The more than US$3-billion settlement TD Bank Group reached with U.S. regulators for its failures to oversee money laundering risks has underlined what some say are relatively weak enforcement efforts in Canada.
Denis Meunier, president of DMeunier Consulting Inc. and a former deputy director of Fintrac, said fines in Canada have to increase significantly to provide adequate deterrence and not become just a cost of doing business.
He says the federal government should add substantial fines for gross negligence, and increase the existing administrative penalties as fines in Canada haven't risen since 2008.
"It's time we take off the kid gloves," said Meunier. "You need penalties to punish, to really send a message: we're serious. And these penalties should be in the millions and potentially billions of dollars."
In Canada, Fintrac can level a maximum fine of $500,000 for each very serious reporting violation, or it can refer violations to potential criminal prosecution.
In contrast, the massive fine announced last week against TD came in part from U.S. rules that allow regulators to fine banks up to US$500,000 for each day they lack a functioning anti-money laundering program.
The limited fines available to Fintrac means the $9.2 million penalty it imposed on TD earlier this year was the largest it had ever issued.
Along with increasing fines, Meunier said he'd like to see increased resources and efforts to retain expertise at regulators, since it's hard to compete against what's offered in the private sector.
TD, for example, earlier this year hired Nathalie Martineau, a former executive from Fintrac, as its vice-president of anti-money laundering governance at the bank.
Canada needs to act on a range of anti-money laundering solutions because it's falling significantly short of global expectations, said Christian Leuprecht, a professor at the Royal Military College of Canada and co-author of the book "Dirty Money: Financial Crime in Canada."
"This is a pervasive problem in Canada that governments have largely been happy to ignore," said Leuprecht.
Somewhere between $45 billion to $113 billion is estimated to be laundered in Canada every year according to a report from the Criminal Intelligence Service Canada.
The scale of the problem means a range of approaches are needed to crack down, said Leuprecht.
"Yes, we need much more serious fines, but we also need capability capacity to investigate. We have terrible capacity in this country to investigate."
Banks have little chance of either getting caught, or being punished much if they do, with more need for co-ordinated international efforts, he said.
"Banks in this country have nothing to fear. We have a financial intelligence unit that is essentially an administrative compliance unit."
Meunier said he'd also like to see a more strengthened Fintrac, including giving the agency power to impose conditions on banks, as U.S. regulators have done with the cap on TD's asset growth south of the border.
Fintrac said in a statement that along with its record penalty against TD, it also required the bank to develop an action plan to address its deficiencies, and the regulator may levy additional penalties if the bank doesn't follow through with its plan.
TD has said it is making the investments, changes and enhancements required to deliver on commitments regarding its anti-money laundering program.
The federal government is also looking into ways to improve and strengthen Canada's anti-money laundering regime, including through public consultations last year. Earlier this year, it also boosted regulatory requirements for several non-bank entities like casinos and title insurers.
The efforts come as regulators themselves also acknowledge the size of the problem.
Peter Routledge, head of the Office of the Superintendent of Financial Institutions, speaking at a risk conference earlier in October, said the agency is having to look closer at the issue.
"It's a risk that is more significant than I appreciated three years ago when I started the job," said Routledge.
"In the last year, the incidence of anti-money laundering issues has caused us to elevate that risk. And it's not a single event; there have been a bunch of events that have caused us to think about that."
This report by The Canadian Press was first published Oct. 15, 2024.
In the first of a four-part investigation into the seedy underbelly of the lucrative clothing donation bin industry, CTV W5 puts a spotlight on how some of the clothes Canadians donate to charity end up in markets in Africa.
Tropical Storm Oscar chugged toward the Bahamas on Tuesday after making landfall in Cuba as a Category 1 hurricane, killing at least six people as it unleashed heavy rains on an island also hit by an unrelated massive power outage.
A Toronto woman said the cost of parking to visit her mother in hospital, and later in long term care, for 15 months was a financial burden she feels she shouldn鈥檛 have had to pay.
A woman who tried to retrieve her lost phone from between boulders in Australia鈥檚 Hunter Valley became stuck upside down for seven hours before she was rescued earlier this month.
Ontario Provincial Police charged an impaired Vermont man who illegally crossed the border into Canada and thought he was still in the United States.
An Italian surfer has died after being impaled in the chest by a sharp-billed fish while surfing off Indonesia鈥檚 West Sumatra coast.
Some businesses paid a ransom of more than $500,000 after a cyberattack last year, new Statistics Canada data revealed.
An initial toxicology report for ex-One Direction singer Liam Payne, who died last week after falling from a third-floor hotel balcony in Buenos Aires, showed that he had cocaine in his system after his death, an Argentine official said.
A massive space rock, estimated to be the size of four Mount Everests, slammed into Earth more than 3 billion years ago 鈥 and the impact could have been unexpectedly beneficial for the earliest forms of life on our planet, according to new research.
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More than $500,000 in stolen property has been recovered following an investigation into a rash of break-and-enters at Ontario golf courses.
Morning commuters in Calgary got the first taste of winter driving for the season on Tuesday.
The Canadian Food Inspection Agency (CFIA) has identified more jelly pork products linked to a recall triggered by a possible Listeria contamination.
The estimated population of North Atlantic right whales increased in 2023, but a group of international marine scientists say human behaviour still poses a significant threat to the critically endangered species.
Police in western Newfoundland say a 77-year-old man visiting the province from Kansas is missing after a fire at a hotel in Deer Lake, N.L.
An Italian surfer has died after being impaled in the chest by a sharp-billed fish while surfing off Indonesia鈥檚 West Sumatra coast.
South Korea warned Tuesday it could consider supplying weapons to Ukraine in response to North Korea allegedly dispatching troops to Russia, as both North Korea and Russia denied the movements.
A woman who tried to retrieve her lost phone from between boulders in Australia鈥檚 Hunter Valley became stuck upside down for seven hours before she was rescued earlier this month.
German police busted a pizzeria in the western city of Dusseldorf that also delivered a side order of cocaine when customers asked for item number 40 on the menu.
King Charles III ends the first visit to Australia by a reigning British monarch in 13 years Tuesday with anti-monarchists hoping his journey is a step toward an Australian citizen becoming head of state.
U.S. Secretary of State Antony Blinken arrived in Israel on Tuesday on his 11th visit to the region since the outbreak of the Israel-Hamas war. Washington hopes to revive ceasefire efforts after the killing of top Hamas leader Yahya Sinwar, but so far all the warring parties appear to be digging in.
It's been 10 years since a man with a rifle shot and killed Cpl. Nathan Cirillo, an honour guard stationed at the National War Memorial. Mark Sutcliffe, now the mayor of Ottawa, looks back on that day and the ways Ottawa has changed.
As Prime Minister Justin Trudeau faces growing pressure to step aside, former B.C. premier Christy Clark says she is open to 'returning to politics' should the position of Liberal leader become available.
Gurpatwant Singh Pannun 鈥 a dual Canada-United States citizen and the target of an alleged assassination attempt in New York City last year 鈥 says the expelled Indian High Commissioner to Canada, Sanjay Kumar Verma, is 'less of a diplomat, and more of a hypocrite.'
A U.S.-based food manufacturer that supplies frozen waffles to major grocery chains across North America has launched a voluntary recall over concerns its products carry the potential for illness.
A Toronto woman said the cost of parking to visit her mother in hospital, and later in long term care, for 15 months was a financial burden she feels she shouldn鈥檛 have had to pay.
A Quebec-based religion says Health Canada is dragging its feet on a decision whether to allow members to use magic mushrooms in their ceremonies.
A massive space rock, estimated to be the size of four Mount Everests, slammed into Earth more than 3 billion years ago 鈥 and the impact could have been unexpectedly beneficial for the earliest forms of life on our planet, according to new research.
The estimated population of North Atlantic right whales increased in 2023, but a group of international marine scientists say human behaviour still poses a significant threat to the critically endangered species.
In the fight against cyber attackers, they reason AI can help just as much as it harms.
An initial toxicology report for ex-One Direction singer Liam Payne, who died last week after falling from a third-floor hotel balcony in Buenos Aires, showed that he had cocaine in his system after his death, an Argentine official said.
Former Hollywood producer Harvey Weinstein has chronic myeloid leukemia, NBC News reported on Monday, citing sources.
Seven new lawsuits have been filed against Sean 鈥楧iddy鈥 Combs, including one alleging the rape of a 13-year-old girl. They come as his lawyers tried again Monday to get him freed on bail, and complained that a 鈥渇resh wave of publicity鈥 is endangering his right to a fair criminal trial.
Some businesses paid a ransom of more than $500,000 after a cyberattack last year, new Statistics Canada data revealed.
A seasoned Quebec television executive has been appointed as the next president and CEO of CBC/Radio-Canada.
Former Abercrombie & Fitch CEO Michael Jeffries and two other men have been arrested on sex trafficking and interstate prostitution charges, a spokesperson for federal prosecutors said Tuesday.
A manufacturer in Saskatchewan is looking to set a new record by building the world's longest trampoline.
Summer might be the most popular season for tourism to Europe, but it hardly promises a calm, cool and collected experience.
A Saskatoon man is taking his love of card games to new depths 鈥 six feet under, to be exact.
Former Manchester United and Atl茅tico Madrid striker Diego Forl谩n is set to make his professional tennis debut in November, when he will compete in an ATP doubles event in his native Uruguay.
Tua Tagovailoa does not want to be the face of traumatic brain injuries in the NFL, but he knows that's the reality confronting him after his latest concussion.
A parliamentary committee will not question the coaches of the national women's soccer team about the Paris Olympics cheating scandal, after Liberal and Bloc Qu茅b茅cois MPs voted against launching a study today.
An increased risk of fire has prompted the recall of thousands of Honda hybrid vehicles in Canada.
The U.S. government's road safety agency is investigating Tesla's 'Full Self-Driving' system after getting reports of crashes in low-visibility conditions, including one that killed a pedestrian.
Canada鈥檚 border guards have seized more than 1,900 stolen cars so far this year at railyards and ports, which is over a hundred more than in 2023.
A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.
A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.
Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.
Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.
The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.
A Moncton, N.B., home has been donated to the Friends of The Moncton Hospital Foundation and will be transformed into a resource hub for people living with cancer.
A Nova Scotia man crossing Canada on foot is passing through southwestern Ontario. Trevor Redmond is perhaps better known as the 鈥楩ellow in Yellow.鈥
John Cantin vividly remembers opening day for his Victoria diner. Stress levels were high, tables were full, and one of the most popular menu items couldn鈥檛 be freed from the unyielding grip of the waffle maker.
A Manitoba professor is warning the public after a book on regional mushrooms that he suspects is AI-generated was delisted from Amazon.
Saturday was a wild election night in B.C., where the dust is still settling and there isn鈥檛 a clear winner鈥攂ut the B.C. Conservatives claimed a historic numbers of seats.
A B.C. Supreme Court judge says a longtime raw milk advocate who once tried to circumvent regulations through a "cow share" program can't try to overturn the provincial ban on unpasteurized milk again after two previous unsuccessful attempts.
The Vancouver Whitecaps have been here before 鈥 literally and figuratively.
A Toronto woman said the cost of parking to visit her mother in hospital, and later in long term care, for 15 months was a financial burden she feels she shouldn鈥檛 have had to pay.
Thousands of international students expected to study at three Ontario colleges are missing the fall semester, after Ottawa announced it would further tighten Canada's study permit system.
More than $500,000 in stolen property has been recovered following an investigation into a rash of break-and-enters at Ontario golf courses.
Morning commuters in Calgary got the first taste of winter driving for the season on Tuesday.
Sidewalks, stairs, and parking lots in Calgary are slick Tuesday morning after mixed precipitation and snow fell on Monday.
Alberta鈥檚 $7-million ad campaign, railing against a proposed federal industrial emissions cap, comes just weeks before a leadership review for Premier Danielle Smith whose party members are hungry for conflict with Ottawa.
It's been 10 years since a man with a rifle shot and killed Cpl. Nathan Cirillo, an honour guard stationed at the National War Memorial. Mark Sutcliffe, now the mayor of Ottawa, looks back on that day and the ways Ottawa has changed.
The Ottawa Police Service has received hundreds of speeding tickets so far this year, as the city's photo radar cameras catch police cruisers in school zones and community safety zones.
Ontario Provincial Police say 9-1-1 received three calls "believed to be from a woman in distress" between 7:20 a.m. and 7:30 a.m. on Monday in The Nation Township. The calls initiated an emergency response from police, paramedics and firefighters.
'Shocked' by the news in recent days about the behaviour of teachers at Montreal's Bedford School, Premier Fran莽ois Legault said his government would consider 鈥渁ll options鈥 to prevent such cases from happening again.
The Jacques Cartier Bridge was closed to traffic in both directions on Tuesday morning due to the presence of demonstrators who climbed the structure.
The City of Montreal decided to adjust its plan and allow for some two-hour free parking at the Claude-Robillard Sports Complex in Ahuntsic after previously saying pay parking would be in effect 24/7.
Alberta鈥檚 $7-million ad campaign, railing against a proposed federal industrial emissions cap, comes just weeks before a leadership review for Premier Danielle Smith whose party members are hungry for conflict with Ottawa.
Temperatures hovered just slightly below 0 C and the wind chill had it feeling like -6 C for much of Monday in the Edmonton area.
A worker died on the job in Edmonton on Monday.
麻豆影视 is projecting the New Brunswick Liberals will form a majority government in the province, returning to power for the first time since 2018. Leader Susan Holt will become the first female premier of the province.
For the first time in 14 years, Blaine Higgs does not have a seat in the New Brunswick legislature.
A new report says Nova Scotia doesn't provide effective cybersecurity for its digital health networks, exposing the system to risk.
Traffic at Winnipeg's Portage and Main is delayed Tuesday morning due to a stalled semi.
A community in southeastern Manitoba is asking for help as it鈥檚 trying to restore a historic church.
New data is revealing the good, the bad and the ugly of artificial intelligence in schools.
The NDP appears to have some momentum in Saskatchewan鈥檚 provincial election campaign with less than a week until votes are tallied.
The debate between Sask Party Leader Scott Moe and NDP Leader Carla Beck touched on many key issues of this year鈥檚 election. However, one issue not in the spotlight was Indigenous issues and the province鈥檚 relationship with First Nations.
A public inquest will be held in the case of Kristan Grant 鈥 who died while in the custody of Saskatchewan RCMP in 2021.
A 36-year-old Cambridge man was arrested on Monday after guns were stolen from a vehicle in Cambridge, according to Waterloo Regional Police.
Testimony continued Monday at the trial of Erick Buhr, who has pleaded not guilty to the second-degree murder of his grandmother, Viola Erb.
Victims are sharing the lasting impact of the 2023 triple stabbing at the University of Waterloo. The attacker, Geovanny Villalba-Aleman, previously pled guilty to four assault-related charges.
The Saskatchewan NDP says signs of internal struggle at the Saskatchewan Party are begging to show after the party leaked audio of an opposition candidate being critical of his party's policies.
A Saskatoon man is taking his love of card games to new depths 鈥 six feet under, to be exact.
The NDP appears to have some momentum in Saskatchewan鈥檚 provincial election campaign with less than a week until votes are tallied.
Sudbury's Matthew Klug who has been homeless for six months, says he was ordered by bylaw to tear down a structure he built beside his tent.
In the first of a four-part investigation into the seedy underbelly of the lucrative clothing donation bin industry, CTV W5 puts a spotlight on how some of the clothes Canadians donate to charity end up in markets in Africa.
After operating for 51 years, General Motors has announced it is closing the Kapuskasing Proving Ground, a facility the automaker used to test the durability of its vehicles in cold weather.
Earlier this year, police said officers were investigating and used a search warrant on a cell phone with suspected child pornography.
"Infestations have been proven to negatively impact one's mental health,鈥 proposals put forward to address bug infestations.
Police say that on Saturday, September 28, at around 3:00 p.m., a woman was in the women鈥檚 changeroom of the Canada Games Aquatics Centre on Wonderland Road.
A 13-year-old was hit by a car crossing the street to get to his school bus.
It's a summer-like day in mid-October, with temperatures hitting 24C across Simcoe County, feeling more like 27C with the humidex. These daytime highs aren't unheard of, but they are definitely not the norm.
Everything from golf carts to Pokemon cards were recovered in an October 16 massive raid in York region.
The Windsor Police Service is equipping more frontline patrol officers with in-car cameras and body-worn microphones.
The Ontario Hockey League's player of the week and goaltender of the week are both from the Windsor Spitfires.
The S鈥橝ints group is bringing holiday cheer back to Caesars Windsor.
Saturday was a wild election night in B.C., where the dust is still settling and there isn鈥檛 a clear winner鈥攂ut the B.C. Conservatives claimed a historic numbers of seats.
A B.C. Supreme Court judge says a longtime raw milk advocate who once tried to circumvent regulations through a "cow share" program can't try to overturn the provincial ban on unpasteurized milk again after two previous unsuccessful attempts.
Mounties on Vancouver Island say one person is dead and another is presumed to have drowned after two vehicles were found submerged in a river following heavy rains that washed out roadways across British Columbia.
Dave Lindsey began growing giant pumpkins to bring a bit of magic to his grandkids' Halloween.
A U.S. District Court judge in Montana has sentenced a 27-year-old man from Kelowna, B.C., to 18 months in prison for using fake names to buy guns with the aim of selling them in Canada.
Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.
Lethbridge police are advising the public of officer training on Tuesday that will happen in two different venues throughout the day.
Calgary scored three times in the first, and three times in the third as the Hitmen defeated the Lethbridge Hurricanes 6-1 Saturday at the Saddledome.
The last students to graduate from Lethbridge College will make history this weekend as they cross the stage at fall convocation.
Rallies by a group called Voices Against Violence took place across the country on Monday, including Sault Ste. Marie.
An Indigenous group in northwestern Ontario shut down the highway for a couple of hours Monday morning in protest after ancestral remains were found at a construction site.
The owners of 73 vacant properties in the Sault have been fined for violations of the city's vacant properties bylaw, including 33 owned by a firm going through a high-profile insolvency process.
Police in western Newfoundland say a 77-year-old man visiting the province from Kansas is missing after a fire at a hotel in Deer Lake, N.L.
At 2 p.m. on Thursday, the scene at the Lions Club in Clarenville, N.L., rivalled any rowdy St. John's bar that thumps with music late on a weekend night.
A Newfoundland scientist known for identifying a gelatinous, rancid mass that washed up on the island's shores decades ago is hoping to get his hands on a slice of the strange white globs appearing on the province's beaches.
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