CBA letter to the Office of the Federal Ombudsperson for Victims of Crime regarding protecting against financial and economic abuse

May 30, 2025

Dr. Benjamin Roebuck
Federal Ombudsperson for Victims of Crime
Office of the Federal Ombudsperson for Victims of Crime
Government of Canada

Via email: info@ombud.gc.ca & victimsfirst@Ombud.gc.ca

Re: Your letter dated May 1, 2025 "Re: Economic Safety and Empowerment Starts with Canadian Banks"

I am writing in response to your letter dated May 1, 2025 (included as Appendix 1). At the outset, I wish to thank you for your letter and agree that we share a common goal to fight economic abuse and safeguard economic empowerment for Canadians.

The Canadian Bankers Association¹ ("CBA" or "Association") and its members continue to stand united in their fight against all forms of financial or economic abuse and are committed to helping survivors achieve financial independence.

To further these objectives, we have engaged in discussions with a number of important stakeholders about economic abuse in the context of intimate partner violence and will continue this important work. Among other steps we have taken, we have discussed best practices and approaches with UK Finance, Australian Banking Association, Commonwealth Bank of Australia, Catherine Fitzpatrick, Interac, Women’s Shelters Canada, and Canadian Centre for Women’s Empowerment ("CCFWE") and others.

Last month, we facilitated a CCFWE-led workshop to help our member banks better understand support needed from survivors of economic abuse. We have also created and shared a number of articles on our website to provide helpful information to survivors of economic abuse. During Women’s Abuse Prevention Month in November, we helped raise awareness by drawing attention to it via our social media channels.

Further, the CBA and its members advocated extensively in support of Ontario Bill 41 – The Protection from Coerced Debts Incurred in relation to Human Trafficking Act that extends support to survivors of human trafficking, enabling them to rebuild their lives free from the burden of coerced debt. Our efforts were recognized by Victim Services Toronto (see online here: Victim Services Toronto Propels Change Around Fraudulent and Coercive Debt for Survivors. | Strategic Objectives) and Bill 41 was passed unanimously in December 2023. Advocacy for the adoption of similar legislation in Saskatchewan continues.

I have responded to the "Four Areas for Immediate Action" listed in your letter below.

CBA’s Efforts and Response to the Four Areas for Immediate Action

1. Interac e-Transfer as a Tool of Abuse
   Interac has implemented technology changes to the Interac e-Transfer system to help address economic abuse perpetrated using the system. The CBA, among other stakeholders, engaged in discussions with Interac to advocate for these changes. More about the changes made by Interac is available online here: Misuse of Interac e-Transfer – Status Update - Interac. We support the changes Interac made, which were tailored for their platform and provide control to victims by allowing them to hide messages from specific senders, while allowing retention of the messages themselves as evidence, if needed. In addition to the Interac solution, several of our members who participate in the Interac e-Transfer service have made their own technology improvements to the service with the view of minimizing the risk of misuse, including, among other things, limiting the ability to input free format messages within certain parameters, as well as making enhancements to resources available to front-line staff to identify and report (with the client’s consent) circumstances of suspected misuse or abuse of the service for further investigation. The CBA and its members remain committed to addressing the issue of Interac e‑Transfers being exploited as a tool for abuse and will continue to explore opportunities for new controls both at the industry level and in partnership with Interac.
2. Insurance Policies: Protection, Not Exploitation
   As the CBA’s membership is comprised of banks – not insurance companies – we believe your points are better directed to associations representing the Canadian insurance industry.
3. Enhanced Protections for Survivors
   Banks in Canada understand that survivors need enhanced protections including those noted in your letter.
   • Fast Access to Low-Cost and No-Cost Accounts: Many banks in Canada are signatories to the Commitment on Low-Cost and No-Cost Accounts. Under this Commitment, all Canadians are eligible for a low-cost chequing account at the cost of no more than $4.00 per month. In addition, certain groups are eligible for a no-cost account. Further, this Commitment was recently modernized: By December 1, 2025², consumers will have the ability to conduct more monthly debit transactions, there will be additional groups eligible for no-cost accounts, and more banks will be signatories. Banks that are signatories to the Commitment prominently display information about the availability of low-cost and no-cost accounts in-branch and online and staff members receive training about low-cost and no-cost accounts thereby facilitating awareness of, and access to, these accounts. For more information on low-cost and no-cost accounts see online here: Low-cost and no-cost accounts - Canada.ca
   • Use of Alternative Identification: The banking system in Canada is highly accessible and over 99% of adults in Canada have an account with a financial institution (see online here for more information: The benefits of banking in Canada: accessibility, affordability, and choice). Banks in Canada are required to comply with the "know your customer" requirements of the Proceeds of Crime Money Laundering and Terrorist Financing Act and Regulations when opening accounts. Those seeking no-cost accounts may also need to provide appropriate documentation so that banks can validate they meet the eligibility requirements/fall within one or more of the no-cost account eligible categories. It is also important to note that FINTRAC and the FCAC allow banks to accept non-standard identification when opening an account (see online here: Access to basic banking services: opening a retail deposit account - Canada.ca)
   • Flexible repayment plans: Banks in Canada work with their customers to help them explore options (including flexible repayment plans) in cases of financial difficulty and do not knowingly attempt to collect on debt that was incurred by victims of human trafficking
   • Trauma-informed bank staff: Banks in Canada are committed to creating banking environments that feel physically and emotionally safe for their customers. They strive to make every interaction with their customers a moment of safety and respect
   • Accepting reference letters: Banks understand that survivors may not want to discuss the trauma they have endured and relying on reference letters from community organizations to reaffirm their experiences is one option that is being considered in Ontario in connection with coerced debt. We are awaiting draft regulations for Bill 41 to determine its operationalization
4. Rapid Reporting to FINTRAC
   Banks in Canada take the fight against money laundering and terrorist financing seriously. They invest significant resources in their anti-money laundering and terrorist financing programs and controls and work closely with FINTRAC, Finance Canada, law enforcement agencies and prudential regulators to address risks. For example, they collaborate closely with FINTRAC on public-private partnerships (PPPs) to improve the overall efficiency and effectiveness to help generate intelligence of practical value to law enforcement’s investigations.
   
   Based on our members’ role in and experience with the Canadian AML regime, we suggest escalation of abuse to FINTRAC may not help to address the type of crime with which you are concerned. FINTRAC is an intelligence agency, not a law enforcement agency, it is not empowered to apprehend criminals. Instead, through extensive analysis, it synthesises millions of reported transactions (threshold reports and suspicious transaction reports) into actionable intelligence to support law enforcements’ investigation and prosecution of money laundering, terrorist financing and sanctions evasion. For example, FINTRAC intelligence can help law enforcement obtain search warrants to enable their work. This process takes time and generally law enforcement cannot directly access the information reported to FINTRAC.
   
   As a result, any situation that threatens the life or safety of an individual should be reported to local law enforcement to help ensure a rapid and direct response. Further, based on our discussions with survivor groups, reporting of such incidents to relevant law enforcement agencies should require action and consent from victims, as otherwise their personal situation could be unnecessarily escalated with potentially negative outcomes.
   
   Protecting Canadians from economic abuse and helping survivors achieve economic independence requires collaboration and commitment from many stakeholders, including law enforcement. The CBA and its members are committed to addressing these issues together.

Best,

Anthony G. Ostler

¹ The CBA is the voice of more than 60 domestic and foreign banks operating in Canada and their 280,000 employees and it continues to provide governments and others with a centralized contact to all banks on matters relating to banking in Canada. The CBA advocates for public policies that contribute to a sound, thriving banking system to ensure Canadians can succeed in their financial goals. The Association promotes financial literacy to help Canadians make informed financial decisions and sponsors two financial literacy seminar programs: Your Money Students and Your Money Seniors. The Association also works with banks and law enforcement to help protect customers against financial crime and promote fraud awareness.
² Some banks may choose to provide offerings that meet or exceed those of the Commitment prior to December 1, 2025.

Appendix 1 – May 1, 2025 Letter from the Office of the Federal Ombudsperson for Victims of Crime

Anthony G. Ostler, President and CEO
Canadian Bankers Association
Toronto - Box 348
Commerce Court West
199 Bay Street, 30th Floor
Toronto, Ontario M5L 1G2
Tel: (416) 362-6092

May 1, 2025

Re: Economic Safety and Empowerment Starts with Canadian Banks

Dear President Ostler and Members of the Canadian Bankers Association,

I am writing to you in my role as Federal Ombudsperson for Victims of Crime. In March 2024, my office launched a national systemic investigation into how survivors of sexual violence are treated within the Canadian criminal justice system (CJS).

Throughout the investigation, we have learned more about the critical role financial institutions play in disrupting violence and addressing coercive and controlling behaviours. I was encouraged to learn that when banks report suspicious transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the agency is able to coordinate with law enforcement in real time to detect organized crime and assist law enforcement in advancing their investigations involving survivors of sex trafficking. Data from financial transactions can also reduce the burden Crown prosecutors need to place on survivor testimony when a case proceeds to court.

Through interviews with survivors and consultations with stakeholders, we have heard that the banking sector is well positioned to prevent economic abuse and help survivors rebuild their lives. We have learned about emerging practices internationally that safeguard survivors, including practices developed by Catherine Fitzpatrick, a former bank executive in Australia and leading advocate against financial abuse. We support recommendations from FINTRAC and the Canadian Center for Women’s Empowerment (CCFWE) to adapt similar strategies in Canada.

We share a common goal to fight economic abuse and safeguard economic empowerment for Canadians.

The Urgent Need

Survivors often prioritize their financial concerns over reporting a crime to law enforcement. Access to resources is central to survival, so when abusers threaten financial consequences or control a survivor’s finances, it can be difficult to ask for help.

According to the CCFWE, 95% of domestic violence victims experience economic abuse. A 2021 CCFWE study revealed that 33% of survivors found financial institutions unhelpful and felt that they did not protect their safety and security. Collectively, family violence cost Canadian society $7.4 billion in 2012, an estimate that could now approach $10 billion.

Recognizing Progress

We recognize the role Canadian banks already play to interrupt money laundering and terrorist financing through coordination and reporting to FINTRAC. We also note:

• Project Protect: Led by the Bank of Montreal, this collaboration between the banking sector, FINTRAC and law enforcement, tracks and disrupts human trafficking by focusing on the money laundering aspect of the crime.
• Project Reclaim: To cover their tracks, traffickers can coerce victims to borrow money and incur debt to buy cellphones and pay for hotel rooms and transportation. Project reclaim allows victim services to work with banks, telecommunication companies, car rental companies, and property managers to remove fraudulent and coercive debt.

Canadian banks can continue building on this momentum by taking responsibility for all forms of financial and economic abuse facilitated on their platforms.

Four Areas for Immediate Action

Interac e-Transfer as a Tool of Abuse

Abusers have exploited the Interac e-Transfer system by sending small amounts of money with threatening or abusive messages, enabling continued harassment. A tragic example is the 2024 case of Angie Sweeney, who was murdered just hours after receiving a one-cent transfer with a threatening message from her ex-boyfriend.

We must raise awareness about technology-based abuse, and banking institutions must make it easy to report this behaviour and further escalate as needed through FINTRAC reporting.

Women’s Shelter Canada and the CCFWE have recommended implementing features to curb such misuse, including

• Adopting a free AI model, like that of the Commonwealth Bank of Australia, to detect and block abusive messages pending review.
• Implementing a "hide references" feature, similar to the United Kingdom’s Starling Bank, allowing transfers without displaying messages to recipients.

Insurance Policies: Protection, Not Exploitation

Designed to Disrupt, a series by Australia’s Catherine Fitzpatrick, highlights how abusers can weaponize joint insurance policies by cancelling coverage, leaving victims financially vulnerable. Victims often remain unaware of these actions until it’s too late, leaving them with no money and destroyed assets.

To address these vulnerabilities, Designed to Disrupt has proposed:

• Closing loopholes that allow abusers to interfere with insurance policies without victim consent.
• Creating a "conduct of others" clause to allow victims to make claims for property damage caused by abusers.
• Legislative changes to protect victims from financial abuse within insurance agreements.

Enhanced Protections for Survivors

Even with improved policies and procedures, victims and survivors of economic abuse may continue to face significant challenges. Economic abuse and coerced debt can damage credit scores and deplete resources, forcing victims to stay in abusive relationships, underscoring the importance of financial independence. Banks can help survivors regain control of their lives.

The CCFWE has proposed several survivor-focused solutions:

• Providing fast access to new no-cost or low-cost accounts.
• Allowing survivors to open no-cost accounts with alternative identification.
• Offering flexible repayment plans to mitigate credit score damage.
• Appointing trauma-informed financial advisors to guide victims through their banking options.¹
• Accepting reference letters from community organizations to reaffirm the victims’experiences of violence.

We urge the Canadian Bankers Association to continue collaborating with the CCFWE and other stakeholders, leveraging international best practices to develop a trauma-informed approach to economic abuse.

Rapid Reporting to FINTRAC

FINTRAC has invested significant resources to strengthen its tools to allow real-time analysis of reports, including those about suspicious transactions. Reporting suspicious transactions to FINTRAC for analysis as quickly as possible can increase life-saving interventions for survivors and prevent further harm.

We invite a response to this letter, outlining both achievements to date and planned initiatives to prevent and address economic abuse of victims of crime. This information will be captured in our investigation’s final report to highlight your contributions to ensuring victim and survivor safety.

We would be grateful for a response prior to June 1, 2025.

Thank you again for your continued leadership.

Dr. Benjamin Roebuck
Federal Ombudsperson for Victims of Crime
Office of the Federal Ombudsperson for Victims of Crime
Government of Canada
victimsfirst@Ombud.gc.ca

¹ Trauma-informed allows a service provider to understand the impacts of trauma on individuals to try to mitigate further harm. The need to understand violence and trauma and its impacts, create safe environments for clients, provide choices and connections. Victims of Crime Research Digest No. 9.