I am afraid of terrorists

What happens to someone who doesn't report a terrorist finance activity such as money laundering?

If you are afraid of repercussions for not reporting then be aware that there are criminal charges and fines if you are even suspicious and do not report. The penalties include:

Criminal penalties

  • Failure to report suspicious transactions - up to $2 million and/or five years imprisonment.
  • Failure to report a large cash transaction or an electronic funds transfer - up to $500,000 for the first offence, $1 million for each subsequent offence.
  • Failure to meet recordkeeping requirements: up to $500,000 and/or five years imprisonment.
  • Failure to provide assistance or provide information during compliance examination -up to $500,000 and/or five years imprisonment.
  • Disclosing the fact that a suspicious transaction report was made, or disclosing the contents of such a report with the intent to prejudice a criminal investigation - up to two years imprisonment.


Civil penalties

Civil penalties are included under the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations in the Canada Gazette.

There are 105 penalties listed in the Regulations of which 91 are consider minor, 12 are serious and two are very serious. the range of penalties as subject to the Act in respect of a violation are:

  • $1 to $1,000 in case of a minor violation
  • $1 to $100,000 in case of a serious violation
  • $1 to $500,000 in case of a very serious violation.


Not only is it an unethical decision not to report a terrorist finance activity but your business reputation can suffer. The rules have been set up and you must operate within the structure that has been laid down. You need to be aware of what the requirements are under the Proceeds of Crime (Money laundering) Terrorist Financing Act if you are conducting business.

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