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Canada's Fight against Foreign Bribery - twenty-fifth Annual Report to Parliament

Implementation of the Organisation for Economic Co-operation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the Enforcement of the Corruption of Foreign Public Officials Act

(September 2023 – August 2024)

Table of Contents

Highlights – September 2023 to August 2024

Background

On December 17, 1997, Canada signed the OECD Convention,[i] and Parliament passed the CFPOA to implement Canada’s obligations under the OECD Convention into Canadian law.[ii] With the adoption of the CFPOA, which received Royal Assent on December 10, 1998, the Government of Canada deposited its instrument of ratification with the OECD on December 17, 1998, thereby becoming a State Party to the OECD Convention and triggering its coming into force on February 15, 1999.[iii] Canada’s CFPOA came into force on February 14, 1999.

The OECD Convention

The OECD Convention aims to stop the flow of bribes and remove bribery as a non-tariff barrier to trade, producing a level playing field in international business. At present, there are 46 States Parties to the OECD Convention, including all 38 member states of the OECD and eight non-member states: Argentina, Brazil, Bulgaria, Croatia, Peru, Romania, Russia,[iv] and South Africa.[v] Since the OECD Convention entered into force, 687 individuals and 264 entities have been convicted or criminally sanctioned for foreign bribery, and 76 individuals and 109 entities have been convicted or criminally sanctioned for related offences (false accounting or money laundering). Furthermore, 88 individuals and 121 entities have received sanctions for foreign bribery through administrative or civil proceedings, and 76 individuals and 192 entities have received sanctions for related offences (false accounting or money laundering) through administrative or civil proceedings. Based on the most recent enforcement data published in December 2022, 481 investigations are ongoing in 35 States Parties, and 180 prosecutions are ongoing in 12 States Parties relating to offences under the OECD Convention.[vi]

Companion Instruments

The OECD Convention is supplemented by a number of companion instruments:

The 2009 Recommendation—The OECD Recommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions (2009 Recommendation)[vii] was adopted by the OECD Council[viii] on November 26, 2009, and released on December 9, 2009, on the tenth anniversary of the OECD Convention. The 2009 Recommendation aims to strengthen mechanisms for the prevention, detection and investigation of foreign bribery.

The 2021 Recommendation—In 2018, the WGB began a comprehensive review of the 2009 Anti-Bribery Recommendation to ensure it continues to reflect the range of good practices and addresses current challenges. After rigorous assessment and discussions of the 2009 Recommendation, including two rounds of extensive consultations with external partners, the 2021 Anti-Bribery Recommendation (2021 Recommendation) was adopted by the OECD Council on November 26, 2021.[ix]

The 2021 Recommendation committed Parties to the OECD Convention to take new measures to reinforce efforts to prevent, detect and investigate foreign bribery. The 2021 Recommendation includes new sections on key topics that have emerged or significantly evolved in the anti-corruption area, including strengthening the enforcement of foreign bribery laws, addressing the demand side of foreign bribery, enhancing international cooperation, introducing principles on the use of non-trial resolutions in foreign bribery cases, incentivizing anti-corruption compliance by companies, and providing comprehensive and effective protection for reporting persons.

Guidelines for Multinational Enterprises—The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (the Guidelines) contain guidance on responsible business conduct for multinational enterprises. Last updated in June 2023, the Guidelines include a chapter with recommendations to enterprises on combatting bribery and other forms of corruption. Countries adhering to the Guidelines are required to maintain National Contact Points (NCPs) to promote the Guidelines and to help resolve disputes about the observance of the Guidelines by multinational enterprises. Canada’s NCP can review instances of alleged non-observance of the Guidelines by multinational enterprises operating in or from Canada and offer its good offices to help parties resolve the issues through facilitated dialogue or mediation.

Other companion instruments include the OECD Recommendation on Tax Measures for Further Combating Bribery of Foreign Public Officials in International Business Transactions,[x] the Convention on Mutual Administrative Assistance in Tax Matters,[xi] the OECD Recommendation on Bribery and Officially Supported Export Credits,[xii] and the Recommendation on Anti-Corruption Proposals for Bilateral Aid and Procurement.[xiii]

Mandatory Peer Monitoring Process

The OECD Convention provides for mandatory peer evaluation of the implementation and enforcement of the OECD Convention, the 2021 Recommendation and related instruments. The peer evaluations are carried out by the WGB, of which Canada is a founding member, and which is comprised of representatives from the States Parties to the OECD Convention.[xiv] The purpose of ongoing mutual evaluations of the implementation of the OECD Convention and the 2021 Recommendation is to maintain an up-to-date assessment of the structures put in place to enforce related laws and rules and their application in practice.

The peer review monitoring system has been carried out in four phases. Phase 1 is designed to evaluate whether the legal frameworks through which participants implement the OECD Convention meet the standards set by it.[xv] Phase 2 studies and assesses the structures put into place to enforce national laws and determine their practical application.[xvi] Phase 3 is intended to be more focused than the Phase 2 evaluation, concentrating on progress made by the States Parties on the recommendations made during Phase 2, on issues raised by changes in domestic legislation or institutional frameworks of the States Parties, and on enforcement efforts, results and other horizontal issues.[xvii]

Phase 4 was launched in March 2016. As well as focusing on key horizontal issues, it endeavours to take a tailor-made approach, considering each country’s unique situation and challenges, progress made on weaknesses identified in previous phases of evaluation, enforcement efforts and results, and any issues raised by changes in the domestic legislation or institutional framework of each State Party.

Canada and the Peer Review Process

As a State Party to the OECD Convention, Canada is committed to and actively participates in the peer review mechanism as a lead examiner, evaluated country and member of the WGB. Canada’s participation includes the following:

Canada as Lead Examiner—Canada, along with Switzerland, completed its duties as co-lead examiner for the OECD WGB’s Phase 4 two-year follow-up review of France. The review, which assessed France’s efforts to implement the recommendations identified during its Phase 4 evaluation in December 2021, culminated in the Phase 4 Two-Year Follow-Up Report, which was published in March 2024.

In addition, Canada and the Republic of Korea will continue their work as co-lead examiners for the Phase 4 seven-year additional follow-up review to Australia’s Phase 4 Report, which will build upon the findings and recommendations of the Additional Written Follow-up Report published in January 2023. An oral report on Australia’s progress in implementing the OECD Convention will be presented at the December 2024 OECD WGB Plenary meetings. Finally, Canada and France are serving as co-lead examiners for the OECD WGB’s Phase 4 review of Belgium’s implementation of the OECD Convention. Preparations for this work began in the spring of 2024 and the review is scheduled for completion by March 2025.

Canada as Evaluated Country—On October 19, 2023, the OECD WGB published its Phase 4 Report on Canada’s efforts to combat foreign bribery since the Phase 3 Report was released in 2011.

Canada’s Phase 4 evaluation included a lengthy questionnaire (completed in April 2023), as well as an on-site visit to Canada from May 29 to June 2, 2023, by co-lead examiners from Austria and New Zealand, together with WGB Secretariat officials. During the on-site visit, which took place in Toronto and Ottawa, the WGB delegation met with representatives from Canada’s public and private sectors, academia, media, legal and accounting sectors. The formal Phase 4 review took place during the WGB Plenary meetings from October 10 to 13, 2023 at the OECD in Paris, during which the WGB examined, finalized and approved the findings, recommendations and issues for follow-up for the Report. The Phase 4 Report was adopted on October 12, 2023, and a press release subsequently published on the OECD website.[xviii]

The Report notes that Canada has undertaken important legislative reforms to enhance its foreign bribery framework since 2011, including the Remediation Agreement (RA), a non-trial resolution mechanism introduced in 2018. However, the Report also notes that:

The WGB accordingly recommended that Canada:

The Report also notes several positive developments:

As with all Phase 4 reviews of members of the WGB, the WGB’s recommendations for Canada suggest possible areas to further study potential improvement. Canada continues to examine the Phase 4 Report findings with a view to strengthening efforts to combat foreign bribery and will report to the WGB in October 2025 on the progress it has made in this regard.

The Corruption of Foreign Public Officials Act (CFPOA)

The CFPOA criminalizes the bribery of a foreign public official and the maintenance or destruction of books and records to facilitate or hide the bribing of a foreign public official. The CFPOA and Canada’s Criminal Code also criminalize a conspiracy or attempt to commit those offences, as well as aiding and abetting in committing those offences, an intention in common to commit those offences and: counselling others to commit those offences. Laundering the proceeds of such offences, as well as possession of property and proceeds obtained by crime, are offences under the Criminal Code.[xix]

As described below, Canada continues to take significant steps to further deter Canadian companies and persons from paying bribes to foreign public officials in the course of business. As part of these efforts, the Government of Canada has been conducting outreach to enhance awareness and encourage companies to adopt measures that can effectively implement their legal obligations with a zero-tolerance approach to the bribery of foreign public officials.

Investigations and Prosecutions

To date, there are currently 23 active investigations; seven convictions; two cases in which charges have been laid, but not yet concluded under the CFPOA; and one RA.

Ongoing Matters:

Damodar Arapakota—On November 12, 2020, charges were laid against Damodar Arapakota with respect to allegations of bribes to a public official from Botswana pursuant to subsection 3(1) of the CFPOA. It is alleged that Mr. Arapakota, a former executive from IMEX Systems Inc., a Canadian company located in Toronto, provided a financial benefit to a Botswanan public official and his family.

An investigation was initiated in October 2018 after the new management of the company self-reported allegations of Mr. Arapakota’s illegal acts to the RCMP. On October 21, 2021, an Ontario Provincial Court Judge committed Arapakota to trial, and on December 1, 2021, four weeks were set aside for the trial from September 9 to October 7, 2022. In an oral decision rendered on January 16, 2023, the Ontario Superior Court of Justice found that, based on the evidence presented, the Crown had failed to prove Mr. Arapakota’s guilt on the foreign bribery charges under section 3(1)(a) of the CFPOA beyond a reasonable doubt. The written decision acquitting Mr. Arapakota followed on March 7, 2023. In May 2023, the Public Prosecution Service of Canada (PPSC) initiated an appeal. The appeal is still ongoing.

Ultra Electronics Forensic Technology Inc. (UEFTI)—On September 20, 2022, Montreal-based company UEFTI and its four former executives were charged with bribery of a foreign public official under sections 3(1)(a) and 3(1)(b) of the CFPOA and section 380(1)(a) of the Criminal Code. It is alleged that the corporation and the accused individuals directed local agents in the Philippines to bribe foreign public officials to influence and expedite a multi-million-dollar contract.

On October 4, 2022, the PPSC filed an application for a RA under Part XXII.1 of the Criminal Code. The PPSC and UEFTI requested an in-court approval hearing that would proceed in camera in order to protect settlement privilege. On November 16, 2022, the Superior Court of Quebec released a decision addressing a temporary publication ban in the context of the approval hearing for the RA. The court ordered a temporary publication ban on the contents of the approval hearing in order to protect the fair trial rights of the individuals accused awaiting trial on similar charges facing the corporation. The matter remains pending before the court. On May 16, 2023, the Superior Court of Quebec published the details of the four-year RA, including:

On November 22, 2023, Michael McLean pleaded guilty to one count under section 3(1)(a) of the CFPOA. He was sentenced to a 12-month conditional sentence order on that time. A trial for the remaining three accused is anticipated within the next year.

Canada and the Fight against Foreign Bribery

A number of federal departments, agencies and Crown corporations play key roles in Canada’s fight against foreign bribery. They work in close cooperation to implement Canada’s two-pronged approach to foreign bribery, which focuses on enforcement and prevention.

Canada Revenue Agency (CRA)

The Canada Revenue Agency (CRA) has a large network of international partners, with 94 tax treaties and 24 Tax Information Exchange Agreements (TIEAs). Canada is also a State Party to the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), which includes 147 jurisdictions. Combined, the CRA can exchange tax information with a total of 153 jurisdictions. These instruments facilitate the exchange of information to detect and combat tax avoidance and tax evasion, including ways which may deter the bribery of foreign officials. In addition, the CRA is engaged in exchanging non-residents’ financial account information with approximately 100 jurisdictions under the Common Reporting Standard with account holders’ jurisdictions of residence, which results in the CRA receiving financial account information from other jurisdictions in respect of accounts owned by Canadian residents.

Furthermore, Budget 2023 introduced legislative changes to improve financial intelligence information sharing between Canadian law enforcement and the CRA. One of these changes was an amendment to the Criminal Code to expand the list of offences on the basis of which an examination of information obtained by the Minister of National Revenue under various tax statutes may be authorized. This list now includes bribery and corruption offences (including the bribing of a foreign public official). CRA disclosures of tax information to law enforcement pursuant to this legislation may be made only when they have been judicially ordered.

The CRA may also, proactively or upon request, disclose tax information, pursuant to the Income Tax Act or the Excise Tax Act, to an appropriate Canadian police organization when it has reasonable grounds to believe that this information will afford evidence of a listed serious offence, which includes bribery and corruption offences (including the bribing of a foreign public official).

In the case of information provided to the CRA by foreign governments under tax treaties, TIEAs or the MAAC, the CRA may be prevented from sharing the information or would require the written consent of the sending jurisdiction to share the information.

In addition, the CRA continues to be committed to the exchange of information through specific, spontaneous and automatic exchange mechanisms that facilitate cooperation and tax transparency. This includes engaging with Canada’s treaty partners and collaborating with foreign tax administrations in numerous OECD working groups and bodies, as well as the Global Forum on Transparency and Exchange of Information for Tax Purposes. The CRA remains engaged in numerous capacity-building efforts, such as the OECD’s Global Relations Programme on Taxation and the OECD International Academy for Tax Crime Investigation, which assists other countries in developing their tax administration expertise. The CRA also participates in the OECD’s Task Force on Tax Crime and Other Crimes and is one of five founding members of the Joint Chiefs of Global Tax Enforcement, a multinational group formed in 2018 to increase collaboration in the fight against international and transnational tax crime, and money laundering.

Canadian Commercial Corporation (CCC)

The Canadian Commercial Corporation (CCC) is committed to combatting bribery and corruption and ensuring that its business activities and the export transactions it supports meet the highest ethical standards. CCC’s anti-corruption and bribery commitments are set out in CCC’s Responsible Business Conduct Framework,[xx] Code of Conduct and Business Ethics for employees,[xxi] and client Code for Exporters.[xxii] These policies and their implementing instruments seek to promote a culture of integrity and provide specific direction and guidance to CCC’s leadership, employees and exporters supported by CCC.

CCC’s leadership, employees and exporters must undertake to uphold the principles of the Code of Conduct and Business Ethics and the Code of Exporters respectively, which include anti-corruption and anti-bribery commitments. Exporters must certify that they will ensure the application of Code for Exporters in their business activities and operations and report any actual or potential violations to CCC. Further, exporters must certify that they will cooperate in good faith with the NCP for the OECD Guidelines should the company be named in a complaint.

CCC is committed to the continuous improvement of its integrity policies, practices and procedures. Periodic reviews of the Responsible Business Conduct Framework and related instruments are undertaken to ensure these keep pace with evolving laws, standards and best practices, including the standards expressed in the OECD Guidelines. CCC recently contracted an external assessment to benchmark the performance of its environment, social and governance, and anti-corruption program against best practices and standards to identify potential gaps and areas for improvement. CCC also works with Canadian government departments and other Crown corporations to ensure alignment in approaches to integrity and share best practices.

As part of combatting corruption, CCC undertakes transactional due diligence to detect, prevent and mitigate the risks of corruption and bribery throughout the life cycle of a transaction. The Integrity Compliance Committee reviews transactions and exporters to identify and address actual or potential risks relating to bribery and corruption as well as monitor transactions on an ongoing basis. Where the risks of bribery and corruption are elevated, a transaction is referred to an oversight committee for consideration and may also be referred for enhanced managerial review. The exporter’s integrity policies and training are also reviewed as part of the due diligence. CCC makes recommendations and works collaboratively with exporters to address gaps and strengthen their integrity programs, and to address and mitigate any actual or potential integrity risks in a transaction. CCC may also require an exporter to implement integrity training and policies as a condition to CCC’s support for a project.

CCC assists exporters in implementing its recommendations by providing guidance, advice, resources, information and training on anti-corruption and anti-bribery, and has provided one-on-one guidance to assist several exporters in successfully implementing and improving their integrity regimes.

To help uphold anti-corruption principles and promote accountability, CCC’s contracts with exporters include standard anti-corruption clauses which give CCC the right to suspend, audit and terminate a contract in case of violations of these commitments. CCC also provides a reporting mechanism through the disclosure page of its website. Exporters, employees and third parties are able to submit allegations of wrongdoing and raise any concerns in relation to CCC projects, and have the option to do so anonymously.

CCC leverages external resources to enhance its anti-corruption due diligence and improve practices and procedures. As a member of TRACE International, a non-profit international business association dedicated to anti-bribery, compliance and good governance, CCC is provided access to TRACE integrity training, tools, resources and support services, including third-party reviews. CCC requires its employees to take mandatory annual training on responsible business conduct and anti-bribery and anti-corruption. CCC also offers anti-bribery and anti-corruption training to exporters through TRACE International where they do not yet have a training program in place. Many exporters have leveraged this training in developing their own integrity training programs.

Competition Bureau of Canada (CB)

Combatting Corruption—There can be a close relationship between collusive behaviour and corruption. Given this possible connection, the Competition Bureau of Canada (CB) continues to maintain and improve its relationships with police forces, procurement authorities, and other organizations to complement each organization’s efforts to promote competition and combat corruption.

The CB continues to receive tips through the Federal Contracting Fraud Tip Line (Tip Line), a joint initiative of the CB, Public Services and Procurement Canada (PSPC) and the RCMP established in April 2017. A dedicated telephone line (and online form) are available to Canadians to report anonymously suspected fraud, collusion or corruption in federal government contracts and real property agreements. It complements measures already in place to ensure that federal contracts are lawful, ethical and fair. The information received through the Tip Line may be used to conduct investigations, gather intelligence, and introduce due diligence measures to protect the integrity of federal government contracts and real property agreements.

Although not directly targeted at combatting bribery or corruption, the CB developed a tool to fight bid-rigging and help procurement agents minimize factors that increase the risk of collusion. The Collusion Risk Assessment Tool (the Tool) helps procurement agents who draft and administer tender specifications to identify potential collusion and put in place mitigation strategies that promote competition. The Tool is free and web-based (available here). It can be used anonymously by both public and private sector procurement officers and purchasing agents.

Raising Awareness—The Cartels Directorate of the CB continues to prioritize outreach presentations to public procurement organizations at all levels of government. The goal is to provide procurement officials with the information they need to detect, prevent and report bid-rigging to the CB. These presentations cover topics including:

The CB continues to encourage procurement authorities to require a Certificate of Independent Bid Determination (CIBD) as part of all tenders (available here). Through its signature, the supplier attests that it determined and submitted its bid independently of other competitors. Suppliers include a signed CIBD form as part of the submission package. This encourages ethical decision-making by potential suppliers at the point of bid submission.

Department of Finance Canada (FIN)

As announced in the 2023 Fall Economic Statement and Budget 2024, the Government of Canada passed, in June 2024, legislation implementing a suite of measures to further strengthen the anti-money laundering and anti-terrorist financing (AML/ATF) framework to:

In addition, the government passed, in November 2023, legislative amendments to implement a free, publicly accessible and searchable beneficial ownership registry for federal corporations. This registry was launched on January 22, 2024. Quebec has also launched a beneficial ownership registry and British Columbia has passed legislation to that effect.

Department of Justice Canada (JUS)

Minister of Justice and Attorney General of Canada (AGC)—The Department of Justice (JUS) supports the dual roles of the Minister of Justice and the Attorney General of Canada (AGC). The Department supports the Minister of Justice in their responsibilities for 49 statutes and areas of federal law by ensuring a bilingual and bijural national legal framework principally within the following domains: criminal justice (including youth criminal justice), family justice, access to justice, Aboriginal justice, public law and private international law. The Department also supports the AGC as the chief law officer of the Crown, both in terms of the ongoing operations of government and of the development of new policies, programs and services for Canadians. As chief law officer of the Crown, the AGC oversees federal prosecutions within the framework of the Director of Public Prosecutions Act (DPPA). The DPPA gives primary authority for the initiation and conduct of prosecutions to the DPP under and on behalf of the AGC.

The dual roles of Canada’s Minister of Justice and AGC were examined by the Honourable Anne McLellan in 2019 to determine whether changes were needed to protect against the possibility of partisan interference, while providing for public accountability. While the resulting McLellan Report concluded that structural changes to the dual roles were not required to protect prosecutorial independence and promote public confidence in the criminal justice system, it made several recommendations on how to clarify and reinforce these distinct roles. Two of the key recommendations included developing a protocol governing ministerial consultations in specific prosecutions and updating the 2014 Directive regarding the Director of Public Prosecutions’ duty to inform the Attorney General of Canada under section 13 of the DPPA found in the PPSC Deskbook.

The Government has acted on both of these recommendations. In 2023, Canada published the Protocol for the Conduct of Ministerial Public Interest Consultation by the Attorney General of Canada in the Exercise of the Attorney General of Canada’s Authority under the Director of Public Prosecutions Act, which governs ministerial consultations in specific prosecution and applies to ministers, their staff, the Office of the Clerk of the Privy Council and the public service. It clarifies that the AGC has the sole authority to initiate public interest consultations and sets clear rules about how such consultations must be conducted, thereby reducing the risk of improper influence of partisan considerations.

In addition, the AGC issued an updated directive regarding the DPP’s duty to inform the AGC under section 13 of the DPPA. This directive replaces the previous PPSC Deskbook Directive 1.2 Duty to Inform the Attorney General under section 13 of the Director of Public Prosecutions Act. Changes brought forward by this updated directive outline practices adopted relating to communications between the DPP, the AGC and others about matters contained within section 13 notices. They also clarify the reasons why the AGC may decide to assume control over a prosecution.

International Anti-Corruption Activity—JUS officials participate in international anti-corruption forums, including in meetings of the G7 Anti-Corruption Task Force for Ukraine and the OECD WGB. A member of the Canadian delegation from JUS also participates in the WGB’s Management Group, which supervises the agenda of the WGB and supports the Chair.

Mutual Legal Assistance (MLA) —The International Assistance Group (IAG) is Canada’s central authority for mutual legal assistance (MLA) in criminal matters. Canada has bilateral MLA treaties with 35 countries, pursuant to which Canada can provide formal assistance in criminal matters. Further, Canada is engaging in treaty negotiations with a number of countries with whom a formal or updated treaty would facilitate international cooperation. Additionally, the OECD Convention, the United Nations Convention against Corruption, the Inter-American Convention against Corruption and the Inter-American Convention on Mutual Legal Assistance in Criminal Matters provide Canada with the legal means to provide formal assistance to countries that have signed and ratified those conventions.

The IAG has designated a legal counsel to deal with all incoming and outgoing corruption-related MLA requests. This legal counsel works closely with the RCMP, the PPSC and other relevant law enforcement officials and prosecutors. Given the ever-increasing number of incoming requests for assistance, the responsibility for corruption-related requests is being shared with other counsel within the IAG, under the supervision of the designated legal counsel, who remains the point of contact for corruption-related requests.

Additionally, the IAG has designated another legal counsel to coordinate asset recovery efforts on behalf of Canada. Having this additional point of contact allows Canada to address requests for asset recovery with increased efficiency and effectiveness.

Training and Outreach—The IAG regularly liaises with the central authorities from other countries to facilitate exchanges and educate foreign officials with respect to the Canadian legal requirements to obtain effective assistance in criminal matters. The IAG works closely with foreign officials to assist in drafting MLA and extradition requests, which allows them to make more effective requests to Canada in the fight against corruption. The IAG regularly hosts and attends consultations with foreign authorities to discuss ways to improve the efficiency and effectiveness of the MLA process. Most recently, the IAG presented on improving efficiencies in international cooperation at the International Association of Prosecutors Conference from September 24 to 27, 2023, in London, England. The IAG has also been establishing ties with the International Anti-Corruption Coordination Centre to provide timely information and advice to officials seeking evidence from Canada.

Moreover, the IAG provides advice and training to Canadian prosecutors and law enforcement and foreign officials regarding the assistance that can be provided without the requirement of a formal request.

In terms of outgoing Canadian requests on corruption matters, the IAG also provides advice and training to Canadian prosecutors and law enforcement officials on the legal requirements for seeking assistance from other countries. Additionally, the IAG maintains a website that provides guidance to foreign officials on making requests to Canada and Canadian officials on making requests to foreign jurisdictions.

Of further note, in December 2018, Canada’s Mutual Legal Assistance in Criminal Matters Act (MLACMA), Income Tax Act, Excise Act and Excise Tax Act were amended to enhance Canada’s capacity to share tax/excise information with Canada’s bilateral MLA treaty partners for certain serious crimes pursuant to a request made under the MLA treaty. The MLACMA was also amended to include tax information exchange agreements with the definition of “agreement” to which the Act applies.

Canada also participates in capacity-building exercises hosted by international organizations such as the Commonwealth Secretariat, the United Nations Office on Drugs and Crime and the International Institute for Justice and the Rule of Law. These initiatives are geared towards assisting countries in developing their international cooperation regimes. Canada provides information on the Canadian legal system, including Canada’s approach to dealing with MLA in criminal matters. Canada continues to provide input and insights on hypothetical problems so that developing nations can gain some experience in addressing the real-world problems that Canada faces in the area of international cooperation.

Export Development Canada (EDC)

Combatting Corruption—Export Development Canada (EDC) leadership continues to reinforce its zero-tolerance policy to bribery and corruption by allocating resources to reinforce principles of ethical business conduct. EDC is dedicated to anti-bribery and corruption efforts and working with customers who share its commitment to ethical business practices, as set out in the EDC Code of Conduct.

EDC performs the necessary due diligence to ensure that it does not knowingly engage in or support any transaction that involves any form of bribery or corruption.[xxiii] EDC’s Financial Crime Program (which includes the Financial Crime Policy, supporting guidelines and procedure documents) outlines measures that EDC applies to combat corruption, including (i) possible notification to law enforcement authorities, and (ii) refusal to provide support where, in EDC’s opinion, there is credible evidence that bribery was involved in a transaction. Further, EDC’s Program consists of processes and documentary safeguards, such as the requirement for customers to submit anti-corruption declarations and/or accept relevant provisions in their contracts, to help ensure that EDC upholds its commitments. EDC conducts corruption risk screening, and where risk indicators are identified, enhanced due diligence is then undertaken by a specialized team. EDC may work with Canadian government departments to ensure alignment in its approach to companies facing corruption-related issues.

In addition, EDC has strengthened its controls, not only as they relate to bribery and corruption, but also as they relate to financial crime risks generally. This is part of EDC’s continuous improvement efforts that reflect evolving best practices, including enhancements related to the collection and monitoring of counterparty information. EDC continues to implement improvements to its enhanced due diligence for higher-risk counterparties and transactions, employee training, program monitoring and oversight and other controls that support EDC’s ability to detect and deter bribery and corruption among other financial crime risks. EDC prioritizes maintaining alignment with the OECD Recommendation on Bribery and Officially Supported Export Credits.

Raising Awareness—As EDC assists customers in pursuit of international opportunities, it informs them about conducting business in a socially-responsible and ethical manner. This includes providing information, training and awareness-raising measures to both customers and representatives abroad on: first, the risks of bribery and corruption and mitigating practices; second, responsible business conduct; third, the strength of anti-corruption policies and best practices and setting the proper “tone from the top”; fourth, how to make improvements in corporate governance and compliance practices; and fifth, how to educate employees about the CFPOA and other legal frameworks that aim to combat bribery in international business transactions.[xxiv]

EDC continues to promote and stay abreast of recent trends in ethical business practices through its attendance at anti-corruption events, such as the FC3 Spin Cycle 2024[xxv] conference held by Public Safety Canada. EDC also participates in anti-bribery forums, including collaborations with Transparency International Canada and the OECD Anti-Bribery and Corruption Experts Group. Further, EDC provides customers with information and resources on financial crime risks and EDC’s risk management approach. EDC also reports on its practices related to combatting bribery in international business transactions in its corporate annual report.

In this reporting period, EDC outreach included providing continued access to a variety of resources, including EDC’s Anti-Corruption Resources Centre, where exporters are provided with materials on anti-corruption best practices. EDC also continues its “Trade Insights” email newsletter with links to responsible business conduct materials and continues to host useful blog articles. Through ongoing efforts to educate and promote sound ethical conduct, EDC seeks to support companies as they manage risks in existing operations and as they enter new markets.

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

As Canada’s financial intelligence unit, FINTRAC, which reports to the Minister of Finance, facilitates the detection, prevention and deterrence of money laundering and the financing of terrorist activities while ensuring the protection of personal information under its control.

Supervision—In accordance with the first of its two operational mandates, FINTRAC is responsible for ensuring that all persons and entities subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations (reporting entities) comply with their legal obligations, including those related to client identification, record keeping and reporting. These include an obligation for all reporting entities to determine in specific circumstances whether an individual is a domestic Politically Exposed Person (PEP), a foreign PEP, a Head of an International Organization (HIO), or a family member or close associate of one of those individuals.[xxvi] Once the reporting entity has made this determination, it must assess whether a domestic PEP, an HIO, or their family member or close associate poses a high risk for committing a money laundering (ML) offence or a terrorist financing (TF) offence and, if required, must undertake other specific measures. Foreign PEPs, their family members and their close associates must automatically be treated as high-risk clients. FINTRAC supervises and enforces reporting entities’ compliance with domestic and foreign PEP obligations. This includes assessing that controls are effective and that suspicious transaction reports are reported to FINTRAC when a transaction or deposit is related to the commission or the attempted commission of an ML or TF offence. In instances of unreported suspicious transaction related to a domestic or foreign PEP, FINTRAC may impose administrative monitoring penalties or disclose non-compliance to law enforcement.

FINTRAC provides comprehensive guidance on domestic and foreign PEP obligations and risk-mitigating measures for high-risk clients to build awareness and to ensure consistent internal and external communication of regulatory compliance requirements.

Actionable Intelligence—In accordance with its second operational mandate, FINTRAC, based on its analysis and assessment, produces actionable financial intelligence that it must disclose to the police and other domestic recipients listed in the PCMLTFA when specific legal thresholds are met. Prior to disclosing tactical financial intelligence, FINTRAC must have reasonable grounds to suspect that the information it is authorized to disclose would be relevant to investigating or prosecuting an ML offence, a TF offence, a sanctions evasion offence (as of June 2024 as noted above under FIN) or would be relevant to threats to the security of Canada. In addition to disclosing financial intelligence to domestic recipients, FINTRAC also maintains over 100 memorandums of understanding with foreign financial intelligence units, to which it is authorized to disclose financial intelligence relevant to ML, TF or a substantially similar offence. Between September 1, 2023 and May 15, 2024, FINTRAC produced 30 disclosures relevant to ML, which also included information related to bribery and/or corruption. Of these, one was disseminated to a foreign recipient. Furthermore, as part of FINTRAC’s commitment to being a centre of excellence on ML and TF matters, intelligence analysts and compliance officers from the Centre regularly attend training sessions involving corruption.

Raising Awareness—FINTRAC uses various means to enhance public awareness and understanding of ML and TF. These include operational alerts, briefs, and assessments and public-private partnerships. FINTRAC also produces strategic financial intelligence, including specialized research reports and trends analysis on ML, TF, sanctions evasion (as of June 2024 as noted above under FIN) and the financing of threats to the security of Canada, which can be used by police, the Canadian security and intelligence community, federal policy and decision-makers, reporting entities across the country, and other stakeholders. In May 2023, FINTRAC published a special bulletin on the money laundering techniques that may be deployed by Russia-based individuals and entities sanctioned by the Government of Canada—particularly those whose financial assets have been acquired through corruption and other illegal activity—to evade sanctions and move financial assets outside of Russia.

Global Affairs Canada (GAC)

Global Affairs Canada (GAC) plays a lead role in representing Canada at international anti-corruption forums, such as the OECD WGB, in outreach efforts with emerging economies regarding corruption and coordinating Canada’s whole-of-government approach to meeting its international anti-corruption obligations.

Trade Promotion—Canadian missions abroad raise awareness of Canada’s CFPOA among Canadian companies active overseas. Canada’s missions abroad are also provided instructions on the steps that should be taken when a Canadian company or individual is alleged to have bribed a foreign public official or committed other bribery-related offences. Canada’s missions are charged with conveying relevant information to Canadian law enforcement in accordance with Canadian law and established procedures.

Canada’s responsible business conduct strategy, Responsible Business Conduct Abroad: Canada’s Strategy for the Future, was launched in 2022. This five-year strategy reaffirms Canada’s balanced approach to responsible business conduct, which includes preventative measures, legislation in select areas and access to remedy in the form of non-judicial dispute resolution mechanisms. It applies to all Canadian companies, no matter their size, sector, or scope, and encompasses anti-corruption and anti-bribery efforts under the broader category of responsible business conduct.

Trade, Development, Risk Management, and Reporting Obligations—GAC continues to apply the 2010 Policy and Procedure for Reporting Allegations of Bribery abroad by Canadians or Canadian Companies, which instructs Canadian missions on the steps that must be taken when allegations arise that a Canadian company or individual has bribed a foreign public official or committed other bribery-related offences. Information is conveyed to law enforcement in accordance with Canadian law and established procedures. In addition, in September 2014, Integrity Declarations (previously known as Declarations Regarding Corruption) were developed for Canadian businesses to sign before trade advocacy support services were provided by Canadian missions abroad. Signed Integrity Declarations are valid for one, two or three years, and must be resubmitted after they expire before new trade advocacy support services can be provided. Since its inception in 2014, 5,659 Integrity Declarations have been signed by Canadian companies, and as of July 2024, over 1,150 Declarations are in force.

Canada’s International Assistance—Canada’s Feminist International Assistance Policy applies a feminist, intersectional and human rights-based approach to Canada’s international assistance. International assistance programs undertaken by GAC aim to work with developing country partners to lower the risk of corruption by improving accountability and transparency in the delivery of public services. Reducing opportunities for corruption and increasing constraints on corrupt actors by supporting women’s participation in governance and decision-making processes improves integrity in the delivery of services that matter to people in their communities. This is critical for understanding and addressing the root causes of corruption in a way that takes into account women’s unique perspectives and experiences.

In recent years, anti-corruption has been less of a focus of Canada’s international assistance programs. However, in 2022-23, Canada disbursed $4.3 million on programs aimed at developing the capacity of anti-corruption organizations and institutions. Furthermore, Canada’s broader international assistance programming in support of governance and civil society engagement strengthens anti-corruption capacity within government and civil society, although anti-corruption results to which these programs contribute are not currently tracked by GAC.

This programming may include efforts to:

GAC continues to improve its tools for managing fiduciary risks in international assistance. As part of GAC’s Grants and Contributions Transformation Initiative, work is underway to harmonize and integrate risk-management processes for all of GAC’s grants and contributions. The Risk Management Advisory Group is a key platform for engaging a broad range of programs in risk management. The framework to promote a consistent and systematic approach to managing risk has been developed with a focus on facilitating knowledge sharing and reducing duplication. Consultations on risk approaches with external partners took place in June 2023 and are being used to inform ongoing progress.

Since January 2020, GAC has had a dedicated Grants and Contributions Fraud Management Unit (Unit) to support fraud prevention, detection and management within its grants and contributions portfolio. The Unit provides advisory services on fraud management and manages reporting channels on allegations of financial misconduct related to grants and contributions. In 2023-24, GAC developed an IT-based fraud case management tool and automated workflow in the context of a broader Grants and Contributions Transformation Initiative. The Unit relies on internal and external investigation capacity to conduct investigations when deemed appropriate. The Unit is also responsible for raising awareness and building capacity within recipients and internal stakeholders on fraud prevention and detection, and tools to achieve this goal are still in progress. The Grants and Contributions Fraud Review Committee provides governance and oversight over fraud risk management activities, including support to the Chief Financial Officer and Director General of the Grants and Contributions Centre of Expertise with recommendations on courses of action for cases requiring the Committee’s attention due to their complexity, potential impact or other considerations. The Committee’s composition includes General Counsel representation.

In addition, GAC is funding the Transparency International project, “Inclusive Service Delivery Africa” ($9.7 million, 2021-2025), which aims to close the gender-related corruption loopholes and vulnerabilities in health and education service delivery in five countries in sub-Saharan Africa: Republic of Congo, Ghana, Madagascar, Rwanda and Zimbabwe. Based on lessons learned from previous anti-corruption programming, the project establishes and operates Advocacy and Legal Advice Centres and collaborates with women’s rights and civil society organizations, and journalists at local and national levels to promote women’s rights and participation in demanding their rights to receive accountability in public service delivery.

Since 2015, Canada has been actively engaged in the global Methodology for Assessment of Procurement Systems (MAPS) initiative, centred on a universal tool used to evaluate the quality of public procurement systems, including specific anti-corruption measures.[xxvii] The core tool features enhanced accountability, integrity and transparency assessment criteria. Since 2018, assessments of dozens of countries have been undertaken. For the development portfolio, MAPS assessments are used as part of fiduciary risk due diligence when considering programming approaches that rely on country systems. Links to MAPS and other key complementary resources on anti-corruption in public procurement are integrated into GAC’s corporate guidance. Canada supported the establishment of an independent secretariat in 2020, hosted by the OECD, to maintain MAPS, ensure quality control, and certify and publish assessments when requested by countries.

Training and Outreach—Trade Commissioners (TCs), who support Canadian companies in doing business abroad, are invited to participate in a targeted responsible business conduct pre-posting training annually that includes information on anti-corruption policy and procedures. The training is also available to GAC personnel at all levels who are responsible for trade matters, including Heads of Mission and Senior Trade Commissioners. Two sessions of the 6-hour pre-posting virtual training were delivered in May 2024 with 47 participants. The training included modules on Canada’s international obligations to prevent and combat corruption, officials’ responsibilities pursuant to the CFPOA, and corruption concerns in specific markets, with a presentation by the RCMP, as well as facilitated case studies. Over 300 GAC officers also participated in responsible business conduct-related training in 2023. Other general TC training, such as fundamental, core and advanced TC training programs, also include anti-corruption efforts, tools and resources. Over 200 TCs participated in one or more of those programs during this reporting period.

In addition, missions abroad and regional offices in Canada are offered support from GAC’s internal Responsible Business Fund. The Fund allows them to develop responsible business conduct initiatives in their respective regions. Initiatives can include anti-corruption content and participation in various activities organized by local and bilateral chambers of commerce, government organizations (local, national, international) and multilateral organizations. Participation in these activities can reinforce key messaging on responsible business conduct and anti-corruption, with emphasis on the CFPOA, and how it, directly and indirectly, affects Canadian companies doing business abroad. Again this year, the Trade Commissioner Service worked with the RCMP to assist TCs and Canadian companies in understanding the obligations of the CFPOA, including activities organized by GAC’s network of missions abroad, and a joint presence and training for the Prospectors and Developers Association of Canada (PDAC) convention in March 2024.

In 2019, GAC joined the U4 Anti-Corruption Resource Centre (U4),[xxviii] whose mission is to help reduce the harmful impact of corruption on sustainable and inclusive development. The benefits to all staff—at headquarters and in missions—include access to opportunities for online training and for specialized in-country workshops in sectors vulnerable to corruption, to the helpdesk and to an extensive collection of research publications and tools. Since 2020, GAC has extended access to online training to its implementing partners. Massive incoming funding to Ukraine from the international community, including Canada, supported anti-corruption being embedded in Ukraine’s stabilization and reconstruction. GAC’s financial support in 2023 enabled deliverables, including Ukrainian-language online training, as well as the development of briefs/reports and tailored advice and guidance to inform practical anti-corruption efforts on the ground. U4 continued to pursue evolving themes such as corruption risks related to climate change finance, fragile states, peace and security, and collaborative approaches.

Innovation, Science and Economic Development Canada (ISED)

Beneficial ownership reporting obligations in Canada—Corporate law is an area of shared jurisdiction in Canada among the federal, provincial and territorial levels. In Canada, a corporation can choose to incorporate federally with Corporations Canada or provincially with a province or territory. There are several federal and provincial laws and regulations in Canada that include provisions on beneficial ownership of legal entities or arrangements, including, but not limited to:

Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)—The PCMLTFA and its regulations, the Proceeds of Crime (Money Laundering) and Terrorism Financing Regulations (PCMLTFR), specify measures that regulated reporting entities (businesses and professions) should take to protect themselves against misuse for money laundering and terrorism financing. The PCMLTFR provides the following definition of beneficial owners of legal persons and legal arrangements:

Moreover, under subsection 138(1) of the PCMLTFR, reporting entities, who are businesses and professions regulated for AML purposes, are required to verify the existence of an entity that is a corporation, obtain and verify information on that company’s beneficial owners when they establish business relationships with such entities or conduct certain transactions.

Canada Business Corporations Act (CBCA) and comparable provincial/territorial incorporation statutes—In Canada, the federal CBCA requires private corporations to maintain and update a register of “individuals with significant control” (ISCs or beneficial owners) of the corporation. The Act defines “individual with significant control” of a corporation as “an individual who:

  1.      has any of the following interests or rights, or any combination of them, in respect of shares of the corporation carrying either 25% or more of voting rights, or 25% of its shares measured by fair market value— 
    1. the individual is the registered holder of them,
    2. the individual is the beneficial owner of them (which includes ownership through any trustee, legal representative, agent or mandatary, or other intermediary), or
    3. the individual has direct or indirect control or direction over them;
  2.      has any direct or indirect influence that, if exercised, would result in control in fact of the corporation; or
  3.      has circumstances as prescribed by regulation apply to them.”

Two or more individuals are also each considered to be an ISC if they jointly hold shares that surpass one of the thresholds for a single ISC, or act in concert under an agreement or arrangement with respect to shares that surpass one of them.

Nearly all provinces in Canada have similar rules in place.

Public Beneficial Ownership Registry—In 2022, federal legislation was passed that require most federally incorporated companies to proactively submit information on their beneficial owners to Corporations Canada, on an annual basis, or when a change in control occurs. The amendments will also allow Corporations Canada to disclose all or part of that information received from corporations to investigative bodies, FINTRAC and other prescribed entities.

In 2023, further federal legislation was passed that permits Corporations Canada to:

  1. make public certain information regarding the beneficial owners received from federal corporations while introducing an exemption regime for certain individuals;
  2. protect whistleblowers;
  3. bolster the powers of Corporations Canada to make enquiries and creates new penalties to ensure robust compliance with the new regime; and,
  4. amend other federal statutes, namely the PCMLTFA, the Income Tax Act and the Access to Information Act (ATIA).

The PCMLTFA was amended to allow the enactment of regulations that will require reporting entities that are subject to the PCMLTFA and its regulations, upon becoming aware of any material discrepancies between the beneficial ownership information they obtain from a corporation and the information that a company may have filed to the registry, to alert the registry for follow-up. Meanwhile the Income Tax Act was amended to allow the CRA to share certain information with Corporations Canada that would support the validation and verification of the beneficial ownership information filed by federal corporations. This cross-referencing of beneficial ownership data would supplement Corporation Canada’s compliance efforts by alerting it to potential errors and inconsistencies, improving data integrity and its value for end users, such as law enforcement, tax authorities and reporting entities themselves.

On January 22, 2024, corporations incorporated under the CBCA began sending their information on their ISCs to Corporations Canada. Some of the ISC information is then made available to the public, namely:

Information that is not public (only available to law enforcement and authorized entities)

Under the CBCA, a corporation is required to take reasonable steps, at least once during each financial year of the corporation, to ensure that it has identified all beneficial owners and that the information in the register is accurate, complete and up to date. Additionally, if the corporation becomes aware of any new ISC information, it is to record that information in its ISC register within 15 days and to file the new information with Corporations Canada. When canvassing registered shareholders for beneficial ownership information, the shareholders have a statutory duty to reply accurately and completely, to the best of their knowledge, as soon as feasible. Several provinces have adopted similar rules. As noted above, Corporations Canada can disclose all or part of that information received from corporations to investigative bodies and to Canada’s financial intelligence unit—FINTRAC.

The Province of Quebec has a similar centralized registry and British Columbia has passed legislation to establish one by 2025.

Provincial/territorial securities legislation – beneficial ownership reporting—There are three general requirements for beneficial ownership transparency in securities law:

Additional background on each of these requirements is set out below.

Early Warning Requirements (National Instrument 62-103 and Part 5 of National Instrument 62-104)

Insider Reporting Requirements (National Instrument 55-104)

Management Information Circular Disclosure Requirements (Form 51-102F5 Item 6.5 of Part 2)

Income Tax Act—All trusts, unless specific conditions are met, must file a trust return and Schedule 15 for tax years ending after December 30, 2023. Trusts must report the identity of all trustees, beneficiaries and settlors of the trust, along with each person who has the ability (through the trust terms or a related agreement) to exert control or override trustee decisions over the appointment of income or capital of the trust (for example a protector). For bare trusts, the CRA has waived the requirement for the 2023 tax year and is working to clarify the reporting requirements for 2024 and beyond. 

Natural Resources Canada (NRCan)

The Extractive Sector Transparency Measures Act (ESTMA) requires mining, oil and gas companies active in Canada to disclose publicly on an annual basis certain types of payments made to governments in Canada and abroad. These disclosures raise transparency, reduce corruption, and enable communities to hold their governments to account for the revenues generated from oil, gas and mining resources.

Relevant activities during this reporting period have included:

Ongoing implementation of the ESTMA Compliance Program—Natural Resources Canada (NRCan) conducted compliance reviews and activities in line with the ESTMA Compliance Program during this period, which supports data integrity and effective administration of the Act. The compliance program relies on data analytics based on reputable data sources to identify companies at the highest risk of non-compliance. This includes gathering data from ESTMA reports and leveraging data from public Canadian securities filings, reputable paid corporate databases, and international corruption indexes. Further, the process includes reviewing media reports for companies that have been flagged as high-risk for non-compliance, as well as regular flagging of media reports to the team that implements the ESTMA. Individuals can also submit third-party complaints about ESTMA reports, including potential missing payments.

Ongoing stakeholder engagement and compliance promotion—NRCan continues to undertake compliance promotion activities to ensure that stakeholders are aware of the ESTMA reporting requirements. This includes online webinars, in-person targeted information sessions and participation in oil, gas and mining conferences across Canada. Some of these events were co-hosted with private sector representatives or civil society organizations. For example, in March 2024, NRCan co-chaired a PDAC 2024 Sustainability Program session with the Extractive Industries Transparency Initiative International Secretariat on transparency requirements for junior mining companies, which was one of the highest-rated sessions of the program based on post-convention surveys. Information on how third-party complaints can be made was also shared as part of compliance promotion activities.

Data portal updated—The ESTMA Data Portal, which NRCan launched in collaboration with Statistics Canada in September 2022, was updated in September 2023 to improve functionality and ease of use. The data portal allows users to search the payment information by entity, payee and project, and it will include summaries of key data points and visualizations.[xxix] NRCan collected feedback from stakeholders through meetings, events, and an online survey to support the update. The enhanced platform promotes increased transparency and ensures that the data portal is responsive to the needs of users. Based on this work, NRCan presented at the Canada Open Data Summit in November 2023.

Website regularly updated with the latest information—NRCan conducts periodic reviews to update website sections about ESTMA[xxx] to reflect the latest information.

Public Prosecution Service of Canada (PPSC)

Prosecutions—The PPSC prosecutes criminal offences under federal statutes, including the CFPOA, on behalf of the AGC. To ensure a standard approach to the prosecution of offences under the CFPOA, the PPSC has established a subject-matter expert position located in Ottawa for international corruption cases. The subject-matter expert has developed linkages with the RCMP Federal Policing Criminal Operations (FPCO) directorate and other key government interlocutors involved with the enforcement and development of the CFPOA.

Training and Outreach—Internally, training in relation to the CFPOA has been provided to designated contacts in each of the PPSC’s regional offices. These contacts, who are generally senior prosecutors, will act as local points of contact and coordinators in relation to CFPOA matters as they arise for prosecution. In addition, presentations have been made to the PPSC’s regional directors to increase awareness of the OECD Convention, the CFPOA and the current activities of the RCMP and the PPSC in this area. The PPSC has also made presentations and actively participated in panels raising awareness of Canada’s anti-corruption activities.

Public Services and Procurement Canada (PSPC)

Combatting Corruption—To help ensure the Government of Canada does business with ethical suppliers, PSPC administers a government-wide debarment and suspension program that has been in place since 2015. This program holds suppliers accountable for their misconduct and encourages them to cooperate with law enforcement and take corrective action.

On May 31, 2024, Canada established the new Office of Supplier Integrity and Compliance (OSIC), replacing the former Integrity Regime, and published a revised Ineligibility and Suspension Policy (the Policy). These updates to Canada’s debarment framework improve PSPC’s ability to respond to emerging risks and take a more agile approach to addressing a broader range of supplier misconduct and unethical behaviour. The Policy is applied to all applicable federal contracts and real property transactions through corresponding contractual and real property agreement clauses that incorporate the Policy by reference. The OSIC is also responsible for the development and deployment of additional data analytics capacity, which is a key tool for detecting fraudulent schemes and other types of wrongdoing, and better leveraging intelligence relevant to assessing the integrity of suppliers.

Under the Policy, Canada may declare a supplier ineligible, or suspend a supplier from being awarded a contract or real property agreement if they have been convicted of, or charged with, an applicable listed offence (for example offences related to corruption, fraud, bribery and foreign bribery) in Canada or a similar offence abroad. Recent updates to the Policy expand the list of offences that would render a supplier ineligible to do business with the Government of Canada. This includes debarring suppliers who have been convicted of fraud, terrorist financing, the use of human trafficking/forced labour, or similar offences recognized in provincial and foreign civil judgments. It also introduces the ability to render suppliers ineligible to participate in federal procurements when they have been debarred by another jurisdiction or an international organization. Finally, it empowers the Registrar of Ineligibility and Suspension of the OSIC to undertake reviews in circumstances where contracting with the supplier may bring the federal procurement into public disrepute or otherwise be contrary to Canadian public policy.

The names of all ineligible and suspended suppliers, as well as those who have entered into an Administrative Agreement with PSPC, are published on PSPC’s website.[xxxi] To date, five companies have been declared ineligible, one company is suspended, and three companies have signed Administrative Agreements with PSPC to reduce their period of ineligibility or in lieu of suspension.

Currently 89 federal institutions (86 departments and agencies and three Crown corporations) have signed memorandums of understanding with PSPC to apply the Policy and obtain supplier integrity verification services. This allows organizations to verify that a supplier is not ineligible to conduct business with the Government of Canada under the Policy prior to awarding a contract or real property agreement.

Raising Awareness—PSPC works closely with the private sector, industry partners and civil society organizations to promote an ethical business culture and integrity in public procurement. Senior PSPC officials participate as guest speakers and deliver presentations at a range of events on Canada’s approach to combatting fraud and corruption in procurement and real property processes, the new OSIC and the revised Policy, and PSPC’s Fraud Risk Management Framework. Since the OSIC launch, PSPC has actively worked to heighten awareness of its activities. For example, PSPC has updated Canada’s debarment and suspension program with communiques, provided training sessions for procurement and real property officers across the Government of Canada, updated its public facing websites, and engaged with the supplier community.

PSPC collaborates with federal partners on measures to prevent, mitigate and address unethical business practices within public procurement and real property processes. This includes participating in working groups, committees and bilateral meetings. PSPC is also actively involved in discussions with like-minded countries to share lessons learned on emerging trends related to corruption and federal procurement.

PSPC has made it a priority to deliver awareness initiatives as a means to inform suppliers, employees, as well as the general public, about the types of activities that could constitute fraud, such as bribery, and the channels to report it, including the internal disclosure process and the Tip Line. For example, PSPC engages in regular fraud awareness campaigns, using a variety of communications tools such as social media accounts, employee newsletters, the Canadian vendor mobile app and supplier procurement portals.

The heightened awareness about fraud from these campaigns has resulted in new collaborations between PSPC and other government departments where knowledge and experience regarding fraud detection and investigation methods are shared.

Royal Canadian Mounted Police (RCMP)

Enforcement—The International Anti-Corruption Program is managed under the umbrella of the RCMP FPCO directorate. The FPCO provides subject matter expertise internally and externally to national and international partners, including government departments. The RCMP has the capability to track all CFPOA cases. Since 2014, aided by its exclusive authority to lay an information in respect of CFPOA offences, the RCMP expects that all credible foreign bribery allegations, including those initially reported to Canadian law enforcement agencies or other government officials, such as those in foreign missions, will be referred to the RCMP for evaluation and investigation if deemed appropriate.

To date, the RCMP has received information from various reliable sources, including former employees of corporations involved in alleged corruption, GAC, Canadian law enforcement agencies, foreign law enforcement agencies via MLA requests, International Criminal Police Organization – INTERPOL, non-governmental organizations, and corporations and/or their law firms representing these corporations who are self-reporting.

Among other responsibilities, the RCMP is responsible for investigating offences under the CFPOA.[xxxii] It is tasked with:

Allegations of corruption can have serious repercussions in relation to business transactions and international relations. They are taken very seriously by the RCMP and treated with the utmost confidence for reasons of privacy and ensuring the integrity of JUS investigations.

Integrated Approach—Through a tip-line partnership launched in April 2017, the RCMP receives triaged information from the CB regarding allegations of bid-rigging, bribery, price fixing, conflict of interest, false invoicing, and product switching.[xxxiii] This information is analyzed to determine whether an investigation is warranted.

The RCMP has an established point of contact within JUS’ IAG to ensure that priority is given to requests for MLA in foreign bribery matters.

RA Regime—The enactment of the legislation in 2018 and its application by the courts in 2023 in a case of international corruption committed by a Canadian company (Ultra Electronics Forensic Technology Inc.) has led to an increase in corporate self-reporting and cooperation with law enforcement.

Training and Outreach—The RCMP remains committed to its awareness and outreach activities, which it views as a critical component of its anti-corruption efforts. To that end, the RCMP ensures that all corruption-related material on its internal and external websites is kept up to date on an ongoing basis.

The RCMP has been proactive in reaching out to key stakeholders and developing partnerships with various organizations and institutions to promote its prevention efforts and initiatives. The RCMP continuously seeks to leverage opportunities, such as International Anti-Corruption Day, media requests, conferences and selected anti-corruption workshops to promote its efforts to prevent corruption-related offences. As noted above, in May 2024, the RCMP provided an English and a French 1-hour session virtually to GAC. These sessions targeted the next rotation of TCs heading overseas. Both sessions were designed to provide current information on CFPOA enforcement and provide TCs with the knowledge and comfort to initiate difficult conversations with Canadian companies operating overseas in high-risk areas. The RCMP used this opportunity to expand the capacity of its outreach program by having additional investigators attend and monitor the sessions. In addition, from September 2023 to August 2024, the RCMP participated in multiple conferences as panelists on anti-corruption prevention, RAs and effective cooperation with law enforcement. These local and international conferences were conducted in partnership with key stakeholders, including l’Unité Permanente Anticorruption, the Canadian Bar Association, Transparency International, Finance Canada and GAC, and included the 2023 International Fight Against Corruption Symposium, held by the Pan American Development Foundation in Colombia, the 2023 Global Perspectives: Insights from the International Foreign Bribery Taskforce event hosted by the Bribery Prevention Network (BPN) in Australia held on October 12, 2023, and a virtual webinar on Grand Corruption for the Asia/Pacific Group on Money Laundering held on May 29, 2024. The RCMP’s participation in these international panels confirms an international recognition of its expertise in combatting international corruption.

The RCMP continued its outreach work and maintained its engagement with current contacts using videoconference, social media websites and the RCMP website to raise awareness on the CFPOA and the role of the RCMP in the RA regime. In addition, the RCMP started engaging with GAC’s Responsible Business Practices Division and the contractor assisting them with the development of programs to help combat corruption.

The use of a networking platform has increased the visibility of the RCMP with domestic and international stakeholders by posting awareness-raising videos on foreign corruption, press releases on high-profile investigations and interviews with mainstream media outlets on the overall efforts of the RCMP in combatting corruption at a high level. As a result, local and international stakeholders interested in these topics have contacted the RCMP, which has created new opportunities to coordinate presentations and explore potential collaborations.

The RCMP continues to collaborate with local and foreign partners by sharing expertise and best practices. For example, in furtherance of developing stronger prevention practices, the RCMP arranged for the Director of Australia’s BPN to attend and provide an overview to the RCMP on their prevention and detection outreach activities and their best practices.

The RCMP has expanded its visibility and has worked in partnership with or proactively sought referrals from numerous departments, agencies and organizations. The RCMP has worked with, inter alia, GAC, the Canadian Ombudsperson for Responsible Enterprise, Health Canada, Industry Canada, PSPC, PPSC, EDC and the CCC.

This year, the annual PDAC mining convention was held in March 2024. The RCMP was in attendance and worked in collaboration with TCs to prepare for the event.

The RCMP has given several interviews to reputable investigative journalists who posted articles in major newspaper outlets or televised these interviews. These interviews created opportunities to publicize the CFPOA in general, as well as the mandate of the RCMP’s foreign corruption team.

International Foreign Bribery Taskforce—The RCMP and its Five Eyes partners (the United Kingdom, United States, New Zealand and Australia), meet annually as the International Foreign Bribery Task Force (IFBT) to discuss foreign corruption investigations, share best practices and challenges and collaborate/leverage police-to-police exchange of information. In October 2023, the RCMP attended the annual IFBT meetings in New Zealand.

Treasury Board Secretariat (TBS)

The Treasury Board Secretariat (TBS) provides advice and makes recommendations to the Treasury Board committee of ministers on how the federal government spends money on programs and services, how it regulates and how its human resources are managed. To achieve this objective, the TBS sets the government-wide management agenda and provides guidance to departments on a wide range of management issues.

Public confidence is enhanced, and a culture of accountability and integrity is promoted, when there are effective mechanisms to combat and address the bribery of foreign public officials. This includes having effective procedures for disclosing wrongdoing and for protecting those who disclose wrongdoing and acts of corruption within the public sector.

Since the creation of an external task force to conduct the statutory review of Canada’s Public Servants Disclosure Protection Act, task force members have engaged in wide consultations with internal and external stakeholders to ensure that diverse perspectives and expertise were considered. It is also reviewing best practices related to whistleblower regimes within Canadian and internationally. In the preparation of its report on recommendations to the Government of Canada, it will consider how the law can effectively protect and empower public servants to shine a light on wrongdoing and to help strengthen Canadians’ confidence in the integrity of its public institutions.

During the reporting period, Canada continued to focus on strengthening awareness activities and training for federal public servants, as well as on making continuous improvements to guidance and reporting related to the internal disclosure process.

On the international front, Canada continues to be represented by a TBS official as a member of the OECD Working Party on Public Integrity and Anti-Corruption (PIAC), a sub-group of the OECD’s Public Governance Committee. The PIAC aims to strengthen public sector governance and institutions involved in policymaking related to safeguarding integrity and preventing corruption and the underlying conditions that shape policymaking processes. As a member of the PIAC, Canada regularly provides technical guidance on the promotion of integrity frameworks related to public governance.

In September 2022, the President of the Treasury Board released Canada’s 2022–24 National Action Plan on Open Government. National Action Plans (NAPs) are released every two years as part of Canada’s participation in the Open Government Partnership. They serve as a mechanism for the Government of Canada to improve transparency, participation and accountability in government processes and operations. The 2022-24 NAP will advance openness, transparency, and accountability in the Government of Canada through goals set in five thematic areas, including: first, climate change and sustainable growth; second, democracy and civic space; third, fiscal, financial, and corporate transparency; fourth, justice; and fifth, open data for results. During each NAP planning cycle, Canadians have the opportunity to engage in how government makes decisions and directly shape activities within the Plan. Canada is in the process of co-creating its 2025-29 NAP with input from Canadians. Also, by continuing to improve the Access to Information and Privacy Online Request Service (ATIP Online),[xxxiv] the Government of Canada is making it easier for Canadians to access government information.

Further to Action Plan Commitments, in 2022 the Evaluation of Proactive Publication Under the ATIA[xxxv] was completed, recommending that the TBS foster institutional monitoring to understand better the compliance of institutions with their proactive publication obligations and to promote and support the use of ATIP Online. In response, the TBS has published a Directive on Proactive Publication under the ATIA,[xxxvi] communicating directions to institutions on institutional monitoring and to make ATIP Online the prescribed platform for publishing proactive publication records. These initiatives are intended to promote transparency and openness by ensuring that proactive publication records are consistently available from a central source.

The Guide to the Proactive Publication of Contracts (the Guide)[xxxvii] provides guidance to managers and functional specialists on the identification, collection, reporting and publication of contract information. The Guide was amended in 2023 to include additional requirements to strengthen guidance on monitoring of the proactive publication of contract information and reporting on contract descriptions for certain services contracts.

Among other purposes, contracting data is gathered to strengthen the transparency of the procurement process for Canadians to hold their government to account. The Guide supports the proactive publication of contract information by government entities and Ministers’ offices under the ATIA, which requires the proactive publication of contracts with a value of over $10,000, a contract amendment when it modifies the contract value to exceed $10,000, and amendments to contracts that increase or decrease the value of the contract by more than $10,000. Appendix A of the Guide presents the data elements for annual reporting to PSPC and the quarterly publication on the Open Government Portal. Appendix B of the Guide presents the data elements for annual publication of the aggregate contract and amendment activity for contracts $10,000 and under on the Open Government Portal.

The Guidelines on the Reporting of Grants and Contributions Awards[xxxviii] provide guidance to managers and functional specialists on the identification, collection and publication of grants and contributions (Gs&Cs) award information. These Guidelines support the public disclosure of Gs&Cs award information requirements for government entities under the ATIA, which requires government entities to proactively publish Gs&Cs awards with a value of more than $25,000, as well as Gs&Cs awards that are of a value of $25,000 or less but which were amended so that their value is over $25,000, as well as any amendments to these Gs&Cs awards.

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