Canada's Strengthening Canada’s Immigration System and Borders Act (Bill C-12) received Royal Assent on 26 March 2026, increasing fines for breaches of money laundering regulations by a factor of forty.

The Act amends Canada’s existing anti-money laundering (AML) legislation, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Subject to certain transitional provisions, minor, serious and very serious violations will carry maximum penalties of CAD40,000, CAD4 million and CAD20 million respectively. The 'very serious' category has been expanded to include all compliance programme-related requirements, such as the requirement to apply compliance policies and procedures, conduct risk assessments and implement effectiveness testing.

Cumulative penalties for multiple violations are capped at either CAD20 million or 3 per cent of a reporting entity’s gross global revenue, whichever is greater. Despite the cap, this could exceed CAD1 billion for some very large reporting entities.

One of the new 'very serious’ violations includes failure to ensure a compliance programme is 'reasonably designed, risk-based and effective'. According to law firm Blake, Cassels & Graydon, this gives the regulator, FINTRAC, greater discretion to be more prescriptive in its expectations for what constitutes an effective compliance programme, even where a programme may otherwise comply with the more specific requirements under the PCMLTFA.

A further new offence is committed where a person or entity that is required to provide information under the PCMLTFA knowingly withholds material information or provides false or misleading information, including by omission.