Part 1, Volume 158 #48
Highlights
- The Canadian International Trade Tribunal addressed complaints about procurement processes and trade issues, including the dumping of certain products.
- The Minister of Citizenship and Immigration limited new refugee sponsorship applications for 2024 and 2025 to manage intake.
- The Minister of the Environment waived certain data requirements for companies under environmental regulations.
- The Government of Canada is seeking diverse candidates for various positions, emphasizing a transparent and respectful workplace.
- Financial institutions and companies are undergoing structural changes, including capital reductions and business transfers.
- Proposed regulations under the Proceeds of Crime Act focus on reporting and record-keeping for imported and exported goods to combat financial crime.
- Canada’s AML/ATF regime is being updated to address new risks, improve transparency, and align with international standards, with significant financial and regulatory changes planned.
Canadian Tribunal and Commission Decisions on Trade, Procurement, and Broadcasting
The Canadian International Trade Tribunal made a determination regarding a complaint by Fraser River Pile & Dredge (GP) Inc. about a procurement process for a wharf reconstruction project, finding the complaint valid due to alleged irregularities. The Tribunal also found that the dumping and subsidizing of certain pea protein from China caused injury to the domestic industry. An inquiry was initiated into a complaint by Quatrex Environnement Inc. about a non-compliant proposal in a procurement by the National Research Council of Canada. The Tribunal continued its finding on the dumping of corrosion-resistant steel sheets from several countries, maintaining duties to address the issue. The Canadian Radio-television and Telecommunications Commission announced consultations and decisions, including a decision involving the Canadian Broadcasting Corporation. The Public Service Commission of Canada granted permission to several public servants to seek nomination and candidacy in various municipal and federal elections, with some being granted leave of absence during the election period. [Source]
Government Updates on Immigration, Environmental Waivers, and Job Opportunities
The Minister of Citizenship and Immigration has issued instructions to limit new Private Sponsorship of Refugees (PSR) applications to zero for 2024 and 2025 to manage intake and meet admission targets without increasing application inventories. These instructions apply to groups defined in the Immigration and Refugee Protection Regulations and exclude applications under a temporary public policy. Humanitarian and compassionate requests accompanying unaccepted applications will not be processed. The instructions are effective from November 29, 2024, to December 31, 2025.
The Minister of the Environment has waived certain information requirements for living organisms and substances under the Canadian Environmental Protection Act, 1999. Waivers were granted to various companies, allowing them to bypass specific data requirements related to environmental and health impacts. These decisions are made on a case-by-case basis in consultation with the Minister of Health.
The Department of Public Safety and Emergency Preparedness has designated Vivian Lau as a fingerprint examiner for the Royal Canadian Mounted Police.
The Government of Canada is seeking diverse candidates for various Governor in Council positions, emphasizing a transparent, merit-based appointment process that reflects Canada’s diversity and promotes a respectful, harassment-free workplace. Current opportunities include positions in organizations such as the Bank of Canada, Canada Deposit Insurance Corporation, and Canadian Human Rights Commission, among others. [Source]
Corporate Capital Reduction, Branch Expansion, Liquidation, and Reinsurance Agreement Plans
BNY Trust Company of Canada plans to apply for approval to reduce the stated capital of its common shares by up to $26.5 million, as per a special resolution passed by its sole shareholder. The reduction will be distributed to the sole shareholder, and the Chief Financial Officer will determine the exact amount within the authorized limit.
Chang Hwa Commercial Bank, Ltd., based in Taipei, Taiwan, intends to apply for permission to establish a full-service branch in Toronto, Canada. Objections to this proposal can be submitted to the Office of the Superintendent of Financial Institutions by January 20, 2025.
Green Shield Canada received approval for voluntary liquidation and dissolution, planning to transfer its business to Green Shield Canada Insurance and distribute remaining property to Green Shield Association.
RGA Life Reinsurance Company of Canada intends to apply for approval to enter into an Assumption Reinsurance Agreement with RGA Reinsurance Company, transferring all insurance liabilities of its Indian Branch to RGA Re. The agreement and related documents will be available for inspection at RGA’s head office for 30 days following the notice’s publication. [Source]
Regulations on Reporting and Record-Keeping for Imported and Exported Goods
The proposed regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act focus on the reporting and record-keeping requirements for imported and exported goods. Declarations must align with the Customs Act, and specific provisions are made for non-commercial passenger conveyances. Importers, exporters, producers, suppliers, distributors, and consumers must maintain detailed records for six years, including information on the origin, cost, and sale of goods. Special requirements apply to CSA importers, sufferance warehouses, and bonded warehouses. Retention notices must be given within specified timeframes, and penalties for violations range from $1 to $500, depending on disclosure and intent. Violations can lead to administrative monetary penalties, and decisions can be appealed to the Federal Court. The regulations also outline the process for issuing and correcting notices of violation, payment of penalties, and the recovery of debts due to the Crown. The document emphasizes the importance of compliance and the consequences of non-compliance, including the potential for financial penalties and legal proceedings. [Source]
Canada updates AML/ATF regime to combat financial crime and enhance transparency
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, and align with international standards set by the Financial Action Task Force (FATF). The proposed amendments include six key measures: requiring traders to report goods importation and exportation to the Canada Border Services Agency (CBSA) to combat trade-based financial crime; enhancing information sharing among reporting entities while protecting privacy; improving corporate beneficial ownership transparency; introducing AML/ATF requirements for factoring companies, cheque-cashing businesses, and financing or leasing entities. These changes aim to mitigate money laundering and terrorist financing risks, create a level regulatory playing field, and improve Canada’s international reputation.
The rationale for these amendments is to protect the integrity of Canada’s financial system and national security by addressing specific money laundering and terrorist financing risks. The changes will help Canada meet international obligations and improve its standing in the upcoming FATF evaluation. The amendments are expected to cost $74.3 million over ten years but offer significant non-monetized benefits, such as enhancing global AML/ATF framework integrity and Canada’s international reputation.
The amendments address issues like trade-based financial crime, which involves manipulating trade transactions to launder money. The CBSA will gain authority to detect and disrupt such activities. Information sharing among private entities will be improved to better detect financial crimes, while maintaining privacy protections. Discrepancy reporting will ensure accurate beneficial ownership information, reducing the use of anonymous shell companies for illicit activities. Factoring companies, cheque-cashing businesses, and financing and leasing entities will be brought under AML/ATF regulations to close regulatory gaps and align with FATF standards.
Consultations with stakeholders, including industry associations and government agencies, informed the development of these proposals. The amendments are designed to balance regulatory burden with the need to address identified risks. The changes will be implemented with a staggered approach to allow businesses and government agencies time to adjust. The CBSA, FINTRAC, Corporations Canada, and the Office of the Privacy Commissioner will oversee compliance and enforcement of the new regulations. [Source]