US EditionPublished • loading... • Updated
Dramatic increase in Fintrac fines coming, but their effectiveness is less clear
Bill C-12 increases maximum Fintrac penalties up to 40 times, with fines reaching $400 million for repeat offenses, aiming to strengthen anti-money laundering enforcement.
- Bill C-12, which passed the House on Dec. 11 and is awaiting Senate approval, proposes increasing Fintrac penalties up to 40 times current rates.
- Amid a FATF review and widening coverage, Canada is stepping up rules as enforcement surged this year with $177 million and $20 million fines against Xeltox Enterprises Ltd. operating as Cryptomus and Peken Global Ltd. operating as KuCoin.
- Firms may submit many more transactions — even non-suspicious ones — because 'Smile and file' advice encourages overreporting, experts say.
- The change will raise compliance costs across industries as companies that handle large transactions face higher risks and firms like Spence Diamonds Ltd., Canadian National Exhibition Association, and Canaccord Genuity Corp. have already been fined this year.
- Experts warn enforcement capacity lags behind rising filings as training takes years, and more court challenges are expected given Fintrac’s past legal tests including the 2016 Supreme Court ruling and Cryptomous/ Xeltox appeal.
Insights by Ground AI
14 Articles
14 Articles
Winnipeg Free Press+11 Reposted by 11 other sources
Dramatic increase in Fintrac fines coming, but their effectiveness is less clear
Breaking News, Sports, Manitoba, Canada
·Winnipeg, Canada
Read Full Article
Businesses are at risk of sanctions 40 times higher than they are at present. The post Expected dramatic increase in fines imposed by FINTRAC appeared first on Les Affaires.
Coverage Details
Total News Sources14
Leaning Left2Leaning Right2Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 25%
C 50%
R 25%
Factuality
To view factuality data please Upgrade to Premium
