Financial Crime World

Tough Penalties for Financial Crimes in Canada: A Look at the Law

Canada takes financial crimes, including fraud, seriously with strict penalties outlined in the Criminal Code. Below is an overview of penalties for different types of fraud.

Penalties for Fraud

Section 380 of the Criminal Code outlines penalties for various forms of fraud:

### Marginal note 1: Fraud

Everyone who:

- deceives the public or any person,
- through falsehood, deceit, or other fraudulent means,
- and defrauds them of any property, money, valuable security, or service,

faces severe consequences:

Value exceeds CAD 5,000 or involves a testamentary instrument

When the fraud involves a testamentary instrument or exceeds CAD 5,000 in value, it is punishable as an indictable offense, and offenders are liable to a term of imprisonment not exceeding fourteen years.

Value is below CAD 5,000

For frauds with a value below CAD 5,000, individuals can be charged with an indictable offense, carrying a maximum imprisonment term of two years, or a summary conviction offense.

Minimum Punishment

If an individual is tried on indictment and found guilty of any offense outlined in subsection (1), the sentencing court must impose a minimum punishment of imprisonment for a term of two years if the total value of the offenses surpasses CAD 1,000,000.

Manipulating Public Market

Intentionally manipulating the public market price of stocks, shares, merchandise, or items for sale using deceit, falsehood, or other fraudulent means, with the goal to defraud, is punishable as an indictable offense, with a maximum penalty of imprisonment for a term not exceeding fourteen years.

The following are key takeaways from the penalties for financial crimes outlined in the Criminal Code:

  • Strict penalties for fraud, including fines and imprisonment, are in place to deter individuals from committing financial crimes in Canada.
  • The specific penalties vary based on the value and type of fraud committed.
  • Minimum sentences are mandatory for certain levels of fraud.
  • Manipulating public market prices with deceitful or fraudulent means is also subject to severe penalties.

These legislative measures protect individuals and help maintain trust in the financial system by ensuring that offenders face hefty penalties for their actions.