The proposed legislation, if it becomes law, will implement a free and publicly accessible beneficial ownership registry of all corporations incorporated under the Canada Business Corporations Act (CBCA).

Corporations will have to disclose certain information to a central registry maintained by the federal government.

Impacted entities will be required to certain requirements, including:

• Provide the name of the individual with significant control, their address for service (if applicable), their residential address as well as any other prescribed information.

• Identify all individuals with significant control over the corporation and ensure, at least on an annual basis, that the information in the Register is accurate, complete and up-to-date.

• Determine the content and format of the information to be provided

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act will be amended to reflect these requirements.

Non-compliance will result in administrative sanctions and criminal penalties of up to $200,000 and/or six months imprisonment.

Bill C-42 received its first reading in Parliament on March 22, 2023.