C-2 – The Strong Borders Act – introduces some significant new powers around how we manage our borders. It’s split into 16 parts, and today we’re looking at Parts 10 to 12.
You can find Parts 1 to 5 here, Parts 6 to 9 here, and 13 to 16 here.
Part 10 – Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Various Measures)
Part 10 is all about money laundering and pretty much just makes things a lot stricter. For example, the maximum penalty for a person is increased from $100k to $4 million, and from $500k to $20 million if it’s an organization, and there’s ways to make it go higher than that depending on the amount of money being moved. Businesses will be required to enroll with FINTRAC, and FINTRAC will be able to investigate anyone that they believe should be enrolled but isn’t. (Note that the businesses required to enroll will all be ones that deal with large amounts of money and/or can easily be used for money laundering, such as casinos, banks, and life insurance companies. This won’t affect your standard small business.)
Part 11 – Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Cash Transactions)
Easy one here, Part 11 makes it so you can’t make cash payments, deposits, or donations of $10,000 or more. It’ll be an offence to accept any cash payments this big unless you have an exemption.
Part 12 – Legislation Related to Financial Institutions (Supervisory Committee)
Part 12’s a short one, it makes it so the Director of the Financial Transactions and Reports Analysis Centre of Canada a member of the committee responsible for handling how financial institutions should be regulated. This Part also allows the Director to share any information they think is important with other members of the committee.
Progress of C-2
C-2 is currently waiting for its Second Reading vote.
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