FINTRAC Updates Administrative Monetary Penalties Policy

• FINTRAC has updated its administrative monetary penalties policy to promote compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. A new legislative framework for these penalties came into force on March 26, 2026, and FINTRAC is currently updating its policy and guidance to reflect these changes.
• The update aims to provide a framework for determining penalties based on objective facts, ensuring fair and reasonable decisions.
• Reporting entities are expected to understand the guiding principles of the program, including objectivity, reasonableness, transparency, fairness, and consistency.
• The updated policy may require reporting entities to review and revise their internal policies and procedures for compliance.

FINTRAC officers will conduct assessments based on objective facts, ensuring fair and reasonable decisions.

FINTRAC has updated its administrative monetary penalties policy. A new legislative framework for administrative monetary penalties, introduced by the Strengthening Canada's Immigration System and Borders Act (Bill C-12), came into force on March 26, 2026, and FINTRAC is currently updating its policy and developing new guidance to reflect these changes. The update aims to promote compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations. FINTRAC officers will conduct assessments based on objective facts, ensuring fair and reasonable decisions. The guiding principles of the program include objectivity, reasonableness, transparency, fairness, and consistency. Reporting entities are expected to understand these principles and demonstrate them in their dealings with FINTRAC.

The update also emphasizes the importance of documentation, with FINTRAC officers relying on facts and documenting information to support their analysis and findings. This approach is designed to promote a change in behavior among reporting entities and encourage future compliance.

The administrative monetary penalties program supports FINTRAC's mandate by providing a measured response to non-compliance issues. The program's success depends on the concrete application of regulatory measures designed to detect, prevent, and deter money laundering and terrorist activity financing. FINTRAC works with businesses and law enforcement to combat these crimes, relying on reporting entities to provide information that helps carry out its mandate. The Proceeds of Crime Act penalty guidelines are an essential part of this effort, and the updated policy aims to promote compliance with these guidelines.

The update also highlights the importance of transparency in FINTRAC's dealings with reporting entities. Reporting entities have the right to understand the case being made for a penalty and will have a fair opportunity to respond. This approach is designed to ensure that similar reporting entities are treated consistently, regardless of their location or type of non-compliance.

The updated policy may require reporting entities to review and revise their internal policies and procedures for compliance with FINTRAC's administrative monetary penalties program. This is a critical step in ensuring that reporting entities understand the guiding principles of the program and can demonstrate objectivity, reasonableness, transparency, fairness, and consistency in their dealings with FINTRAC.

The update also emphasizes the importance of documentation and transparency in FINTRAC's dealings with reporting entities. By promoting compliance with the Proceeds of Crime Act penalty guidelines, the updated policy aims to contribute to the protection of Canada's financial system and the safety of Canadians. Reporting entities play a critical role in this effort, and the updated policy is designed to encourage their active participation.

This update may require reporting entities to review and revise their internal policies and procedures for compliance with FINTRAC's administrative monetary penalties program, ensuring they understand the guiding principles and can demonstrate objectivity, reasonableness, transparency, fairness, and consistency in their dealings with FINTRAC.

Source: Original reporting via FINTRAC