The Government of Canada has released proposed regulations (Draft Regulations) to the Foreign Influence Transparency and Accountability Act (Act) for public consultation. Members of the public have only until February 2, 2026, to respond to the Draft Regulations that have important compliance implications for activities that remain legal but will now be subject to increased public scrutiny and registration requirements.
The Act was designed to curb foreign interference and increase the transparency of foreign influence in Canada’s political and governmental processes. It provides for the creation of a public Foreign Influence Transparency Registry (Registry) overseen by a new Foreign Influence Transparency Commissioner (Commissioner). However, as we previously explained in our May 2024 Blakes Bulletin, the Act requires registration of a wide range of legitimate commercial activities on behalf of foreign public-sector entities.
Who Needs to Register?
As explored more fully in our May 2024 bulletin, this could impose registration requirements on, amongst others, Canadian banks, financial services, law firms, accounting firms, consultants, government relations agencies, public relations agencies, charities and media organizations.
Canadian businesses and organizations may need to register under the Act where each of the following are true:
- They have foreign clients or customers that are foreign governments or foreign state-owned enterprises, such as media, financial institutions, energy companies, government agencies, sovereign wealth funds, investment vehicles, infrastructure authorities and pension funds
- In their work for the foreign clients, the Canadian business or organization communicates with government officials, disseminates information (including by social media or any other means), distributes money or items of value, provides a service or provides use of a facility
- The foregoing is “in relation to a political or governmental process,” such as legislation, regulations, government policy, government contracts, government decisions, elections, referendums, nominations or platform development
The Draft Regulations do very little to clarify or narrow the scope of registration required. Rather, the new Draft Regulations simply provide clarity on the information that must be provided to the Commissioner, the deadline for providing such information and the consequences of non-compliance.
What Information Must be Reported to the Commissioner?
The Draft Regulations prescribe the information that must be disclosed to the Commissioner and the information that will be made available on the Registry.
Upon entering into an arrangement with a foreign principal, individuals and businesses have 14 days to submit a registration that includes basic information on the registrant, including their name and any alternate names, trade names or operational names, corporate information, and employment information (as applicable). Information must be updated monthly if it changes.
Registrations must also include the full name of every individual who has participated in, or is expected to participate in, the influence activities “in a significant manner.” The Draft Regulations do not define, however, the threshold of activity that constitutes a “significant manner.” The Act provides the Commissioner with broad powers to issue interpretive guidance regarding the application of the Act, and we anticipate a future Commissioner will establish a threshold for participation in a “significant manner” in activities that require registration.
Required information about the foreign principal and the “arrangement” includes:
- The name of the foreign principal, along with a link to its website
- An indication of the basis on which it meets the definition of a “foreign principal”
- The start and end dates of the arrangement with the foreign principal (actual or anticipated)
- The political process to which the arrangement relates
- The targets of the influence activities (i.e., who the activities seek to influence)
- The foreign principal’s stated objective under the arrangement
- The type of arrangement
- Specific details related to the influence activities and the targets thereof
In addition to the information set out above, which is made available to the public, the Draft Regulations require confidential reporting of certain information, including citizenship, birth dates, personal address and, particularly unusual, compensation details for the registrant.
What Are the Enforcement Tools and Penalties for Non-Compliance?
The Draft Regulations establish administrative monetary penalties ranging from C$50 to C$1-million. There is also potential criminal liability for failing to comply with the registration regime or obstructing or misleading the Commissioner, which includes fines of up to C$5-million (indictment) or C$200,000 (summary conviction) and imprisonment of up to five years.
What Happens Now?
The Act and Draft Regulations are not yet in force. Businesses and organizations have until February 2, 2026, to submit feedback on the Draft Regulations. The Act will come into force on a date determined by the government, once the Draft Regulations are finalized.
Those who wish to provide submissions on the Draft Regulations, or understand how they may be impacted by the foreign influence regime once the consultation window closes, should contact us for a discussion of their options. For further information, please contact Alexis Levine or Elder Marques, or any other member of our Public Sector Crisis & Compliance group.
