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ARTICLE · 12 MAY 2026

Canada’s Revised AML Framework: Sweeping Penalties And Compliance Requirements

Miller Thomson
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Bill C-12 has fundamentally transformed Canada's anti-money laundering framework by introducing penalties up to forty times higher than previous levels and expanding compliance obligations across the financial sector. The legislation now requires all reporting entities to enroll with FINTRAC and maintain "reasonably designed, risk-based and effective" compliance programs, while imposing cumulative maximum penalties that can reach 3% of global revenue.

CanadaFinance and Banking
Nadim Elkommos
Nadim Elkommos
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Having received royal assent on March 26, 2026, Bill C‑12, the Strengthening Canada’s Immigration System and Borders Act, has significantly reshaped Canada’s anti‑money laundering (“AML”) landscape. The bill established higher monetary penalties and stricter compliance requirements by, among other things, amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “PCMLTFA”) and enhancing oversight by the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”). Indeed, entities and individuals now face heightened penalties and more stringent requirements, while, at the same time, enrolment obligations have been extended to a broader range of parties. Below, we will discuss some of the most prominent updates being implemented.

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