FINTRAC Fines and Penalties for MSBs: What You Need to Know
FINTRAC penalty amounts for MSBs in 2026: up to $40,000, $4M or $20M per violation. See which violations fall in each tier and how to avoid them.
Last updated: October 28, 2026.
Quick answer: Since March 26, 2026, FINTRAC can fine a money services business (MSB) up to $40,000 for a minor violation, up to $4 million for a serious violation, and up to $20 million for a very serious violation, per violation. When several violations are combined in one notice, the total can reach $20 million or 3% of the business's global revenue, whichever is higher. Before 2026, the limits were $1,000, $100,000 and $500,000.
FINTRAC penalty amounts at a glance (2026)
| Violation level | Maximum before March 26, 2026 | Maximum from March 26, 2026 |
|---|---|---|
| Minor | $1,000 | $40,000 |
| Serious | $100,000 | $4,000,000 |
| Very serious (individual) | $100,000 | $4,000,000 |
| Very serious (business) | $500,000 | $20,000,000 |
| Several violations in one notice (business) | No overall cap | $20 million or 3% of global revenue, whichever is higher |
| Breaking a compliance order (business) | Did not exist | $30 million or 3% of global revenue, whichever is higher |
These are maximums per violation. FINTRAC sets the actual amount based on the harm done, your compliance history and, since 2026, your ability to pay. The new limits apply to violations that happen on or after March 26, 2026. Older violations still fall under the old limits.
What is an administrative monetary penalty (AMP)?
An AMP is a civil fine FINTRAC issues when a business breaks the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). It isn't a criminal charge, but FINTRAC publishes the names of businesses it penalizes, along with the amount and the reasons. For an MSB, that public record often does more damage than the fine, because banks and partners check it.
Since 2026, a penalty also comes with a mandatory compliance agreement, and FINTRAC can issue compliance orders that carry their own, even larger penalties if they're ignored. For the full detail on how the new framework works, see FINTRAC's 2026 AMP framework: compliance orders and agreements.
Which violations fall into each level?
FINTRAC's regulations give every type of violation a level. Some common examples for MSBs:
- Very serious: failing to report a suspicious transaction, failing to report property linked to a listed terrorist or sanctioned person, and (since 2026) running a compliance program that isn't reasonably designed, risk-based and effective.
- Serious: gaps in the compliance program itself, such as no up-to-date risk assessment, no written training program, or no two-year effectiveness review.
- Minor: many record-keeping lapses, and reports that are late or missing required information.
Each missed report or failure can count as a separate violation. That's how small problems turn into large totals.
The most common reasons MSBs get penalized
1. Missing suspicious transaction reports (STRs)
You must file an STR as soon as practicable when you have reasonable grounds to suspect a transaction, or an attempted one, is linked to money laundering or terrorist financing. There's no minimum amount. This is one of the violations FINTRAC treats most seriously. Read when to file an STR and common mistakes.
2. Missing or late threshold reports
MSBs must report cash of $10,000 or more (LCTR), virtual currency of $10,000 or more (LVCTR) and international transfers of $10,000 or more (EFTR), including several smaller transactions that add up within 24 hours. The 24-hour rule is where many MSBs slip. See our LVCTR guide.
3. A compliance program that exists only on paper
Every MSB needs a compliance officer, written policies, a risk assessment, ongoing training and an effectiveness review at least every two years. FINTRAC examiners test whether these actually work, not just whether the documents exist.
4. Weak client identification and records
Not verifying identity when required, or not keeping records for at least five years, adds up quickly across many clients.
Real penalties are getting bigger
FINTRAC's enforcement has grown sharply. In October 2025, it issued a record C$176.9 million penalty against a crypto platform, even before the new 2026 limits took effect. We cover that year's cases in FINTRAC's 2025 record penalties and our 2025 enforcement review.
What else can happen besides a fine?
- Public naming on FINTRAC's website
- Mandatory compliance agreements and compliance orders
- Loss of MSB registration. See what revocation means.
- Bank account closures, often the most immediate damage
- Criminal charges in serious cases
How to avoid FINTRAC penalties
- Appoint a qualified compliance officer with real time and authority. Many MSBs use an outsourced CAMLO.
- Keep your risk assessment and policies current whenever your products, customers or the rules change.
- Automate threshold reporting, including the 24-hour rule.
- Train staff to spot and escalate suspicious activity, and document the training.
- Get an independent effectiveness review at least every two years, and fix what it finds.
- If FINTRAC has already found problems, act fast with regulatory remediation.
Frequently asked questions
What is the maximum FINTRAC penalty in 2026?
Up to $20 million per very serious violation for a business. For several violations in one notice, the total can reach $20 million or 3% of global revenue, whichever is higher. Breaking a compliance order can cost up to $30 million or 3% of global revenue.
How much is the FINTRAC penalty for not filing a suspicious transaction report?
Failing to report a suspicious transaction is treated as a very serious violation. Since March 26, 2026, that means up to $4 million for an individual and up to $20 million for a business, per violation.
Do the new limits apply to old violations?
No. Violations that happened entirely before March 26, 2026 fall under the old limits of $1,000, $100,000 and $500,000.
Does FINTRAC publish the names of penalized businesses?
Yes. FINTRAC publishes penalized businesses, the amount and the reasons on its website.
Can a FINTRAC penalty be reduced?
FINTRAC considers the harm done, your compliance history and your ability to pay. You can also ask for a review or appeal. Fixing problems quickly and cooperating fully generally helps.
Worried about a FINTRAC exam?
AML Incubator helps MSBs find and fix compliance gaps before FINTRAC does. Book a free consultation.
