Maximum fines for anti-money-laundering violations raised dramatically, with some violations reclassified as more serious

Plain-language summary · AI-assisted

The maximum administrative monetary penalties (AMPs) for violations of Canada's anti-money-laundering and terrorist financing rules have been significantly increased. Minor violations now carry a maximum penalty of $40,000 (up from $1,000), serious violations up to $4,000,000 (up from $100,000), and very serious violations up to $20,000,000 (up from $500,000). The threshold at which a series of minor violations is treated as a single serious violation has also been raised, from $10,000 to $400,000 in total penalties on a notice. Several violations related to certain reporting and compliance obligations (items 196–201 in Part 2 of the schedule) have been reclassified from 'serious' to 'very serious', and a new 'very serious' violation category has been added for contravention of section 9.6(1.1) of the Act. Businesses and individuals subject to these regulations—including financial institutions, money services businesses, and other reporting entities—should review their compliance programs in light of the substantially higher penalty exposure.

Who this affects
financial institutions · money services businesses · reporting entities under anti-money-laundering rules · compliance officers · legal and regulatory counsel