FINTRAC publishes updated money laundering indicators aimed at combatting online child sexual exploitation — FINTRAC — CA

News release

November 27, 2025 — Ottawa

FINTRAC published today a new Operational Alert, Laundering the proceeds of online child sexual exploitation , aimed at combatting online child sexual exploitation. This Alert will assist businesses in identifying and reporting financial transactions associated with these horrendous crimes targeting vulnerable children.

Crimes related to online child sexual exploitation continue to rise globally year after year, not only in the number of confirmed reports showing child sexual abuse images, but also in the severity of the images and videos. Although the motivation for sexually exploiting children varies, financial payments enable these heinous activities to occur. FINTRAC has also observed an increase in financially motivated offending, including sexual extortion cases, in recent years. Sexual extortion schemes targeting Canadian children often have links to organized crime.

By following the money, FINTRAC is able to generate actionable financial intelligence that supports law enforcement in Canada and internationally in identifying and targeting the perpetrators of these terrible crimes.

This Alert builds on FINTRAC's previous strategic intelligence, which was published in December 2020. It reflects new developments and indicators that were identified after analyzing FINTRAC's financial intelligence. This analysis was conducted in consultation with financial institutions, the Canadian Centre for Child Protection, the Royal Canadian Mounted Police, the Canada Border Services Agency, Public Safety Canada, Statistics Canada, private-sector organizations and number of international financial intelligence units.

This Operational Alert supports Project Shadow, an international public-private partnership established to target money laundering linked to online child sexual exploitation. Project Shadow is co-led by Scotiabank and the Canadian Centre for Child Protection, and includes international financial intelligence units, law enforcement agencies and private sector partners. In 2024–25, FINTRAC generated 57 financial intelligence disclosures for law enforcement agencies in support of Project Shadow. These disclosures identified 157 subjects of interest.

Quotes

"The exploitation of children is one of the most appalling crimes imaginable and it's enabled by financial payments. The enhanced indicators in our updated Alert will help Canada's financial sector detect and report transactions tied to online child sexual exploitation. This work reflects our collective commitment to protecting the most vulnerable members of our society and to supporting law enforcement in bringing perpetrators to justice. Through Project Shadow, we are proud to stand united against this horrific crime."

"Scotiabank is deeply committed to tackling financial crime, and we are grateful to work with FINTRAC and other partners to support the fight against online child exploitation. As an industry, we have a duty to help keep our communities safe and we will continue to support these efforts."

"The online sexual exploitation of children is a critical issue that all sectors of society need to address. Project Shadow is a positive example of the importance and value of cross sectoral collaboration. The RCMP appreciates the work achieved through Project Shadow and thanks all partners for their efforts to advance child protection."

Quick facts

FINTRAC's new Operational Alert and Project Shadow further Canada's efforts under the National Strategy for the Protection of Children from Sexual Exploitation on the Internet, led by Public Safety Canada in partnership with the Royal Canadian Mounted Police, Justice Canada and the Canadian Centre for Child Protection.

Since the launch of Project Shadow in December 2020, FINTRAC has generated more than 300 financial intelligence disclosures for law enforcement agencies across Canada.

In March 2025, FINTRAC's financial intelligence was recognized by the Ottawa Police Service in an investigation where one individual was charged with numerous child pornography offences. The individual pleaded guilty to sexual interference and producing child pornography. In addition to a jail sentence of just over six years, the individual is also required to pay restitution to the child victim, which is the first time such a sentence has been handed down in Canada.

In 2024–25, FINTRAC generated more than 6,200 financial intelligence disclosure packages, based on 2,730 unique disclosures, in support of investigations of money laundering, terrorist financing, sanctions evasion and threats to the security of Canada.

A FINTRAC financial intelligence disclosure may corroborate existing investigative information, show links between individuals and businesses that have not been identified in an investigation, and help investigators refine the scope of their cases or shift their sights to different targets. A disclosure can pertain to an individual or a wider criminal network and can also be used by law enforcement to put together affidavits to obtain search warrants and production orders.

FINTRAC's unique disclosures in 2024–25 contained a total of 8,618 subjects.

FINTRAC's financial intelligence disclosures are often provided to multiple agencies simultaneously when there is authorization to do so. The ability to provide multiple disclosure packages means that the Centre can help law enforcement and national security agencies connect criminal activities and operations across a number of domestic and international jurisdictions by following the money.

Throughout 2024–25, the Centre's financial intelligence contributed to over 200 major, resource intensive investigations as well as many hundreds of other individual investigations at the municipal, provincial and federal levels across the country, as well as internationally.

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