Illicit financial activity in Canada surged to $65 billion USD in 2025. Institutions cannot address the issue in isolation — yet questions remain about how to collaborate responsibly, while maintaining customer privacy.
Institutions are actively prioritizing where collaboration makes sense today, while defining what more advanced forms of information sharing could look like in the future. Canadian institutions have safe harbor under existing legislation to share certain information with peer institutions and law enforcement. In practice, these permissions support specific, carefully governed use cases.
Recently, we brought together AML leaders from across Canada’s banking sector to discuss how information sharing can advance responsibly, with respect to customer privacy and regulatory guardrails. It was an opportunity to align on both the long‑term vision for collaboration and the practical steps institutions can take today.
Three clear takeaways emerged.
1. Information sharing is a journey, and institutions are taking their first steps.
The institutions we spoke to are aligned on the long-term value of advanced, informed joint investigations — but not as an immediate starting point. They also agree that collaboration must be introduced deliberately, with strong governance and respect for customer privacy. This means starting with approved use cases that institutions can apply with confidence.
Today, cross-institutional and law enforcement collaboration is limited to secure messaging through a highly manual solution that cannot pool data or produce analytics. Institutions need modern alternatives that provide accuracy and speed.
2. Institutions need access to risky entity data as a starting point.
For many institutions, using adverse incidents data to identify accounts previously linked to illicit activity is a strong starting point. This use case was a shared pain point for attendees, who noted they routinely see individuals or entities exit one organization under suspicion, only to surface elsewhere.
Participants noted existing Codes of Practice already permit this type of information sharing. For this reason, risky entity monitoring represents a realistic first step. Risky entity data sets allow institutions to access this information without the burden of responding to manual requests.
3. Institutions are partnering with regulators to make joint investigations possible
Institutions are engaging regulators — including the Privacy Commissioner of Canada — to show how joint investigations can be conducted responsibly. This includes demonstrating how data can be shared for defined use cases, how privacy risks can be mitigated, and how these approaches can deliver meaningful value without overstepping existing permissions.
As part of this effort, Nasdaq Verafin is working with Canadian institutions to help illustrate how joint investigations can operate within the scope of current legislation, while providing the transparency and governance regulators expect. These partnerships are helping lay the foundation for more advanced collaboration as confidence and evidence continue to build.
How Nasdaq Verafin Helps Institutions Share Information
Nasdaq Verafin has provided institutions with innovative information sharing solutions for almost 25 years, from a secure messaging platform to more advanced joint investigations data. If an entity at your institution was previously identified by a peer as high-risk, Nasdaq Verafin generates an alert with evidence for your review. The alert lists the other institution(s) involved and enables you to communicate in a safe, secure environment.
Our cloud-based, cross-institutional analysis gives you detailed insight into customer activity that spans multiple financial institutions, so you can expedite decision-making, strengthen investigations, and improve the information provided to law enforcement.
Interested in learning more about the anti-financial crime landscape in Canada? Download our 2026 Global Financial Crime Report for a look at recent insights from Canada, and other regions across the globe.
About the Author:
FOUAD HASSOUNEH
VP – Product Management, Nasdaq Verafin
Since joining Nasdaq Verafin in 2013, Fouad has excelled in a wide range of roles. In his current role as VP – Product Management, Fouad is responsible for defining the product vision, strategy, and roadmap. He helps Nasdaq Verafin deliver solutions that leverage artificial intelligence to effectively detect money laundering, while helping institutions maintain compliance. Working in close collaboration with Nasdaq Verafin colleagues, customers and senior stakeholders, Fouad applies his extensive knowledge of the AML/CFT and fraud landscapes to guide innovations and enhancements to product management and analytics. Fouad is passionate about creating value for customers and society by combating financial crime with cutting-edge technology.
