Financial Transactions and Reports Analysis Centre of Canada publishes administrative monetary penalties policy detailing penalty ranges and review process

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) published an administrative monetary penalties (AMP) policy setting out how it determines and administers penalties for non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations, including how violations are categorized, how penalty amounts are calculated, and how notices can be reviewed and appealed. The policy describes AMPs as a non-punitive tool intended to encourage future compliance and sets per-violation ranges of CAD 1 to CAD 1,000 for minor violations, CAD 1 to CAD 100,000 for serious violations, and CAD 1 to CAD 100,000 for a very serious violation by an individual or CAD 1 to CAD 500,000 for a very serious violation by an entity, noting that multiple violations can result in totals above these limits. Amounts are determined using three statutory criteria (harm done, compliance history, and the non-punitive purpose) through a harm assessment that considers potential and resulting harm and whether requirements were fully or partially unmet, followed by an adjustment for compliance history and the program’s non-punitive objective, with discretion not to apply reductions particularly for serious violations. FINTRAC also sets out the notice of violation contents and key timelines, including a two-year limit from when non-compliance became known to FINTRAC to issue a notice, 30 days to pay or make written representations to FINTRAC’s Director and Chief Executive Officer, 30 days to appeal a decision to the Federal Court of Canada (with an appeal option if no decision is issued within 90 days of representations), publication of the entity name, nature of violation and penalty amount in specified outcomes, and payment due 30 days after receipt of a notice of violation or notice of decision with interest accruing thereafter.