FCAC Fines Bank of Montreal $4M Over Fee Disclosure Violations

Ottawa, Canada — Canada’s financial watchdog, the Financial Consumer Agency of Canada (FCAC), has imposed a $4 million administrative monetary penalty on the Bank of Montreal (BMO) for breaching consumer protection provisions under the Bank Act.

The penalty stems from inaccurate fee disclosures that resulted in BMO charging monthly account fees that should have been waived or discounted for customers enrolled in certain discounted banking plans. The violations occurred between 2010 and 2024, affecting approximately 101,091 customers nationwide.

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According to the FCAC summary of its decision, BMO failed to properly apply fee waivers and clearly disclose when monthly plan fees would begin — shortcomings in internal controls that persisted despite more than 500 customer complaints.

BMO has refunded over $3 million in improper charges and made a $600,000 charitable donation for amounts that could not be directly returned to customer accounts. The bank said it reported the issue to the regulator and took proactive steps to reimburse affected clients.

The FCAC’s action underscores the importance of transparent fee disclosures and consumer protection compliance among federally regulated financial institutions in Canada.