TORONTO, Dec 20 (Reuters) - Canada's anti-money

laundering agency is looking to introduce a system that gives

financial institutions and other businesses real-time feedback

through scorecards, two sources said, as the regulator ramps up

initiatives to tackle financial crime.

The proposed reporting system follows stricter financial

crime penalties in Canada announced earlier this week after the

country's No. 2 bank TD was ordered to pay a record $3 billion

fine and pleaded guilty in a historic U.S. money laundering case

in October.

The regulator, Financial Transactions and Reports Analysis

Centre of Canada (FINTRAC), is looking at technology, including

AI, to deliver the scorecard and is expected to introduce it

next year, one source said.

FINTRAC aims to give more real-time feedback to reporting

entities to improve collaboration across the industry, another

source said.

Canada's federal government made new proposals in its fall

economic statement on Monday to give the regulator more powers,

including increasing financial penalties by as much as 40 times

and issuing compliance orders.

U.S. regulators' probe into TD Bank resulted in

calls for stronger regulations in Canada. In pleading guilty, TD

admitted former employees helped criminals launder millions of

dollars.

Canadian banks TD, Royal Bank of Canada ( RY ) and CIBC

have been fined by FINTRAC in the past two years for

failing to comply with money laundering and terrorist financing

rules.

Canada faces growing pressure to tackle financial crime

ahead of a review by the Financial Action Task Force, an

intergovernmental body made of up 40 international members.