Financial institutions, including banks, have certain obligations. One of their obligations is to report any suspicious transaction to FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada. Then, if FINTRAC thinks the information could be useful in an investigation, it forwards it to the provincial police service concerned or to the RCMP.
Financial institutions are also bound by obligations associated with guideline B‑20 from OSFI, the Office of the Superintendent of Financial Institutions. That guideline requires financial institutions to verify the information they receive and make sure that the statements made by consumers are true.
Regarding fraud in the system, we rely on police services and the criminal justice system to initiate the necessary prosecutions.