Hon. Victor Oh: Honourable senators, I rise today to speak at third reading of Bill C-42, An Act to amend the Canada Business Corporations Act and to make consequential and related amendments to other Acts.

This bill aims to safeguard Canadians from the threats of money laundering and terrorist financing, discourage tax evasion and avoidance and maintain Canada’s reputation as a favourable destination for conducting business. To meet those objectives, the government is implementing a publicly accessible beneficial ownership registry of corporations governed under the Canada Business Corporations Act, or CBCA.

Experts believe that this legislation will have a substantial impact on discouraging money laundering within the country. Internationally, among anti-corruption organizations, and notably among facilitators and criminals, Canada has gained a reputation as the “snow-washing” destination of the world. Right now, according to a Canadian Security Intelligence Service 2020 report, it’s estimated that $45 billion to $113 billion is laundered annually in Canada.

Bill C-42 will dispel that perception and will deter criminals who wish to take advantage of corporations governed under the CBCA. Transnational criminal groups will need to reconsider their shareholding structures or their strategies before infiltrating Canada’s economy. We need to put an end to those who seek to exploit Canada as a haven for their criminal activities.

The publicly available beneficial ownership registry proposed in Bill C-42 aligns with the practices of the G20 and Five Eyes nations. If Canada were to pass this legislation, as indicated by experts in committee, the country would make substantial progress on the global stage regarding beneficial ownership regulation.

Similar actions have already been taken in jurisdictions around the world. Among the Five Eyes nations, the implementation of this registry would place Canada on the same level as the United Kingdom and New Zealand, both of which are establishing publicly accessible registries. Additionally, Australia is also committed to developing a publicly accessible registry. Canada’s new public registry would be on par with what our allies have developed. This would ensure interoperability.

Bill C-42 is critically necessary to make a true difference in the fight against illicit financial activities around the world. However, there are some issues to consider when implementing a system of this nature.

First, the public disclosure of an individual’s information can raise concerns regarding privacy and the protection of personal security rights. I highlighted this issue as one that needed to be examined in committee during my previous speech. In fact, privacy and personal security rights were the reason a similar public registry in Europe was held to be invalid by the Court of Justice of the European Union in 2022. This highlights the implications that a public registry can have on beneficial owners’ rights and the balance between the public’s right to information and an individual’s right to privacy.

Second, interoperability on an international scale is important to detect the complex structures used by criminals. However, we need to make sure the registry is truly pan-Canadian with the inclusion of provincially and territorially incorporated corporations. If provinces and territories are not included, bad actors can incorporate under their laws and escape the proposed national registry altogether.

At this time, there seems to be no set agreement with any provinces or territories to adhere to the new system or to enable provincially or territorially incorporated corporations to transmit beneficial ownership data directly to the federal registry. Ministers Champagne and Freeland have written to their provincial and territorial counterparts urging them to take part in the system. However, I am not aware of any confirmation that the provinces or territories will do so.

Bill C-42 represents a pivotal step in ensuring the integrity of our financial system and safeguarding our nation against the misuse of corporate structures for illicit activities. With this legislation, Canada can further align itself with global standards in the fight against money laundering, tax evasion and corruption.

We will be supporting this bill at third reading. Thank you.