Canada’s financial intelligence agency Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) says it is preparing to roll out a strengthened penalties regime aimed at improving compliance with anti-money laundering and anti-terrorist financing laws. 

FINTRAC said upcoming changes to its administrative monetary penalties framework follow the passage of Strengthening Canada’s Immigration System and Borders Act, which received Royal Assent on March 26.

The amendments introduce a new structure for penalising reporting entities that fail to comply with the proceeds of crime and terrorist financing act and its regulations. 

FINTRAC said it is updating its penalties policy and developing new guidance to reflect the changes, which apply to violations occurring on or after March 26.

Among the key changes, the agency will have the authority to significantly increase maximum penalties — by as much as 40 times current limits — and to consider an entity’s ability to pay when determining penalty amounts.

The updated framework will also allow FINTRAC to mandate compliance agreements for certain violations and introduce compliance orders as an additional enforcement tool.

Violations that occurred before March 26, this year  will continue to be handled under the existing penalties framework, including current policies and processes.

FINTRAC said it is consulting with reporting entities and industry stakeholders as it finalizes the updated policy and guidance.