Major Canadian Banks Block Third-Party AI Agents From Accessing Customer Data
Canada's largest banks, including BMO, TD, RBC, CIBC, and Scotiabank, have blocked or limited third-party artificial intelligence agents from accessing customer banking information. The moves follow similar actions by U.S. lenders and recommendations from the Financial Stability Board, while Canada's top banking regulator increases oversight without mandating a ban.
Major Canadian banks are moving to block or limit third-party artificial intelligence agents from accessing customer banking data, citing the need to safeguard clients.
Bank of Montreal (BMO) made the decision to bar third-party AI technology last week. Toronto-Dominion Bank (TD) stated it has blocked all third-party personal AI agents from direct access to banking information where authentication is required. Royal Bank of Canada (RBC) announced on Tuesday that it would also block third-party personal AI agents from directly accessing the bank’s digital properties.
Other major institutions are taking similar steps. Canadian Imperial Bank of Commerce (CIBC) does not support personal AI agents directly opening or accessing accounts, while Bank of Nova Scotia (Scotiabank) said it is limiting third-party AI agents. National Bank of Canada said on Wednesday it is closely monitoring developments regarding AI agents like Muse and assessing risks to clients.
BMO CEO Darryl White advised customers not to share sensitive banking data with AI agents, comparing the practice to leaving a sticky note with passwords in a car windshield. Customers are broadly advised against sharing passwords, PINs, or verification codes with unauthorized AI channels.
The actions by Canadian lenders follow similar measures taken by U.S.-based banks JPMorgan Chase & Co., Bank of America Corp., Morgan Stanley, and Charles Schwab Corp., which have previously blocked or limited outside AI agents’ access to customer data. The Financial Stability Board has also recommended that financial institutions reinforce oversight of AI systems, including banning agents’ access to sensitive information.
Peter Routledge, Superintendent of Financial Institutions, stated he is ramping up oversight of AI practices due to cybersecurity and financial crime concerns. However, he will not restrict banks from allowing customers to use AI agents, leaving the decision to individual institutions.