Highlights

  • CFIA updated its Fees Notice for feed-related services to improve clarity and transparency.
  • CITT is reviewing the expiry of orders on dumping and subsidizing certain goods from China and other countries.
  • CRTC posted new decisions and consultation notices with deadlines for comments.
  • Canadian Transportation Agency adjusted maximum freight charges.
  • Amendments to Express Entry System require additional applicant information.
  • New study permit instructions include a cap on applications and require provincial attestation.
  • Proposed agreement with Saskatchewan on methane release regulations open for comments.
  • Health Canada withdrew guidelines for 1,1-dichloroethylene in drinking water.
  • Various government appointments were made.
  • New standards for radio apparatus and testing laboratories released.
  • Applications for Governor in Council positions are open, emphasizing diversity and inclusion.
  • Campbellford Seymour Electric Generation Inc. applied for a replacement license.
  • Raymond James Trust (Québec) Ltd. and Solus Trust Company plan to amalgamate.
  • Santander Consumer entities plan to amalgamate into Santander Consumer Bank.
  • Unifund Assurance Company seeks approval to reinsure policy liabilities with Belair Insurance Company Inc.
  • New equivalency agreement with Saskatchewan on methane emissions aims to reduce regulatory overlap.
  • Proposed order to extend Saskatchewan’s exemption from federal coal-fired electricity regulations.
  • Updates to Canada’s AML/ATF regime to address new risks and align with international standards.
  • Proposed regulations to enhance transparency and accountability in financial transactions, particularly in real estate and automated banking.

Regulatory Updates on CFIA Fees, CITT Trade Reviews, CRTC Decisions, and Freight Charge Adjustments

The Canadian Food Inspection Agency (CFIA) has updated its Fees Notice to align with the new Feeds Regulations, 2024. The changes include updated terminology and a restructured table for services related to feed approval, registration, renewal, and amendment. The new structure clarifies the assessment process for single ingredient and mixed feeds, reflecting the modernized regulatory framework. The amendments do not alter the actual fees but improve clarity and transparency.

The Canadian International Trade Tribunal (CITT) is initiating an expiry review of its order concerning the dumping and subsidizing of certain silicon metal from China. The Canada Border Services Agency (CBSA) will first determine if the expiry of the order will likely result in continued dumping or subsidizing. If so, the Tribunal will then assess if this would harm the domestic industry. The review process includes deadlines for participation and submissions, with a public hearing scheduled for February 2025.

The CITT has also continued its order on the dumping of certain carbon steel welded pipe from several countries, including Korea, India, and the UAE, and the subsidizing of these goods from India.

The Canadian Radio-television and Telecommunications Commission (CRTC) has posted new decisions and notices of consultation on its website, with deadlines for interventions and comments.

The Canadian Transportation Agency has adjusted the maximum amount of freight charges to $2,410,000 for the three-year period ending March 31, 2027, as required by the Canada Transportation Act. [Source]

Updates on Immigration, Environmental Regulations, Health Guidelines, and Government Appointments

The Minister of Citizenship and Immigration has issued amendments to the Ministerial Instructions for the Express Entry System, adding requirements for applicants to indicate their current residence in Canada, the province of their work experience, and details about their education in Canada, including whether they attended a designated learning institution.

New instructions for study permit applications now require a provincial or territorial attestation letter confirming the applicant has a space within the provincial allocation. The total number of study permit applications accepted for processing is capped at 606,250 for one year, with certain categories of applications exempt from this cap.

The Minister of the Environment has made available a proposed agreement with Saskatchewan regarding methane release regulations in the oil and gas sector. Comments or objections can be submitted within 60 days.

The Minister of the Environment has also amended the Non-domestic Substances List by removing specific substances, effective upon the corresponding amendment to the Domestic Substances List.

Health Canada has withdrawn the guidelines for 1,1-dichloroethylene in drinking water, as it is unlikely to be found at harmful levels. Health guidance can be requested if contamination occurs.

Several appointments have been made to various government positions, including chairpersons, directors, judges, and commissioners across different organizations and courts.

Innovation, Science and Economic Development Canada has released new standards and procedures for radio apparatus and the recognition of testing laboratories and certification bodies.

The Government of Canada is seeking applications for various Governor in Council positions, emphasizing diversity, inclusion, and a harassment-free work environment. [Source]

Regulatory Updates on Power Generation, Trust Companies, Bank Amalgamations, and Insurance Reinsurance

Campbellford Seymour Electric Generation Inc. has applied for a replacement license to continue operating its power development near Trent Hills, Ontario, along the Trent Severn Waterway. Interested parties have 30 days to submit comments or objections to the Director of Water-Power, Parks Canada Agency.

Raymond James Trust (Québec) Ltd. (RJTQ) has filed a draft application to become a federally incorporated, non-deposit taking trust company. Additionally, RJTQ and Solus Trust Company have applied for amalgamation, with the resulting entity named Solus Trust Company. Objections to these applications can be submitted to the Office of the Superintendent of Financial Institutions (OSFI) by August 20, 2024.

Santander Consumer Bank, Santander Consumer Finance Inc., and Santander Consumer Inc. plan to amalgamate into a single entity named Santander Consumer Bank, with its head office in Edmonton, Alberta. This amalgamation is contingent on receiving an Order to Commence and Carry On Business from the Superintendent of Financial Institutions.

Unifund Assurance Company intends to apply for approval to reinsure substantially all its policy liabilities with Belair Insurance Company Inc. through three separate tranches covering different segments of its insurance business. Policyholders can inspect the reinsurance agreements at Unifund’s head office and request copies by writing to the company. [Source]

Saskatchewan and Federal Government Negotiate New Methane Emission Agreement for 2025-2029

The current equivalency agreement between the Canadian federal government and Saskatchewan, which exempts the province from federal methane emission regulations, is set to expire at the end of 2024. A new agreement is being negotiated as Saskatchewan has introduced additional regulatory measures expected to achieve equivalent methane emission reductions from 2025 to 2029. This new agreement aims to avoid regulatory overlap and reduce the reporting burden.

The federal regulations, introduced in 2018 and effective from 2020, set standards to reduce methane emissions from the upstream oil and gas sector. Saskatchewan’s own regulations, effective from 2019, have been recognized as achieving similar outcomes. The new agreement will continue this approach, ensuring Saskatchewan’s regulations achieve equivalent emission reductions to the federal standards.

Under the Canadian Environmental Protection Act, 1999, equivalency agreements allow provincial laws to replace federal regulations if they achieve equivalent environmental outcomes. The new agreement will be reviewed annually and includes provisions for information sharing and enforcement.

Saskatchewan’s updated regulations and directives are expected to achieve cumulative methane emission reductions of 40.8 megatonnes (Mt) of CO2e from 2025 to 2029, compared to 41.0 Mt under federal regulations. This slight difference is considered equivalent. The agreement will reduce regulatory overlap and administrative costs, saving the federal government an estimated $474,188 over five years.

The proposed order will suspend the application of federal regulations in Saskatchewan, except for federal works or undertakings, and will be in effect until December 31, 2029, unless terminated earlier. The agreement ensures that Saskatchewan’s laws contain provisions similar to federal requirements for investigating environmental offences. The order aims to streamline regulatory processes and reduce the burden on the oil and gas sector while achieving equivalent environmental outcomes. [Source]

Extension of Saskatchewan’s Coal-Fired Electricity Emissions Exemption Through 2026

The current equivalency agreement between the Canadian federal government and Saskatchewan, which exempts the province from federal regulations on carbon dioxide emissions from coal-fired electricity, is set to expire at the end of 2024. The Minister of the Environment recommends extending this exemption through a new order effective January 1, 2025, based on a renewed equivalency agreement. This agreement ensures that Saskatchewan’s regulations will achieve equivalent greenhouse gas (GHG) emission reductions as the federal regulations for the period from 2025 to 2026.

The federal regulations, established in 2012 and amended in 2018, set emission standards for coal-fired electricity generation. Saskatchewan’s provincial regulations, introduced in 2018, impose GHG emission caps on large electricity generating facilities to ensure equivalent outcomes to the federal standards. The initial equivalency agreement, signed in 2019, allowed Saskatchewan to operate certain coal-fired units beyond their federally mandated end-of-life dates, provided the province met its GHG reduction targets.

The proposed renewed agreement continues to provide Saskatchewan with flexibility in its electricity sector investments, allowing the province to run specific coal-fired units while achieving equivalent GHG outcomes. Saskatchewan aims to increase its non-emitting generation capacity to 40-50% by 2030, including renewable energy sources and hydroelectric imports.

The Department of the Environment’s analysis confirms that Saskatchewan’s regulations will result in equivalent GHG emissions to the federal regulations for the 2025-2026 period. The proposed order would avoid regulatory duplication and administrative burdens, allowing Saskatchewan to continue its long-term strategy for reducing electricity sector emissions.

The proposed order would not result in additional costs and would prevent potential increases in electricity rates for consumers. It would also avoid the need for immediate compliance actions by Saskatchewan’s coal-fired units. The order includes provisions for annual reporting and data sharing between Saskatchewan and the federal government to ensure compliance with the equivalency agreement. [Source]

Canada Updates AML/ATF Regime to Enhance Compliance and Security

Canada’s anti-money laundering and anti-terrorist financing (AML/ATF) regime is being updated to address new risks and threats, implement measures from recent budgets, respond to recommendations from the 2018 Parliamentary Review and the 2022 Cullen Commission, and align with international standards set by the Financial Action Task Force (FATF). The proposed amendments include five key measures:

  1. Sanctioned Property Reporting: A new report for sanctioned property will be created to enhance the ability to utilize sanctions and address evasion, ensuring compliance with FATF obligations.

  2. Money Services Business (MSB) Registration Framework: Strengthening the MSB registration framework by requiring criminal record checks for MSB agents, chief executive officers, presidents, directors, and significant shareholders, and ensuring these individuals do not trigger ineligibility requirements.

  3. White-Label ATMs (WLATMs): Introducing AML/ATF regulatory requirements for acquirers linking WLATMs with payment systems to mitigate money laundering and terrorist financing risks.

  4. Real Estate Sector: Implementing AML/ATF requirements for title insurers and obligating real estate representatives to identify unrepresented parties and third parties in transactions to address vulnerabilities in the sector.

  5. Casino Disbursement Reporting: Requiring casinos to report the ultimate beneficiary of disbursements over $10,000 to close existing gaps and enhance transparency.

These changes aim to protect the integrity of Canada’s financial system, improve compliance with international standards, and enhance national security. The estimated cost of these amendments over ten years is $17 million, with significant non-monetized benefits such as improved global AML/ATF framework integrity and Canada’s international reputation. The amendments will come into force at different times, with some measures effective immediately and others by October 2025, allowing businesses time to adjust. FINTRAC will oversee compliance and enforcement, providing guidance and support to affected entities. [Source]

Enhanced Anti-Money Laundering and Terrorist Financing Regulations for Financial and Real Estate Sectors

The proposed regulations aim to amend certain regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Key changes include:

  1. Definitions and Reporting Requirements:
    • The definition of “listed person or entity” is expanded to include those subject to orders under the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act.
    • Reports on suspicious transactions must include detailed information about listed persons or entities and their property.
  2. Title Insurers and Real Estate:
    • Title insurers are now required to verify the identity of clients and keep detailed records of title insurance policies, including information about the property, purchase price, and source of funds.
    • Real estate brokers, sales representatives, and title insurers must verify the identity of unrepresented parties in real estate transactions.
  3. Private Automated Banking Machines (ABMs):
    • Entities providing acquirer services for private ABMs must maintain records of the owners, operators, and cash sources for these machines.
    • Detailed information about the ABM, including its location, capacity, and business relationships, must be recorded.
  4. Politically Exposed Persons (PEPs):
    • Various entities, including real estate brokers, title insurers, and dealers in precious metals, must take measures to identify PEPs and their associates when entering into business relationships or receiving large sums of money.
  5. Casino Disbursement Reporting:
    • Casinos must collect and report detailed information about persons or entities receiving disbursements on behalf of others.
  6. Implementation and Compliance:
    • The regulations specify timelines for when different sections will come into force, ensuring entities have time to comply with the new requirements.

These amendments aim to enhance transparency and accountability in financial transactions, particularly in real estate and automated banking, to combat money laundering and terrorist financing. [Source]

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