OTTAWA – The Canadian federal government has introduced draft regulations aimed at enforcing a new foreign influence transparency registry, proposing fines of up to $1 million for entities that fail to comply. This initiative is part of legislation passed in 2024, designed to counteract foreign interference in Canadian political and governmental processes.
The draft regulations delineate key terms and the specific information that individuals and organizations must provide when they enter into agreements with foreign principals for the purpose of influencing Canadian political activities. The government emphasizes that the creation of this registry is essential due to the risks posed by countries that may engage in foreign interference, utilizing agents who do not disclose their affiliations.
Expected registrants for the foreign influence transparency registry include individuals, businesses, non-profit organizations, and educational institutions, all of which will be required to register with the federal government. The public registry aims to enhance transparency by providing clear information regarding who is involved in foreign influence activities, what those activities entail, and any enforcement actions that may be taken. Information in the registry will encompass identifying details about the registrants, particulars about foreign principals, and descriptions of the agreements, including their intended purposes and the nature of the influence activities.
An independent commissioner, still to be appointed, will oversee the registration process, which is to be enforced through notifications, fines, and, in the most severe cases, criminal penalties. A federal notice accompanying the draft highlights that the mandated disclosure will furnish Canadians with an accessible resource, thereby increasing public confidence in the monitoring of foreign influence activities.
The Canadian government anticipates that approximately 1,767 registrants will submit information annually, with an additional 54 new registrants expected each year. The regulation aims to bolster Canada's standing relative to key allies like the United States, the United Kingdom, and Australia, who have already implemented similar measures to combat covert foreign influence.
The draft regulations are crafted to align with best international practices, thereby augmenting Canada’s credibility as a partner in promoting global security and safeguarding democratic institutions. Potential violations under this scheme include failing to provide necessary information within 14 days of entering an agreement with a foreign principal, or knowingly supplying false or misleading information to the commissioner.
The proposed regulations outline a range of administrative monetary penalties for violations, ranging from $50 to a substantial $1 million. In determining the amount of a fine, the commissioner will consider several factors, including the violator's history of compliance, the intentionality behind the infraction, financial capacity, and cooperation with the regulatory authority following a notice of violation.
Moreover, the regulations allow for the possibility of compliance agreements, which may lead to reduced penalties or even waivers of fines if the individual or organization can fulfill specified conditions within an agreed-upon timeframe.
Public consultations conducted by Public Safety Canada have involved various stakeholders, including provincial and territorial governments, civil society organizations, diaspora communities, public interest law firms, international partners, and national security experts. The public now has a 30-day window to comment on the proposed regulations, which are published in the Canada Gazette.
