The scale of the threat
FINTRAC reports suspicious transactions exceeding $596 billion in 2024 — triple pre-pandemic levels. Digital payments, DeFi, and synthetic identity fraud are rewriting compliance playbooks.
| Risk Type | Reported Growth 2020–2024 | Share of FINTRAC Alerts | Source |
|---|---|---|---|
| Cyber-enabled fraud | +230 % | 32 % | FINTRAC 2025 |
| Real estate laundering | +150 % | 14 % | RCMP |
| Crypto-related transfers | +320 % | 11 % | FATF Canada |
The pressure points
- Regulators demand real-time transaction monitoring.
- AI compliance tools risk algorithmic bias without human oversight.
- Penalties are rising — one major bank paid $10 million in AML fines in 2024.
What leaders can do
- Embed compliance in product design. Avoid retroactive fixes.
- Adopt continuous KYC/AML monitoring. Replace periodic reviews.
- Collaborate through shared intelligence networks. Pool data across institutions.
- Educate boards on compliance liability. Governance is now personal accountability.
Arcus Insight: Compliance is no longer cost — it’s competitive edge. Institutions that operationalize integrity will attract the cheapest capital.