In testimony to a parliamentary committee’s pre-budget consultations for the 2026 Budget, the Canadian Bankers Association set out six recommendations focused on prudential regulation and tax reform, anti-fraud and anti-money-laundering measures, and steps to improve competition and reduce internal trade barriers. It argued that adjusting the prudential capital framework would allow banks to provide more credit to households and businesses, and called on the government to review the corporate tax system, including the removal of sector-specific taxes on the financial sector. On fraud and financial crime, the CBA supported the National Anti-Fraud Strategy announced in Budget 2025, called for an income verification solution to address mortgage fraud, and backed the planned Financial Crime Agency as part of a more effective AML/ATF framework. It also urged the government to ensure Budget 2025’s planned ban on fees for investment and registered account transfers, and the requirement for timely transfers of investment funds, apply to all plan providers by using the Income Tax Act so the prohibition covers all financial institutions. On internal trade barriers, it called for harmonized national frameworks in areas including AML/ATF, privacy, market conduct for payment services providers, and OTC derivatives.
Canadian Bankers Association2026-05-25
Canadian Bankers Association outlines 2026 budget proposals on prudential capital tax fraud controls and transfer fees
The Canadian Bankers Association, in testimony to a parliamentary committee’s pre-budget consultations for the 2026 Budget, set out six recommendations on prudential regulation, tax reform, anti-fraud and anti-money-laundering measures, competition, and internal trade barriers. It urged adjustments to the prudential capital framework, a review of the corporate tax system including removal of sector-specific financial sector taxes, support for the National Anti-Fraud Strategy and the planned Financial Crime Agency, and a broad-based ban on fees and delays for investment and registered account transfers, as well as harmonized national frameworks for anti-money-laundering and anti-terrorist financing, privacy, market conduct for payment services providers, and over-the-counter derivatives.