I would leave it to the officials to answer the question. My understanding is that it doesn't waive the fine, and that's because it's held by the provinces. It does mean that you're allowed to get the record suspension even though you have not paid the fine. As to how that works—
Evidence of meeting #164 for Public Safety and National Security in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was chair.
A recording is available from Parliament.