactions and passes cases to police. This change comes after a public inquiry found Canada lacked a cohesive anti-money laundering strategy.

Canada has nearly 4,000 crypto ATMs, **the most per capita in the world**, and officials say they've been used to defraud victims and launder illicit funds. The ban aims to curb these abuses.

## Contrast with US Policy

The Canadian crackdown stands in stark contrast to the US, where the Trump administration has **pardoned convicted money launderers** like Binance founder Changpeng Zhao and diverted resources from financial crime investigations to immigration enforcement. Senator Elizabeth Warren criticized the administration for letting white-collar criminals off the hook.

## Expert Opinions

Jessica Davis, a former intelligence analyst, called the new agency "a meaningful investment" and a sign that Canada understands the seriousness of the challenge. However, she noted that the US still has greater capabilities in prosecuting financial crimes, and Canada is playing catch-up.

Anti-corruption groups like Transparency International Canada applauded the move but stressed the need for close coordination with other agencies to achieve its potential.

## Implications

The creation of the FCA marks a **divergence in Canada-US approaches** to financial crime. While the US weakens its enforcement, Canada is strengthening its defenses. As Davis put it, "The things that happen in the US do tend to happen in Canada. And so this new agency is a bulwark against that."

Cryptocurrency ATMs also face ban, after public inquiry found Canada lacked anti-money-laundering strategy

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