In remarks at The Assembly Canada, Tina Matos, Deputy Director of Supervision and Chief Compliance Officer at the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), outlined plans to make risk more directly determine supervisory priorities, examination depth and enforcement responses. The modernization is intended to address findings from the FATF evaluation by creating a clearer documented link between identified risks, supervisory action and compliance outcomes. FINTRAC’s cost-recovered funding envelope is increasing by about CAD 25 million from its CAD 60 million base in 2025-26 to CAD 85 million this fiscal year. The additional capacity will support deeper supervision of financial institutions, virtual currencies and online gaming, as well as oversight of mortgage lenders, leasing and financing companies, and factoring companies. It will also support Universal Enrolment, a new administrative monetary penalty framework highlighted in Bill C-12, stronger analytics and a modernized information technology platform. Lower-risk entities may receive compliance promotion, guidance or monitoring, while higher risks and persistent noncompliance may trigger more intensive supervision and stronger enforcement. Reporting entities are expected to maintain documented risk assessments that reflect their products, customers, geographic exposure, delivery channels and business models, and to demonstrate how those assessments shape their compliance controls. The FATF evaluation also recognized the operational value of FINTRAC’s intelligence, finding it was used in 94% of law enforcement investigations into money laundering and criminal possession offenses. In the last fiscal year, FINTRAC generated 7,214 intelligence disclosure packages based on 3,007 unique disclosures and contributed to 348 major investigations.
Financial Transactions and Reports Analysis Centre of Canada outlines targeted risk-based supervision under CAD 85 million funding envelope
FINTRAC plans to use its increased CAD 85 million funding envelope, new authorities and modernized technology to target supervision according to entity and sector risk. Reporting entities should expect deeper scrutiny and stronger enforcement where risks or noncompliance are greater. They must clearly document their risks and show how those risks shape their compliance programs.