Bill S-8 gives Ottawa new tools against money laundering and fraud, but it is narrower than both Bill C-2 and the full crypto ATM ban announced in April. The Senate government bill, sponsored by Senator Pierre Moreau, had first reading on November 3, 2026 and has not yet reached second reading. Nothing in it is law.
S-8, the Combatting Financial Crimes and Drug Trafficking Act, has two parts. Part 1 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) in four areas:
- Money services businesses (MSBs). New ministerial powers over registration and over domestic transactions, criminal record checks for anyone who owns or controls 5% or more (down from 20%), and new duties aimed at “shelf” registrations.
- Crypto ATMs. A new criminal offence for operating, hosting or loading a virtual currency ATM unless it is licensed by the province where it sits (if that province has a licensing framework at all), plus federal rules for the machines that remain.
- Cash. An offence for businesses, professionals and fundraisers to accept $10,000 or more in cash, and a bar on certain deposit-taking institutions accepting cash deposits from third parties.
- Information sharing. A clearer statutory basis for regulated businesses to receive and use information disclosed by law enforcement for anti-money laundering purposes, with a written-purpose requirement, use limits and good-faith immunity.
Part 2 amends the Canada Post Corporation Act so that mail can be demanded, seized, detained or retained under the Criminal Code, the Controlled Drugs and Substances Act or the Cannabis Act.
Bill S-8 Timeline: From Bill C-2 and C-12 to the Crypto ATM Ban Announcement
S-8 is the third federal vehicle in 17 months for these measures: it picks up ideas dropped from Bill C-12 and adds new ones. Bill C-2, the Strong Borders Act, was a large omnibus bill that bundled border, immigration, lawful access and anti-money laundering measures. Bill C-12 then fast-tracked the less controversial parts, and the cash ban and expanded mail powers were left behind.
| Date | Event |
|---|---|
| Nov 3, 2026 | S-8 introduced in the Senate and read a first time |
| Apr 28, 2026 | Spring Economic Update announces a plan to ban crypto ATMs nationwide, reported at nearly 4,000 machines |
| Mar 26, 2026 | C-12 receives Royal Assent: FINTRAC penalty ceilings rise forty-fold and universal enrolment is created, not yet in force |
| Oct 8, 2025 | C-12 introduced; it omits the $10,000 cash ban, the expanded mail powers and lawful access |
| Jun 3, 2025 | C-2 introduced, including a Canada Post letter-opening power and a $10,000 cash ban |
Bill S-8 vs. Bill C-2: What Changed
S-8 keeps the $10,000 cash ban and the information-sharing changes from C-2 but drops its letter-opening power. It is also a short, single-subject bill rather than an omnibus.
| Topic | Bill C-2 (June 2025) | Bill S-8 (November 2026) |
|---|---|---|
| Vehicle | House of Commons omnibus bill covering border, immigration, lawful access and anti-money laundering | Senate bill limited to PCMLTFA amendments and Canada Post |
| Would have expanded Canada Post’s authority to open mail to include letters | Leaves that authority alone; adds demand and seizure of mail under the Criminal Code, the CDSA and the Cannabis Act. Finance says postal inspectors still cannot open letters | |
| $10,000 cash | Offence for accepting cash payments, donations or deposits of $10,000 or more; third-party deposit limits | Carried over as new s. 77.5 and s. 9.21, with the same $10,000 threshold and a fine of up to three times the amount accepted on indictment. Deposit-taking institutions and prescribed persons or classes are exempt from the cash ban. In force on a date set by order in council |
| Information sharing | Related PIPEDA amendments proposed | Clarifies existing public-to-private sharing through new ss. 11.71 to 11.74 and matching PIPEDA changes: collection without consent when law enforcement affirms in writing, a use limit, and good-faith immunity |
| Crypto ATMs | Not part of the package | New offences and federal operating rules (next section) |
| MSB powers | Universal registration, later enacted through C-12 | New ministerial review, undertakings, conditions, orders and ineligibility directives; freezes on processing applications and renewals; limits on domestic transactions |
Critics of C-2 focused on warrantless mail opening, lawful access and the cash ban’s effect on charities. Miller Thomson noted that feedback from charity and civil liberties groups preceded the cash ban’s removal from C-12. S-8 leaves out the first two. The offence in s. 77.5 still refers to donations, so the cash question may return at committee.
Is Canada Banning Crypto ATMs? What Bill S-8 Actually Requires
S-8 is a licensing-based prohibition, not a full ban. Machines licensed by the province where they sit can keep operating, but under much tighter federal rules. That assumes the province has a crypto ATM licensing framework at all. Finance’s own release says Canadians can continue to use provincially licensed crypto ATMs and regulated exchanges.
| Topic | Announced ban (Apr 28, 2026) | S-8 as tabled |
|---|---|---|
| Scope | All crypto ATMs, with purchases still possible through brick-and-mortar MSBs | Offence to operate, host or load a machine unless the operator holds a licence under a provincial Act and the machine is in that province (s. 77.31) |
| Who is exposed | Operators | Operators, businesses that provide the space, and those who load or collect cash. Selling software that facilitates ATM transactions in Canada is also an offence, except to licensed operators |
| Machines that remain | Not applicable | Transaction records, identity verification of every user, a FINTRAC report on each transaction within 15 days, machine-level data filings, and a $1,000 cap per person in any 24 hours |
| Banking | Not addressed | Banks may not open or keep an account for an ATM operator unless it is registered with FINTRAC |
| Penalties | Not specified | Summary: up to $2.5 million, up to two years less a day, or both. Indictment: up to $5 million, up to five years, or both |
| Timing | No timeline given | 90 days after Royal Assent for records, ID checks and the $1,000 cap; 180 days for reporting and machine data; 18 months for the offence |
Three points deserve attention. First, FINTRAC registration alone does not protect a machine: the exception turns on a provincial licence. Finance says the 18-month delay is meant to give provinces without a licensing regime time to create one.
Second, s. 11.421 lets the Minister of Finance restrict or prohibit transactions involving these machines by directive. That lever could tighten the rules for licensed machines without a further bill.
Third, the government cites studies linking 85 to 98 per cent of crypto ATM transactions to illicit activity. Industry operators have publicly disputed the case for a full ban.
Canada Post Mail Seizures Under the Cannabis Act: What Bill S-8 Means for Cannabis Businesses
For lawyers who work in both cannabis and payments, S-8 is unusual. One bill addresses how product moves through the mail and how money moves through cash, crypto ATMs and MSBs.
Part 2 adds a new s. 40.1 to the Canada Post Corporation Act. Section 40(3) currently lists the only Acts under which mail in the course of post can be seized. S-8 adds the Criminal Code, the Controlled Drugs and Substances Act and the Cannabis Act, allowing demand, seizure, detention or retention under any of them.
Canada Post must receive written notice within 60 days unless the item has been delivered or returned. Canada Post and the Crown are protected from claims arising from the seizure. The s. 48 offence for opening or detaining mail is amended so that action authorized under those three Acts is not an offence.
Postal inspection powers are unchanged. Unlike under C-2, inspectors still cannot open letters.
Finance says the Cannabis Act authority targets suspected non-compliance, such as unauthorized distribution and organized crime working around regulated supply chains. That description fits unlicensed online sellers who ship by mail more than licensed operators. Licence holders should still confirm that product, samples and documents sent by post match their authorizations and records.
Who Bill S-8 Affects: MSBs, Payment Providers, Crypto ATM Operators and Cash Businesses
The bill is at first reading and may change, so the practical step is to map your exposure now and watch the regulations. Several rules depend on what is later “prescribed”, and the cash and third-party deposit provisions come into force only by order in council.
- MSBs and payment service providers. Registration becomes more conditional, and “shelf” registrations become harder to keep. The Minister may review, impose conditions or undertakings on, or declare ineligible an applicant or registrant on national security or financial-integrity grounds. The Minister may also freeze FINTRAC’s processing of all new applications and renewals, or those from a class of MSBs, for a set period; this power does not cancel existing registrations. An MSB whose payment service provider registration is refused or revoked under the Retail Payment Activities Act for national security reasons also becomes ineligible. New registrants must confirm within 90 days that they have started operating and list their bank accounts, or they are deemed to have ceased. Also expect 30 days’ notice before a new activity, and mandatory denial or revocation for false or misleading information, including by omission.
- Owners and investors. Criminal record checks are now required for anyone who owns or controls at least 5%, down from 20%, which matters for cap tables, funds and corporate groups.
- Crypto ATM operators, host locations and software vendors. Confirm provincial licensing status and plan for the 90-day, 180-day and 18-month milestones.
- Businesses, professionals and charities that take cash. Review policies for any payment, donation or deposit that could reach $10,000, including a series of related transactions, and for foreign currency, which is converted at the Bank of Canada rate. The offence covers everyone in a business, a profession or public fundraising; only listed deposit-taking institutions and whatever is later prescribed are exempt. “Cash” means Canadian and foreign coins and bank notes, the definition already used in the regulations, so crypto and cheques are not caught.
- Banks, credit unions and other regulated entities. Prepare for the third-party cash deposit bar and for the clearer statutory route to receive law enforcement information, which comes with good-faith immunity. The Minister’s powers to limit or prohibit transactions by regulation, and to direct measures such as enhanced due diligence, now reach domestic transactions, not only those to or from abroad. A regulation still requires one of the preconditions in s. 11.49(3).
- Cannabis licence holders and supply chains. The Cannabis Act is named in the Canada Post amendments (see the section above). Compliant operators are not the stated focus, but it is worth reviewing how product, samples and documents move through the mail.
Next steps in Parliament are second reading and committee study in the Senate, then the House of Commons. Watch for amendments on the cash ban’s reach, the ministerial powers over MSBs, and how provinces respond on ATM licensing.
Substance Law advises on cannabis, corporate and regulatory matters, including FINTRAC and RPAA registration. If S-8 touches your business, contact us.
This post is general information, not legal advice. It is based on the first-reading text of S-8 and the Department of Finance materials of November 3, 2026.
Sources
- Bill S-8, first reading text, Parliament of Canada
- S-8 on LEGISinfo, Parliament of Canada
- News release: Canada, Minister Champagne table legislation cracking down on financial crime and the illicit use of mail, Department of Finance Canada, November 3, 2026
- Backgrounder: Protecting Canadians from financial crimes and safeguarding the integrity of the financial and postal systems, Department of Finance Canada, November 3, 2026
