Canada’s ongoing battle with fentanyl trafficking has taken a dramatic turn in recent years, with growing pressure on both borders and financial systems. In 2024 alone, authorities reported significant seizures of fentanyl moving between Canada and the US—10.8lbs entering from the US and 32.1lbs flowing the other way. These figures sparked diplomatic and economic fallout, including a 25% US tariff on Canadian goods imposed in March 2025.
With chemical suppliers in China and trafficking routes stretching through Mexico, the opioid crisis has become a global problem, demanding tighter international cooperation and more robust financial surveillance.
Napier AI, which offers a next-generation intelligent compliance platform, recently delved into how AML can help combat the fentanyl crisis in Canada
Canadian authorities have begun addressing the challenge through a $1.3bn border security plan, but cracking down on trafficking requires more than physical barriers. Financial institutions and reporting entities must become integral to the solution by identifying and disrupting the money laundering networks that fuel the trade, Napier AI explained.
In early 2025, FINTRAC released an operational alert exposing how organised crime groups launder fentanyl profits, often via online gambling platforms. The alert, based on 5,000 suspicious transaction reports between 2020 and 2023, highlighted one case where an individual received numerous high-value e-transfers from gambling-linked payment processors that masked the nature of the transactions.
To effectively respond, financial institutions need to improve their AML frameworks with targeted enhancements, Napier AI said. Firstly, more robust KYC and CDD procedures are required at onboarding, especially for high-risk industries like shipping.
Secondly, financial institutions must overhaul their transaction monitoring systems. Traditional tools are often inadequate for catching the complex patterns associated with fentanyl trafficking. Advanced data analytics and automation can significantly improve detection by identifying subtle anomalies.
Thirdly, the use of AI for client screening is becoming essential. Manual checks no longer meet the demands of evolving risk landscapes. AI tools can adapt screening rules based on changing typologies and identify high-risk clients more rapidly.
The scale of financial crime linked to synthetic opioids calls for a mindset shift in compliance. As the Napier AI / AML Index 2024–2025 reveals, Canada stands to reclaim $65bn in criminal proceeds through AI-powered AML strategies, while global savings could reach $3.13tn annually.
For more information, read the full story here.
Keep up with all the latest FinTech news here
Copyright © 2025 FinTech Global
Copyright © 2018 RegTech Analyst
