Deloitte Canada says regulatory modernization could help improve productivity, attract investment and strengthen Canada's economic competitiveness as businesses contend with economic uncertainty and changing global trade conditions.
The professional services firm released the first of a four-part report series recently examining how regulatory changes could address what it describes as increasingly complex and fragmented requirements affecting businesses and economic growth.
The series, titled Smarter regulation: Unlocking Canada's growth potential, examines regulatory and policy challenges in several areas of the Canadian economy and identifies opportunities to reduce unnecessary complexity while improving regulatory outcomes.
Regulatory burden identified as investment barrier
Deloitte said recent Business Council of Canada CEO surveys conducted between 2023 and 2025 identified regulatory burden as the leading factor influencing companies' decisions to invest in Canada.
The federal government introduced its Red Tape Review initiative in 2025, but Deloitte's research argues that progress needs to accelerate, with regulation focused on outcomes and designed to provide greater certainty and confidence for businesses.
"This new Deloitte series underscores the critical role that smart and effective regulation plays in driving and protecting investment, enabling innovation, and supporting economic growth for our country," said Nino Montemarano, a Regulatory and Risk leader at Deloitte Canada, and lead author of the series. "Regulatory modernization is a powerful, controllable policy tool as Canada navigates heightened trade and geopolitical uncertainty. It's imperative that the country's regulatory framework is efficient, coordinated, and designed to reduce unnecessary complexity and unlock economic growth across all sectors."
The four-part series draws on consultations with industry stakeholders, with each report examining regulatory issues affecting a specific area of the economy and outlining risk-based measures intended to reduce complexity.
Anti-money laundering reforms examined
The first report, Five ways to strengthen Canada's anti-money-laundering outcomes, was developed in consultation with the Canadian Bankers Association and examines potential changes to Canada's anti-money laundering regime.
The report considers how changes could improve financial intelligence, enforcement and recovery of criminal proceeds. Deloitte said money laundering imposes significant economic and social costs, citing estimates from the Criminal Intelligence Service Canada that as much as $113 billion is laundered through the economy each year.
Deloitte's analysis estimates that reducing money laundering activity by 30 per cent through regulatory reforms could increase Canada's real GDP by $216 billion between 2027 and 2036 and create an average of 67,000 additional jobs annually over that period.
The report identifies three priorities: stronger information sharing among financial institutions, law enforcement and government agencies; modernization of legislative and reporting frameworks; and enhanced enforcement and asset recovery tools.
"Canada's banks are deeply committed to safeguarding the financial system, and this Deloitte research validates the importance of all stakeholders working together to make updating our anti-money laundering regime a vital national priority," said Anthony G. Ostler, President and Chief Executive Officer, Canadian Bankers Association. "In today's environment of global economic uncertainty, we must sharpen our focus on the variables we can control. Transparent, predictable and risk-based regulation provides a powerful lever to modernize our sector and unlock the full potential of our national economy. By adopting these forward-looking reforms, we can strengthen our collective fight against financial crime while cementing Canada's position as a highly competitive, secure, and attractive destination for global investment."
Energy, defence and fraud reports to follow
Deloitte said three additional reports will be released in the coming weeks, covering energy and infrastructure, defence, and fraud.
The energy and infrastructure report was developed with the Canadian Association of Petroleum Producers. Its contribution includes comments from CAPP president and CEO Lisa Baiton.
"In a world that is increasingly being defined by energy insecurity, trade uncertainty, and geopolitical instability, countries need to focus on the things within their control. Smart, efficient, and risk-based regulations that provide certainty and enable industries to move with alacrity can be a major competitive advantage in the race to attract global capital. The analysis and recommendations done by Deloitte are a positive contribution to the much-needed efforts underway to modernize Canada's regulatory environment."
The defence report was developed in consultation with the Canadian Defence & Security Industries Association. Nicolas Todd, vice-president of government relations and communications at CADSI, said regulatory changes could support domestic production and investment in the sector.
"Canada's defence and security industry is essential to our national security, economic resilience, and technological sovereignty - and the ability to produce at home is the foundation of all three. Rearmament is first a procurement challenge then a production one. This means modernizing procurement processes and authorities, clarity and predictability through long-term contracts and plans so industry can invest in new capacity and technology, and new frameworks for industry-government collaboration as we deliver capability to the Canadian Armed Forces. CADSI welcomes continued dialogue on practical reforms that can improve efficiency, transparency, and outcomes across the defence procurement system."
The fraud report, developed with the Canadian Anti-Scam Coalition, will examine regulatory co-ordination across financial institutions, telecommunications providers, digital platforms, regulators and law enforcement.
"Fraud is a cross-sector crime, yet Canada's response remains largely siloed - and criminals know it. They exploit the seams between financial institutions, telecom providers, digital platforms, regulators, and law enforcement, because no single organization has a complete view. Strengthening regulatory coordination is one of the most impactful reforms we can make. The Canadian Anti-Scam Coalition is working to ensure Canada adopts a whole-of-ecosystem model that brings all key players together to pursue a shared goal: closing those gaps and better protecting Canadians," added Jennifer Quaid, Executive Director, CASC.