Change to public notices for administrative monetary penalties

From: Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

Backgrounder

Since 2008, FINTRAC has had the legislative authority to issue administrative monetary penalties to businesses (reporting entities) that are in non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) and associated Regulations.

Under section 73.22 of the Act, FINTRAC must make public, as soon as feasible, the name of the person or entity that committed the violation(s), the nature of the violation(s), and the amount of the applicable penalty. FINTRAC makes public applicable penalties in accordance with its Administrative Monetary Penalties Policy, which is available on its website. FINTRAC's Administrative Monetary Penalties Policy clearly and transparently outlines the penalty process and the method of calculating penalties for non-compliance with the Act and associated Regulations.

Information included in public notices

Prior to December 2023, FINTRAC had taken a more restrictive approach regarding the information it provided in its public notices on the nature of violations committed by reporting entities. However, in keeping with FINTRAC's commitment to enhanced transparency, and in response to a longstanding request from industry for greater information on the administrative monetary penalties imposed on reporting entities, additional details on the nature of violations are now being provided in public notices for all penalties imposed on a reporting entity. This enhanced transparency is consistent with existing authorities under section 73.22 of the Act.

Providing additional details on the nature of violations will help better educate reporting entities and the public about FINTRAC's compliance and enforcement activities, and strengthen FINTRAC's ability to foster compliance with the Act and associated Regulation.

Legislative and regulatory amendments on public notices

The Government of Canada held a public consultation to examine ways to improve Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime from June 6 to August 1, 2023. The consultation paper, Consultation on Strengthening Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime, included potential policy measures, some of which may be considered for future legislative and regulatory amendments, including to the Act and the Criminal Code. The consultation paper included questions on whether the Government should amend the Act to further expand information FINTRAC publishes about violations and penalties imposed, beyond the existing authorities under 73.22 of the Act. Using feedback on this paper and the findings of the upcoming Parliamentary Review, the Government may take additional actions to introduce legislative and regulatory amendments.

Related links

• Administrative monetary penalties policy
• Public notice of administrative monetary penalties
• FINTRAC's act and regulations