The Canadian government is suggesting penalties of up to $1 million for individuals and organizations that do not meet the requirements of the planned foreign influence transparency registry. Recently released draft regulations mark progress towards establishing the 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, who are entities controlled by foreign governments, to influence Canadian political or government activities. The government in Ottawa argues that the registry is necessary because foreign countries involved in interference may hire individuals to act on their behalf without disclosing these connections.
Various entities, including individuals, businesses, non-profits, and educational institutions, would be required to register with the federal government to help prevent such activities. Information in the public registry would include details about the parties involved in an arrangement, the foreign principal, and the purpose and nature of each arrangement.
An independent commissioner, who is yet to be named, will oversee the registration process, with enforcement actions including notices, fines, and potentially criminal penalties for serious violations. The government emphasizes that the proposed regulations aim to provide transparency to Canadians, allowing them to easily identify those engaged in foreign influence activities and any enforcement actions taken.
The government estimates that around 1,767 registrants would submit information annually, with an additional 54 new registrants each year. Canada has been trailing behind countries like the United States, the United Kingdom, and Australia in implementing legislation to address covert foreign influence. The proposed regulations seek to align Canada with international best practices, enhancing the country’s reputation as a reliable partner in global security and safeguarding democratic institutions.
Violations under the regime could include failure to provide timely information after entering into an agreement with a foreign principal or providing false information. The proposed regulations set out administrative monetary penalties ranging from $50 to $1 million, with fines determined based on 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 reducing or eliminating penalties if specified conditions are met within an agreed timeframe. Public Safety Canada engaged with various stakeholders, including governments, civil society organizations, and national security experts, to shape the proposed regulations. The public has a 30-day window to provide feedback on the regulations, available in the Canada Gazette.