Bank of Montreal (BMO) agreed to pay a $4-million penalty after the banking industry regulator found it had incorrectly charged monthly bank plan fees that should have been waived on some accounts from 2010 to 2024. 

The Financial Consumer Agency of Canada (FCAC) noted the Bank committed two violations of its disclosure obligation relating to personal deposit accounts. The bank introduced discounted banking programs in 2010 designed to offer special benefits to newcomers to Canada, medical and dental students, indigenous banking clients and participants in home financing programs.

Customers who applied in branch received a written confirmation that had an incorrect start date for the fee waiver, and as a result, were charged monthly plan fees that should have been waived or discounted. 

From 2022 to 2024, BMO failed to clearly disclose when the monthly plan fees would begin. 

FCAC said the causes were inconsistent employee adherence procedures and BMO monitoring measures. BMO estimated more than 100,000 customers were affected, and has issued refunds and redress interest of more than $3 million to the customers it could locate, and made an additional $600,000 contribution to charity on behalf of the customers it could not locate. 

FCAC’s Notice of Violation also noted that the $4-million fine reflects “the degree of BMO’s negligence in failing to implement adequate controls and effective monitoring measures to prevent and deter the error, despite receiving over 500 customer complaints about the monthly plan fees charged.” 

The FCAC notice said the bank paid the penalty in April 2025, but the notice was not published until February 2026.