The Financial Transactions and Reports Analysis Centre of Canada has outlined how it will apply a new administrative monetary penalties framework under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act for violations that occur on or after March 26, 2026. The amendments, introduced by the Strengthening Canada’s Immigration System and Borders Act, expand FINTRAC’s enforcement toolkit by allowing it to define prescribed violations and compliance order violations subject to penalties, increase maximum penalty amounts by up to 40 times current limits, take ability to pay into account when setting penalties, require mandatory compliance agreements for prescribed violations, and use compliance orders as an additional enforcement tool. FINTRAC is updating its administrative monetary penalties policy and preparing new guidance on compliance agreements, compliance orders, and a revised penalty calculation approach. Reporting entities that commit prescribed violations after March 26, 2026, will be required to enter into mandatory compliance agreements and may also face compliance orders. For violations that occurred entirely before March 26, 2026, FINTRAC will continue to use the existing policy, penalty amounts, and processes. To keep examinations within a single set of compliance expectations, supervisory assessments will be scoped so review periods fall entirely under either the former regime or the new legislative framework. FINTRAC said it continues to consult reporting entities and industry stakeholders as the updated policy and guidance are developed.
Financial Transactions and Reports Analysis Centre of Canada 2026-05-06
Financial Transactions and Reports Analysis Centre of Canada updates administrative monetary penalties approach for post March 26 2026 violations with higher maximum penalties and new compliance tools
The Financial Transactions and Reports Analysis Centre of Canada has outlined how it will apply a new administrative monetary penalties framework under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act for violations occurring on or after 26 March 2026, following amendments in the Strengthening Canada’s Immigration System and Borders Act. The changes significantly expand FINTRAC’s enforcement toolkit, including the ability to prescribe new violations, increase maximum penalties by up to 40 times, require mandatory compliance agreements, and use compliance orders, while maintaining the existing regime for earlier violations.