Banks, police use ‘follow the money’ tactics to squeeze extortion’s profit margins
Extortion is turning into a high‑reward, low‑risk business model in parts of Canada, and Ottawa is now trying to attack it where it hurts most: the money.
Peel Regional Police recorded 476 extortion reports in 2024, 190 of which targeted businesses, according to Global News.
Deputy Chief Nick Milinovich said 29 of those business cases involved shootings or arsons, with many incidents captured on social media and “creating fear in our community.”
He described extortion as “one of the most serious public safety threats” facing Peel and the country.
According to Global News, many of the cases in Ontario start with a WhatsApp message sent to a business.
Milinovich said police see “extortions that are occurring because the people have been involved in some kind of criminal activity” and others “associated to families and business owners.”
An early‑morning shooting at a Caledon business on Perdue Court in January, at the same location as a similar shooting a month earlier; Ontario Provincial Police urged residents to “remain vigilant and promptly report suspicious activity to police.”
The federal response centres on financial intelligence.
In Mississauga, Finance Minister François‑Philippe Champagne outlined a “follow the money” strategy to counter rising extortion, according to CTV News.
He said extortion is now “a business owner deciding whether it is safe to open” and “families feeling unsafe in their home communities.”
Global News reported that the federal government will embed financial crime experts from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) within Peel Regional Police to help trace extortion payments and disrupt criminal networks.
Champagne told reporters he has directed FINTRAC’s CEO to “prioritize and mobilize resources to support law enforcement,” as per CTV News.
FINTRAC will deploy liaison officers to work “on the ground” with police in regions including Peel, parts of British Columbia and Alberta.
Their mandate is to monitor financial transactions reported by institutions and help investigators “identify patterns, trace illicit funds and intervene before further harm is done,” Champagne said.
To tighten detection, FINTRAC will introduce a new “targeted indicator profile on extortion” and share it with financial institutions across the country, so they can use a series of “red flags” to recognize and report suspicious transactions quickly and effectively.
Champagne also said FINTRAC will publish new strategic intelligence on how criminal networks launder proceeds, which he argued will help financial institutions across Canada.
CBC News reported that Ottawa has launched a partnership between FINTRAC and Canadian banks, credit unions and financial service providers, including cryptocurrencies, to enhance information‑sharing and provide clearer guidance on how to detect extortion transactions.
The agency will prioritize more timely and relevant financial intelligence to identify criminal networks and support investigations.
Milinovich framed the issue in blunt financial terms.
“The reality is this type of crime is motivated by money,” he told Global News. “Fintrac are the experts in the area of money.
Currently, as it sits right now, it’s high‑reward, low‑risk. That needs to change. We need to reduce the reward that people gain from being involved in extortion. It’s a big deal for us.”
He summed up the current landscape this way: “It’s the fear business.”
