Sarah Paquet is departing the Financial Transactions and Report Analysis Centre of Canada after the end of her term.Ashley Fraser/Globe and Mail
Sarah Paquet, the director and chief executive officer of the Financial Transactions and Reports Analysis Centre of Canada, is leaving the anti-money-laundering agency after completing her five-year term.
Stéphane Sirard, FinTRAC’s deputy director of intelligence, will serve as director until a replacement is named, according to the agency.
FinTRAC confirmed that Ms. Paquet is departing the agency after a report by The Globe and Mail, noting that her term concludes on May 17.
The financial intelligence unit was recently granted greater powers, including the ability to levy penalties up to 40 times higher than before, as Ottawa moves to clamp down on financial crime. It recently announced plans to ban cryptocurrency ATMs and allocate funding to a new Financial Crimes Agency. The federal government has also completed consultations on a national anti-fraud strategy.
FinTRAC directors are appointed for a five-year term. Ms. Paquet’s term expired on Nov. 15, 2025, but was extended for six months.
The timing of that extension coincided with a review of Canada’s financial crime regime by the Financial Action Task Force, an intergovernmental body that sets standards to combat money laundering and terrorist financing. The outcome of the FATF’s review is expected this summer.
The review took place under new criteria that place more emphasis on how effectively a country enforces its anti-money-laundering rules, an area in which experts say Canada has struggled. Historically, Canada has had low prosecution rates when it comes to financial crimes.
Countries that are found to be deficient in managing financial crime risks are added to the task force’s grey list and subjected to increased monitoring, which can have serious negative consequences, such as curtailing foreign investment.
The FATF’s review of Canada’s anti-money-laundering review came in the wake of a scandal at Toronto-Dominion Bank, which in 2024, became the first lender in U.S. history to plead guilty to conspiracy to commit money laundering after a decade of moving dirty money for criminals.
During Ms. Paquet’s tenure, FinTRAC ramped up its enforcement activity, levying the largest penalties in its history, including a $176,960,190 penalty against B.C.-based cryptocurrency company Xeltox Enterprises Ltd. Xeltox, which operates as Cryptomus, has appealed that charge, which is the largest ever issued by FinTRAC.
Canada’s anti-money-laundering regime requires entities, such as financial institutions, real estate and mortgage brokers, cryptocurrency exchanges and casinos to report certain types of transactions to FinTRAC, and to have policies in place to prevent and detect financial crime.
In total, more than 38,000 businesses are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Companies that fail to comply with their obligations can receive monetary penalties. FinTRAC issued 23 such penalties in its most recent fiscal year, totalling $25-million.
Meanwhile, Ottawa introduced legislation last month to create a new federal law enforcement agency focused on financial crimes, fulfilling a 2021 Liberal campaign promise.
The federal government has earmarked $352.7-million over five years to launch the new agency, starting in 2026-27, then $82.1-million annually after that.
Finance Minister François-Philippe Champagne told reporters earlier this month that Ottawa is currently recruiting for the new agency, which will need experts in cryptology, quantum technology, AI and forensic accounting.
John Fragos, a spokesperson for Mr. Champage’s office, thanked Ms. Paquet for her years of service and said that information on the appointment process is coming soon.