What is the aim of Administrative Monetary Penalties (AMPs)?

The aim of Administrative Monetary Penalties (AMPs) is to enhance compliance efforts of reporting entities. AMPs serve as a regulatory tool designed to encourage entities to adhere to legal and regulatory requirements by imposing financial penalties for violations. Rather than serving purely as a punitive measure, AMPs are intended to motivate organizations to improve their practices and comply with regulations, thereby fostering a culture of compliance.

This approach recognizes that the goal of regulation is not solely to punish non-compliance but to encourage better behavior and prevent future violations. By making penalties more manageable and predictable, regulatory bodies can effectively deter non-compliance and promote a proactive attitude toward adherence to laws and regulations among entities.