The government is considering imposing fines of up to $1 million on individuals and organizations who fail to adhere to the rules of the planned foreign influence transparency registry. The recently released draft regulations are a significant move toward establishing the registry, which was mandated by legislation passed in 2024 to combat foreign interference.
These proposed 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 government activities. The purpose of the registry, according to Ottawa, is to address the issue of undisclosed ties when foreign countries manipulate individuals to advance political agendas.
Various entities, including individuals, businesses, non-profit organizations, and educational institutions, are expected to register with the federal government to prevent such activities. The public registry would contain information about the parties involved, the foreign principal, and details of the arrangements, including their purpose and the types of influence activities conducted.
An independent commissioner, who is yet to be appointed, will oversee the registration process, with enforcement mechanisms including notices, fines, and potential criminal penalties for serious violations. The proposed regulations aim to provide transparency and accessibility for Canadians to monitor foreign influence activities and enforcement actions taken.
The government anticipates approximately 1,767 registrants annually, with 54 new registrants each year. Canada is lagging behind key allies in implementing dedicated legislation to tackle covert foreign influence, such as the United States, the United Kingdom, and Australia. Aligning with international best practices, the proposed regulations aim to enhance Canada’s credibility as a trusted partner in global security and the protection of democratic institutions.
Violations under the regime could result from failing to provide timely information after entering into agreements with foreign principals or providing false information to the commissioner. Penalties for violations would range from $50 to $1 million, determined based on factors like compliance history, intent, financial capacity, and cooperation with the commissioner.
The commissioner would have the authority to enter into compliance agreements, potentially reducing or waiving penalties for those meeting specified conditions within an agreed period. Public consultations involving various stakeholders, including governments, civil society organizations, and national security experts, were conducted to inform the proposed regulations.
Interested parties have a 30-day window to provide feedback on the proposed regulations, available in the Canada Gazette for review.