OTTAWA — The federal government says it plans to boost penalties for money laundering by 40 times as part of several measures it wants to roll out to crack down on the issue.

The proposal would see the maximum administrative penalty against banks and other reporting entities rise to $20 million per violation, up from $500,000.

As outlined in the fall economic statement Monday, the government also plans to increase fines for criminal offences by 10 times and provide more guidance on jail terms.

Plans also include developing a new task force for law enforcement and the financial sector to share and analyze information related to “high-end” money laundering schemes, including related to fentanyl trafficking.

Money laundering has seen increased attention in recent years, including from the revelation that criminals in the U.S. used TD Bank to launder more than $969 million in illicit drug profits.

U.S. regulators forced TD to pay $4.42 billion for its oversight failures, thanks in part to laws that allow them to charge US$500,000 per day to a bank that isn’t compliant with the rules.

This report by The Canadian Press was first published Dec. 17, 2024.

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The Canadian Press