The federal government is considering imposing fines of up to $1 million on individuals and organizations for failing to adhere to the rules of its forthcoming foreign influence transparency registry. Recently released draft regulations mark a significant step towards establishing this registry, which was mandated by legislation passed in 2024 to combat foreign interference.
The proposed regulations outline key terms and specify the information that individuals and entities must provide when engaging with foreign principals, defined as entities controlled by foreign governments, to influence Canadian political or government activities. According to Ottawa, the registry is necessary because countries involved in foreign interference may deploy individuals to act on their behalf without disclosing these connections.
Various entities, including individuals, businesses, non-profits, and educational institutions, will be required to register with the federal government to prevent such activities. The public registry will contain information about the parties involved in the arrangements, details about the foreign principal, and specifics of each agreement, including its purpose and the types of influence activities undertaken.
An independent commissioner, yet to be appointed, will oversee the registration process, which will be enforced through notifications, monetary penalties, and potentially criminal repercussions for severe violations. The proposed regulations aim to provide Canadians with transparency regarding foreign influence activities and enforcement actions taken.
The government anticipates approximately 1,767 annual registrants, with an additional 54 new registrations each year. Canada is trailing behind key allies like the United States, the United Kingdom, and Australia in implementing legislation to address covert foreign influence. The proposed regulations aim to bridge this gap by establishing a robust transparency framework aligned with global best practices, enhancing Canada’s credibility as a reliable partner in advancing global security and safeguarding democratic institutions.
Violations under the regime could include failure to disclose information within 14 days of engaging with a foreign principal or providing false information to the commissioner knowingly. The proposed regulations set out administrative fines for infractions ranging from $50 to $1 million, taking into account factors such as compliance history, intent of the violation, financial capacity, and cooperation with the commissioner.
Additionally, the commissioner may enter into compliance agreements with offenders, potentially resulting in reduced penalties or no penalties if specified conditions are met within an agreed timeframe. Public Safety Canada consulted various stakeholders, including provincial governments, civil society organizations, and national security experts, to inform the proposed regulations.
Interested parties have a 30-day window to provide feedback on the proposed regulations, which are available in the Canada Gazette.