As we reflect on the rapidly evolving landscape of anti-money laundering (AML) and fraud prevention in Canada, it’s clear that 2025 has been a pivotal year. I recently had the opportunity to join a panel discussion with industry colleagues to examine the financial crime trends shaping our sector and to look ahead at what 2026 may bring.
The Regulatory Landscape
Canada has been a hotbed of regulatory change this past year. The introduction of the Strong Borders Act, with its proposed amendments to the PCMLTFA, signals a renewed commitment to strengthening AML enforcement, improving oversight and enhancing information sharing across institutions. These changes are not just about compliance — they’re about building a more resilient financial system that can adapt to increasingly sophisticated threats.
We’ve also seen the announcement of a new anti-fraud strategy, which mandates that financial institutions establish robust policies for fraud prevention and customer protection. The government’s willingness to explore cross-sectoral policy — bringing real estate and the legal profession under similar scrutiny as financial institutions — reflects the interconnected nature of today’s financial crime. Industry initiatives like the Canadian Anti-Scam Coalition are further evidence of a sector-wide commitment to collaboration.
Artificial Intelligence Continues to Evolve
A defining trend of 2025 has been the mainstream adoption of artificial intelligence (AI) in both AML and fraud prevention. While AI has unfortunately enabled new forms of crime — such as “fraud as a service” and deepfake-enabled scams — it has also become an indispensable tool for financial institutions. We’ve seen a shift from theory to practice: AI is now actively used to automate routine tasks, reduce false positives, and free up investigators to focus on complex cases. This year, the conversation has matured from “should we use AI?” to “how do we use it thoughtfully and effectively?”
Looking Ahead: 2026 Predictions
Agentic AI
If 2025 was the year of generative AI, 2026 will be the year of Agentic AI. Unlike traditional AI, which responds to prompts, Agentic AI systems can reason, plan and execute multi-step tasks with minimal human input. For AML and fraud teams, this means the potential for end-to-end automation — from alert generation to regulatory reporting — while maintaining transparency and auditability. The key will be to keep humans in the loop, using AI to augment, not replace, critical thinking and investigative skills.
Information Sharing
Another major development on the horizon is the expansion of information sharing. While the U.S. has long benefited from robust frameworks for sharing data across institutions, Canada is just beginning this journey. New legislation now allows for broader collaboration, including public-private and private-private partnerships. The value is clear: faster collaboration, richer suspicious transaction reports (STRs), and reduced defensive filings. However, privacy remains a top concern, and the industry must work closely with regulators to ensure that safeguards are in place.
Evolving Financial Crime Typologies
Financial crime is not static. Organized crime groups are increasingly turning to fraud as a predicate offense, and typologies are becoming more complex and conflated. Traditional transaction monitoring — such as flagging all transactions over a certain dollar value — is no longer sufficient. The future lies in targeted solutions that combine rules, third-party data and consortium insights to detect sophisticated schemes. AI will play a critical role in balancing dozens of risk factors and assembling a “fully realized puzzle” for investigators.
Consortium Data
Consortium data is already transforming fraud detection, and its application to AML is set to expand in 2026. By leveraging insights from a vast network of counterparties, institutions can better assess the risk of both sides of a transaction. This approach is particularly powerful for identifying mule activity and understanding the intersection of fraud and AML. The benefits extend to institutions of all sizes, from small credit unions to large banks, and help ensure that no community is left behind in the fight against financial crime.
Key Takeaways
As we enter 2026, several themes stand out in the Canadian anti-financial crime landscape:
- Regulatory change is accelerating, with a focus on cross-sectoral collaboration and information sharing.
- AI has moved from hype to reality, offering both new challenges and unprecedented opportunities for AML and fraud teams.
- The industry must continue to evolve, embracing Agentic AI, consortium data and targeted solutions to stay ahead of increasingly sophisticated criminals.
- Privacy and education remain paramount — protecting customers and empowering victims to become survivors is at the heart of our mission.
The fight against financial crime is a collective effort. By working together — across institutions, sectors and borders — we can build a safer, more resilient financial system for all Canadians.
To hear the full conversation and get deeper insights about what’s on the horizon for Canadian financial institutions, watch the full Trends & Technology Canada webinar.
About the Expert
Corey Lynch
Director of Sales Communications and Product Liaison
Corey Lynch (CAMS) has been with Nasdaq Verafin since 2014, where he has dedicated his career to collaborating closely with financial institutions to understand their specific product requirements, identify opportunities for innovation and understand industry challenges. As a key contributor to the Sales, Product and Marketing teams, Corey leverages his extensive product expertise to guide prospective customer partners toward optimal solutions tailored for their institutions. In his current role as Director of Sales Engagement and Product Liaison, Corey serves as the critical connection point between industry needs and Nasdaq Verafin’s product capabilities. He remains deeply committed to empowering Nasdaq Verafin customers to reach their objectives while contributing to the broader mission of combating financial crime.
