Order Fixing January 22, 2024 as the Day on Which Sections 431 to 433 of the Budget Implementation Act, 2022, No. 1 Come into Force: SI/2023-62
Canada Gazette, Part II, Volume 157, Number 21
Registration
SI/2023-62 October 11, 2023
BUDGET IMPLEMENTATION ACT, 2022, NO. 1
Order Fixing January 22, 2024 as the Day on Which Sections 431 to 433 of the Budget Implementation Act, 2022, No. 1 Come into Force
P.C. 2023-960 September 28, 2023
Her Excellency the Governor General in Council, on the recommendation of the Minister of Industry, under section 435 of the Budget Implementation Act, 2022, No. 1, chapter 10 of the Statutes of Canada, 2022, fixes January 22, 2024 as the day on which sections 431 to 433 of that Act come into force.
EXPLANATORY NOTE
(This note is not part of the Order.)
Proposal
Pursuant to section 435 of the Budget Implementation Act, 2022, No. 1 (the Act), this Order fixes January 22, 2024, as the day on which sections 431 to 433 of that Act come into force.
Objective
The objective of this Order is to bring into force legislative amendments to the Canada Business Corporations Act (CBCA) to require certain corporations to send information on its individuals with significant control (ISC) to the Director appointed under the CBCA and to allow the Director to provide all or part of that information to an investigative body, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) or any prescribed entity.
Background
Increasing corporate transparency has been an ongoing international concern. As a G7 and G20 country and as a member of the Financial Action Task Force, Canada has committed to implementing standards on beneficial ownership and corporate control transparency.
Since June 13, 2019, certain corporations under the CBCA have been required to create and maintain a register of ISC. An ISC is an individual who owns or controls a corporation. Corporations are required to identify the individuals who have significant control over the corporation and must document their information in their ISC register.
Amendments to the CBCA were included in the Budget Implementation Act, 2022, No. 1, which received royal assent on June 23, 2022, to require these CBCA corporations to send the information on its ISC to the Director under the CBCA and to allow the Director to provide all or part of the ISC information to investigative bodies, FINTRAC or a prescribed entity.
Implications
The sections will come into force on January 22, 2024. Once in force, certain corporations under the CBCA will be required to send to the Director information on its individuals with significant control on or after incorporation, amalgamation and continuance annually, and when a change in the information occurs. These amendments will provide greater access to information surrounding the ownership and control of federal business corporations. This information will help law enforcement agencies and federal tax authorities investigate activities such as money laundering and tax evasion.
Consultation
The sections being brought into force were reviewed through the parliamentary process. Innovation, Science and Economic Development Canada (ISED) has actively engaged with key stakeholders (for example transparency organizations, business associations, professional associations, investigative bodies) about the legislative changes. ISED also continues to engage key stakeholders as well as the general public throughout the implementation process.
Contact
Genevieve Gobeil
Acting Senior Policy Manager
Corporations Canada
Innovation, Science and Economic Development Canada
Telephone: 1‑866‑333‑5556
Email: ic.corporationscanada.ic@ised-isde.gc.ca