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.