Legislation passed in March requires FINTRAC to impose a MANDATORY COMPLIANCE AGREEMENT to companies that receive an administrative monetary penalty.  That means paying the ticket and getting an order on how to fix previous records and reports, and setting up a system to get it right in the future.

Not meeting the standards of that agreement could lead to further monitoring and penalties.  

Potential penalties now can reach $30 million or 3% of global revenue if you breach your compliance order.

TAS can help you keep FINTRAC happy by supporting remedial plan development and execution... better yet, by keeping your program up to speed before the examination happens.

WHAT CHANGED

Mandatory agreements

Under Part 4.1 of the amended PCMLTFA, every reporting entity that receives an AMP must enter a compliance agreement with FINTRAC setting out remedial measures and a Director-determined deadline.

Refusal or failure triggers a compliance order — served, publicised, and entered into the public record under the entity's name.

Important Note:  Compliance Agreements will be required only when any appeals are complete and penalties are final.

Penalties multiplied 40×

Maximum AMPs now reach $40,000 (minor), $4m (serious), and $20m (very serious) per violation. Stack multiple breaches and the cap becomes the greater of $20m or 3% of gross global revenue.

Potential penalties for not meeting mandatory compliance agreement obligations together with the initial penalty can reach up to $30 million or 3% of global revenue.  Together with the initial penalty, that could mean 6% of global revenue as penalties for non-compliance with AML rules.

A new standard to meet for your compliance program

The legal standard for your compliance program elements has moved from "intended to ensure compliance" to "reasonably designed, risk-based and effective" — a substantive test, not a paper one.

Mark Ambrose - Principal, Anti-Financial Crime and Regulatory Compliance
mark@theamlshop.ca
LinkedIn

Mark is an experienced compliance and financial crime risk professional with more than 30 years in financial services, including service as Chief Compliance Officer (CCO) and Chief Anti-Money Laundering Officer (CAMLO). He supports Canadian financial services businesses in enhancing compliance programs, mitigating regulatory risk, and responding effectively to supervisory oversight. Read more.

Marcelle Dadoun - Principal, Program Design and Advisory
marcelle@theamlshop.ca
LinkedIn

Marcelle Dadoun, Principal, Program Design and Advisory leads The AML Shop's compliance program design division and provides advisory support to all reporting types, including new and evolving money services businesses, payment service providers and fintech clients looking to navigate local and international regimes for registration, licensing, and regulations. Marcelle also specializes in the development and maintenance of AML policies, procedures, risk assessments and training programs. Read more.

Michael Ecclestone - Principal, Regulatory Assessments / Legal Counsel
michael@theamlshop.ca
LinkedIn

Michael is Governance, Risk and Compliance Leader at The AML Shop, with over 20 years of experience in financial sector risk, regulatory compliance and legislation as an advisor, an executive, a regulator and a practicing lawyer. Read More

Adam Feldman - Principal, Risk Management and Technology
adam@theamlshop.ca
LinkedIn

Adam Feldman leads The AML Shop's risk management and technology divisions as Principal, Risk Management and Technology.  As an experienced process engineer, Adam has a passion and talent for understanding, quantifying, and implementing efficient mitigation systems and processes across multiple industries and jurisdictions. Read more.