The Liberal government plans to move forward with legislation implementing a corporate ownership registry, in an effort to bring more transparency over who owns and controls major businesses in Canada.
“The use of anonymous Canadian shell companies can conceal the true ownership of property, businesses, and other valuable assets. When authorities don’t have the tools to determine their true ownership, these shell companies can become tools of those seeking to launder money, avoid taxes, evade sanctions, or interfere in our democracy,” Ottawa’s 2023 budget reads. In response, the Liberals are going to deliver last year’s promise to create a “public, searchable beneficial ownership registry” targeting federal corporations before the end of the year.
The ownership registry will be part of Bill C-42, and will require businesses governed under the Canada Business Corporations Act to annually publish the names and addresses of individuals that hold major control. The federal government will require the cooperation of provinces in order to adequately implement the measure, with the goal of making it easier to pinpoint individuals or corporations evading taxes, committing money laundering, or other financial crimes.
Information for this briefing was found via the Government of Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.