On June 27, 2026, the Government of Canada published proposed Regulations Amending the Financial Consumer Protection Framework Regulations in the Canada Gazette, Part I for a 30-day public consultation period ending July 27, 2026. The proposed regulations would implement consumer protection measures announced in the 2025 federal budget and introduce new obligations for banks to help combat rapidly increasing consumer-targeted fraud in Canada.
If adopted, the amendments would require federally regulated banks to obtain express customer consent before enabling certain electronic payment capabilities, provide consumers with greater control over account transaction features, collect and report extensive fraud data to the Financial Consumer Agency of Canada (FCAC), and strengthen their internal anti-fraud policies.
According to the Department of Finance, Canadians reported approximately $704 million in fraud losses during 2025, although the Government believes this likely represents only 5% to 10% of actual fraud losses because many victims never report fraud. The Government also notes that advances in artificial intelligence—including AI-generated voice scams and deepfake technology—have made consumer fraud significantly more sophisticated.
The proposed regulations are intended to implement amendments to the Bank Act introduced through the Budget Implementation Act, 2025, No. 1, with the goal of reducing unauthorized electronic fund transfers and improving the Government's understanding of fraud trends across Canada.
Express Consent Before Electronic Transfers Can Be Enabled
Perhaps the most significant proposal is the requirement that banks obtain a customer's express consent before enabling certain electronic funds transfer capabilities on personal deposit accounts.
This requirement would apply to features including:
- Wire transfers
- Global money transfers
- Interac e-Transfers
Before enabling these capabilities, banks would need to explain the nature and potential uses of the service and verify the customer's identity. Existing accounts that already have these features enabled would generally not require fresh consent.
Consumers Would Be Able to Disable Certain Payment Features
The proposed regulations would also require banks to allow customers to disable these electronic payment capabilities if they do not use them.
The Government's rationale is straightforward: many Canadians never use certain high-risk payment functions. If those functions remain disabled, fraudsters who obtain unauthorized access to an account would have fewer opportunities to quickly transfer funds out of the account.
New Rules for Increasing Transaction Limits
Banks would also need to implement customer requests to increase transaction limits under new timelines.
Where the bank has verified the customer's identity, the increased limit would have to take effect without delay. Where identity has not yet been verified, the increase would generally take effect on the following business day.
The Government believes this additional delay could significantly reduce losses where fraudsters attempt to increase transaction limits immediately after compromising an account. Consumers would also receive notice if their transaction limits were changed.
Mandatory Anti-Fraud Policies and Procedures
The proposed regulations would require federally regulated banks to maintain more detailed internal fraud prevention policies.
Among other things, banks would need documented criteria governing:
- investigation of suspicious transactions;
- suspicious requests to enable payment capabilities;
- suspicious requests to increase transaction limits; and
- annual review of these fraud policies and procedures.
These requirements would supplement broader fraud prevention obligations already contained in the Bank Act.
Significant New Fraud Reporting Requirements
The proposals would also create extensive reporting obligations.
Banks would be required to annually report detailed fraud information to the Financial Consumer Agency of Canada (FCAC), including:
- whether fraud was attempted or completed;
- fraud scheme type;
- communication method used;
- payment method involved;
- amounts lost;
- amounts reimbursed;
- whether the fraud was authorized through deception or was entirely unauthorized;
- demographic information about victims; and
- whether suspicious transactions were delayed or stopped by the bank.
The FCAC would then compile this information into confidential reports for the Minister of Finance to assist future policy development.
New Disclosure Requirements at Account Opening
Banks would also need to provide additional information to consumers when opening personal deposit accounts.
Customers would be informed that:
- certain electronic payment capabilities require express consent before activation;
- certain account capabilities can later be disabled; and
- transaction limits may be adjusted upward or downward.
The Government expects these disclosures will improve consumer awareness of available fraud protection features.
A Shift Toward More Prescriptive Regulation
Interestingly, the Regulatory Impact Analysis Statement explains that the Government considered relying on voluntary industry initiatives to combat fraud but ultimately rejected that approach.
Instead, it concluded that mandatory regulatory requirements would provide more consistent consumer protection while allowing the FCAC to supervise compliance and, where appropriate, impose administrative monetary penalties for non-compliance.
Consultation Period Now Open
The proposed regulations remain in draft form.
Interested stakeholders—including banks, consumer groups, fintech companies, payment service providers, and members of the public—may provide comments until July 27, 2026.
If implemented largely as proposed, these amendments would represent one of the most significant expansions of federally regulated banks' anti-fraud obligations in recent years. The proposals also signal an increasing willingness by the federal government to prescribe specific operational fraud controls rather than relying primarily on industry best practices or voluntary initiatives.
