As part of a global initiative to combat money laundering, terrorist financing and tax evasion, the Canada Business Corporations Act will be amended as of June 13, 2019 by Bill C -86. From that date, corporations under federal jurisdiction (with the exception of certain categories) will be required to maintain a register of individuals with significant control. It will be necessary to drill down into the structure to identify these individuals.
This register is of a private nature, but the consultation of this register may be requested by the shareholders and creditors of the corporation, as well as their personal representatives. Some government agencies may also require consultation of this register, including Corporations Canada, any police force, the Canada Revenue Agency and any provincial body that has similar responsibilities, and some investigative bodies. With the Federal amendment, if a shareholder does not disclose, to the best of his or her knowledge, as soon as possible and in a precise and complete manner the information requested, or for a director or officer, if he consents to or incorporates false or misleading information, he or she may be exposed to a maximum fine of two hundred thousand dollars and a maximum imprisonment of six months, or one of these penalties.
Financial institutions already have a similar compliance responsibility in recent years and many use ESC Corporate Services Ltd.’s Attestanet system. We have adjusted this system for the needs of legal firms. With this tool, you have the choice to send the request for information to your customers or to enter the information for your client yourself. Learn More.
