FINTRAC oversees money service businesses (MSBs) for compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). All non-compliant companies may be subject to consequences, including administrative monetary penalties (AMPs).
Some fintechs assume AMPs are a myth, but that is a misconception. If you want to learn about AMPs for FINTRAC non-compliance, we can help clarify how administrative monetary penalties work. Take a look at our post below to learn more.
What Are Administrative Monetary Penalties?
An administrative monetary penalty is a financial penalty that businesses may face for non-compliance with FINTRAC regulations. AMPs are classified into the following categories by the regulatory agency:
- Minor Violation: Up to $1,000 for each violation
- Serious Violation: Up to $100,000 for each violation
- Very Serious Violation for individual: Up to $100,000 for each violation
- Very Serious Violation for entity: Up to $500,000 for each violation
If a business commits multiple violations, the total AMP will be the sum of all violations. FINTRAC determines the value of each penalty by considering the purpose of AMP, the harm done by the violation, and the previous history of compliance or AMP.
Has FINTRAC Imposed Administrative Monetary Penalties Before?
Money service businesses often hear about FINTRAC fines, but they may wonder whether they have ever been imposed. The regulatory agency imposes penalties on companies that fail to comply with the PCMLTFA. Overall, FINTRAC imposed over 100 administrative monetary penalties on reporting entities.
All the businesses that faced FINTRAC fines in the last five years are listed on the public notice of administrative penalties. MSBs can use the public notices as a reference to understand common compliance challenges. Understanding recent penalties also highlights why strong AML programs are essential for MSBs.
Examples of MSBs That Faced FINTRAC Fines in 2025
FINTRAC penalties are real and may exceed more than a hundred thousand dollars, depending on the violations identified. Let's look at some examples of administrative monetary penalties imposed on Canadian MSBs in 2025:
February 2025 – Administrative Monetary Penalty on MSBG International Holdings
MSBG International Holdings is a money service business operating in British Columbia. The agency found the MSB guilty of committing a "serious violation" and imposed an administrative monetary penalty of $24,750.
Compliance directors at FINTRAC led the investigation and determined that MSBG Holdings didn't have a properly written compliance program. The penalty was finalized and paid by the company in February 2025.
May 2025 - Administrative Monetary Penalty on Crystal Currency Exchange Inc.
Crystal Currency Exchange Inc. is an MSB in Burnaby, British Columbia. FINTRAC performed a compliance examination in May 2025 and discovered nine violations by the MSB, including:
- Failure to report suspicious transactions causing level 2 harm ("very serious violation")
- Failure to report large cash transactions exceeding $10,000 ("minor violation")
- Failure to report initiation of large electronic funds transfer exceeding $10,000 ("minor violation")
- Failure to report the receipt of a large electronic funds transfer exceeding $10,000 ("minor violation")
- Failure to appoint a money laundering reporting officer (MLRO) for compliance ("serious violation")
- Failure to develop and implement complete compliance policies ("serious violation")
- Failure to assess risks under the PCMLTFA ("serious violation")
- Failure to develop an ongoing compliance training program ("serious violation")
- Failure to conduct a proper AML effectiveness review ("serious violation")
After considering all the violations, FINTRAC imposed a penalty of $348,067 on Crystal Currency Exchange Inc. Proceedings against the MSB are ongoing because the company appealed to the federal court.
How to Avoid FINTRAC Fines in Canada?
Money service businesses can reduce the chances of FINTRAC fines by investing in strict compliance measures. One way to strengthen compliance with the PCMLTFA is by appointing a qualified MLRO.
MLROs develop new anti-money laundering (AML) policies and review existing ones to discover gaps in the compliance system. They help MSBs implement an updated compliance program, train employees on current AML requirements, and serve as a point of contact for FINTRAC during audits.
At Renno & Co. Fintech, money service businesses can outsource an MLRO through our fractional AML service. Our experienced compliance professional supports MSBs in navigating FINTRAC licensing expectations and ongoing AML compliance requirements.
FAQs
What are Administrative Monetary Penalties for Minor Violations?
Administrative monetary penalties for minor violations range from $1 to $1,000 per violation. Offences in this category may include failure to meet FINTRAC transactions reporting requirements.
What is the Public Notice of Administrative Monetary Penalties?
A public notice of administrative monetary penalties is a document that FINTRAC sends to non-compliant businesses. The agency publicly names fintech businesses, violations committed by them, and the amount of the penalty for non-compliance in the notice.
Can you Appeal FINTRAC Administrative Monetary Penalties?
Yes, money service businesses and reporting entities can appeal FINTRAC's decision to the federal court. The court will oversee the results of the regulatory investigation and decide whether to uphold the penalty imposed by FINTRAC.
How to Protect Your MSB From Administrative Monetary Penalties?
Money service businesses and reporting entities can protect themselves from AMPs by appointing an experienced compliance officer. An MLRO will oversee internal compliance policies, train employees, and fulfill transaction reporting and recordkeeping requirements.
Renno & Co. Fintech Helps Businesses Stay Compliant and Avoid FINTRAC Fines
FINTRAC monitors money service businesses closely for compliance. Administrative monetary penalties are issued by the agency to encourage compliance instead of as a punishment. Businesses can reduce the likelihood of AMPs and compliance gaps by working with an MLRO.
Renno & Co. Fintech provides qualified compliance officers to Canadian MSBs to avoid AMPs. Our team creates risk management frameworks, AML policies, and supports you to fulfil FINTRAC reporting requirements. Contact us today to learn how we can help you maintain compliance with the PCMLTFA.
