Financial Crime World

Title: Canada Cracks Down on White-Collar Crime and Finance: A Comprehensive Overview of Foreign Corruption, Antitrust Laws, Securities Prosecutions, and More

Canada’s regulators and law enforcement agencies are taking robust actions to combat white-collar crimes and improper business practices. Recent initiatives, such as remediation agreements, the Serious Fraud Office in Ontario, and whistleblower incentives and protections, represent the country’s determination to uphold complex financial regulations.

Canadian businesses must comply with a multifaceted set of rules and statutes concerning potential misconduct, including:

  1. Foreign Corruption
    • The Corruption of Foreign Public Officials Act (CFPOA) of 1998 prohibits Canadians and corporations from offering bribes to foreign public officials.
    • Noncompliance results in significant fines and imprisonment for individuals and corporations.
  2. Antitrust/Competition Law
    • The Competition Act, enacted in 1890, monitors anticompetitive practices, making price fixing and bid-rigging illegal.
    • Penalties include up to 14 years in prison and CAD 25 million fines for individuals and companies.
  3. Securities Prosecutions
    • Securities offenses, including insider trading and fraud, are regulated by the provinces and territories.
    • Penalties include imprisonment and fines.
  4. Fraud
    • Criminal fraud is a commonly prosecuted offense, with penalties including fines and imprisonment.
    • Ontario’s Serious Fraud Office was established in 2018 to coordinate investigations into economic crimes.
  5. Corporate Criminal Liability
    • Canada’s Supreme Court recognizes corporate criminal liability for senior officers involved in criminal activities on behalf of their organizations.
  6. Regulatory Prosecutions
    • Compliance with various economic, environmental, and occupational health and safety regulations is essential to avoid investigations and penalties.
  7. Private Prosecutions
    • Citizens may initiate prosecutions for criminal offenses by laying an information and providing notice to the Attorney General.
  8. Anti-Money Laundering and Terrorist Financing
    • The Proceeds of Crime (Money Laundering) and Terrorist Financing Act of 2000 targets the financing of criminal and terrorist activities by imposing obligations on certain businesses and granting investigative powers to authorities.
  9. Whistleblower Protections
    • Multiple laws, including the Criminal Code, securities legislation, financial services legislation, and occupational health and safety regulations, offer protections for employees who report violations of these laws.

Safeguarding Your Business

Canadian companies are expected to be well-versed in these areas and should seek the guidance of competent legal professionals to ensure compliance with the country’s intricate financial regulations and avoid potential legal violations.

Key Compliance Points

  • Stay informed about the evolving regulatory landscape and updates on Canadian financial regulations.
  • Establish and maintain robust internal controls and compliance training programs for employees.
  • Engage experienced legal professionals to provide counsel on complex regulatory matters and potential violations.
  • Familiarize yourself with your industry’s regulatory regimes and best practices.
  • Develop a culture of transparency and ethical conduct within your organization.
  • Implement effective anti-money laundering and counter-terrorist financing protocols.
  • Establish and maintain effective whistleblower procedures.
  • Cooperate fully with investigating and law enforcement authorities in the event of suspected violations or investigations.