SoVote

Decentralized Democracy

House Hansard - 215

44th Parl. 1st Sess.
June 16, 2023 10:00AM
Context: House Hansard - 215 - Jun/16/23
Mr. Patrick Weiler
  • Jun/16/23 10:23:27 a.m.
  • Watch
Madam Speaker, the letter was seeking to specifically understand each jurisdiction's particular needs and any supports required to facilitate their participation in a pan-Canadian system. During the committee hearings, requests were heard to lower the ownership threshold to disclosure from 25% to 10%. First, it is important to point out that the decision to adopt a 25% threshold was made in 2018, and it was approved by Parliament in 2019 in Bill C-86. With that said, the government does not support lowering the ownership threshold from 25% to 10%, because doing so could introduce significant interoperability issues. The 25% threshold makes the most sense for the following reasons: It is in line with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, Canada's anti-money laundering and anti-terrorism financing legislation. It also aligns with the beneficial ownership thresholds put in place by Canadian provinces, including Quebec and British Columbia. It is also in line with the ownership threshold adopted in all major jurisdictions in the world, including the U.S., the U.K., the European Union and Japan. Finally, it is compliant with the G20 and the norms set by the G20's Financial Action Task Force. It should be emphasized that lowering the ownership threshold is not necessary to uncover significant control. Individuals who have a right to or actually exercise significant influence or control over a company are still required to be registered, even if they own less than 25% of the shares. To ensure the effectiveness of the new registry, it is crucial for Canada to stay in line with domestic and international norms. Otherwise, the data it collects would not be interoperable or comparable; this would create both a significant burden on businesses and a significant challenge in ensuring compliance. Lowering the ownership threshold from 25% to 10% will take us out of alignment with best practices, both domestically and internationally; therefore, it is not recommended by the government. The lack of beneficial ownership transparency is impairing Canada's ability to combat serious financial crimes, such as fraud, money laundering and tax evasion. It also limits our capacity to enforce domestic and international sanctions and to effectively trace and freeze financial assets. Finally, it is impacting the trust of Canadians and foreign investors in our marketplace. Our inability to quickly and quietly identify a company's beneficial owner delays criminal investigations; denies law enforcement leads to potential suspects, witnesses and evidence; and impairs the identification and seizure of suspected proceeds of crime. It also reduces the ability of private businesses to protect themselves. It is clear that the registry proposed by this bill and the interoperability measures that form part of the regime would significantly improve Canada's ability to fight financial crime. It would help public authorities verify owners across corporate layers, help businesses better validate the identity of their trading partners and render more difficult the use of corporations for illicit activities. Future areas that should be examined to improve our ability to ascertain the beneficial owners of assets include bringing in new requirements for foreign companies doing business in Canada to disclose their beneficial owners, as well as for the Government of Canada to play a coordinating role in assisting the provinces and territories to establish a pan-Canadian land ownership registry. This registry would be able to work in concert with the corporate beneficial ownership registry. It would dovetail the important legislative changes to improve our ability to tackle financial crime that were announced in this year's budget implementation act. A forthcoming review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act will surely identify further measures to take. I hope all members of this House will join me in supporting this important bill's passage so that we can continue to improve our ability to protect Canada from financial crime and the illicit activities that it supports.
655 words
  • Hear!
  • Rabble!
  • star_border
Context: House Hansard - 215 - Jun/16/23
Mr. Brad Vis (Mission—Matsqui—Fraser Canyon, CPC)
  • Jun/16/23 10:27:23 a.m.
  • Watch
Madam Speaker, Mission—Matsqui—Fraser Canyon is Canada's number one riding. I will just note that, during the witness testimony, we heard from Transparency International and the RCMP that the standard practice the government keeps talking about was not actually a standard practice; it was just a norm that became adopted. I fail to see why the government sees such an impediment to decreasing the threshold, as if it were going to suddenly stop us from doing more work. The RCMP wants it. The leading experts in Canada on money laundering think lowering the threshold is a good idea. As well, in conjunction with lowering the threshold, more businesses, under the federal corporations act, would be included. I should point out that we did not even have a chance to discuss the stacking of corporations in conjunction with the change in thresholds as well. I do not know why the government is so stuck on not doing this. The RCMP thought it would be a good—
170 words
  • Hear!
  • Rabble!
  • star_border