Federal Corporations Must Report ISC
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
This order sets January 22, 2024 as the day sections 431–433 of the Budget Implementation Act, 2022, No. 1 come into force. As of that date, certain corporations governed by the Canada Business Corporations Act must send information on their individuals with significant control (ISC) to the CBCA Director, who may share it with investigative bodies, FINTRAC, or prescribed entities.
- Published
- October 11, 2023
- Department
- Unavailable
- Section
- 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
- Comment deadline
- Unavailable
- Effective date
- January 22, 2024
- Publication part
- Part II
Summary
Summary#
This order (SI/2023-62) sets January 22, 2024 as the day that Sections 431 to 433 of the Budget Implementation Act, 2022, No. 1 come into force. In practice, it activates changes to the Canada Business Corporations Act (CBCA) that require certain federal corporations to send information about individuals with significant control to the Director and allow that information to be shared with investigative bodies such as FINTRAC.
What it does#
- Brings Sections 431 to 433 of the Budget Implementation Act, 2022, No. 1 into force on January 22, 2024.
- Requires certain corporations governed by the Canada Business Corporations Act (CBCA) to send information about their individuals with significant control (ISC) to the Director appointed under the CBCA:
- at incorporation, amalgamation or continuance;
- every year; and
- whenever the ISC information changes.
- Allows the Director to provide all or part of the ISC information to:
- investigative bodies;
- FINTRAC (the Financial Transactions and Reports Analysis Centre of Canada); or
- any other entity that may be prescribed.
Who's affected#
- Certain federally incorporated companies governed by the Canada Business Corporations Act (CBCA). The order says “certain corporations”; the source does not list every type affected.
- Corporate owners and individuals who qualify as an individual with significant control (their information must be reported).
- Law enforcement, federal tax authorities, and other investigative bodies that can receive ISC information.
- Innovation, Science and Economic Development Canada (ISED) has been involved in consultations and will be part of implementation work.
Why it matters#
- It increases transparency about who owns and controls federal corporations.
- That information will be available to investigators and to FINTRAC, which can help detect and investigate issues like money laundering and tax evasion.
- For affected corporations, it creates new reporting steps and likely some extra compliance work when companies are formed, change control, or update records.
Key topics
Source: Canada Gazette