Budget’s Plans for Financial Crimes Agency Prompts Concerns Over Impact on Crowdfunding

More funds for FINTRAC to add requirements for crowdfunding platforms, as imposed via Emergencies Act to shut down convoy protests against pandemic mandates

Prime Minister Justin Trudeau looks on as Finance Minister Chrystia Freeland announces that the Emergencies Act will be invoked to deal with the convoy protests, in Ottawa on Feb. 14, 2022. THE CANADIAN PRESS/Adrian Wyld

Some are welcoming the new law enforcement agency announced in Budget 2022 to help tackle Canada’s significant money laundering problem, while also expressing concern over its potential use to block crowdfunding for certain efforts if adequate safeguards aren’t in place—as they say occurred for the convoy protests against COVID-19 mandates.

The federal budget proposed providing $2 million in the current fiscal year to the new Canada Financial Crimes Agency—under Public Safety Canada, the department responsible for the RCMP—to begin work “to develop and design the new agency.”