Financial Transactions and Reports Analysis Centre Updates Administrative Monetary Penalties Policy

The purpose of FINTRAC's administrative monetary penalties program is to encourage future compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) and associated Regulations, and to promote a change in behaviour. The administrative monetary penalties program supports FINTRAC's mandate by providing a measured and proportionate response to particular instances of non-compliance. FINTRAC is committed to working with reporting entities to help them achieve compliance. The purpose of this policy is to provide a framework for the determination of an administrative monetary penalty; and to summarize the principles and guidelines that are used by FINTRAC to issue an administrative monetary penalty. The purpose of the administrative monetary penalties program is to support FINTRAC’s efforts to ensure compliance with the Act and associated Regulations by providing a measured response to non-compliance issues. The program’s guiding principles are: Objectivity : FINTRAC officers will conduct themselves professionally during an assessment and in their communications with a reporting entity. FINTRAC officers will make objective assessments based on the facts and circumstances of each case, ensuring fair and reasonable decisions. Reasonableness : FINTRAC officers will exercise professional judgement when assessing a reporting entity’s compliance with the Act and associated Regulations. This involves considering the circumstances and all relevant factors prior to considering an administrative monetary penalty. Transparency : FINTRAC officers will ensure that the expectations about compliance are communicated in a clear manner throughout the assessment process. Fairness : A reporting entity has the right to understand the case being made for an administrative monetary penalty, and will have a fair opportunity to respond. Consistency : FINTRAC officers follow established policies and procedures to ensure that similar reporting entities, with the same types and extent of non-compliance, can expect to be treated in a similar manner. Documentation: FINTRAC officers will rely on facts and document those facts and any other information to support their analysis and findings. FINTRAC works with businesses and law enforcement to combat money laundering and terrorist activity financing. By effectively identifying clients and keeping records, reporting entities help deter criminal activity and are able to provide law enforcement with evidence for the investigation and prosecution of money laundering, terrorist financing and sanctions evasion offenses. By reporting the required financial transactions to FINTRAC, reporting entities are supplying it with the information that it needs to carry out its mandate, support law enforcement partners, and contribute to the protection of the integrity of Canada's financial system and the safety of Canadians. FINTRAC's supervisory framework recognizes that the success of Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime depends on the concrete application of the regulatory measures designed to detect, prevent and deter money laundering and terrorist activity financing. Our own compliance effort aims to bring awareness and understanding of the requirements under the Act and associated Regulations, to deter non-compliance, and to assist in the detection of money laundering and terrorist activity financing in support of the efforts of the police and intelligence communities. In the normal course of our compliance activities, we identify instances of non-compliance with the Act and associated Regulations. We assess the severity of each non-compliance issue by understanding both the extent and the root cause of the non-compliance. Each non-compliance issue is assessed for its adverse impact on FINTRAC's mandate and on the achievement of the objectives of the Act. Following the completion of an assessment activity, and depending on the extent of the non-compliance iden