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After TD Bank, Canada’s second-largest lender, was hit with a record-breaking money laundering fine in the US, Canada is also looking to beef up its own penalties.

In its��, the��Canadian government announced plans to significantly increase the severity of financial penalties for individuals found to be in non-compliance with AML law.

The legislative changes proposed would raise all individual administrative monetary penalty (AMP) amounts by 40 times their current amount.

Similarly, fines for all criminal offences would be increased ten-fold, and potential prison terms would be increased to up to one year.

If adopted, the new amendments would be added to the�� , Canada’s foundational AML law.

The government’s proposed changes would also allow FINTRAC, Canada’s AML regulator, to refuse or revoke the registration of money service businesses (MSBs) with an outstanding AMP.

In addition, a new criminal offence would be added for providing false, misleading or incomplete information to FINTRAC.

“Canada is taking forceful action to hold businesses responsible for the actions they oversee,” the government said. “New reforms will ensure non-compliance is treated as a serious priority.”

The proposals follow a recording-breaking settlement between TD Bank and the US Department of Justice (DOJ) earlier this year.

In October, as��covered by ���������, TD Bank became the first bank in US history to plead guilty to conspiracy to commit money laundering.

It was also hit with a total penalty of more than $3bn, made up of a $1.7bn criminal fine and $1.33bn in civil fines.

The criminal fine was the largest the DOJ has ever imposed under the Bank Secrecy Act.