The Foreign Influence Transparency and Accountability Act[1] and accompanying Regulations[2] will come into force on August 4, 2026, establishing Canada’s long awaited foreign agent registry.
The regime requires registration on a publicly searchable registry of businesses, organizations and individuals who enter arrangements with foreign principals to communicate with public office holders, to disseminate information by any means in Canada (including through social media), or who distribute money, items or services, in relation to Canadian political or governmental processes.
While the registry is aimed at combatting foreign influence in Canadian politics and government, its compliance net is much wider.[3] The registration requirements are likely to capture ordinary commercial dealings well beyond explicit work for other countries.
Companies, organizations and individuals (including consultants, advisers and other third parties) operating in Canada will need to consider whether their relationships with foreign governments, state-owned enterprises, international organizations and other foreign-linked entities involve any activities connected to Canadian political or governmental processes.
Public office holders include virtually every elected official, public servant, and employee at every level of government in Canada (including officers and employees of municipal boards and school boards).
Who must register?
Registration is required by any business, organization, individual, or other entity that enters into an arrangement with a foreign principal to communicate with public office holders, to disseminate information by any means including social media, or to distribute money, items or services, in relation to a Canadian political or governmental process.[4]
An arrangement may be written or unwritten, formal or informal, and need not involve payment.
Foreign principal is broadly defined, but generally includes any foreign state (recognized or not), a group of foreign states (for example, the United Nations) or a group trying to become one, along with:
- Anything it controls, or substantially owns (for example, a state-owned enterprise), and
- Anyone acting at its direction, for its benefit, or in association with it.
A political or governmental process is a federal, provincial, territorial, or municipal process[5], and includes:
- Any proceeding of a legislative body
- Development of a legislative proposal
- Development or amendment of any policy or program
- Decision-making by a public office holder or government body, including the awarding of a contract
- An election
- A referendum
- Nomination of a candidate
- Development of a political party’s election platform
Public office holders include virtually every elected official, public servant, and employee at every level of government in Canada (including officers and employees of municipal boards and school boards).[6]
What must be disclosed?
The Act requires the disclosure of extensive information, including details about:
- The business, organization or individual that has entered into the arrangement with the foreign principal[7]
- The foreign principal[8]
- The arrangement’s start and end dates
- The political or government process at issue
- Compensation or other benefits provided to the registrant by the foreign principal
- The types of influence activities contemplated and the targets of certain activities
The information that must be filed with the Commissioner and published on the foreign agent registry varies depending on the specific type of activity that is being carried out as part of the arrangement.
Deadlines to register
Registration is required within 14 days of entering into a new arrangement.[12] The practical result is that registration is required regardless of whether any communication with public office holders ultimately occurs. As in the case of Canadian federal lobbying law, one may be convicted for mere failure to register without ever making a communication.[13]
An arrangement already in place on August 4 must be registered by October 3.[14]
Continuous disclosure obligations
Information provided to the Commissioner must be updated within 14 days of any change.[15]
Significant penalties and enforcement powers
The Act gives a new Commissioner[16] significant investigative and enforcement powers, including the same powers as a court to interview, to compel testimony, and to require the production of documents.[17]
Each of failing to make a required filing on the new foreign agent registry, providing false or misleading information, and obstructing the Commissioner, is an offence punishable upon criminal conviction by a maximum fine of C$5 million, up to five years’ imprisonment, or both.[18]
As an alternative to criminal prosecution, the regime allows the Commissioner to impose an administrative monetary penalty of up to C$1 million.[19] The administrative enforcement process will be a summary procedure that lacks many protections available to defendants at trial. Robust, proactive compliance is the best way to avoid costly investigation and enforcement.
The Commissioner is required to publish the details of a violation found under the Act, the name of the person who committed it, and the amount of the penalty.[20]
The regime’s recognition of a due diligence defence for certain offences means that businesses and organizations will benefit from the protection of a well-structured and documented compliance process.[21]
Limited exemptions
Certain arrangements are exempt from registration, but the exemptions are largely confined to arrangements involving Canadian public-sector bodies acting in their official capacities. Certain accredited foreign representatives (e.g., diplomats) and employees of a foreign principal acting openly in their official capacities are also exempt from registration.
Notably, there are no sector-specific exemptions for ordinary commercial activity, universities, charities, non-profit entities and media organizations.
Lobbyist registration not sufficient
A corporation or organization whose employees, directors or members are already registered as lobbyists under the federal Lobbying Act or provincial, territorial or municipal lobbying laws is not exempt from compliance with its registration obligations under the new foreign agent registry.
Prepare now for compliance
Early inventory of a company’s or organization’s existing arrangements with foreign entities is essential to determine whether registration is required within 60 days after the Act comes into force. Businesses and organizations should also develop policies and procedures to assess and structure future engagements, to reduce uncertainty and to ensure that all required disclosure is accurate, complete and defensible.
An organization that may qualify as a foreign principal, such as a state-owned enterprise or public institution, that is not itself required to register, should still consider whether it has arrangements with representatives who may be required to register. Even where the legal filing obligation falls on the representative, a failure to register could create reputational and commercial risk to the foreign principal. Build processes and plans on guidance from legal experts with demonstrated experience in Canadian political law compliance, regulatory disclosure, and transparency legislation.
If you have any questions about managing the impact of Canada’s new foreign agent registry, please contact the authors or any other member of the Fasken Political Law team.
