Canadian banks will receive $1.5 billion in compensatory compensation to cover fraud settlement costs in connection with a fraud scandal that cost the banks more than $3.5-billion.
Financial industry complaints and investigations into the scandal have led to the settlement.
The compensation will cover $1 billion of the cost, which includes $650 million for a bank’s legal costs.
The other $1-billion will cover legal costs for the banks, and other costs.
The banks will be required to repay $1 million of the $1bn they owe the government.
The federal government paid out $1,000 per bank to settle allegations in 2016.
Federal regulators are considering whether to approve another $2 billion in settlements for similar problems that are not expected to be resolved.