Budget 2026 and FINTRAC: OSFI Would Take Over AML Supervision of Federal Financial Institutions, With Registration for Precious Metals Dealers and Wider Gambling Coverage

Budget 2026, released on November 5, 2026, proposes to amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) you report under. If you are a federally regulated financial institution, Annex 3 proposes moving your anti-money laundering supervision from FINTRAC to the Office of the Superintendent of Financial Institutions (OSFI). If you deal in precious metals and stones, or run gambling activities, Chapter 5.3 names you too.

These are proposals. Chapter 5.3 describes them as "the government's intention," and Annex 3 lists them as legislative measures the government "proposes" to make. Neither passage gives an in-force date. As of November 6, LEGISinfo lists no bill implementing Budget 2026.

The Measures Next to Today's Law

AML Supervision of Federally Regulated Financial Institutions

Annex 3 proposes amending the PCMLTFA and the Office of the Superintendent of Financial Institutions Act, with consequential amendments to other statutes and regulations, "to enhance the anti-money laundering and anti-terrorist financing supervision and compliance of the largest financial institutions by transferring the responsibility for anti-money laundering and anti-terrorist financing supervision of federally regulated financial institutions" from FINTRAC to OSFI.

The stated aim refers to "the largest financial institutions." The transfer language refers to "federally regulated financial institutions." Chapter 1 says OSFI supervises "federally regulated financial institutions, including banks, insurers, trust and loan companies, and federal credit unions."

Annex 3 does not give a transfer date or a phase-in. It does not address report filing or which agency would issue AML penalties to these institutions. In a separate measure, Annex 3 proposes amending the OSFI Act "to strengthen OSFI's Administrative Monetary Penalties regime." Chapter 5.3, which lists the budget's financial crime measures, does not mention the transfer.

As of November 6, neither FINTRAC's news page nor OSFI's news page lists a statement on the proposal. FINTRAC's modernization page was last modified on April 13, 2026.

Information Sharing and FINTRAC Examinations

Chapter 5.3 says the government intends to "improve information sharing between FINTRAC and OSFI, ensuring the appropriate safeguards for consumer information, and expand FINTRAC's ability to obtain supervisory information from regulated entities." Annex 3 adds that the amendments would "clarify FINTRAC's powers of examination." Neither passage says what the clarification would be.

FINTRAC's modernization page says its Director and CEO became a member of the Financial Institutions Supervisory Committee on March 26, 2026, with the ability to exchange supervisory information on federally regulated financial institutions. Section 53.41 of the Act limits what the Director may disclose under that provision to information that "relates to compliance with Part 1 or 1.1." Two other provisions already let FINTRAC share information with OSFI: section 53.31, on risks to the integrity of the financial system from approvals, and paragraph 55.1(1)(f), on threats to the security of Canada.

On examinations, subsection 62(1) already covers "any person or entity referred to in section 5." A change enacted in 2026 and not yet in force would add "any person or entity that the authorized person believes on reasonable grounds to be" one.

Gambling: Pari-Mutuel Betting on Horse Racing

Chapter 5.3 says the government intends to "expand anti-money laundering requirements to cover higher-risk gambling activities, including certain pari-mutuel betting on horse racing, while exempting lower-risk activities." Annex 3 describes this as extending "the scope of the PCMLTFA regime as it applies to the gambling sector."

Today, paragraphs 5(k) to (k.3) of the Act cover:

• a province that conducts and manages a lottery scheme with roulette or card games in a permanent establishment held out to be a casino, or slot machines or similar devices in another permanent establishment with more than 50 of them;
• a province that conducts and manages a lottery scheme accessible to the public over the Internet or other digital network, other than bingo or the sale of lottery tickets;
• an organization that conducts and manages such a scheme with roulette or card games in a permanent establishment held out to be a casino, unless it is a registered charity operating for not more than two consecutive days at a time;
• the board of a fair or exhibition, or a concession operator, that does the same.

Neither the Act nor the Regulations use the term pari-mutuel. The budget does not say which betting would be caught, which activities would be exempted, or whether the exemption could reach activities covered today. FINTRAC published penalties against Nova Scotia Gaming Corporation and The New Brunswick Lotteries and Gaming Corporation in September 2026.

Registration for Dealers in Precious Metals and Stones

Chapter 5.3 says the government intends to "extend the AML/ATF registration regime, including to dealers in precious metals and stones, after engaging with industry." Annex 3 says it would "expand the requirement to register with FINTRAC to certain sectors." Neither passage names any other sector.

You already have obligations if, in the course of your business, you buy or sell precious metals, precious stones or jewellery for $10,000 or more (PCMLTFR s. 65(1)). Subsection 65(2) excludes a purchase or sale in the course of or in connection with manufacturing a product containing precious metals or stones, extracting them from a mine, or polishing or cutting precious stones. In connection with that activity, you report cash of $10,000 or more in a single transaction (s. 66), report virtual currency of $10,000 or more in a single transaction (s. 67), and keep large cash and large virtual currency transaction records (ss. 68 and 69), subject to the exceptions in those sections.

Registration is a separate step. Section 11.1 of the Act applies to money services businesses, foreign money services businesses, those referred to in paragraph 5(l) that issue or sell money orders to, or redeem them from, the public, and any other section 5 entity that is prescribed. The registration regulations do not mention dealers in precious metals and stones.

For those registered today, the Act sets eligibility rules (s. 11.11), clarification deadlines of 30 days (ss. 11.14 and 11.17) and renewal "every two years or within any longer prescribed period" (s. 11.19). The budget does not say which of these would apply to dealers. Bill S-8 separately proposes changes to the ineligibility grounds.

Enrolment is also separate. Section 11.4001, enacted in 2026 and not yet in force, says "every person or entity referred to in section 5 shall enroll with the Centre," with exceptions in subsection (2). FINTRAC says it will come into force "in line with Regulations to be developed and published in the Canada Gazette, Part II." The budget does not say how an extended registration requirement would fit with enrolment.

Corporate Transparency and What Else the Budget Lists

Annex 3 also proposes amending the Canada Business Corporations Act, the Canada Not-for-profit Corporations Act and the Canada Cooperatives Act to "expand government access to non-public beneficial ownership registry information and provide enhanced powers to dissolve fraudulent corporations."

Chapter 5.3 restates three bills already introduced: C-29 for the Financial Crimes Agency, C-12 on supervision, compliance and enforcement, and S-8 on cash-based money laundering, crypto ATMs and money services businesses. The Budget in Brief says the Financial Crimes Agency would begin operations in fall 2027. Chapter 5.3 also proposes $182.4 million over four years, starting in 2027-28, for the Canada Revenue Agency to investigate tax evasion and to "combat money laundering and disrupt the flow of illicit income."

Six Questions to Check Against Your Business

1. Are you a bank, insurer, trust and loan company or federal credit union that OSFI supervises? Budget 2026, Chapter 1 and Annex 3.
2. Can you give an authorized person the records and assistance an examination calls for? PCMLTFA subsections 62(1) and (2).
3. Do you buy or sell precious metals, precious stones or jewellery for $10,000 or more? PCMLTFR subsections 65(1) and (2), and Budget 2026, Chapter 5.3, on registration.
4. If so, do you report and keep records of cash and virtual currency of $10,000 or more? PCMLTFR sections 66 to 69, in force today.
5. Do you offer pari-mutuel betting on horse racing, or another gambling activity outside paragraphs 5(k) to (k.3)? Budget 2026, Chapter 5.3.
6. Are you a section 5 entity that does not register with FINTRAC today? PCMLTFA section 11.4001, not yet in force, with its exceptions in subsection (2), and FINTRAC's modernization page.

Bottom Line

Budget 2026 proposes moving AML supervision of federally regulated financial institutions from FINTRAC to OSFI, extending the regime to higher-risk gambling, and extending registration to sectors that include dealers in precious metals and stones. It gives no in-force date for any of them, and no implementing bill is listed yet.

In the budget's words, the stated purpose is to "strengthen Canada's ability to detect, disrupt, and prevent financial crime as threats evolve."