AMPs Raised to $250,000 for Marine Rules

Summary#

The final rule, Regulations Amending the Administrative Monetary Penalties and Notices (CSA 2001) Regulations, raises the amounts Transport Canada can charge for many marine safety and pollution violations. The maximum administrative monetary penalty is increased from $25,000 to $250,000, and a large set of Arctic and fire-safety rules are added to the AMP system. These changes came into force on April 10, 2024.

What it does#

• Raises the maximum administrative monetary penalty (AMP) from $25,000 to $250,000 per violation.
• Updates penalty ranges for 121 provisions in the Canada Shipping Act, 2001 and for 70 violations in six related regulations (e.g., Ballast Water, Load Line).
• Adds existing requirements from the Arctic Shipping Safety and Pollution Prevention Regulations (18 violations) and the Vessel Fire Safety Regulations (154 violations) to the AMP system so they can be enforced with AMPs.
• Designates subsection 10.1(4) of the Canada Shipping Act, 2001 (compliance with an interim order) as a violation with a penalty range.
• Specifies that some violations can be fined for each day they continue (separate daily penalty).
• Confirms these changes do not create new safety or pollution rules — they only add or raise financial penalties for breaking existing rules.
• Allows AMPs to be issued within 2 years after the Minister becomes aware of a violation, and requires payment within 30 days of a notice (subject to appeal).

Who's affected#

• Ship owners and operators, and the companies that run or manage vessels (including large commercial ships and smaller operators).
• Masters, crew members, and other people with duties under the maritime rules.
• Ports, terminals and businesses that handle oil, ballast water or other regulated operations.
• Communities — including Indigenous and coastal communities — that raised concerns about weak penalties and may be affected by enforcement outcomes.
• Transport Canada inspectors and enforcement staff, who will use AMPs as another enforcement tool.
• According to the government’s analysis, Canadian small businesses are not expected to face new regulatory requirements from this change.

Why it matters#

• Stronger financial penalties are intended to be a clearer deterrent against unsafe or polluting behaviour at sea. A maximum of $250,000 means bigger consequences for serious or repeated violations.
• Adding Arctic and vessel fire-safety rules to the AMP system gives regulators a middle option between a warning and criminal prosecution. That can make enforcement quicker and more proportional to the harm.
• The change does not create new technical rules for vessels. It changes how non-compliance can be punished, not what is required.
• AMPs are administrative (not criminal). Parties who receive an AMP can ask the Transportation Appeal Tribunal of Canada (TATC) to review the penalty.
• The highest penalties are expected to be used mainly in serious cases (the government says most AMPs will be below the maximum).