Order Fixing the Day on Which this Order Is Made as the Day on Which Section 192 of the Budget Implementation Act, 2023, No. 1 Comes into Force: SI/2025-3

Canada Gazette, Part II, Volume 159, Number 1

Registration
SI/2025-3 January 1, 2025

BUDGET IMPLEMENTATION ACT, 2023, NO. 1

Order Fixing the Day on Which this Order Is Made as the Day on Which Section 192 of the Budget Implementation Act, 2023, No. 1 Comes into Force

P.C. 2024-1338 December 16, 2024

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, under subsection 210(3) of the Budget Implementation Act, 2023, No. 1, chapter 26 of the Statutes of Canada, 2023, fixes the day on which this Order is made as the day on which section 192 of that Act comes into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

Pursuant to subsection 210(3) of the Budget Implementation Act, 2023, No. 1 (the Act), this Order in Council fixes the day on which this Order is made as the day on which section 192 of the Act comes into force.

Objective

The objective of the Order is to bring into force an amendment to the Proceeds of Crime (Money Laundering) and Terrorism Financing Act (PCMLTFA), introduced through the Act. This amendment would allow the Director of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to disclose information to the Minister of Finance, or to an officer of the Department of Finance, upon request, for the purposes of determining whether to grant, revoke, suspend or amend an “approval” in respect of a federally regulated financial institution (FRFI); or, in exercising the Minister of Finance’s authorities under the Retail Payment Activities Act (RPAA) to address national security risks related to retail payment service providers.

The Minister of Finance, or an officer of the Department of Finance, has discretion over whether to make the request and the FINTRAC Director has discretion over whether to respond to the request.

Background

The Minister of Finance is responsible for the oversight of Canada’s financial sector, which underpins a sound and stable Canadian economy. Among other duties, the Minister of Finance is responsible for approving the incorporation, continuation, merger of FRFIs and their significant shareholders (i.e. above 10%), and has the authority to impose terms and conditions, or amend or revoke approvals under the Bank Act, the Insurance Companies Act, and the Trust and Loan Companies Act to ensure a strong, stable, and competitive financial sector. The Minister of Finance also has authorities under the RPAA to address national security risks related to retail payment service providers.

FINTRAC is Canada’s financial intelligence unit and anti-money laundering/anti-terrorist financing supervisor. FINTRAC ensures the compliance of businesses subject to the PCMLTFA and associated regulation. Based on its data holdings, FINTRAC also produces analysis and intelligence which helps to combat money laundering, terrorist financing, sanctions evasion, and threats to the security of Canada. FINTRAC is an arm’s length agency that falls under the Minister of Finance’s statutory responsibility.

Budget 2023 announced legislative amendments to address emerging risks to Canada’s financial sector, including from foreign interference. The new section 53.32 of the PCMLTFA received royal assent on June 22, 2023, and would be brought into force on a date fixed by the Governor in Council. The Order is being advanced following due diligence to meet federal privacy and record-keeping requirements and engagement with FINTRAC related to the use of the new provision.

Implications

The Order would, on the day it is made, allow the FINTRAC Director to disclose information to the Minister of Finance, or an officer of the Department of Finance, upon request, for the purposes of determining whether to grant, revoke, suspend or amend an “approval” in respect of an FRFI; or, in exercising the Minister of Finance’s authorities under the RPAA to address national security risks related to retail payment service providers. The provision would allow the Minister of Finance to request FINTRAC financial intelligence in circumstances where, for example, there is an urgent situation or where it may help address a material knowledge gap related to safeguarding financial integrity or national security.

Consultation

The Government of Canada announced its intention to amend the PCMLTFA to improve information sharing between FINTRAC and the Department of Finance, including on national security risks, in Budget 2023. The legislative provision was introduced in the Budget Implementation Act, 2023, No. 1, with a coming-into-force date to be determined by order in council. The Department has since been working with FINTRAC, and they are ready to implement upon receipt of the request from the Department of Finance.

Contact

Erin Hunt
Director General
Financial Crimes and Security Division
Financial Sector Policy Branch
Department of Finance
90 Elgin Street
Ottawa, Ontario
K1A 0G5