Administrative monetary penalties (“AMPs”) are an enforcement tool for regulatory bodies to deter non-compliance. AMPs impose financial sanctions for regulatory contraventions in an efficient manner as they do not require a traditional court proceeding. Since AMPs are applied through an administrative process and do not result in a criminal record, they are viewed as administrative or civil rather than penal in nature. In some regimes, AMPs may reach the million dollar and beyond range, which raises constitutional concerns about due process and the lack of safeguards to prevent wrongful determinations of liability for contraventions.
In June 2009, Parliament enacted the Environmental Violations Administrative Monetary Penalties Act (“EVAMPA”), initiating the use of AMPs to prevent violations of environmental laws. EVAMPA provides that AMPs are enforced on an absolute liability basis as the due diligence defence and the mistake of fact defence are not available. The Act also set limits on the AMPs, with a maximum penalty for a violation by an individual being $5,000 and that of a corporation being $25,000. The regime was completed in June 2017 when the Environmental Violations Administrative Monetary Penalties Regulations (the “Regulations”) came into force. The Regulations provide the formula for calculating an AMP, including baseline penalties for different violations and aggravating factors that increase the amount of the penalty. The aggravating factors consist of a history of non-compliance, the extent of environmental harm caused, and the amount of economic gain resulting from the violation.