By: Mark Ambrose (Principal, Anti-Financial Crime and Regulatory Compliance)
Background on New Measures 📝
On February 12, 2026, The Honourable François-Philippe Champagne, Minister of Finance and National Revenue, wrote a letter to the Director and Chief Executive Officer of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Ms. Sarah Paquet[i], acknowledging that:
Extortion is a serious threat to Canada’s economic integrity and the safety and well-being of Canadians;
Extortion supports and perpetuates organized criminal activities;
The proceeds of extortion and associated organized criminal activity are laundered through the Canadian financial system; and
FINTRAC is an important partner in combatting these threats through the development of timely and high-quality financial intelligence necessary for law enforcement to take effective and prompt action.
Further to the above, on February 19, 2026, the Department of Finance released a public statement on new measures to help protect Canadian individuals and businesses from the injurious effects of extortion[ii].
In support of the above public statement, the FINTRAC published three Strategic Intelligence backgrounders:
Backgrounder: Targeted indicator profiles on laundering the proceeds of extortion[iii];
Backgrounder: Working in partnership with the private sector to counter extortion[iv]; and
Backgrounder: Establishment of a new liaison function to support efforts countering extortion[v].
These announcements highlight several new government initiatives aimed at strengthening Canada's capacity to detect, disrupt, and prevent extortion[vi].
Why this matters ✅: FINTRAC will expect that financial institutions will quickly update their risk assessments to incorporate the intelligence from these new bulletins, with consequential amendments to ongoing monitoring and training, based on our recent examination observations.
Extortion in the Media 📺
As widely reported in Canadian media[vii], geographical regions such as Brampton (Ontario), Surrey (British Columbia), Edmonton (Alberta), and Winnipeg (Manitoba) have been disproportionally impacted, following a wave of attempted extortions, shootings and arsons aimed predominantly at South Asian individuals and business owners[viii].
In 2025, 133 extortion threats and 49 shootings were reported to Surrey Police. In January 2026, there were a further 43 extortion threats and 10 shootings, with some conducted by what police believe are highly organized international gangs, and others believed to be carried out by smaller, local copycat groups[ix].
In 2023, Edmonton police launched Project Gaslight to respond to extortion threats and arson attacks on homes that began in the fall[x]. In 2024, 54 charges were brought against six people linked to the extortions of dozens of wealthy South Asian people. In the fall of 2025, five charges were brought against another person accused of three drive-by shootings in both Edmonton and Winnipeg[xi].
What is Extortion? 🤔
A generally accepted definition of extortion is the act or practice of obtaining a benefit (e.g., money or goods) from an individual, business, or group of individuals or businesses by force or threat of physical or psychological harm[xii].
Canada’s Criminal Code[xiii] states that a person commits extortion when, with intent, by threats, accusations, menaces, or violence, induces or attempts to induce a person to do anything or cause anything to be done.
Observations from the Department of Finance state that extortion activity is typically carried out by organized networks operating across borders and using digital platforms[xiv].
Government Actions to Combat Extortion 🛑
The key new measures include:
Prioritizing Financial Intelligence Resources: FINTRAC will surge resources to combat extortion. This will enable law enforcement to receive more timely and relevant financial intelligence to identify criminal networks and support investigations.
Launching the Countering Extortion Partnership with financial institutions, government, and law enforcement: FINTRAC will work closely with Canadian banks, credit unions, and financial service providers of virtual assets, including cryptocurrencies, alongside partners such as the Office of the Superintendent of Financial Institutions (OSFI), the Royal Canadian Mounted Police (RCMP), and local police, where applicable, to enhance information sharing and share best practices to fight extortion.
Assigning financial intelligence experts to support police: FINTRAC will assign dedicated liaison officers to work directly with local law enforcement in the most affected areas, such as Ontario, British Columbia, and Alberta. These officers will provide specialized financial intelligence expertise, strengthen information sharing, and ensure that financial intelligence supports enforcement efforts, investigations, and prosecutions.
Providing financial institutions with clear guidance on how to detect extortion transactions: FINTRAC will issue Targeted Indicator Profiles (TIPs) to help financial institutions recognize extortion-related transaction patterns, facilitating quicker and more accurate reporting.
Publishing intelligence on how criminals move and hide extortion money: Strategic intelligence on laundering methods used by extortionists will be made public to aid detection efforts.
The above-identified actions will also build on broader federal measures announced in Budget 2025 to combat organized crime, including the creation of the new Canada Financial Crimes Agency, significant investments to strengthen the RCMP's investigative capacity, and enhanced coordination with law enforcement and intelligence partners[xv].
The federal government is also enhancing anti-money laundering and anti-terrorist financing (AML/ATF) regulations, with proposed reforms such as Bill C-12, the Strengthening Canada’s Immigration System and Borders Act (the Act). The Act proposes comprehensive reforms to AML/ATF supervision, compliance, and enforcement, including increasing AML/ATF civil penalties by 40 times their current level[xvi]. For more information on this, please read our comprehensive Bill C-12 update here.
FINTRAC's Role and Strategic Intelligence 💡
Targeted Indicator Profiles
FINTRAC, as Canada's anti-money laundering and anti-terrorist financing (AML/ATF) supervisor and financial intelligence unit, collaborates with businesses and law enforcement to combat financial crime by producing strategic and tactical intelligence.
As part of the Countering Extortion Partnership, FINTRAC is developing Targeted Indicator Profiles (also termed TIP sheets) to share practical indicators and typologies related to extortion with financial institutions. This initiative aims to improve the detection and reporting of suspicious transactions linked to extortion, enhancing the quality of intelligence provided to law enforcement.
TIPs will be shared through trusted channels and updated based on feedback from private sector entities to keep pace with evolving criminal methods. These profiles will help businesses monitor extortion-related activities more effectively, supporting investigations and asset forfeiture actions.
To enhance operational support, FINTRAC will also establish a liaison function deploying Financial Intelligence Liaison Officers to work onsite with law enforcement agencies in priority regions. These officers will foster a timely exchange of operational insights and help law enforcement effectively leverage FINTRAC’s capabilities.
This focused approach builds on a successful model previously used to prioritize intelligence related to the fentanyl crisis. Expected outcomes include the rapid deployment of intelligence resources, improved law enforcement support, accelerated dissemination of intelligence products, and enhanced identification of money laundering trends linked to extortion.
Conclusion ☑️
For too many Canadian individuals and businesses, extortion is a reality of everyday life – one that brings fear, intimidation, and harm to communities and families alike, and that undermines all Canadians’ sense of safety.
The Canadian government is intensifying efforts to combat extortion by enhancing financial intelligence capabilities, fostering partnerships with financial institutions and law enforcement, and deploying dedicated resources to affected regions.
FINTRAC will play a critical role, and all reporting entities should pay close attention to the TIP sheets, expected to be published on or before March 31, 2026.
Furthermore, it will be critical that reporting entities ensure they have operationalized appropriate controls to detect and expeditiously report suspicious extortion-related transactions to FINTRAC.
REFERENCES:
[i] Government of Canada – Department of Finance; Letter from the Minister of Finance and National Revenue to the Director and Chief Executive Officer of FINTRAC; https://www.canada.ca/en/department-finance/news/2026/02/letter-from-the-minister-of-finance-and-national-revenue-to-the-director-and-chief-executive-officer-of-fintrac.html; Accessed March 1, 2026.
[ii] Government of Canada – Department of Finance; Government announces new measures to help protect Canadians and businesses against extortion; https://www.canada.ca/en/department-finance/news/2026/02/government-announces-new-measures-to-help-protect-canadians-and-businesses-against-extortion.html; Accessed March 1, 2026.
[iii] Government of Canada – Financial Transactions and Reports Analysis Centre of Canada (FINTRAC); Backgrounder: Targeted indicator profiles on laundering the proceeds of extortion; https://fintrac-canafe.canada.ca/intel/extortion-extorsion/profiles-profils-eng; Accessed March 1, 2026.
[iv] Government of Canada – Financial Transactions and Reports Analysis Centre of Canada (FINTRAC); Backgrounder: Working in partnership with the private sector to counter extortion; https://fintrac-canafe.canada.ca/intel/extortion-extorsion/partner-partenaire-eng; Accessed March 1, 2026.
[v] Government of Canada – Financial Transactions and Reports Analysis Centre of Canada (FINTRAC); Backgrounder: Establishment of a new liaison function to support efforts countering extortion; Backgrounder: Establishment of a new liaison function to support efforts countering extortion; Accessed March 1, 2026.
[vi] Government of Canada – Department of Finance; Government announces new measures to help protect Canadians and businesses against extortion; https://www.canada.ca/en/department-finance/news/2026/02/government-announces-new-measures-to-help-protect-canadians-and-businesses-against-extortion.html; Accessed March 1, 2026.
[vii] The Globe and Mail; B.C. mayor says 20 additional RCMP officers to support anti-extortion operations; Wolfgang Depner; The Canadian Press; Published January 28, 2026.
[viii] The Globe and Mail; Surrey, Brampton mayors call for Ottawa to declare extortion crisis a national emergency; Wolfgang Depner; Vancouver; Published January 30, 2026.
[ix] Ibid.
[x] Ibid.
[xi] Ibid.
[xii] Wikipedia; https://en.wikipedia.org/wiki/Extortion; Accessed March 1, 2026.
[xiii] Government of Canada; Criminal Code (R.S.C., 1985, c. C-46); https://laws-lois.justice.gc.ca/eng/acts/c-46/section-346.html; Accessed March 1, 2026.
[xiv] Government of Canada – Department of Finance; Government announces new measures to help protect Canadians and businesses against extortion; https://www.canada.ca/en/department-finance/news/2026/02/government-announces-new-measures-to-help-protect-canadians-and-businesses-against-extortion.html; Accessed March 1, 2026.
[xv] Ibid.
[xvi] Ibid.
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