The Canadian Forum for Financial Markets (CFFiM) provided input on the Government of Canada’s National Anti-Fraud Strategy – Canada.ca

Effective efforts by the Government of Canada to protect Canadians from fraud through useful law, regulation and law enforcement is supported. It necessitates clearly defining the types of fraudulent conduct to be addressed, and drawing upon Canada’s existing systems, augmenting only where and how clearly warranted.

The Strategy does not appear to be based on any data or analysis on the occurrence or characteristics of fraud in Canada it seeks to address, which is needed to define its scope and ensure its success. New financial sector requirements and a new regulator risks ineffectiveness, duplication and overlap.

Any liability framework should be fact-specific, grounded in a negligence standard, and based on whether the firm caused the loss. Safe harbour protections should be included for good faith compliance.

Fraud can be undetectable. It is primarily a criminal justice and public-safety issue. Prevention requires involvement from Public Safety and Justice.

Globalized fraud networks highlight systemic issues: under-resourced law enforcement and prosecution, low conviction rates, and the need for integrated international enforcement capabilities.

A data-driven approach is also necessary to identify all relevant victims and sectors, recognizing that fraud proceeds often move through payment processors, e-commerce platforms, retailers, and non-bank financial services.

A streamlined follow-up consultation should be issued centred on strategic issues.