Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), FINTRAC has authority to issue Administrative Monetary Penalties when a regulated entity fails to meet its compliance obligations. AMPs are not criminal charges. They are civil enforcement tools designed to encourage future compliance and change behaviour.
For Money Services Businesses (MSBs), AMPs are the most common enforcement outcome after a compliance examination. A single examination can result in multiple violations, and each violation carries its own penalty.
⚠️ AMPs and criminal charges cannot be issued for the same instances of non-compliance, but FINTRAC can refer cases to law enforcement separately.
The Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations (SOR/2007-292) categorize violations by degree of importance and assign corresponding penalty ranges:
| Violation Category | Who It Applies To | Penalty Range |
|---|---|---|
| Minor violation | All reporting entities | $1 to $1,000 per violation |
| Serious violation | All reporting entities | $1 to $100,000 per violation |
| Very serious violation | Individual | $1 to $100,000 per violation |
| Very serious violation | Entity (corporation/business) | $1 to $500,000 per violation |
These limits apply per violation. Multiple violations in a single examination can push total AMP amounts well above these ceilings.
💡 The Xeltox case shows how repeat contraventions, especially unreported transactions, compound into penalties that threaten business survival.
FINTRAC's AMP calculation considers three statutory factors:
💡 A single FINTRAC examination can identify violations in multiple categories simultaneously. That's why one examination can result in 4–6 violations, each carrying its own penalty amount.
Once a penalty is confirmed, FINTRAC publishes the details publicly, including your business name, location, penalty amount, and number of violations, and this notice remains on their website for 5 years.
Most MSBs that receive AMPs had correctable compliance gaps (missed filings, incomplete KYC records, or outdated policies) that were allowed to persist due to manual processes or lack of systematic QA.
Comply+ automates STR, LCTR, EFTR, and LVCTR reporting with built-in quality controls, deadline tracking, and audit-ready record-keeping.
Explore FINTRAC reporting support for MSBs, Managed Filing, or Comply+ Academy for training.
FINTRAC enforcement is intensifying. Recent penalties demonstrate that compliance failures result in significant financial consequences, with Bill C-2 increasing maximum penalties to $20 million for entities.
FINTRAC has imposed significant Administrative Monetary Penalties (AMPs) for compliance failures across multiple sectors.
December 2025, Toronto, Ontario
Multiple compliance failures including no effective compliance regime, no proper risk assessment, and failures to submit EFT and LCT reports.
Read case studyDecember 2025, Foreign MSB (Seychelles)
Failed to submit STRs for transactions with exposure to darknet marketplaces, sanctioned entities, and child sexual abuse material.
Read case studyOctober 2025, British Columbia
2,593 violations including 1,068 unreported STRs, 1,518 unreported LVCTRs, and failure to comply with Ministerial Directive on Iran.
Read case studySeptember 2025, Foreign MSB (Seychelles)
Unregistered foreign MSB, 2,952 unreported LVCTRs, and 33 unreported STRs linked to darknet marketplaces and illicit chemical trade.
Read case studyUnder Bill C-2 (tabled June 2025), maximum Administrative Monetary Penalties would increase dramatically:
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Disclaimer
This page is provided for general informational purposes only and reflects our interpretation and opinions based on publicly available information at the time of writing. It does not constitute legal advice, financial advice, regulatory guidance, or a substitute for professional counsel. Reporting entities and businesses subject to FINTRAC obligations should consult qualified legal and compliance advisors before making decisions relating to FINTRAC, AML obligations, or compliance requirements.