The federal government has put forward a proposal to impose fines of up to $1 million on individuals and organizations for not adhering to the stipulations of its forthcoming foreign influence transparency registry. Recently released draft regulations mark progress towards establishing the registry, mandated by legislation enacted in 2024 as part of a strategy to combat foreign interference.
The draft regulations outline essential terms and requirements for individuals and entities engaging with foreign principals, which are entities controlled by foreign governments, to influence Canadian political or governmental activities. The purpose of the registry, according to Ottawa, is to address situations where countries involved in foreign interference may deploy undisclosed individuals to further their political objectives.
Various entities, including individuals, businesses, non-profit organizations, and educational institutions, would be obliged to register with the federal government to help deter such activities. Information in the public registry would encompass identifying details of parties involved in arrangements, information about the foreign principal, and specifics of each arrangement, including its purpose and the nature of influence activities.
An independent commissioner, yet to be appointed, will oversee the registration process, enforced through notifications, financial penalties, and potentially criminal repercussions for severe violations. The proposed regulations aim to provide Canadians with a transparent tool to monitor and address foreign influence activities, fostering public reassurance about the management of such engagements.
The government anticipates approximately 1,767 submissions annually by registrants, with 54 new registrants each year. Canada lags behind key allies like the United States, the United Kingdom, and Australia in enacting dedicated legislation to counter covert foreign influence, and the proposed regulations aim to bridge this gap by aligning with international best practices.
Under the envisaged regime, violations could include failure to provide required information promptly after entering into agreements with foreign principals or knowingly providing false details to the commissioner. Penalties for breaches would range from $50 to $1 million, with factors such as compliance history, intent, financial capacity, and cooperation influencing the fine determination process.
Furthermore, the proposed regulations empower the commissioner to enter into compliance agreements, potentially reducing or waiving penalties if specified conditions are met within an agreed timeframe. Public Safety Canada engaged various stakeholders, including governments, civil society organizations, and national security experts, in consultations to shape the draft regulations.
Interested parties have a 30-day window to provide feedback on the proposed regulations, available in the Canada Gazette.
