Compliance

Reducing Financial Fraud Obligations For Banks: What Consumers and Businesses Need to Know

New proposed regulations aim to give Canadians more control and protection at banks—things like disabling account features, disclosure obligations, and stronger oversight are now in development under Bill C-15.

By NomadicTax Research Team • 5-8 min read • June 27, 2026

## Overview of the New Regulatory Landscape - On **June 26, 2026**, the Canadian government pre-published regulations to prevent consumer-targeted fraud and support the Consumer-Driven Banking Act, as part of its National Anti-Fraud Strategy. These are open for **30 days of public comment** via the Canada Gazette. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-pre-publishes-regulations-to-prevent-fraud-and-facilitate-the-next-phase-of-consumer-driven-banking.html?utm_source=openai)) - These regulations **implement amendments to the Bank Act** under Bill C-15; this means banks will face new legal duties. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-pre-publishes-regulations-to-prevent-fraud-and-facilitate-the-next-phase-of-consumer-driven-banking.html?utm_source=openai)) ## Key Requirements Under Proposal Consumer banking institutions will be obliged to: - **Obtain express consent** from customers before enabling certain account capabilities (e.g. wire transfers, electronic funds transfer features) automatically. Consumers must be given clear options and be able to disable these features themselves. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-pre-publishes-regulations-to-prevent-fraud-and-facilitate-the-next-phase-of-consumer-driven-banking.html?utm_source=openai)) - **Allow consumers to adjust transaction/withdrawal limits** for their accounts and specify how quickly such changes must be processed. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-pre-publishes-regulations-to-prevent-fraud-and-facilitate-the-next-phase-of-consumer-driven-banking.html?utm_source=openai)) - **Collect and report fraud-related data** in prescribed format and timelines to FCAC (Financial Consumer Agency of Canada). FCAC will also report annually to finance officials on aggregate consumer-targeted fraud under this regime. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-pre-publishes-regulations-to-prevent-fraud-and-facilitate-the-next-phase-of-consumer-driven-banking.html?utm_source=openai)) - **Comply with standards regarding accreditation**, liability, participating entities in data sharing, third-party providers, and maintaining transparency (public registry) once regulations come into force. ⚙️ ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-pre-publishes-regulations-to-prevent-fraud-and-facilitate-the-next-phase-of-consumer-driven-banking.html?utm_source=openai)) ## Implications for Consumers - Enhanced security and **more control over banking operations**—you’ll decide whether to activate features; your bank must clearly inform you of risks and options. - Faster response where fraud is involved, including clear procedures and timelines if you want to disable or restrict account capabilities. More transparency on what data is shared and when. - Easier access to oversight: FCAC and Bank of Canada will have defined oversight roles + registry of accredited entities so you can check who handles your data. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-pre-publishes-regulations-to-prevent-fraud-and-facilitate-the-next-phase-of-consumer-driven-banking.html?utm_source=openai)) ## Implications for Banks and Financial Service Providers - Need to create or update policies, systems, and processes to meet the new requirements (e.g. data collection, reporting, customer experience adjustments). 🔧 - Possible costs for accreditation, compliance and potential liability or penalties in case of violations. - Risk of consumer lawsuits or higher enforcement liabilities if obligations are not properly met. ## What You Can Do Now (as a Consumer or Business) - **Monitor the public comment period**: give feedback if you’re affected (customers or fintechs), via the Canada Gazette portal before the end date. These details shape final rules. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-pre-publishes-regulations-to-prevent-fraud-and-facilitate-the-next-phase-of-consumer-driven-banking.html?utm_source=openai)) - **Review your bank accounts**: check whether any automatic features are enabled. Be ready to request disablement if that becomes an option. - **For businesses / fintechs**, audit your compliance roadmap: map out required updates in policy, technology, and governance to align with the forthcoming regulations. - If you work in consumer-focused finance or law, track implementation phases: accreditation, rule making, reporting. Transition periods are staggered. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/government-pre-publishes-regulations-to-prevent-fraud-and-facilitate-the-next-phase-of-consumer-driven-banking.html?utm_source=openai)) ## In Practice: Example Scenario Sarah has a chequing and savings account. Currently, wire transfers (EF-transfers) are enabled by default. Under the new regulation, the bank must: be sure Sarah **expressly consents** before enabling those; must give her ability to disable them; if she requests to limit her daily transaction limit, the bank must do so within a prescribed time. If her account is compromised, she can expect more transparency on what the bank reports to FCAC and how they handle the case. The bank must also report fraud attempts with the details laid out in regulation. ## Bottom Line These regulations represent a significant shift toward **consumer empowerment** in financial services. While the rules are not yet law, the direction is clear: more control, stronger fraud prevention, and enhanced oversight. If you're a consumer, you’ll likely see more options soon. If you're a financial institution, internal changes are coming—budget, compliance, risk, and operations must adapt.