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Illegal trade in wildlife is an ongoing threat to the world’s biodiversity. Some taxonomic groups are especially vulnerable to overexploitation, such as tortoises and freshwater turtles (TFT), which are slow to reproduce. Despite threats to wild populations, very little is known about illegal TFT trade and what can be done to stop the rapid decline in wild populations. Some have called for tougher sanctions, but there is a lack of evidence to support such an approach. To dig further into the role of deterrence, this study looked at the Canadian TFT pet trade to characterize the domestic supply chain and explore perceptions of formal and informal sanction threats. Data included federal-level wildlife enforcement records and in-depth semi-structured interviews with TFT breeders, wholesalers, and retailers in Canada. Results demonstrate the complex nature of the TFT supply chain, which has multiple paths through which animals sourced illegally can enter the legitimate trade. Heterogeneity in perceptions of the certainty and severity of formal sanctions raised questions about how perceptions change based on one’s position in the supply chain and proximity to illegal trade. Informal sanctions from peers in the reptile industry were also salient, but this was often in tandem with a willingness to turn a blind eye. Results highlight the importance of considering multiple theories for understanding compliance and non-compliance and lay the foundation for future research on risk perceptions in illegal wildlife trade.