Canada is to establish a new and powerful law enforcement agency to investigate financial crime, in stark contrast to the US, where weakened federal investigators have struggled to pursue fraudsters and the White House has pardoned convicted money launderers.
A bill to create the Financial Crimes Agency (FCA) completed its first reading in parliament this week. The legislation was introduced by the governing Liberals and with their parliamentary majority, the party is likely to move it through both levels of government quickly.
The new agency, tasked with investigating and prosecuting financial crimes, is the result of a public inquiry that found Canada lacked a cohesive strategy against money laundering, placing it behind its international peers.
Jessica Davis, a former intelligence analyst with Canada’s spy agency who focuses terrorism and illicit financing, said: “The fact we’re actually seeing the creation [of a] new enforcement agency is a meaningful investment and hopefully signals the understanding of the seriousness of the challenge.”
In addition to a new law enforcement agency, Canada will ban cryptocurrency ATMs, which officials say have been used by scammers to defraud victims and by criminals to launder the proceeds of crime. Canada has nearly 4,000 cryptocurrency ATMs, the most per capita in the world.
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A customer using the world’s first permanent bitcoin ATM, unveiled at a coffee shop in Vancouver in 2013. Photograph: Andy Clark/Reuters
For more than a quarter of a century, the financial transactions and reports analysis centre (Fintrac) has functioned as Canada’s financial intelligence unit. Last year, the agency uncovered $45bn in transactions from money laundering, counterterrorist financing, sanctions and evasion disclosures.
“It’s a figure that could be too high or far too low – we just don’t fully know the scope of financial crime in this country,” said Davis, who runs the consulting firm Insight Threat Intelligence.
Fintrac does not track and arrest criminals, instead handing off its investigations to the police and prosecutors. Under the new legislation, the newly formed FCA will investigate and prosecute – a move that lessens the scope and mandate of Fintrac and the Royal Canadian Mounted Police, the country’s federal law-enforcement authority.
“The challenge for the RCMP is that it has been unable and unwilling to actually investigate and sustain investigations related to financial crimes,” said Davis. “There is a lack of funding, a lack of skills, lack of resources and a lack of political will. But financial crimes investigations are long, complex and require sustained resources, which I’m hopeful we’re now going to see put in place.”
A 2024 report on the scale of financial crimes estimated that more than US$3tn in illicit funds had moved through the global financial system in the previous year. Among the largest culprits were money laundering for human and drug trafficking, as well as terrorist financing. A 2024 report from the US treasury department found those efforts had had “devastating economic and social impact” on citizens.
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The Canadian effort marks a stark contrast to the approach taken by the current US administration to the scourge of financial crime. Donald Trump’s government issued a high-profile pardon of Changpeng Zhao after the self-styled “king” of cryptocurrency pleaded guilty to money laundering charges. His company, Binance, had been ordered to pay a record $4.3bn penalty for its role in facilitating terrorist financing.
Changpeng Zhao, the founder of Binance, at a conference in Paris in 2022. Photograph: Benoît Tessier/Reuters
In a January letter to federal watchdogs, senior Democrats called for an investigation into Trump’s decision to shift more than 25,000 personnel away from investigating fraud, tax evasion and money laundering in favour of immigration enforcement.
“The Trump administration is letting white-collar criminals off the hook for all kinds of wrongdoing,” senator Elizabeth Warren, from Massachusetts, said in a statement. “Instead of protecting American families from fraud and predatory behaviour, the administration is diverting resources to pursue its inhumane immigration agenda. Nobody is above the law, and the Trump administration needs to stop treating white-collar criminals with kid gloves.”
“Canada and the US are diverging,” said Davis, adding that the US was still “far ahead of us in terms of its ability to prosecute and invest, investigate and prosecute” financial crimes. “We’re still playing quite a bit of catchup now. Hopefully Canada will shore up our own abilities to protect Canada. Because the things that happen in the US do tend to happen in Canada. And so this new agency is a bulwark against that.”
The creation of a new law enforcement agency was applauded by anti-corruption groups. Salvator Cusimano, the executive director of Transparency International Canada, said: “The [Canadian] government is proposing an ambitious but realistic mandate for this agency, which bodes well as a much-needed first step in improving our enforcement of financial crimes.
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“Once established, the agency must coordinate closely with other enforcement and regulatory agencies across the country, and build on their efforts, if it is to achieve its potential.”
It is unclear how easily the agency will work alongside the RCMP, where it will be based and whether it will draw key resources from other units.
Davis said: “This agency is going to matter to Canadians because when you start to combine things like economic pressures, the cost of living and really difficult sort of existence for everyday people, we start to have less tolerance for people making money off of us.
“This is a massive and necessary investment for Canada. But we’ll also have to keep pressuring the government to continue to fund it, continue to prioritise it, to actually get some of those outcomes that we’re looking for.”
Mayer Brown is a proud sponsor of Proximo Congress 2026. This senior meeting of the US energy, infrastructure, and digital infrastructure finance community is shaped around the questions credit and investment committees are actually asking in 2026: how asset classes are converging, how risk is being priced in a recalibrated policy and geopolitical environment, and how public and private capital are being structured together to deliver projects at scale.
Mayer Brown has also been recognized for three separate awards which will be presented during the event. These awards include:
Proximo North America Transport Deal of the Year 2025 – SR 400 Peach Partners
Proximo North America Rail Deal of the Year 2025 – Brightline West
Proximo North America LNG Deal of the Year 2025 – Port Arthur LNG 2
If you have ever taken out a mortgage, you’ll know there are a lot of requirements to meet. You may need to put down a certain amount and have a debt-to-income ratio below a certain threshold. You may also run into limits on how much you can borrow or what sources of income the lender will count.
These rules do not apply to all mortgages — just to conforming mortgages, which is what the majority of borrowers take out. However, mortgage lenders are increasingly offering what are known as nonconforming loans, or mortgages that do not “comply with every one of the strict standards put in place after the housing crisis,” said The Wall Street Journal. While “still a small portion,” the “share of mortgages using alternative lending practices” has “doubled in size over the past three years.”
What are nonconforming loans?
A nonconforming mortgage is a “type of home loan that doesn’t meet some or all of the guidelines that make them eligible for purchase by Fannie Mae and Freddie Mac,” said Bankrate. These are the government-sponsored entities that “support much of the secondary mortgage market in the U.S.,” meaning they often purchase resold mortgages.
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Fannie Mae and Freddie Mac have “federal rules that limit the purchase of loans deemed relatively risk-free,” said Investopedia. Loans that meet these guidelines are conforming loans; loans that do not are nonconforming. To be a conforming loan, a mortgage must fall under a certain loan amount, and the borrower must meet specific criteria when it comes to their credit score, debt-to-income ratio and loan-to-value ratio.
Effectively, any home loan that does not align with these stipulations is considered nonconforming. Examples include jumbo loans, government-backed loans, bridge loans and interest-only loans.
Why do people get them?
There are a wide range of reasons people may opt for a nonconforming mortgage. For one, “you may have no choice but to choose a nonconforming jumbo loan if you want to buy an expensive property,” said Rocket Mortgage. These loans can also provide more flexibility when it comes to the type of property you purchase, your credit score and your down payment amount.
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Nonconforming loans additionally “offer an opportunity for home buyers who might not otherwise qualify for traditional loans because they are self-employed or hold their wealth in assets such as real estate,” said the Journal.
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What are the drawbacks?
For starters, there are fewer lenders offering them “since they pose a higher risk to the bank or mortgage lender,” said Yahoo Finance. That said, availability can vary depending on the specific type, as “some nonconforming loans (like FHA mortgages) are common, while others (like USDA loans) can be harder to find.”
Nonconforming loans also “generally carry a higher interest rate for the borrower,” said the Journal, given the increased risk to the lender. Still, this can vary by loan type. For instance, “FHA, VA and USDA loans usually have lower interest rates,” while “less common nonconforming loans, such as bridge loans, often have higher interest rates,” said Yahoo Finance. There is also the possibility that a nonconforming loan “could have an unusual repayment schedule or other features that make it harder to repay,” said Bankrate.
What U.S. consumers ask of their credit cards has changed. For financially stressed households, it has little to do with rewards.
As more households turn to credit cards to manage liquidity and cover everyday expenses, a new set of practical concerns is driving card behavior: Can the card help avoid a missed payment? Can it make balances easier to track? Can it provide enough visibility into available credit and upcoming obligations to help manage an uncertain month?
Those concerns are beginning to reorder what consumers value most in their credit card relationships.
That evidence is clear in “Winning Top of Wallet: How Credit Card Apps Shape Choice,” a PYMNTS Intelligence and Elan Credit Card report examining how consumers use mobile apps to manage spending, payments and engagement across their credit card portfolios. The report found 30% of consumers primarily use credit cards to build credit or extend purchasing power, while another 22% primarily use cards for cash flow management, together outweighing rewards-based usage.
The divide is more pronounced among financially stressed households. Among consumers living paycheck to paycheck and struggling to pay bills, 40% cited credit dependence as their primary reason for using credit cards. Just 11% pointed to rewards.
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For a growing share of consumers, credit cards are functioning less like discretionary spending products and more like liquidity management tools.
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What Matters Most
That evolution is also changing which app features matter most.
Among cash flow-focused consumers, 31% said scheduling payments or autopay encouraged them to spend more on a card, while 27% cited alerts and reminders. Credit-motivated consumers showed similarly high engagement with tools tied to available credit visibility and payment timing.
Rewards still influence spending behavior, particularly among financially stable households. Half of consumers who prioritize rewards said tracking or redeeming rewards through a mobile app encouraged them to spend more on the card.
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But the report suggests that financial stress changes the hierarchy of engagement. As household budgets tighten, rewards become less central than predictability, visibility and control.
That shift helps explain why mobile apps increasingly influence which cards become top of wallet.
Among credit-dependent consumers, 77% said the quality of a credit card app influences which card they use most often. Credit-dependent consumers also reported the highest app adoption levels, with 77% using their primary card’s app regularly or occasionally.
The competition, in other words, is no longer simply about card acquisition. It is about becoming the card consumers rely on to navigate everyday financial management.
Digital Experience Becomes a Financial Retention Tool
The report also suggests that digital experience increasingly shapes retention risk.
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Nearly 1 in 4 cardholders said a poor app or digital experience contributed to reduced card use. Among Gen Z consumers, that figure climbed to 45%.
At the same time, 7 in 10 cardholders said app quality influences which card becomes their primary card, underscoring how mobile interfaces are becoming embedded directly into consumer payment behavior.
For issuers, the implications extend beyond app design.
Consumers living paycheck to paycheck hold nearly as many credit cards as financially stable households, meaning financially stressed consumers are not disengaging from credit entirely. Instead, they are becoming more selective about which cards feel easiest to manage and most useful during periods of financial pressure.
Rewards and promotional offers still matter, particularly among affluent and financially stable consumers. But for a growing segment of households, the most valuable card may be the one that reduces uncertainty around balances, payment timing and available liquidity.
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In a crowded multi-card market, financial visibility itself is becoming part of the product.
