Bill S-8 Explained: Police Could Search Mail and Crack Down on Crypto ATMs — But There Are Limits
Imagine a package carrying fentanyl, a crypto ATM moving suspicious money, or someone walking into a bank with a bag of cash.
Canada's proposed Bill S-8 takes aim at all three. But it doesn't give police unlimited powers, outlaw cryptocurrency or ban cash.
Introduced on November 3, 2026, the Combatting Financial Crimes and Drug Trafficking Act is still a proposal, not law.
Here's what would change — and what would stay exactly the same.
What Police and Regulators Could Do
Search mail — but not without lawful authority.
A suspicious package is moving through Canada's postal system. Police have evidence and lawful authority — but under current rules, searching mail in transit remains limited.
Bill S-8 would change that.
Police could search and seize mail in transit when authorized under the Criminal Code, the Controlled Drugs and Substances Act or the Cannabis Act.
The target: organized crime networks using the mail to move fentanyl, counterfeit currency and stolen goods.
Crack down on unlicensed crypto ATMs.
That cryptocurrency kiosk might look like an ordinary ATM. But Finance Canada cites studies linking 85 to 98 per cent of crypto ATM transactions to illicit activity.
The estimated Canadian losses from crypto ATM fraud in 2024? Between $142 million and $284 million.
Under Bill S-8, operating a crypto ATM without the required provincial or territorial money services business licence would become a criminal offence.
The ban would take effect 18 months after Royal Assent.
Restrict cash transactions of $10,000 or more.
Moving large amounts of cash could become harder.
The bill would restrict cash transactions of $10,000 or more and deposits of cash into someone else's account — the classic "money mule" move.
Canada currently stands alongside Japan as the only G7 countries without this kind of framework.
Tighten oversight of money services businesses.
The minister could direct FINTRAC to deny, revoke or temporarily suspend a money services business registration.
Criminal record checks would also reach more owners.
Currently, the ownership threshold is 20 per cent. Bill S-8 would lower it to just 5 per cent.
Let law enforcement share information with banks.
Regulated businesses could receive and use information disclosed by law enforcement to help combat money laundering.
The change would support the Integrated Money Laundering Intelligence Partnership, launched in February 2025.
What Bill S-8 Would Not Do
Here's where the fine print matters. The proposed powers come with important boundaries.
No new power for postal inspectors to open letters.
Unlike Bill C-2, Bill S-8 would not authorize postal inspectors to open letters.
Their existing powers would remain unchanged, limited to inspecting parcels for non-mailable matter.
No ban on cryptocurrency.
Crypto isn't being outlawed.
Licensed, regulated crypto ATMs could continue operating. In-person and online cryptocurrency exchanges would remain legal.
The crackdown targets unlicensed machines, not cryptocurrency itself.
No blanket ban on cash.
Canadians could still use cash.
In 2025, cash accounted for just 1 per cent of payment value in Canada, with an average cash payment of $24.
Banks and credit unions would be exempt from the large-cash restriction, while legitimate money services businesses could continue operating as usual.
The proposal targets specific large transactions, not everyday cash purchases.
No way around existing legal search requirements.
This is perhaps the most important distinction.
Bill S-8 would expand what police can search and seize in the mail, but it would not eliminate the requirement for lawful authority.
Police would still have to meet the applicable legal threshold before conducting a search.
The Twikup Take
A suspicious package. An unlicensed crypto kiosk. A $10,000 cash transaction.
Bill S-8 would give Canadian authorities more ways to investigate the financial and delivery networks used by organized crime.
But the distinction between stronger enforcement and unlimited police power matters.
Postal inspectors wouldn't gain permission to open letters. Licensed crypto businesses could keep operating. Everyday cash wouldn't disappear. And police would still need lawful authority to search mail.
The bottom line: Bill S-8 would expand enforcement powers against financial crime without giving police a blank cheque — and none of these changes is law yet.
Image: AI-generated illustration.