One of Canada’s 2026 resolutions is to crack down on money laundering, and this year they’re actually going to do it for real, okay?
What happened: The fines levied against companies that fail to follow anti-money laundering rules are set to rise to as much as 40 times their current levels.
The heftier fines are being introduced as part of Bill C-12, which also includes measures to expand the powers of border agents and other law enforcement agencies.
Why it’s happening: Fintrac, Canada’s financial crimes watchdog, has been hobbled by the relatively paltry penalties it’s able to impose — not enough to make large financial institutions beef up enforcement. The hope is that will change if they’re faced with the threat of dramatically higher fines.
Why it matters: As much as $130 billion of dirty money flows through Canada’s financial system every year, and the country has earned a global reputation for its lax attitude towards money laundering.
Yes, but: Some experts say that even if banks flag more suspicious transactions to avoid fines, the enforcement infrastructure to investigate those reports and punish lawbreakers still doesn’t exist.—TS