Minister Anandasangaree’s Appearance Before the Standing Committee on Public Safety and National Security (SECU)
Bill C-12, An Act respecting certain measures relating to the security of Canada's borders and the integrity of the Canadian immigration system and respecting other related security measures

Amending the Customs Act (Canada Border Services Agency)

To compel transporters and warehouse operators to provide access to their premises to allow for export inspections by CBSA officers and require owners and operators of certain ports of entry/exit to provide facilities for export inspections, just as they currently do for imports.

Amending the Oceans Act (Fisheries and Oceans Canada (DFO))

To add security-related activities and enable the Canadian Coast Guard to conduct to security patrols and share information with security, defence, and intelligence partners.

Amending the Sex Offender Information Registration Act (Public Safety)

To enhance the ability of law enforcement agencies to share information collected under the Act with domestic and international partners. This includes amendments to the legal threshold to disclose information collected under the Act and maintained in the National Sex Offenders Registry (NSOR).

Amending both the Immigration and Refugee Protection Act and the Department of Citizenship and Immigration Act (Immigration, Refugees, and Citizenship Canada (IRCC))

• To secure and extend legislative authorities to cancel, suspend, or vary immigration documents, and cancel or suspend processing of new applications (en masse) for reasons determined to be in the public interest.
• To allow IRCC to disclose immigration information for the purpose of cooperation with federal partners.
• To uphold the integrity and fairness of the asylum system, including by streamlining the intake, processing, and adjudication of claims.
• To improve and expand information sharing within the Government of Canada and with provincial or territorial partners under written information-sharing agreements.
• To create new ineligibility measures, to make certain claims ineligible to be referred to the Refugee Protection Division of the Immigration Refugee Board (in collaboration with CBSA).

Clarifying authority around law enforcement exemptions to the Controlled Drugs and Substances Act and the Cannabis Act (PS)

To clarify exemptions that allow for the use of certain investigative tools to combat illegal drug production and trafficking.

Amending the Controlled Drugs and Substances Act (Health Canada)

To amend the pathway that allows precursor chemicals that can be used to produce illicit drugs to be rapidly controlled by the Minister of Health, allow law and border enforcement to take swift action to prevent their illegal importation and use, and ensure strict federal oversight over any legitimate use of these chemicals.

Amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)

To strengthen the administrative monetary penalty framework, enhance anti-money laundering supervision and compliance, punish serious criminal non-compliance, and advance the global fight against financial crime.

Amending the Office of the Superintendent of Financial Institutions Act and the PCMLTFA

To enhance supervisory collaboration and support high standards of regulatory compliance by adding the Director of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to the Financial Institutions Supervisory Committee (FISC) and enabling FINTRAC to exchange supervisory information on federally-regulated financial institutions with FISC.

• CBSA: Amending the Customs Act
• DFO: Amending the Oceans Act
• Public Safety Canada: Amending the Sex Offender Information Registration Act
• IRCC
• Protecting the Integrity of Canada's Visa System
• Improve Asylum Integrity and Processing
• Create new ineligibilities in the IRPA to manage surges in asylum claims
• Strengthening information sharing
• Introducing changes to the Department of Citizenship and Immigration Act

• Health Canada: Create a new accelerated scheduling pathway for precursor chemicals
• Public Safety Canada : Clarifying authority around law enforcement exemptions to the Controlled Drugs and Substances Act and the Cannabis Act
• Finance
• Strengthening anti-money laundering penalties
• Adding FINTRAC to the membership of the Financial Institutions Supervisory Committee (FISC)
• Cracking down on money laundering and terrorist financing

Section 2

Clause 2(1)

The portion of subsection 6(1) of the Customs Act before paragraph (a) is replaced by the following:

• Customs facilities
  • 6(1) The owner or operator of any of the following bridges, tunnels, railways, airports, wharves or docks must provide, equip and maintain free of charge – at or near the bridge, tunnel, railway, airport, wharf or dock – adequate buildings, accommodation or other facilities for carrying out any purpose related to the administration or enforcement of program legislation, as defined in section 2 of the Canada Border Services Agency Act:
• Intent: Subsection 6(1) would ensure the facility requirements for the specified customs offices apply more broadly to the Agency's mandate by amending the language to refer to "any purpose related to the administration or enforcement of program legislation", as defined in the Canada Border Services Agency Act. This would clarify that this includes examination and detention of goods destined for export. The Customs Act currently only expressly mentions requirements for the proper examination and detention of imported goods (as well as the search of persons).

Clause 2(2)

Paragraphs 6(1)(a) and (b) of the English version of the Act are replaced by the following:

• 6(1)(a) an international bridge or tunnel, for the use of which a toll or other charge is payable,
• 6(1)(b) a railway operating internationally, or
• Intent: Paragraphs 6(1)(a) and (b) would be amended to replace the word any at the beginning of each paragraph with an and a respectively to accommodate the grammatical changes required stemming from the amendments to subsection 6(1). There is no substantive effect to this change.

Clause 2(3)

Subsection 6(1) of the Act is amended by replacing paragraph (c) and the portion after paragraph (c) with the following:

• 6(1)(c) an airport, wharf or dock that receives conveyances operating internationally, whether they are arriving in, departing from or expected to depart from Canada, and in respect of which a customs office has been designated under section 5.
• Intent: Paragraph 6(1)(c) would be amended to replace the word any with an to accommodate the grammatical changes required stemming from the amendments to subsection 6(1). There is no substantive effect to this change. Paragraph 6(1)(c) would also be amended to clarify that conveyances operating internationally includes those carrying imported goods as well as those destined for export, and that it does not only capture the last port of departure.

Clause 2(4)

Subsection 6(3) of the French version of the Act is replaced by the following:

• Regulations
  • 6(3) Sous réserve du paragraphe (4), le gouverneur en conseil peut, par règlement, déterminer les locaux ou autres installations qui sont adéquats aux fins visées au paragraphe (1).
• Intent: Subsection 6(3) would be amended to better align with the English version and the wording of subsection 6(1).

Section 3

Clause 3

The heading of Part V of the Act is amended as follows:

• Exportation
• Intent: The heading would be amended to better reflect the provisions contained within that Part of the Act.

Section 4

Clause 4

The Act is amended by adding the following new section after section 97:

• Officer's access to goods — transportation
  • 97.01 Every person who transports or causes to be transported within Canada goods destined for export must, at an officer's request, give the officer free access to any premises or place under the person's control that is attached to or forms part of any place where any goods destined for export are reported, loaded, unloaded or stored and open any package or container of those goods or remove any packaging from those goods.
• Officer's access to goods — warehouses
  • 97.02 The operator of a sufferance warehouse or a bonded warehouse must, at an officer's request, give the officer free access to the warehouse or any premises or place under the operator's control that is attached to or forms part of the warehouse and open any package or container of goods destined for export or remove any packaging from those goods.
• Intent: Sections 97.01 and 97.02 would ensure that warehouse operators and those who transport, or cause to be transported in Canada, goods destined for export, provide officers free access to their premises and goods at those premises for the purposes of examination. This access may include opening, unpacking, uncovering or unloading packages and containers. Currently, the Customs Act does require free access to any premises or place under a person's control to examine imported goods and these amendments mirror those obligations but for goods destined for export.

Section 5

Clause 5 - Transitional Provisions

The Act is amended by adding the following new section after section 169.1:

• No action against owners or operators
  • 5(1) No action or judicial proceeding by His Majesty in right of Canada lies against any owner or operator referred to in subsection 6(1) of the Customs Act for the reimbursement of any sum that His Majesty paid to the owner or operator with respect to buildings, accommodations or other facilities that were used, before the day on which section 2 comes into force, for carrying out any purpose related to the administration and enforcement of program legislation, as defined in section 2 of the Canada Border Services Agency Act, including the proper detention and examination of goods or the proper search of persons.
• No action against His Majesty
  • 5(2) No action or judicial proceeding by an owner or operator referred to in subsection 6(1) of the Customs Act lies against His Majesty in right of Canada for the reimbursement of any cost incurred with respect to buildings, accommodations or other facilities that the owner or operator provided, equipped or maintained free of charge in accordance with that subsection, as it read before the day on which section 2 comes into force, and that were used, before that day, for carrying out any purpose related to the administration and enforcement of program legislation, as defined in section 2 of the Canada Border Services Agency Act.
• Pending action or judicial proceeding
  • 5(3) Subsections (1) and (2) apply in respect of any action or judicial proceeding that is pending on the day on which this section comes into force.
• Intent: These paragraphs would ensure that owners and/or operators may not seek compensation for what they have provided free of charge to the Crown pursuant to section 6, before the date of this amendment. They also ensure that His Majesty in right of Canada may not seek reimbursement for what now must be provided free of charge pursuant to the amendments. These amendments are not intended to prevent claims of inadequacy that may arise after the date of these amendments.

Sections 6-21

Analysis

Part 2 amends the Controlled Drugs and Substances Act (CDSA) to create a new temporary accelerated scheduling pathway that will allow the Minister of Health to:

• add precursors to Schedule V to the CDSA for up to one year, allowing law and border enforcement to take swift action to prevent their illegal importation and use; and
• ensure strict federal oversight over any legitimate use of these chemicals by making them subject to the Precursor Control Regulations during the period of temporary control.

Part 2 also makes related amendments to the Controlled Drugs and Substances Act (Police Enforcement) Regulations and Precursor Control Regulations.

Clause 6

This clause amends the definitions of controlled substance and precursor to refer to new Parts of Schedule V created through these amendments. Part 1 is for controlled substances and Part 2 is for precursors. Part 2 is further divided into tables for Class A precursors (table 1), Class B precursors (table 2) and Preparations and Mixtures Containing Precursors (table 3).

Clause 7

This clause repeals paragraph 55(1)(u).

Paragraph 55(1)(u) is the regulation-making authority that allows the Governor in Council (GIC) to make regulations allowing the Minister to add to or delete from, by order, a schedule to Part J of the Food and Drug Regulations, any item included in Schedule V to the CDSA. This regulation-making authority has been incorporated and expanded in Clause 9 to authorize the GIC to make regulations allowing the Minister to add any substance included in Schedule V to, or delete any such substance from, any schedule to a CDSA regulation, such as the Schedule to the Narcotic Control Regulations.

Clause 8

This clause amends section 60.1, which is the provision in the CDSA that provides the Minister of Health with the authority to add substances to Schedule V by order, thereby imposing temporary controls for a period of up to one year. In particular, clause 8 adds subsections 3 and 4 to section 60.1.

For greater certainty, subsection 60.1(3) clarifies that the Minister of Health may take into account information received from the Minister of Public Safety when making an order to add a substance to Schedule V.

Subsection 60.1(4) provides for the deletion of items from Schedule V on the earliest of:

1. the day specified in a Ministerial order deleting the item from Schedule V;
2. the day that the item or a portion of the item is added to another Schedule to the CDSA by the Governor in Council; or
3. on the date of expiry of the original Ministerial order.

Clause 9

This clause adds section 60.2 to the CDSA, setting out a new GIC regulation-making authority to replace paragraph 55(1)(u), which would be repealed through Clause 7.

As opposed to the current regulation-making authority, which applies to Part J of the Food and Drug Regulations, the new regulation-making authority would apply to any schedule to a regulation made under the CDSA. The GIC would also have the authority to make regulations authorizing the Minister to make any other amendment to a schedule to a regulation that is consequential or related to an addition or deletion from a schedule to the regulations.

Clause 10

This part includes a revised Schedule V. This clause provides that the revised Schedule V replace Schedule V to the CDSA on the date of royal assent.

Apart from creating a new Part 1 for controlled substances and Part 2 for precursors, the revised Schedule V places the four substances currently listed in Schedule V in the appropriate Part of the Schedule. In particular:

• Carisoprodol, a sedative drug, is placed in Part 1 (Controlled Substances);
• Phenethyl bromide and propionic anhydride, two precursors that are essential to the production of fentanyl, are placed in Part 2, Table 1 (Class A Precursors);
• Benzyl chloride, a precursor that is also used in the production of fentanyl, is placed in Part 2, Table 2 (Class B Precursors); and
• All three of the above-noted precursors are listed in Part 2, Table 3 (Preparations and Mixtures Containing Precursors).

Clause 11

This clause amends the Controlled Drugs and Substances Act (Police Enforcement) Regulations by replacing the text "in Schedule I, II, III or IV of the Act" with "in any of Schedules I to V to the Act" in sections 5.1 and 5.2. This means that sections 5.1 and 5.2 of these regulations would also apply in relation to substances listed in Schedule V to the CDSA.

Clause 12

This clause amends the Precursor Control Regulations by changing the definition of Class A precursor and Class B precursor to include references to precursors included in Tables 1, 2 and 3 of Part 2 of Schedule V.

Clause 13

This clause amends the Precursor Control Regulations by adding a new section on Temporarily Scheduled Precursors (section 91.01).

Subsection 91.01(1) authorizes the Minister to add a precursor to the Schedule to the Precursor Control Regulations on a temporary basis. This will allow precursors added to Schedule V, Part 2 to the CDSA to also be added to the Schedule to the Precursor Control Regulations. The Ministerial order would set out a maximum quantity that the Minister considers appropriate that would apply to the sale of Class A precursors by licensed companies to end-users. The maximum quantity would be set out in column 2 of the Schedule to the Precursor Control Regulations.

Subsection 91.01(2) authorizes the Minister to delete items from the Schedule to the Precursor Control Regulations.

Subsection 91.01(3) sets out the timing for when an item is deleted from the Schedule – this is on the day in which the same item is deleted from Schedule V.

Subsection 91.01(4) defines a temporarily scheduled precursor as an item that is listed as a precursor in Schedule V to the CDSA.

Without these amendments, substances on Schedule V to the CDSA cannot be regulated under the Precursor Control Regulations. This presents challenges for businesses and other stakeholders using these substances for legitimate purposes.

Clause 14

This clause amends the references after the heading of Schedule in the Precursor Control Regulations to reflect changes made to those regulations in this Part.

Clause 15

This clause amends the heading in the Schedule to the Precursor Control Regulations. It replaces "Precursor set out in Part 1 of Schedule VI to the Act" with "Substance" to reflect the fact that the Schedule could also include substances listed in Schedule V, Part 2.

Clause 16

This clause amends the Schedule to the Precursor Control Regulations to include two new items after item 33. These two items (the fentanyl precursors phenethyl bromide and propionic anhydride) were added to Schedule V of the CDSA through a Ministerial Order (Order Amending Schedule V to the Controlled Drugs and Substances Act (Fentanyl Precursors and Carisoprodol): SOR/2025-64) made in February 2025. Both are precursors that are essential to the production of fentanyl. Under the new Schedule V introduced through this Act, both would be placed in Part 2, Table 1, meaning they would be regulated as Class A Precursors.

Clause 17

This clause amends 20 references in the Precursor Control Regulations. Each of these references replaces the text "in Part 1 of Schedule VI" with "in Table 1 of Part 2 of Schedule V or in Part 1 of Schedule VI".

These changes are to ensure that references in the Precursor Control Regulations to Class A Precursors refer to the appropriate part of the revised Schedule V, which is Table 1 of Part 2 of Schedule V.

Clause 18

This clause amends 10 references in the Precursor Control Regulations. Each of these references replaces the text "in Part 1 of Schedule VI" with "in Table 2 of Part 2 of Schedule V or in Part 1 of Schedule VI".

These changes are to ensure that references in the Precursor Control Regulations to Class B Precursors refer to the appropriate part of the revised Schedule V, which is Table 2 of Part 2 of Schedule V.

Clause 19

This clause amends four references in the Precursor Control Regulations. Each of these references replaces the text "in Parts 1 or 2 of Schedule VI" with "in Table 1 or 2 of Part 2 of Schedule V or in Part 1 or 2 of Schedule VI".

These changes are to ensure that references in the Precursor Control Regulations to both Class A and Class B Precursors refer to the appropriate parts of the revised Schedule V, i.e. to both Tables 1 and 2 of Part 2.

Clause 20

This clause repeals the Ministerial Order (Order Amending Schedule V to the Controlled Drugs and Substances Act (Fentanyl Precursors and Carisoprodol): SOR/2025-64) made in February 2025 that added three fentanyl precursors and one controlled substance (carisoprodol) to Schedule V to the CDSA.

This repeal is required as the revised Schedule V includes the substances that were the subject of the Ministerial Order, placed in the appropriate Part / Table to that Schedule.

Clause 21

This clause sets out necessary coordinating amendments in relation to the Ministerial Order (Order Amending Schedule V to the Controlled Drugs and Substances Act (Fentanyl Precursors and Carisoprodol): SOR/2025-64) that added four substances to Schedule V to the CDSA in February 2025. Because timing of royal assent of this Act is unknown, there is a possibility that the temporary controls that apply to the substances currently listed in Schedule V will expire or that the substances will be moved to another Schedule to the CDSA. This clause allows for adjustments to the revised Schedule V, as necessary.

• 21(1) – defines the Ministerial Order and also the other Act to which this section refers, namely, the CDSA.
• 21(2) – if the section in the Order deleting carisoprodol from Schedule V to the CDSA comes into force prior to royal assent of this Act, then carisoprodol is deleted from the revised Schedule V.
• 21(3) – if the section in the Order deleting carisoprodol from Schedule V of the CDSA comes into force on the date of royal assent of this Act, then carisoprodol is deleted from the revised Schedule V.
• 21(4) - if the section in the Order deleting phenethyl bromide from Schedule V to the CDSA comes into force prior to royal assent of this Act, then phenethyl bromide is deleted from the revised Schedule V.
• 21(5) - if the section in the Order deleting phenethyl bromide comes into force on the date of royal assent of this Act, then phenethyl bromide is deleted from the revised Schedule V.
• 21(6) - if the section in the Order deleting propionic anhydride from Schedule V to the CDSA comes into force prior to royal assent of this Act, then propionic anhydride is deleted from the revised Schedule V.
• 21(7) - if the section in the Order deleting propionic anhydride comes into force on the date of royal assent of this Act, then propionic anhydride is deleted from the revised Schedule V.
• 21(8) - if the section in the Order deleting benzyl chloride from Schedule V to the CDSA comes into force prior to royal assent of this Act, then benzyl chloride is deleted.
• 21(9) - if the section in the Order deleting benzyl chloride from Schedule V to the CDSA comes into force on the date of royal assent of this Act, then benzyl chloride is deleted from the revised Schedule V.

Section 22

Analysis

Section 22 aims to confirm the Governor in Council's authority under the Controlled Drugs and Substances Act to make regulations that exempt members of law enforcement, and other persons acting under their direction and control, from drug-related inchoate offences that are listed in the Criminal Code.

Clause 22

This clause introduces a new sub-provision under s.55(2) of the Controlled Drugs and Substances Act (Regulations pertaining to law enforcement) to confirm the Governor in Council's authority to exempt members of law enforcement from drug-related inchoate offences that tie back to investigations under the Act itself.

This clause also introduces new sub-provision under s.55(2.1) of the Controlled Drugs and Substances Act (Regulations pertaining to law enforcement under other Acts) to confirm the Governor in Council's authority to exempt members of law enforcement from drug-related inchoate offences that tie back to investigations under another Act of Parliament

Section 23

Analysis

Section 23 aims to confirm the Governor in Council's authority under the Cannabis Act to make regulations that exempt members of law enforcement, and other persons acting under their direction and control, from cannabis-related inchoate offences that are listed in the Criminal Code.

Clause 23

This clause introduces a new sub-provision under s.139(6) of the Cannabis Act (Regulations pertaining to law enforcement) to confirm the Governor in Council's authority to exempt members of law enforcement from cannabis-related inchoate offences that tie back to investigations under the Act itself.

This clause also introduces a new sub-provision under s.139(7) of the Cannabis Act (Regulations pertaining to law enforcement under other Acts) to confirm the Governor in Council's authority to exempt members of law enforcement from cannabis-related inchoate offences that tie back to investigations under another Act of Parliament

Section 24

Analysis

Section 24 confirms the validity of any existing regulations under the Controlled Drugs and Substances Act or the Cannabis Act that relate to drug-related inchoate offences that are listed in the Criminal Code, as well as any potential amendments to those regulations that are made before this Bill receives Royal Assent.

Section 25

Analysis

This clause amends the portion of subsection 41(1) before paragraph (a) to authorize the Governor in Council to designate or any other member of the King's Privy Council for Canada to be responsible for coast guard services. This provides the Governor in Council the flexibility to designate someone in a different portfolio placement for CCG other than the portfolio of the current minister responsible for the Canadian Coast Guard. At the moment, the Minister of National Defence is the minister responsible for coast guard services when it was transferred from the Minister of Fisheries and Oceans to the Minister of National Defence pursuant to OIC. The powers, duties, and functions of the responsible Minister or the designated or any other member of the King's Privy Council for Canada include all areas enabled by legislation, unless already designated by law to another department, board, or agency.

Clause 25(2)

This clause amends paragraph (e) to remove the word "marine" from the description of services that CCG can offer, which authorizes CCG to expand these services beyond those related to the sea and waterways.

This clause also adds paragraph (f) to subsection 41(1) to provides the Minister or the designated member of the King's Privy Council responsible for coast guard services with a security mandate. The amendment authorizes CCG to independently allocate resources and make planning decisions based on security, and elevates CCG to be a key security partner in the Marine Security Operations Centres.

Clause 25(3)

This clause provides that the Minister or a member of the King's Privy Council should provide coast guard services in a cost-effective manner.

Clause 25(1)

The portion of subsection 41(1) of the Oceans Act before paragraph (a) is replaced by the following:

• Coast guard services
  • 41(1) The Minister, or any other member of the King's Privy Council for Canada designated by the Governor in Council for the purposes of this section, is responsible for coast guard services and their powers, duties and functions extend to and include all matters over which Parliament has jurisdiction, not assigned by law to any other department, board or agency of the Government of Canada, relating to

Clause 25(2)

(2) Subsection 41(1) of the Act is amended by striking out "and" at the end of paragraph (d) and by replacing paragraph (e) with the following:

• (e) the support of departments, boards and agencies of the Government of Canada through the provision of ships, aircraft and other services; and
• (f) security, including security patrols and the collection, analysis and disclosure of information or intelligence.

Clause 25(3)

Subsection 41(2) of the Act is replaced by the following:

Cost-effectiveness (2) The Minister, or any other member of the King's Privy Council for Canada designated under subsection (1), shall ensure that the services referred to in subparagraphs (1)(a)(i) to (iv) are provided in a cost-effective manner.

Section 26

Analysis

This clause adds section 41.1, which provides the Minister responsible for coast guard services, or any other member of the King's Privy Council for Canada designated by the Governor-in-Council with authority to collect, analyze and disclose information and intelligence.

Clause 26

The Act is amended by adding the following after section 41:

• Powers with respect to information and intelligence
  • 41.1 In exercising the powers and performing the duties and functions assigned to them under section 41, the Minister, or any other member of the King's Privy Council for Canada designated under subsection 41(1), may collect, analyze and disclose information or intelligence.

Section 27

Analysis

This clause specifies the timing of when the Oceans Act amendments outlined in clauses 25-26 will come into force—the day after the Strong Borders Act receives royal assent.

Clause 27

Day after royal assent

This Part comes into force on the day after the day on which this Act receives royal assent.

Section 28-29

Analysis

Amends the Department of Citizenship and Immigration Act and the Immigration and Refugee Protection Act to introduce express authorities to allow for more systematic, timely and consistent personal information disclosure within Immigration, Refugees and Citizenship Canada, and to Provinces and Territories and federal partners.

Department of Citizenship and Immigration Act

Clause 28

This clause amends section 5 of the Department of Citizenship and Immigration Act (DCIA) by adding the new sections 5.3 to 5.7 after the existing section 5.2.

• DCIA 5.3: specifies that the term "personal information", as used throughout these new sections, has the same meaning assigned to it by section 3 of the Privacy Act.
• DCIA 5.4: would now expressly authorize the Minister to, in accordance with any regulations and for the purpose of exercising their powers or performing their role under any lawful authority, disclose to other units within their own department any personal information under the control of their department.
• DCIA 5.5(1) and (2): would expressly authorize disclosures of some personal information to any other federal department, agency or Crown corporation or to any provincial or territorial government, agency or Crown corporation, in accordance with any regulations and under a written agreement or arrangement that defines the elements of personal information, the purpose for disclosure, any limits on secondary use or transfer of personal information, and other relevant details. The personal information under the control of their department that may be shared under this clause may relate to an individual's identity and any changes to their identity, the immigration status of an individual in Canada and any changes to their status, or the contents or status of any document issued to an individual by the Minister under any Act for which the Minister is responsible or under another lawful authority of the Minister. This may include information relating to the issuance, provision, refusal, validity, withholding, renewal, restoration, modification, variance, termination, cancellation, correction, revocation, recall, suspension, recovery or loss of such a document. Onward sharing of such personal information by provincial or territorial government partners to foreign entities is prohibited, except with the written consent of Immigration, Refugees and Citizenship Canada (IRCC) and where this would happen in a way that complies with Canada's international obligations in respect of mistreatment, as defined in the Avoiding Complicity in Mistreatment by Foreign Entities Act.
• DCIA 5.6: clarifies that these provisions will not impact other existing legal authorities to disclose personal information under federal legislation, at common law, or under the royal prerogative.
• DCIA 5.7: will provide authority to the Governor in Council to make regulations respecting the disclosure of personal information under the control of the Department pursuant to these new authorities, including conditions for or limits on disclosure and the specification of the purposes for disclosure. They may also make regulations that further define terminology used in any of the new sections.

Immigration and Refugee Protection Act

Clause 29

This clause amends subsection 150.1(1) of the Immigration and Refugee Protection Act by adding paragraph (f), in order to specify that the Immigration and Refugee Protection Regulations may also provide for any matter relating to the disclosure of information collected for the purposes of the Immigration and Refugee Protection Act for the purposes of cooperation with other federal departments and agencies, where the disclosure would be made under a written agreement or arrangement that defines the elements of personal information, the purpose for disclosure, any limits on secondary use or transfer of personal information, and other relevant details.

Sections 30-64

Analysis

Amends the Immigration and Refugee Protection Act to, among other things,

1. eliminate the designated countries of origin regime;
2. authorize the Minister of Citizenship and Immigration to specify the information and documents that are required in support of a claim for refugee protection;
3. authorize the Refugee Protection Division of the Immigration and Refugee Board to determine that claims for refugee protection that have not yet been referred to the Refugee Protection Division have been abandoned in certain circumstances;
4. provide the Minister of Citizenship and Immigration with the power to determine that claims for refugee protection that have not yet been referred to the Refugee Protection Division have been withdrawn in certain circumstances;
5. require the Refugee Protection Division and the Refugee Appeal Division to suspend certain proceedings respecting a claim for refugee protection if the claimant is not present in Canada;
6. clarify that the Chairperson of the Immigration and Refugee Board may specify the manner in which decisions must t be rendered and reasons for decisions must be given,; and
7. authorize regulations to be made setting out the circumstances in which the Minister of Citizenship and Immigration or the Minister of Public Safety and Emergency Preparedness must designate, in relation to certain proceedings or applications, a representative for persons who are under 18 years of age or who are unable to appreciate the nature of the proceeding or application.

It also includes transitional provisions.

Clause 30

This clause amends subsection 2(1) of the English version of the Immigration and Refugee Protection Act (Act) to clarify that when the word prescribed is used in the Act, it means prescribed by regulations.

Clause 31

This clause amends the Act by adding a new section 6.1 that requires the Minister to appoint a designated representative to represent a person who is under 18 years or is unable to appreciate the nature of a proceeding or application. The circumstances, proceedings and applications that this authority applies to as well as matters related to the responsibilities and remuneration of a representative will be prescribed in the regulations.

This clause also provides authority for the Minister to disclose personal information of the person subject to the proceeding or application to the designated representative.

Clause 32

This clause amends subsection 14.1(6) of the English version of the Act by removing the reference to the regulations. This is a consequential amendment to the change in clause 96.

Clause 33

This clause replaces section 23 of the French version of the Act to specify that it is an officer ("l' agent") who may authorize a person to enter Canada. This better aligns with the language used in the English version of the Act.

Clause 34

This clause amends subsection 24(4) of the Act to provide that a foreign national whose claim has been determined to be withdrawn by the Minister may not request a temporary resident permit if less than 12 months have passed since that determination or, if an application for leave and judicial review was filed, less than 12 months have passed since the day on which the Federal Court refused their application for leave or denied their application for judicial review.

Clause 35

This clause amends paragraph 25(1.2)(b) of the Act to provide that the Minister may not examine a request for humanitarian and compassionate (H&C) consideration made by a foreign national who has made a claim for refugee protection that has been determined to be eligible to be referred to the Refugee Protection Division (RPD). This will prevent concurrent proceedings (i.e., H&C application and a refugee claim) during the period between the claim being determined eligible and the claim being referred to the RPD.

Clause 36

This clause amends paragraph 38(2)(d) of the English version of the Act by removing the reference to the regulations. This is a consequential amendment to change in clause 35

Clause 37

This clause amends paragraph 44(2) of the English version of the Act by removing the reference to the regulations. This is a consequential amendment to change in clause 35.

Clause 38

This clause amends the Act by adding a new section 44.1. This new section establishes that the Immigration Division (ID) may hold an admissibility hearing only if the foreign national or the permanent resident who is subject to the hearing is physically present in Canada.

Clause 39

This clause replaces subsection 49(1) of the English version of the Act, changing its chapeau to align it with the French version and to simplify the language. A similar amendment is made to the chapeau of subsection 49(2).

Furthermore, this clause amends subsection 49(2) of the Act to prescribe when a removal order comes into force following the determination that the claim has been found ineligible on certain grounds, or following the rejection of a refugee claim or after a claim is determined to be abandoned or withdrawn.

It amends the Act to establish that removal orders come into force on the day on which notification is provided that the claim has been determined withdrawn. It also clarifies that a removal order for rejected refugee claimants who do not have appeal rights at the Refugee Appeal Division (RAD)come into force 15 days after the notification of rejection of the claim by the RPD.

Clause 40

This clause amends subsection 97(2) of the English version of the Act by removing the reference to the regulations. This is a consequential amendment to change in clause 35.

Clause 41

This clause repeals subsection 99(3.1) of the Act. There is no longer a distinction between claims made inside Canada at a port of entry and claims made inside Canada not at a port of entry. The requirements related to the provision of documents and information in respect of all claims made inside Canada are amended and set out in the amended subsection 100(4).

Clause 42

This clause amends the Act by replacing the heading before section 100.

Clause 43

This clause replaces subsection 100(1) of the Act to provide that a claim for refugee protection that is determined eligible by an officer must be considered further by the Minister within the time limits provided for in the regulations. IRCC and the Canada Border Services Agency (CBSA) will complete Minister Due Diligence activities (i.e., reviewing claims for issues related to integrity, credibility, misrepresentation, criminality, inadmissibility) before referral to the Immigration and Refugee Board of Canada (IRB) so claims can proceed directly to a decision.

Additional amendments are made to include reference to the Minister in the provision that provides that the claim must be suspended in certain circumstances and to provide that the Minister may determine the claim to be ineligible despite the officer's initial eligibility determination.

This clause also replaces subsection 100(4) of the Act to expand the authority of the Minister to specify the information and documents required in support of a claim for refugee protection made inside Canada, as well as the manner that the information and documents must be submitted. The information and documents must be submitted to the Minister, regardless of whether the claim is made at a port of entry or inland. The Immigration and Refugee Board retains the authority to set out in its rules the documents and information it requires to make decisions on claims for refugee protection and the Minister will also require that these documents and information be included in support of the claim. Further, this clause repeals subsection 100(4.1) of the Act so that fixing the date of hearings before the Refugee Protection Division will be the sole responsibility of the Immigration and Refugee Board. Section s.100(5) is repealed.

Clause 44

This clause amends the Act by adding section 100.1 to provide that the Minister must refer all eligible claims to the Refugee Protection Division after having the opportunity to consider the claim further, including with respect to the required information and documents and provided that the claimant appeared for examination, as requested. This clause further stipulates that the Refugee Projection Division is not authorized to consider a claim for the purpose of subsection 107(1) until it has been referred to it.

Clause 45

This clause amends the Act by adding section 102.1, which sets out the parameters for the abandonment of claims for refugee protection prior to their referral to the Refugee Protection Division. If a person who makes a claim for refugee protection inside Canada does not comply with the information and document requirements (per subsection 100(4)) or fails to appear for an examination the Minister must transmit the claim to the Refugee Protection Division to determine whether the claim has been abandoned.

The Refugee Protection Division – after, among other things, providing the person with the opportunity referred to in paragraph 170(e) – will rely on its existing authority under subsection 168(1) as well as any applicable provisions in its Rules, to determine whether a claim is abandoned. This means that the person will have an opportunity to make submissions as to why their claim should not be abandoned, i.e. there may be a hearing etc. If the Refugee Protection Division determines that the claim has not been abandoned, the person must comply with any outstanding requirements in accordance with the regulations. The abandonment proceeding before the Refugee Protection Division is terminated if the person complies with the outstanding documentary and examination requirements or the claim is determined ineligible.

This clause creates section 102.2, which authorizes the Minister to determine that an eligible claim has been withdrawn prior to its referral to the Refugee Protection Division. The claimant must first provide the Minister with written notice requesting that the claim be withdrawn. The Minister may also, on application reinstate a claim previously determined by the Minister to be withdrawn.

Clause 46

This clause amends paragraph 104(1)(c) of the English version of the Act to clarify the reference to the Refugee Protection Division.

Clause 47

This clause amends the Act by adding section 104.1 to provide that the Refugee Protection Division or Refugee Appeal Division, as the case may be, must stop considering a claim for refugee protection or an appeal (except with respect to an appeal by the Minister) if the person is no longer physically present in Canada. This provision does not prevent the Refugee Protection Division from considering an application for cessation or vacation of refugee protection or to consider whether a claim has been abandoned (this will avoid a person being granted refugee protection while outside Canada).

Clause 48

This clause repeals section 109.1 of the Act, which eliminates the authority of the Minister to designate a country for the purposes of subsection 110(2) and section 111.1 of the Act.

Clause 49

This clause repeals paragraph 110(2)(d.1) of the Act to eliminate the restriction on appeals made by nationals from countries designated under section 109.1, in alignment with the elimination of the authority to designate countries of origin. This clause also amends the language in subsection 110(3) to align with the text in the French version of the Act and repeals subsection 110(3.1) of the Act to eliminate the requirement for the Refugee Appeal Division to make decisions within the time limits set out in the regulations.

Clause 50

This clause adds subsection 111(3) to the Act to clarify that when the Refugee Appeal Division confirms a decision of Refugee Protection Division to reject a claim, this is also considered a rejection of a claim.

Clause 51

This clause amends paragraph 111.1(1)(a) of the Act to allow for extension of time limits, including extensions by the Minister, for providing documents and information under subsection 100(4). It adds paragraph 111.1(1)(a.1) to provide time limits for the Minister to consider claims under subsection 100(1). It also amends section 111.1 of the Act to align the regulation-making authorities with the repeal of subsections 99(3.1), 100(4.1), 110(3.1) and the elimination of the authority to designate countries of origin.

Clause 52

This clause amends paragraphs 112(2)(b.1) and (c) of the Act to eliminate the restriction on applications for protection (Pre-Removal Risk Assessments) by nationals of countries designated under section 109.1 in alignment with the elimination of the authority to designate countries of origin. This clause also amends subsection 112(2) of the Act by adding paragraph (b.2) to provide that a person whose claim has been determined to be withdrawn by the Minister may not apply for protection (Pre-Removal Risk Assessment) if less than 12 months have passed since that determination.

Clause 53

This clause amends subsection 144(1) of the English version of the Act by removing the reference to the regulations. This is a consequential amendment to the change in clause 35.

Clause 54

This clause amends paragraph 159(1)(g) of the Act by clarifying that the Chairperson may specify the manner that decisions of the Immigration and Refugee Board are rendered and reasons are given.

Clause 55

This clause repeals paragraph 161(1)(a.1) and subsection 161(1.1) of the Act in alignment with the repeal of the requirement for officers to fix the date of hearings before the Refugee Protection Division and elimination of the authority for the Minister to designate countries of origin.

Clause 56

This clause amends section 168 of the Act by adding subsection (1.1) to provide greater certainty that if the Refugee Protection Division or Refugee Appeal Division is not able to consider a claim or appeal because the person is not physically present in Canada, it may determine that the claim or appeal has been abandoned.

Clause 57

This clause amends paragraph 169(e) of the English version of the Act to clarify the language.

Clause 58

This clause amends section 170 of the Act by repealing subsection (d) to align with the requirement that documents and information referred to in subsection 100(4) be provided directly to the Minister. This clause also amends the language in paragraph 170(f) for consistency with the terminology used in related sections of the Act by referring to accepting a claim for refugee protection rather than allowing a claim for refugee protection.

Clause 59

This clause clarifies that the reference to the "Act" in the Transitional Provisions (clauses 65 to 67 means the Immigration and Refugee Protection Act and, unless otherwise stated, the words and expressions used in these clauses have the same meaning as in the Act.

Clause 60

This transitional clause provides that the Minister may, under section 6.1 of the Act, as enacted by clause 36 designate a person to represent a person who is the subject of a proceeding or application that is pending or in progress on the day that the regulations prescribing what those proceedings or applications are come into force.

Clause 61

This transitional clause provides that subsection 44.1 of the Act applies to hearings before the Immigration Division that are not yet completed when this provision comes into force.

Clause 62

This transitional clause provides that the sections of the Act listed in this clause apply to claims for refugee protection that have not yet been referred to the Refugee Protection Division on the day the provisions come into force.

Clause 63

This coordinating clause provides that subsection 284(2) of the Budget Implementation Act, 2023, No. 1 will be repealed if it is not in force before the coming into force of clause 46.

Clause 64

This coming into force clause provides that the provisions, other than those listed, may come into force separately or on the same day by order of the Governor in Council. It also ensures that the provisions related to the abandonment of claims prior to referral (clause 111) cannot come into force before the information and document requirements provided for in subsection 100(4) come into force.

Sections 65-72

Analysis

Amends the Immigration and Refugee Protection Act to, among other things,

1. authorize the Governor in Council to make an order specifying that certain applications made under that Act are not to be accepted for processing, or that the processing of those applications is to be suspended or terminated, when the Governor in Council is of the opinion that it is in the public interest to do so;
2. authorize the Governor in Council to make an order to cancel, suspend or vary certain documents issued under that Act, or to impose or vary conditions, when the Governor in Council is of the opinion that it is in the public interest to do so;
3. for the application of an order referred to in paragraph (b), require a person to appear for an examination, answer questions truthfully and produce all relevant documents or evidence that an officer requires; and
4. authorize the Governor in Council to make regulations prescribing circumstances in which a document issued under that Act can be cancelled, suspended or varied, and in which officers may terminate the processing of certain applications made under that Act.

Clause 65

This clause creates a new section of the Immigration and Refugee Protection Act (IRPA) at 11.3. It provides the authority for an officer to terminate the processing of an application, before a final decision (refusal/approval) is made, in the circumstances that would be set out in future regulations. It is linked to Clause 66.

Clause 66

This clause amends subsection 14(2) of the IRPA, which provides for the authority to make regulations relating to classes of permanent residents or foreign nationals, to add a new authority to make future regulations regarding the circumstances where an officer may terminate the processing of an application (Clause 65).

Clause 67

This clause creates a new subsection of the IRPA at 20.01(1). It provides explicit authority for an officer to cancel, suspend or vary a visa or other document in the circumstances that would be set out in future regulations.

This clause also creates a new subsection of the IRPA at 20.01(2). It specifies that the authority granted under section 20.01(1) should not be interpreted as affecting any other existing lawful authorities to cancel, suspend or vary a visa or other document. Those existing authorities are therefore not limited by the introduction of a new authority.

Clause 68

This clause amends the French text of subsection 24(1) of the IRPA. It replaces the term 'révocable' by 'annulable' to ensure consistency in language within the Act and Regulations.

Clause 69

This clause amends subsection 26(1) of the IRPA, which provides for the authority to make regulations respecting entering and remaining in Canada, to add a new authority to make future regulations regarding the circumstances where an officer may cancel, suspend or vary a visa or other document, as per the authority set out in Clause 67.

Clause 70

This clause creates a new division 3.1 in the IRPA.

Section 32.1 establishes new authorities to examine foreign nationals, who are outside of Canada and who hold an immigration document, in circumstances that would be set out in future regulations, for the purpose of confirming that they continue to meet the requirements of the Act for the document they hold.

The obligations on the foreign nationals impacted by this new provision are similar to certain obligations imposed under the existing section 16 of the IRPA on foreign nationals who make an application under the Act.

Section 32.1(1) provides that a foreign national, who holds an immigration document and is outside Canada, must answer truthfully all questions put to them by an officer and provide all documentation or other evidence that may be reasonably required by an officer for the purpose of confirming that they meet the requirements of the Act for the document they hold.

Subsection 32.1(2) provides that a foreign national who holds an immigration document and is outside Canada must at the request of an officer, appear for an examination, such as an interview or medical examination, for the purpose of confirming that they meet the legal requirements for the document they hold.

For both subsections 32.1(1) and (2), the examination authority is only triggered in circumstances that must be set out in in future regulations.

This clause also creates new subsection 32.1(3), which stipulates that the authorities granted in subsections 32.1(1) and (2) should not be interpreted as affecting other existing lawful authorities relating to the conduct of examination of document holders. Those existing authorities are therefore not limited by the introduction of a new authority.

Finally, this clause creates a new section 32.2 which provides authority to make future regulations regarding the circumstances where a foreign nationals who holds an immigration document and is outside Canada must provide all documentation or other evidence, be truthful and appear for an examination, as provided for in section 32.1.

Clause 71

This clause amends paragraph 47(c) of the IRPA to specify that cancellation of a Temporary Resident Permit (TRP) by an order made under subsection 87.302(1) does not result in a loss of temporary resident status, to ensure that an order made under the new subsection 87.302 do not impact status of foreign nationals.

Like for Clause 68, the amendment to paragraph 47(c) in Clause 71 also replaces 'révocation' with 'annulation' in the French version for consistency within the Act and Regulations.

Clause 72

This clause creates new sections 87.301 and 87.302, which authorizes the Governor in Council (GIC) to make an Order-in-Council (hereafter 'order') implementing certain measures, with respect to immigration applications and immigration documents, where the GIC is of the opinion that it is in the public interest to do so.

Subsection 87.301(1) authorizes the GIC to make an order specifying various measures with respect to applications for immigration documents if the GIC is of the opinion that it is justified based on the public interest.

This clause lists the possible measures that may be implemented through an order: (a) stop intake of new applications, (b) suspend processing of existing applications, and/or (c) terminate the processing of pending applications before a final decision is made.

The measures would last for a period specified in the order, or if not specified, for the period during which the order is in force.

Subsection 87.301(2) includes elements that may be considered in an order made under subsection 87.301(1). An order may restrict the order to certain foreign nationals, or applications within a class of applications and it may specify details regarding the retention, return or other disposition of applications.

It may also specify whether certain fees paid by clients – in respect of applications that are not accepted into processing or whose processing is suspended – are to be refunded. Any repayment is to be paid without interest from the Consolidated Revenue Fund. This provision applies despite any other federal legislation.

Moreover, an order may address any other matter that arises from or relates to the use of the authorities described under 87.301(1).

Subsection 87.301(3) stipulates that an order made under subsection 87.301(1)(c) that terminates the processing of existing applications must specify whether certain fees paid by clients are to be refunded. Any repayment is to be paid without interest from the Consolidated Revenue Fund. This provision applies despite any other federal legislation.

Subsection 87.302(1) authorizes the GIC to make an order specifying various measures that may be introduced with respect to visas or other immigration documents if the GIC is of the opinion that it is justified based on the public interest.

The GIC may implement the following measures through an order (a) cancel, or vary documents (b) suspend documents (c) impose or vary conditions on documents, including under the provision of any other Act or regulations (d) impose or vary conditions on temporary residents.

For paragraphs 87.302(1)(b)(c) and (d), the measures would last for a period specified in the order, or if not specified, for the period during which the order is in force.

Subsection 87.302(2) stipulates that, if measures that are introduced under 87.302(1) concern persons inside Canada, both the Minister of Citizenship and Immigration (referred to as the Minister of Immigration, Refugees and Citizenship Canada [IRCC]) and the Minister of Public Safety and Emergency Preparedness (PS) must concur to bring forward the recommendation for an order to the GIC.

The elements that may be considered in an order made under 87.302(1) are set out at 87.302(3). An order may specify which documents or individuals it applies to; and may specify details regarding the return of documents.

Moreover, an order may address any other matter that arises from or relates to the use of the authorities described under 87.302(1).

The new authorities also set out, at section 87.303, the circumstances in which an order made under either 87.301(1) or 87.302(1) may be subsequently amended or repealed.

The GIC may, by order, amend or repeal any order made under 87.301(1) or (2) if the GIC is of the opinion that it is in the public interest to do so (87.303(1)).

If it is of the opinion that it is justified based on the public interest, the GIC may also issue an order authorizing the Minister of IRCC, by order, to amend or repeal any order that the GIC has made under subsections 87.301(1) or (2). The authority provided to the Minister of IRCC is subject to any conditions the GIC may specify.

Concurrence from the Minister of Public Safety and Emergency Preparedness is required when the amendment or repeal of an order either by the GIC (87.303(1)) or the Minister of IRCC (87.303(2)) concerns in whole or in part persons in Canada.

The clause also sets out the authority at 87.304 to examine individuals who are subject to an order made under 87.302(1) for the purpose of the application of that order, including whether they meet new requirements articulated under an order, or to determine if they are part of a group of document holders described in an order made under subsection 87.302(1).

Subsection 87.304(1) provides that the individual must answer truthfully all questions put to them by an officer and provide all documentation or other evidence that may be reasonably required by an officer for the purpose of the application of the order.

Subsection 87.304(2) provides that a person must, where requested by an officer, appear for an examination, such as an interview or a medical examination, that relates to the application of the order made under 87.302(1).

The obligations on the foreign nationals impacted by this new provision are similar to certain obligations imposed under the existing section 16 of the Act on foreign nationals who make an application under the Act.

Additionally, the clause creates a new section of the IRPA at 87.305. It exempts orders relating to documents and applications, whether made by the GIC or the Minister of IRCC, from the application of sections 3 (order to be sent to Clerk of Privy Council), 5 (transmission to Clerk of Privy Council) and 11 (publication in Canada Gazette) of the Statutory Instruments Act.

To ensure the orders will be made public, the clause requires that the listed orders be published in the Canada Gazette within 23 days after it is made. 23 days is consistent with the publication provision of the Statutory Instruments Act.

Sections 73-75

Analysis

Part 8 amends the Immigration and Refugee Protection Act to add two new grounds of ineligibility for claims for refugee protection as well as powers to make regulations respecting exceptions to those new grounds. It also includes a transitional provision respecting the retroactive application of those new grounds.

Clause 73(1) and (2)

This clause adds new paragraphs to subsection 101(1) of the Act. It introduces a provision stating that claims made more than one year after the claimant's first entry to Canada after June 24, 2020 are ineligible to be referred to the IRB.

This ineligibility applies to claims made more than one year after the claimant's first entry after June 24, 2020, regardless of whether the claimant may have entered prior to June 25, 2020, or whether the claimant may have entered more than once after June 24, 2020. The ineligibility applies independently of the duration of the stay (e.g. the person remained in Canada for a day or less).

It also establishes that claims are ineligible to be referred to the IRB if the claimant enters Canada between land ports of entry from the U.S. and makes a claim after the time limit set out in subsection 159.4(1.1) of the Immigration and Refugee Protections Regulation has passed.

Clause 74

This clause introduces new paragraphs to subsection 111.1(1) of the Act providing authority to make regulations to introduce exceptions to the application of new paragraphs under Clauses 73(1) and (2).

Clause 75

This transitional clause provides that paragraphs listed in clause 73 apply to a claim for refugee protection made during the period beginning on the day on which the Bill is introduced and ending on the day before the day on which it receives royal assent.

Section 76

Analysis

This section repeals the definition of 'violation', replacing it with specific definitions for 'compliance order violation' and 'prescribed violation'. It also expands the regulation making power to define 'identifying information'.

Clause 76(1)

This clause repeals the definition of 'violation' in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA or 'the Act').

Clause 76(2)

This clause adds new definitions for 'compliance order violation' and 'prescribed violation'.

Clause 76(3)

This clause amends the scope of 'identifying information' - for which the Governor in Council can make regulations defining the term under the Act - to include certain information on entities enrolled with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC or 'the Centre'), which FINTRAC will need to disclose under the Act.

Section 77

Analysis

This clause amends the heading of Part 1 of the PCMLTFA to include the word 'Enrolment'.

Clause 77

This clause amends the heading of the English version of Part 1 of the Act to include 'Enrolment'.

Section 78

Analysis

This clause clarifies that reporting entities may not open an anonymous account.

Clause 78

This clause makes a technical amendment to s.9.2 of the Act to clarify the prohibition on the opening of anonymous accounts.

Section 79

Analysis

This section requires reporting entities to establish and maintain an effective, risk-based, and reasonably designed AML/ATF compliance program.

Clause 79

This clause creates a new overarching requirement for persons and entities that are subject to anti-money laundering and anti-terrorist financing (AML/ATF) regulation under the PCMLTFA (known as 'reporting entities') to establish and maintain an effective, risk-based, and reasonably designed AML/ATF compliance program.

Section 80

Analysis

This section makes technical and consequential amendments to require reporting entities, that are not already registered, to enroll with FINTRAC.

Clause 80

This clause amends the heading 'Inscription' before s.11.1 of the French version of the Act to refer to 'entreprises fournissant des services monétaires'.

Section 81

Analysis

This section enables FINTRAC to refuse or revoke the registration for a money service business with an outstanding administrative monetary penalty.

Clause 81

This clause enables FINTRAC to refuse or revoke the registration for a money service business with an outstanding administrative monetary penalty.

Section 82

Analysis

This clause establishes several key elements of the enrolment scheme, including the duty to enroll and exceptions, renewal requirements, notifying FINTRAC of changes to information provided, FINTRAC's ability to request clarifications, grounds for denial or revocation of enrolment and review and appeal requirements.

Clause 82

This clause amends the Act by adding the following after s.11.4:

Enrolment requirement

A new s.11.4001(1) requires every person or entity referred to in s.5 of the PCMLTFA (i.e., reporting entities) to enroll with FINTRAC.

Exceptions

A new s.11.4001(2) specifies that certain reporting entities are not required to enroll, including those referred to in paragraph 5(h) and 5(h.1) (i.e., 'money services businesses'), and those who act exclusively as an employee or agent on behalf of another reporting entity.

Application for enrolment

A new s.11.4002 stipulates that persons or entities subject to enrolment must submit an application for enrolment to FINTRAC. Regulations will prescribe the information to be included in this application and how it is to be submitted.

Notice of enrolment

A new s.11.4003 stipulates that an applicant is enrolled when FINTRAC adds them to the roll, with FINTRAC required to notify the applicant upon enrolment.

Renewal

A new s.11.4004 stipulates that enrolled persons and entities must renew their enrolment within the prescribed period.

Application for renewal

A new s.11.4005 stipulates that an application for renewal of enrolment must be submitted to FINTRAC in the prescribed form and manner and include certain prescribed information.

Notice of renewal

A new s.11.4006 stipulates that an applicant remains enrolled if FINTRAC approves the application, with FINTRAC required to notify the applicant of the renewal.

Changes to information

A new s.11.4007 stipulates that an applicant for enrolment or renewal must notify FINTRAC of changes to the information provided in their application or of newly obtained information that should have been provided within a 30-day period.

Clarifications — applicant

A new s.11.4008(1) stipulates that an applicant for enrolment or renewal of enrolment must provide FINTRAC with any clarifications requested within a 30-day period.

Denial of application

A new s.11.4008(2) stipulates that if the applicant does not provide FINTRAC with the clarifications requested with the 30-day period, FINTRAC may deny the application and must notify the applicant of the denial.

Denial of application

A new s.11.4009(1) stipulates that FINTRAC must deny an application for enrolment or renewal if an applicant has not paid a penalty in relation to an outstanding compliance violation, or the applicant is in a prescribed relationship with a person or entity in the same situation.

Notice of denial

A new s.11.4009(2) stipulates that if the application is denied, FINTRAC must notify the applicant of the denial.

Clarifications – enrolled person or entity

A new s.11.401(1) stipulates that an enrolled person or entity must provide FINTRAC with any clarifications requested respecting the information they previously provided to FINTRAC within a 30-day period.

Revocation of enrolment

A new s.11.401(2) stipulates that if the enrolled person or entity does not provide the requested clarifications within the 30-day period, FINTRAC may revoke their enrollment, and must notify them of the revocation.

Revocation of enrolment

A new s.11.4011(1) stipulates that FINTRAC may revoke a person or entity's enrolment if it has not paid a penalty in relation to an outstanding compliance violation or is in a prescribed relationship with a person or entity in the same situation.

Notice of revocation

A new s.11.4011(2) stipulates that if FINTRAC revokes the enrolment of a person or entity under the previous subsection, FINTRAC must notify the person or entity of the revocation.

Requirement ceases to apply

A new s.11.4012(1) stipulates that if the requirement to enroll ceases to apply to a person or entity, they must notify FINTRAC within 30 days of the requirement having ceased to apply.

Explanation

A new s.11.4012(2) stipulates that when a person or entity gives notice to FINTRAC of their intention to disenroll, they must explain why the requirement to enroll has ceased to apply to them.

Notice of revocation

A new s.11.4012(3) stipulates that if FINTRAC is satisfied that a person or entity is no longer required to enrol, it must revoke their enrolment and notify them of the revocation.

Notice of continued enrolment

A new s.11.4012(4) stipulates that if FINTRAC is not satisfied that the person or entity no longer needs to enrol, it must notify them of their continued enrolment.

Duty to notify

A new s.11.4013 stipulates that if FINTRAC determines that if the requirement to enroll applies to a specific person or entity, FINTRAC must notify them of their requirement to do so.

Application for review

A new s.11.4014(1) stipulates that when a person or entity is denied enrolment, has their enrolment revoked, or is informed of their requirement to enroll, they may apply in writing to the Director of FINTRAC seeking a review of the decision and may provide any information in support of their application for review.

Review by Director

A new s.11.4014(2) stipulates that the FINTRAC Director must review the decision as soon as possible and consider any information that they deem relevant.

Decision of Director

A new s.11.4014(3) stipulates that the FINTRAC Director may confirm the decision or substitute their own decision, and must serve notice of the decision with reasons, together with notice of the right of appeal.

Appeal to Federal Court

A new s.11.4015(1) stipulates that a person or entity that applied for a review by the Director of FINTRAC may appeal their decision to the Federal Court within the specified period.

Appeal

A new s.11.4015(2) stipulates that if the Director does not make a review decision within a 90-day period, the applicant may appeal to the Federal Court within 30 days after the day on which the 90-day period expires.

Precautions against disclosure

A new s.11.4015(3) stipulates the precautions that the Court must take in an appeal to avoid the disclosure of information that FINTRAC is prohibited to disclose under S. 55(1) of the Act, excepting the appellant's name or operating name.

Section 83

Analysis

This clause makes technical amendments to clarify the enhanced authorities provided to the Canada Border Service Agency to combat trade-based financial crime, which were announced in the 2023 Fall Economic Statement.

Clause 83

This clause amends s.39.02(6) of the PCMLTFA to ensure that warehouse operators are included as entities needing to maintain records.

Section 84

Analysis

This clause makes a technical amendment to clarify the enhanced authorities provided to the Canada Border Service Agency to combat trade-based financial crime, which were announced in the 2023 Fall Economic Statement.

Clause 84

This clause amends s.39.14 under the Review and Appeal section of Part 2.1 of the Act to clarify that the responsibility for the seizure lies with the officer who made the decision and whether or not they had reasonable grounds to believe that the goods were proceeds of crime as defined in subsection 462.3(1) of the Criminal Code.

Section 85

Analysis

This clause makes a technical amendment to clarify the enhanced authorities provided to the Canada Border Service Agency to combat trade-based financial crime, which were announced in the 2023 Fall Economic Statement.

Clause 85

This clause amends s.39.18 under the Review and Appeal section of Part 2.1 of the Act to clarify that the responsibility for the seizure lies with the officer who made the decision and whether or not they had reasonable grounds to believe that the goods were proceeds of crime as defined in subsection 462.3(1) of the Criminal Code.

Section 86

Analysis

This clause makes a technical amendment to clarify the enhanced authorities provided to the Canada Border Service Agency to combat trade-based financial crime, which were announced in the 2023 Fall Economic Statement.

Clause 86

This clause amends s.39.19 and s.39.2 under the Review and Appeal section of Part 2.1 of the Act to clarify that the responsibility for the seizure lies with the officer who made the decision and whether or not they had reasonable grounds to believe that the goods were proceeds of crime as defined in subsection 462.3(1) of the Criminal Code.

Section 87

Analysis

This clause makes technical and consequential amendments to introduce universal enrollment and a new false information offence.

Clause 87(1)

This clause makes technical changes to the wording of offences for which FINTRAC must disclose information to the Bank of Canada. The existing language refers to 'contravening a provision referred to' in the PCMLTFA offences. The change is needed to refer more generally to 'an offence'.

Clause 92(2)

This clause replaces s.53.6(1)(c) of the French version of the Act to clarify that 'registration' in this context refers to the registration of money services businesses as required under S. 11.1 of the Act – not to the enrolment of other persons and entities.

Clause 87(3)

This clause makes technical changes to the wording of offences for which FINTRAC must disclose information to the Bank of Canada. The existing language refers to 'contravening a provision referred to' in the PCMLTFA offences. The change is needed to refer more generally to 'an offence'.

Clause 87(4)

This clause replaces s.53.6(2)(c) of the French version of the Act to clarify that 'registration' in this context refers to the registration of money services businesses as required under S. 11.1 of the Act – not to the enrolment of other persons and entities.

Section 88

Analysis

This clause sets out provisions concerning FINTRAC's responsibility to establish and maintain the proposed database of enrolled entities, including access to the information, measures to keep it accurate and verified, and data retention requirements.

Clause 88

This clause amends the Act by adding the following after s.54.1:

Roll

A new s.54.2(1) stipulates that FINTRAC is responsible for establishing and maintaining a roll of prescribed information submitted in accordance with the enrolment requirements.

Organization and keeping of roll

A new s.54.2(2) stipulates that the roll is to be organized in any manner and kept in any form that FINTRAC may determine.

Public access

A new s.54.2(3) stipulates that FINTRAC must make available to the public certain information referred to in s.54.2(1) as defined in regulations.

Verification of information

A new s.54.2(4) stipulates that FINTRAC may verify certain information submitted to it for accuracy.

Accuracy of information

A new s.54.2(5) stipulates that FINTRAC must, in accordance with the regulations, ensure that inaccurate information on the roll is corrected.

Analysis of information

A new s.54.2(6) stipulates that FINTRAC may analyze and assess the information referred to in s.54.2(4), and in that case its analysis or assessment of that information is deemed to be an analysis or assessment conducted under s.54(1)(c) of the Act (per FINTRAC's authority to receive reports and information for analysis).

Retention of information

A new s.54.2(7) specifies the circumstances under which FINTRAC must retain certain information submitted for enrolment purposes.

Section 89

Analysis

This clause prohibits FINTRAC from sharing certain information related to enrollment and enables FINTRAC disclosures to the Commissioner of Canada Elections related to financial crimes.

Clause 89(1)

This clause amends s.55(1) of the Act by adding a new paragraph (b.3) stipulating that FINTRAC shall not disclose certain information obtained in connection with enrolment obligations, excepting identifying information that FINTRAC is obligated to make public under s.54.2(3).

Clause 89(2)

This clause amends s.55(3) of the Act by adding a new paragraph (f.2) to permit FINTRAC to disclose designated information to the Commissioner of Canada Elections if the Centre believes on reasonable grounds that the information would be relevant to investigating or prosecuting a money laundering, terrorist financing, or sanctions evasion offence or violation and that the information would be relevant to investigating or prosecuting an offence or violation under the Canada Elections Act.

Section 90

Analysis

This clause enables FINTRAC disclosures to the Commissioner of Canada Elections related to threats to national security.

Clause 90

This clause amends s.55.1(1) of the Act by adding a new paragraph (d.1) to permit FINTRAC to disclose designated information to the Commissioner of Canada Elections if the Centre believes on reasonable grounds that the information would be relevant to threats to the security of Canada and that the information would be relevant to investigating or prosecuting an offence or violation under the Canada Elections Act.

Section 91

Analysis

This clause allows FINTRAC to take measures to inquire into the business or affairs of any person or entity it believes on reasonable grounds to be a reporting entity which may, per previous clauses, be required to enroll with FINTRAC.

Clause 91

This clause amends a portion of s.62(1) (concerning measures that FINTRAC may take to ensure compliance with Part 1 or 1.1 of the Act) to authorize FINTRAC to examine the records and inquire into the business and affairs of any person or entity that it believes on reasonable grounds to be a reporting entity subject to the PCMLTFA.

Section 92

Analysis

This clause makes technical and consequential amendments introduce universal enrollment.

Clause 92

This clause amends s.72.1 of the French version of the Act to clarify that the reference to registration ('inscription') in this context refers to the registration of money services businesses, and not to the requirement to enroll.

Section 93

Analysis

This clause adds the power to issue regulations respecting the proposed enrolment scheme.

Clause 93

This clause amends s.73(1) of the Act to add a new paragraph (j.1) stipulating that the Government in Council may make regulations respecting the enrolment referred to in s.11.4001 to S. 11.4015.

Section 94

Analysis

This clause adds 'compliance orders' to the heading of Part 4.1.

Clause 94

This clause adds 'compliance orders' to the heading of Part 4.1.

Section 95

Analysis

This clause increases the maximum limit for existing individual administrative monetary penalties by forty times and establishes a new limit for all administrative monetary penalties issued in a single Notice of Violation. It also makes technical and consequential changes related to administrative monetary penalties.

Clause 95(1)

This clause makes consequential changes are made to clarify that s.73.1(1)(b) of the Act applies to 'prescribed violations' and not 'compliance violations' (as there are now two types of violations).

Clause 95(2)

This clause makes consequential changes are made to clarify that s.73.1(1)(c) of the Act applies to 'prescribed violations' and not 'compliance violations' (as there are now two types of violations).

Clause 95(3)

This clause repeals s.73.1(d) of the Act. S. 73.1(d) provides a regulation making power to prescribe a penalty for not adhering to the previous compliance agreement framework. This framework is replaced by a new compliance agreement framework, non-compliance with which is enforced through a new penalty established in the Act.

Clause 95(4)

This clause increases the maximum limit for existing individual administrative monetary penalties by forty times and establishes a new limit for all administrative monetary penalties issued in a single Notice of Violation; specifically, up to the greater of: $4 million for an individual and $20 million for an entity; and 3 per cent of annual worldwide gross revenue. Changes are also made to clarify that the 3 per cent of annual worldwide gross revenue applies to all entities that are part of the same corporate group (i.e., includes revenues of branches and subsidiaries).

Section 96

Analysis

This clause adds a new criteria that requires FINTRAC to take into account a reporting entity's ability to pay when issuing an administrative monetary penalty and make related technical and consequential amendments.

Clause 96

This clause requires FINTRAC to take into account a reporting entity's ability to pay when issuing an administrative monetary penalty. The clause also limits the new information that can be provided in the context of an appeal to the Director of FINTRAC.

The clause also provides consequential amendments to s.73.12 as a result of the new false information offence, which includes 'an omission' as well as an 'act', and to change the title of s.73.13 to clarify that it applies to prescribed violations.

Section 97

Analysis

This clause makes technical and consequential amendments to strengthen administrative monetary penalties and implement the new compliance order framework.

Clause 97

This clause makes consequential amendments to s.73.13 of the PCMLTFA by clarifying that the notice of violation applies to both 'prescribed' and 'compliance order' violations and repeals references to existing compliance agreements, which have been replaced with the new compliance agreement framework.

Section 98

Analysis

This clause makes technical and consequential amendments to strengthen administrative monetary penalties and implement the new compliance order framework.

Clause 98

This clause makes consequential amendments by removing the specific reference to s.73.13(2), making this provision apply to both 'prescribed' and 'compliance order' violations.

Section 99

Analysis

This clause makes technical and consequential amendments to implement the new compliance order framework.

Clause 99

This clause makes consequential amendments to s.73.15(4) by applying the provision (notice of decision and right of appeal) also to compliance order violations.

Section 100

Analysis

This clause repeals the existing optional compliance agreement framework and replaces it with the new mandatory compliance agreement requirement, subject to a compliance order and compliance order administrative monetary penalty.

Clause 100

This clause repeals the existing optional compliance agreement framework and replaces it with the new mandatory compliance agreement requirement, subject to a compliance order and compliance order administrative monetary penalty, specifically:

• The new s.73.16 requires the person or entity receiving an administrative monetary penalty to enter into a compliance agreement with FINTRAC and requires the compliance agreement to include the measures that are to be taken by the person or entity to bring itself into compliance, and a deadline for doing so. It also provides for an extension of the deadline by up to one year and deems not entering into a compliance agreement after six months of FINTRAC requiring it, to be a refusal to enter into the agreement.
• The new s.73.17 subjects a person or entity that refuses to enter into a compliance agreement or does not comply with the agreement, to be subject to a compliance order. The compliance order must include a requirement that the person or entity bring itself into compliance and a deadline for doing so. The deadline may be extended for up to one year.
• The new s.73.18 makes not complying with the compliance order subject to an administrative monetary penalty, which is up to the greater of: $5 million for an individual and $30 million for an entity; and 3 per cent of the annual worldwide gross revenue of the person or entity. Changes are also made to clarify that the 3 per cent of annual worldwide gross revenue applies to all entities that are part of the same corporate group (i.e., includes revenues of branches and subsidiaries).

Section 101

Analysis

This clause makes technical and consequential amendments to implement the new compliance order framework.

Clause 101(1)

This clause makes amendments to s.73.21 of the Act to clarify that the right of appeal to a federal court also applies to a compliance order violation.

Clause 101(2)

This clause repeals s.73.21(3) of the Act. S. 73.21(3) deals with appeals to the federal court in the case of no decision from the Director regarding a review of the decision with respect to a decision or penalty for not adhering to the previous compliance agreement framework. This framework is replaced by a new compliance agreement framework, and non-compliance is enforced through a new penalty established in the Act. Thus, this provision is no longer needed.

Section 102

Analysis

This clause makes technical and consequential amendments to implement the new compliance order framework.

Clause 102(1)

This clause makes amendments to s.73.22 of the Act to also apply the publication provisions to compliance order violations.

Clause 102(2)

This clause repeals publication provisions that would have been triggered in the case of previous, now repealed, compliance agreement provisions.

Section 103

Analysis

This clause makes technical and consequential amendments to implement the new compliance order framework.

Clause 103

This clause makes amendments to s.73.27 of the Act to also apply provisions regarding entering into an agreement to collect penalties, to the new compliance order violation.

Section 104

Analysis

This clause makes technical and consequential amendments to implement the new compliance order framework.

Clause 104

This clause makes amendments to s.73.4 of the Act to clarify that evidence without proof of the signature or official character of the person to have signed it can also be admissible in proceeding in respect of a compliance order violation.

Section 105

Analysis

This clause makes technical and consequential amendments to implement the new requirement to maintain an effective, risk-based, and reasonably designed AML/ATF compliance program

Clause 105(1)

This clause amends the general offences provisions to exclude the new overarching requirement for reporting entities to establish and maintain an effective, risk-based, and reasonably designed AML/ATF compliance program from the general offences.

Clause 105(2)

This clause amends s.74(1) of the Act to make the knowing contravention of the requirement to enroll with FINTRAC subject to the general criminal offences of the Act.

Clause 105(3)

This clause amends s.74(1)(a) and (b) to increase the criminal fines for all general offences by 10 times; specifically, up to $2,500,000 on summary conviction and up to $5,000,000 on indictment.

Clause 105(4)

This clause amends s.74(2) to increase the criminal fines for the knowing contravention of a Ministerial directive by 10 times; specifically, up to $2,500,000 on summary conviction and up to $5,000,000 on indictment.

Section 106

Analysis

This clause increases criminal fines for not submitting suspicious transaction reports.

Clause 106

This clause amends s.75 of the Act to increase the criminal fines for the knowing contravention of suspicious transaction reporting requirements by 10 times; specifically, up to $10,00,000 on summary conviction and up to $20,000,000 on indictment.

Section 107

Analysis

This clause makes technical and consequential amendments to increase criminal fines.

Clause 107(1)

This clause makes a technical change to the heading of s.76 to align it with the headings for other criminal penalties in the PCMLTFA.

Clause 107(2)

This clause amends s.76 of the Act to define undefined criminal fines for the knowing contravention of requirements preventing the disclosure of requiring reporting to FINTRAC with the intent to prejudice a criminal investigation. Undefined fines are increased to $1,000,000 on summary conviction and $2,500,000 on indictment. The imprisonment term for summary conviction is specified at one year.

Section 108

Analysis

This clause increases criminal fines for not submitting reports and creates the new criminal offence for the provision of false information to FINTRAC.

Clause 108

This clause amends s.77(1) and s.77(2) of the Act to increase the criminal fines for the knowing contravention of other transaction reporting requirements by 10 times; specifically, up to $10,000,000 on summary conviction.

This clause amends s.77.01 of the Act to increase criminal fines for not providing required information related to criminal record checks for certain officers and investors in money services businesses; specifically up to $2,500,000 on summary conviction and up to $5,000,000 on indictment.

This clause broadens the criminal offence in s.77.1 to apply to the provision of false, misleading, or incomplete information in the context of any information provided to FINTRAC under the PCMLTFA. This covers withholding material information, making a false or misleading statement, and providing false or misleading information, including by omission.

Section 109

Analysis

This clause increases criminal fines for threats and retaliation against employees with the intent to compel non-compliance and makes technical changes to ensure consistency in the criminal offence provisions of the PCMLTFA.

Clause 109(1)

This clause makes a technical change to the heading of s.77.2(2) to align it with the headings for other criminal penalties in the PCMLTFA.

Clause 109(2)

This clause amends s.77.2(2) of the Act to define criminal fines for threats and retaliation against employees with the intent to compel non-compliance, or to retaliate against an employee for compliance, with the Act. Fines are increased to $1,000,000 on summary conviction on $2,500,000 on indictment. The imprisonment term for summary conviction is specified at one year.

Section 110

Analysis

This clause increases criminal fines for the knowing structuring of transactions to avoid obligations under the Act.

Clause 110

This clause amends s.77.3(3) of the Act to define undefined criminal fines for the knowing structuring of transactions to avoid obligations under the Act. Fines are increased to $1,000,000 on summary conviction and $2,500,000 on indictment.

Section 111

Analysis

This clause increases criminal fines for the knowing operation of a money services business without registration.

Clause 111

This clause amends s.77.4 of the Act to increase the criminal fines for the knowing operation of a money services business without registration by 10 times; specifically, up to $2,500,000 on summary conviction and up to $5,000,000 on indictment.

Section 112

Analysis

This clause makes technical and consequential amendments to increase criminal fines.

Clause 112

This clause amends s.81(1) of the Act to add a new cross-reference to the new and expanded false information offence in s.77.1.

Section 113

Analysis

This clause makes technical and amendments to introduce universal enrollment.

Clause 113

This clause clarifies that the reference to 'registered' persons or entities ('inscrite' in the French version) in this context refers to the registration of money services businesses, and not to the enrolment of other persons and entities.

Section 114

Analysis

This clause makes technical and consequential amendments to increase criminal fines and introduce a new compliance order violation.

Clause 114

This clause makes a consequential amendment to s.48(1) of the Retail Payment Activities Act. Regarding (c), the existing language refers to 'contravening a provision referred to' in the PCMLTFA offences. The change is needed to refer more generally to 'an offence'.

Regarding (d), a consequential change is required to also refer to the new 'compliance order violation'.

Section 115

Analysis

This clause makes technical and consequential amendments to increase criminal fines and introduce a new compliance order violation.

Clause 115

This clause makes a consequential amendment to s.52 of the Retail Payment Activities Act. Regarding (b), the existing language refers to 'contravening a provision referred to' in the PCMLTFA offences. The change is needed to refer more generally to 'an offence'.

Regarding (c), a consequential change is required to also refer to the new 'compliance order violation'.

Section 116

Analysis

This clause makes technical and consequential amendments to increase administrative monetary penalties.

Clause 116

This clause amends s.3 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations to update references to the provisions in the PCMLTFA that outline proceedings with respect to a violation.

Section 117

Analysis

This clause makes technical and consequential amendments to increase administrative monetary penalties.

Clause 117

This clause amends s.4(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations to increase by forty times the minimum amount of penalties resulting from a series of minor violations that shall be considered a serious violation for the purpose of s.73.21 of the Act; i.e. from $10,000 to $400,000.

Section 118

Analysis

This clause makes increases administrative monetary penalties by a factor of forty times.

Clause 118

This clause amends s.5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations to increase by forty times the monetary limits for administrative monetary penalties for prescribed violations; specifically up to $40,000 for a 'minor', $4,000,000 for a 'serious', and $20,000,000 for a 'very serious' violation.

Section 119

Analysis

This clause makes the contravention of the new overarching requirement for reporting entities to establish and maintain an effective, risk-based, and reasonably designed AML/ATF compliance program a violation subject to a very serious violation.

Clause 119

This clause amends Part 1 of the Schedule to the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations to classify as 'very serious' the administrative monetary penalty for violation of the new new overarching requirement for reporting entities to establish and maintain an effective, risk-based, and reasonably designed AML/ATF compliance program.

Section 120

Analysis

This clause increases the administrative monetary penalties for contravention of existing compliance program requirements.

Clause 120

This clause amends Part 2 of the Schedule to the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations to re-classify the existing administrative monetary penalties for the existing six specific compliance program requirements from 'serious' to 'very serious'.

Section 121

Analysis

This clause defines the terms for the purposes of the transitional provisions of the measures to increase penalties.

Clause 121

This clause defines the terms for the purposes of transitional provisions. The transitional provisions clarify which of the new measures, penalties, and procedures apply to violations committed before and after the coming into force of this section.

Section 122

Analysis

This clause clarifies that the new penalties can only apply to violations committed after the coming into force of the section.

Clause 122

This clause contains a transitional provision, which clarifies that violations committed before the coming into force of this section cannot be subject to the new measures, penalties, and procedures.

Section 123

Analysis

This clause clarifies that the new penalties can only apply to violations committed after the coming into force of this section.

Clause 123

This clause contains a transitional provision, which clarifies that only violations committed on or after the coming into force of this section can be subject to the new measures, penalties, and procedures.

Section 124

Analysis

This clause stipulates the enrolment scheme will come into force after the development of regulations.

Clause 124

This clause stipulates that the coming into force of the proposed enrolment scheme would be fixed by an order of the Governor in Council. All other amendments would come into force upon Royal Assent.

Section 125

Analysis

Amends the Office of the Superintendent of Financial Institutions Act to make the Director of the Financial Transactions and Reports Analysis Centre of Canada a member of the Financial Institutions Supervisory Committee established under subsection 18(1) of that Act.

Clause 125

This clause amends sub-section 18(1) of the Office of the Superintendent of Financial Institutions Act to add the Director of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to the Financial Institutions Supervisory Committee (FISC).

Section 126

Analysis

Amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to enable the Director to exchange information with the other members of the Financial Institutions Supervisory Committee (FISC).

For clarity, this clause indicates that the Director may disclose information under subsection (1) only if it relates to compliance with Part 1 or 1.1 of the PCMLTFA.

Clause 126

This clause amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) by adding sub-section 53.4(1) to enable the Director of FINTRAC to disclose and collect from the other members of FISC any information that relates to the purpose of FISC.

This clause further clarifies, by adding sub-section 53.4(2) to the PCMLTFA, that the Director of FINTRAC may disclose information under sub-section 53.4(1) only if it relates to the compliance of institutions with Part 1 or 1.1 of the PCMLTFA.

Section 127

Clause 127(1)

• Present Section: 2(1) The purpose of this Act is to help police services prevent and investigate crimes of a sexual nature by requiring the registration of certain information relating to sex offenders.
• Proposed Section: Subsection 2(1) of the Sex Offender Information Registration Act is replaced by the following:
  • 2(1) The purpose of this Act is to help police services and other law enforcement agencies prevent and investigate crimes of a sexual nature by requiring the registration of certain information relating to sex offenders.
• Reason for change: The term "police services" excludes any other agencies that have the capacity to support the prevention and investigation of crimes of a sexual nature, but may not fall within the narrow scope of "police services". The proposed amendment is intended to broaden the purpose of the Act by including "and other law enforcement agencies", which will capture the other agencies – both domestic and international – that are involved in these efforts. Amending to "law enforcement agencies" reflects the realities of multi-agency public safety collaboration to use the National Sex Offender Registry to prevent and investigate crimes of a sexual nature. Furthermore, the proposed amendment reinforces international cooperation in managing the movement of sex offenders in other jurisdictions where border and immigration agencies are acknowledged as partners in public safety efforts.

Clause 127(2)

• Present Section: 2(2)(a) in the interest of protecting society through the effective prevention and investigation of crimes of a sexual nature, police services must have rapid access to certain information relating to sex offenders;
• Proposed Section: Paragraph 2(2)(a) of the Act is replaced by the following:
  • 2(2)(a) in the interest of protecting society through the effective prevention and investigation of crimes of a sexual nature, police services and other law enforcement agencies must have rapid access to certain information relating to sex offenders;
• Reason for change: As the Act is currently written, only "police services" are recognized as needing rapid access to certain sex offender information. However, the term "police services" may not capture all agencies that are involved in preventing and investigating crimes of a sexual nature. Accordingly, the proposed amendment would broaden the Act to include "and other law enforcement agencies" to ensure the relevant agencies have rapid access to certain sex offender information.

Clause 127(3)

• Present Section: 2(2)(c)(i) the information be collected only to enable police services to prevent or investigate crimes of a sexual nature, and
• Proposed Section: Subparagraph 2(2)(c)(i) of the Act is replaced by the following:
  • 2(2)(c)(i) the information be collected only to enable police services and other law enforcement agencies to prevent or investigate crimes of a sexual nature, and
• Reason for change: The proposed amendment recognizes that "police services" may not capture all agencies that play a role in preventing and investigating crimes of a sexual nature. The proposed amendment would broaden the Act by including "and other law enforcement agencies" to ensure the Act is reflective of the agencies involved in this effort.

Section 128

Clause 128(1)

Proposed change only to the English version of the Act.

• Present Section: 3(1)(b) in an area in which an aboriginal police service is responsible for policing, a member of that police service. (member d'un service de police)
• Proposed Section: Paragraph (b) of the definition member of a police service in subsection 3(1) of the English version of the Act is replaced by the following:
  • 3(1)(b) in an area in which an Indigenous police service is responsible for policing, a member of that police service. (member d'un service de police)
• Reason for change: The term Indigenous reflects the language used by the Government of Canada to respect the rights of Indigenous Peoples and mirrors the language within the United Nations Declaration of the Rights of Indigenous Peoples.

Clause 128(2)

• Present Section: None.
• Proposed Section: Subsection 3(1) of the Act is amended by adding the following in alphabetical order:
  • Indigenous governing body means a council, government or other entity that is authorized to act on behalf of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982. (corps dirigeant autochtone)
• Reason for change: The proposed amendment would add a definition of "Indigenous governing body" to assist in the interpretation of a separate, newly proposed amendment to the Act – included below in Clause 134(5). Namely, the separate proposed amendment to the Act would allow for sex offender information to be disclosed to an Indigenous governing body to assist in the prevention or investigation of a crime of a sexual nature.

Section 129

Clause 129

• Present Section: 4(1)(d) they are released from custody after serving the custodial portion of a sentence for the offence in connection with which the order is made.
• Proposed Section: Paragraph 4(1)(d) of the Act is replaced by the following:
  • 4(1)(d) they are released from custody on the expiry of the sentence for the offence in connection with which the order is made or on statutory release, full parole or day parole, as those terms are defined in subsection 99(1) of the Corrections and Conditional Release Act, or work release as defined in subsection 18(1) of that Act.
• Reason for change: The current wording of the Act is ambiguous and lends itself to misinterpretation. Namely, the current phrasing could be misinterpreted to mean that the obligation to report only begins when the individual is no longer under correctional supervision (i.e., reaches warrant expiry date), which is not accurate. Thus, the proposed amendment provides clarity by explicitly indicating that an individual is obligated to report even if they are under some form of correctional supervision (e.g., statutory release, full parole, or day parole).

Section 130

Clause 130(1)

• Present Section: None.
• Proposed Section: Subsection 4.1(1) of the Act is amended by adding the following after paragraph (b):
  • 4.1(1)(b.01) within seven days after a change to the license plate number, make, model, body type, year of manufacture or colour of a motor vehicle that is registered in their name or that they use regularly or, if they are required to report to a registration centre designated under the National Defence Act, within 15 days after the change;
• Reason for change: As the legislation currently reads, registered sex offenders must report their motor vehicle information to a registration centre, but there is no obligation to report any subsequent changes to their motor vehicle information. In essence, the registered sex offender could report their vehicle information and then immediately change it without having to advise the registration centre. This omission impacts the accuracy of the information on the National Sex Offender Registry. Accordingly, the proposed amendment would require registered sex offenders to report any changes to their motor vehicle information after the change.

Clause 130(2)

• Present Section: 4.1(1)(c) at any time between 11 months and one year after they last reported to a registration centre under this Act.
• Proposed Section: Paragraph 4.1(1)(c) of the Act is replaced by the following:
  • 4.1(1)(c) within 30 days before each anniversary of the day on which they were required to report to a registration centre under subsection 4(1) or (2), as the case may be.
• Reason for change: This amendment would provide uniformity and further clarity as to when sex offenders are required to report to a registration centre.

Section 131

Clause 131

• Present Section: 5(3) When a sex offender reports to a registration centre in person, the person who collects the information referred to in subsection (1) may record any observable characteristic that may assist in identification of the sex offender, including their eye colour and hair colour, and may require that their photograph be taken.
• Proposed Section: Subsection 5(3) of the Act is replaced by the following:
  • 5(3) When a sex offender reports to a registration centre in person, the person who collects the information referred to in subsection (1) may record any physical characteristic that may assist in the sex offender's identification, including their eye colour, hair colour and any tattoos and distinguishing marks, and may require that the sex offender's photograph be taken
• Reason for change: The current verbiage in the legislation is vague and limits the ability of the official at the registration centre to record all of the sex offender's characteristics that may assist in their identification. Amending the language in the Act from "observable characteristics" to "physical characteristics" both enhances and clarifies what characteristics the official has the authority to record. Furthermore, this will support a more uniform interpretation and application of the subsection, as well as minimize misinterpretation.

Section 132

Clause 132

• Present Section: None.
• Proposed Section: Section 6 of the Act is amended by adding the following after subsection (1.02):
  • 6(1.03) For greater certainty, the death of a family member of the sex offender, a critical illness affecting a family member of the sex offender or another family emergency may constitute a reasonable excuse, having regard to the circumstances.
• Reason for change: Currently in the Act, subsection 6(1.02) provides an exception to sex offenders who have a reasonable excuse for not complying with their registration requirements within the prescribed timeline. The proposed amendment is intended to provide clarity as to what constitutes "a reasonable excuse".

Section 133

Clause 133

• Present Section: None.
• Proposed Section: The Act is amended by adding the following after section 15.2:
  • 15.3 The Canada Border Services Agency may disclose the following information in respect of a sex offender to a member or employee of, or a person retained by, a law enforcement agency for the purpose of the administration or enforcement of this Act:
    1. the surname, first name and middle names, any alias, the date of birth, the citizenship or nationality and the sex of the sex offender;
    2. the type and number of each travel document that identifies the sex offender and the name of the country or organization that issued it;
    3. the date, time and place of the sex offender's departure from Canada, their country of destination, the date, time and place of their arrival in Canada and the last country from which they arrived; and
    4. in the case of an arrival in or departure from Canada by aircraft, the flight code that identifies the air carrier, as defined in subsection 3(1) of the Aeronautics Act, and the flight number.
• Reason for change: Currently, the Canada Border Services Agency is limited to only a few data elements in their ability to advise Canadian law enforcement agencies of a sex offender's return to Canada. The intent of the proposed amendment is to authorize the Canada Border Services Agency to disclose limited, specific travel-related information about sex offenders to Canadian law enforcement agencies for the purpose of administering the Act. This proposed amendment will expand lawful information sharing between the Canada Border Services Agency and domestic law enforcement.

Section 134

Clause 134(1)

• Present Section: 16(2)(b.1) a person who collects information at a registration centre designated under the National Defence Act who consults the information to verify compliance by a sex offender who is subject to the Code of Service Discipline — or who is an officer, or non-commissioned member, of the primary reserve as defined in section 227 of the National Defence Act — with an order or with an obligation under section 490.019 or 490.02901 of the Criminal Code, section 227.06 of the National Defence Act or section 36.1 of the International Transfer of Offenders Act;
• Proposed Section: Paragraph 16(2)(b.1) of the Act is replaced by the following:
  • 16(2)(b.1) a member or employee of, or a person retained by, a police service who consults information at a registration centre designated under the National Defence Act to verify compliance by a sex offender who is subject to the Code of Service Discipline — or who is an officer, or non-commissioned member, of the primary reserve as defined in section 227 of the National Defence Act — with an order or with an obligation under section 490.019 or 490.02901 of the Criminal Code, section 227.06 of the National Defence Act or section 36.1 of the International Transfer of Offenders Act;
• Reason for change: In the Act currently, subsections 16(2)(a) and (b) state "a member or employee of, or a person retained by, a police service". Therefore, the proposed amendment to subsection 16(2)(b.1) is intended to align the language.

Clause 134(2)

• Present Section: None.
• Proposed Section: Subsection 16(2) of the Act is amended by adding the following after paragraph (c):
  • 16(2)(c.1) a member or employee of, or a person retained by, the Canada Border Services Agency who consults the information in order to exercise the functions or perform the duties assigned to them under an Act of Parliament;
• Reason for change: The proposed amendment provides the Canada Border Services Agency with the explicit authority to consult the information obtained under the Act in order to perform their duties. One way in which the information could be used is to create a lookout flag to alert Border Services Officers of certain information about the sex offender. It would contain information that links to CBSA's program legislation but it cannot fetter the Officers discretion in how the border examination occurs. For example, if the sex offender is known to possess items prohibited under the Custom Tariff, like child pornography or other obscene material, this is information relevant to how the Officer may choose to conduct the progressive examination.

Clause 134(3)

• Present Section: 16(4)(c) unless the disclosure is to a member or an employee of, or a person retained by, a police service and is necessary
• Proposed Section: The portion of paragraph 16(4)(c) of the Act before subparagraph (i) is replaced by the following:
  • 16(4)(c) unless the disclosure is to a member or employee of, or a person retained by, a law enforcement agency and there are reasonable grounds to believe that the disclosure will:
• Reason for change: The current language in the Act was drafted to protect the privacy rights of registrants and limit the misuse of registry information. However, operational experience has since shown that this language negatively impacted law enforcement's ability to receive registry information to prevent and investigate crimes of a sexual nature. The proposed amendments would broaden who information can be disclosed to and lower the threshold for disclosing that information, while continuing to protect the privacy rights of registrants.

Clause 134(4)

Proposed change only to the English version of the Act.

• Present Section: 16(4)(c)(i) to enable them to investigate an offence under section 17 or to lay a charge for such an offence,
  • (i.1) to enable them to verify the sex offender's compliance with section 5,
  • (ii) to enable them to prevent or investigate a crime of a sexual nature, an offence under section 119.1 of the National Defence Act, an offence under section 490.031 or 490.0311 of the Criminal Code or an offence under either of those provisions that is punishable under section 130 of the National Defence Act or to enable them to lay a charge for such an offence,
  • (iii) to enable them to investigate a criminal offence or a service offence within the meaning of subsection 2(1) of the National Defence Act or to lay a charge for such an offence, as long as the investigation or charge results from an investigation referred to in subparagraph (ii), or
  • (iv) to enable them to obtain a warrant under subsection 490.03121(1) of the Criminal Code and execute the warrant;
• Proposed Section: Subparagraphs 16(4)(c)(i) to (iv) of the English version of the Act are replaced by the following:
  • 16(4)(c)(i) assist them in the investigation of an offence under section 17 or in the laying of a charge for such an offence,
  • (i.1) assist them in the verification of the sex offender's compliance with section 5,
  • (ii) assist them in the prevention or investigation of a crime of a sexual nature, an offence under section 119.1 of the National Defence Act, an offence under section 490.031 or 490.0311 of the Criminal Code or an offence under either of those provisions that is 30 punishable under section 130 of the National Defence Act or assist them in the laying of a charge for such an offence,
  • (iii) assist them in the investigation of a criminal offence or a service offence, as defined in subsection 2(1) of the National Defence Act or in the laying of a charge for such an offence, as long as the investigation or charge results from an investigation referred to in subparagraph (ii), or
  • (iv) assist them in obtaining a warrant under sub-section 490.03121(1) of the Criminal Code and executing the warrant;
• Reason for change: The current language in the Act was drafted to protect the privacy rights of registrants and limit the misuse of registry information. However, operational experience has since shown that this language negatively impacted law enforcement's ability to receive registry information to prevent and investigate crimes of a sexual nature. The Act currently suggests that sex offender information can be disclosed if it will necessarily achieve a definite outcome (e.g., "necessary to enable them to prevent or investigate a crime of a sexual nature").

In combination with the proposed amendments included in Clause 134 (3), the proposed amendment herein would lower the threshold and permit disclosure if there are reasonable grounds to believe that it will assist law enforcement agencies in the prevention or investigation of a crime of a sexual nature.

Clause 134(5)

• Present Section: None.
• Proposed Section: Subsection 16(4) of the Act is amended by adding the following after paragraph (c):
  • 16(4)(c.1) unless the disclosure is made to a victim of or witness to a crime of a sexual nature by a member or employee of, or a person retained by, a law enforcement agency who received the information under paragraph (c) and there are reasonable grounds to believe that the disclosure will assist in the investigation of the crime;
  • (c.2) unless the disclosure is to a department or agency of the Government of Canada or of a provincial, territorial or municipal government in Canada or to an Indigenous governing body and there are reasonable grounds to believe that the disclosure will assist in the prevention or investigation of a crime of a sexual nature;
• Reason for change: Currently, the Act does not explicitly permit the sharing of sex offender information with victims or witnesses of sex crimes, as well as federal, provincial, territorial, or municipal government agencies – all of which may be involved in the prevention or investigation of crimes of a sexual nature. The proposed amendments would permit authorized persons to disclose information to these specified parties to assist in the prevention or investigation of a crime of a sexual nature.

Clause 134(6)

• Present Section:
  • 16(4)(j.1) unless the disclosure is to a member or an employee of, or a person retained by, a police service outside Canada and is necessary to assist them in the prevention or investigation of a crime of a sexual nature;
  • (j.2) unless the disclosure is to the Canada Border Services Agency, is limited to the information referred to in paragraphs 5(1)(a), (b), (i) and (j) and is necessary to assist a member or an employee of, or a person retained by, a police service in the prevention or investigation of a crime of a sexual nature or an offence under section 490.031 or 490.0311 of the Criminal Code or in the laying of a charge for such an offence;
• Proposed Section: Paragraphs 16(4)(j.1) and (j.2) of the Act are replaced by the following:
  • 16(4)(j.1) unless the disclosure is to a member or employee of, or a person retained by, a law enforcement agency outside Canada and there are reasonable grounds to believe the disclosure will assist them in the prevention or investigation of a crime of a sexual nature;
  • (j.2) unless the disclosure is to the Canada Border Services Agency, it is limited to the information referred to in paragraphs 5(1)(a), (b), (i) and (j) and there are reasonable grounds to believe that it will assist a member or employee of, or a person retained by, a law enforcement agency in the prevention or investigation of a crime of a sexual nature or an offence under section 490.031 or 490.0311 of the Criminal Code or in the laying of a charge for such an offence;
• Reason for change: The term "police service" is not defined in the Act, and could be seen as very narrow in scope – especially outside of Canada. The term "law enforcement agency" has a broader scope of application to allow for the sharing of information with foreign agencies that prevent or investigate crimes of a sexual nature, but are not considered a police service. Furthermore, the Act currently stipulates that information can be shared if it is "necessary to assist" in the prevention or investigation of a crime of a sexual nature. This is a high threshold that authorized persons must meet in order to share information. The proposed amendments would lower this threshold and aims to increase the ability to share information by stipulating that information can be shared if "there are reasonable grounds to believe" that disclosure will assist in the prevention or investigation of a crime of a sexual nature.

Section 135

Clause 135

• Present Section: Section 17 Every person who knowingly contravenes any of subsections 16(1) to (5) is guilty of an offence and liable on summary conviction to a fine of not more than $10,000 or to imprisonment for a term of not more than six months, or to both.
• Proposed Section: Section 17 of the Act is replaced by the following:
  • 17(1) Every person who knowingly contravenes any of subsections 16(1) to (5) is guilty of an offence and liable on summary conviction to a fine of not more than $10,000 or to imprisonment for a term of not more than six months, or to both.
  • (2) For greater certainty, a person is not guilty of an offence under subsection (1) if they believed that they were acting in accordance with section 16.
• Reason for change: The proposed amendment clarifies that, if an individual unknowingly contravenes subsections 16(1) to (5), they are not guilty of an offence. Thus, this amendment is intended to alleviate the fear of reprisal an authorized person may have while operating in accordance with subsections 16(1) to (5).

Section 136

Clause 136

Proposed change is only to the English version of the Act.

• Present Section: The following provisions in the Act use the word "gender":
  • (a) paragraph 5(1)(b);
  • (b) subparagraph 8(a)(vi);
  • (c) paragraph 8.1(1)(g); and
  • (d) paragraphs 8.2(1)(f) and (2)(g).
• Proposed Section: The English version of the Act is amended by replacing the word "gender" with the word "sex" in the following provisions:
  • 5(1)(b) their date of birth and sex;
  • 8(a)(vi) the age and sex every victim of the offence or offences, and the victim's relationship to the person,
  • 8.1(1)(g) the age and sex of every victim of the offence or offences, and the victim's relationship to the person;
  • 8.2(1)(f) the age and sex of every victim of the offence or offences, and the victim's relationship to the person;
  • 8.2(2)(g) the age and sex of every victim of the offence or offences, and the victim's relationship to the person;
• Reason for change: The proposed amendment is intended to reflect how information is actively captured in the National Sex Offender Registry. Additionally, the research on sex offenders that underpins the risk assessment tools used by the RCMP is based on the sex of the offender and the victim, rather than their gender. Thus, capturing the sex of the sex offender and their victim supports the RCMP's ability to accurately complete risk assessments. Furthermore, the proposed amendment is intended to align the Sex Offender Information Registration Act with other legislation including the Customs Act.

Section 137

Clause 137

Related Amendments to the Customs Act.

• Present Section: None.
• Proposed Section: Subsection 107(5) of the Customs Act is amended by adding the following after paragraph (l.3):
  • 107(5)(l.4) any person who may receive information under section 15.2 or 15.3 of the Sex Offender Information Registration Act, solely for the purpose for which the information is provided;
• Reason for change: The proposed amendment permits officials as defined in section 107 of the Customs Act to provide information collected under the Sex Offender Information Registration Act.