OTTAWA — The federal government says it plans to boost penalties for money laundering by 40 times as part of several measures it wants to roll out to crack down on the issue.

The proposal would see the maximum administrative penalty against banks and other reporting entities rise to $20 million per violation, up from $500,000.

As outlined in the fall economic statement Monday, the government also plans to increase fines for criminal offences by 10 times and provide more guidance on jail terms.