What is the punishment for failure to comply with the FINTRAC compliance regime, reporting, record-keeping, or client identification requirements?

• A. Up to 2 years imprisonment
• B. A civil penalty only
• C. Community service
• D. Up to 5 years imprisonment, a fine of up to $500,000 or both

Answer: (D)

Non-compliance with FINTRAC requirements is a criminal offence under the federal regime for money laundering and terrorist financing. This means the consequences can go beyond civil or administrative actions and include prison time and fines. For individuals, the potential punishment is imprisonment for up to five years and a fine of up to five hundred thousand dollars, with the possibility of both. This reflects the seriousness of ensuring proper reporting, record-keeping, and client identification. Civil penalties can exist in other contexts, but the question is about criminal punishment, which is why this description best fits the consequences.