On Apr. 20, CAN GVT proposed Budget implementation act for 2023.
CAN GVT issued Bill C-47, Budget Implementation act, on 2023 budget commitments.
Included measures to advance dental care plan, address predatory lending, modernize Canada's financial sector oversight regime to ensure protection of financial institutions.
Follows publication of 2023 budget focused on affordable economy actions, #167909.
In a related action, an immediate $2bn health transfer top-up was provided to address pressures on healthcare system, especially pediatric hospitals and emergency rooms.
Dental Care Plan
Supported the implementation of the new Canadian dental care plan, see #169068.
Provided dental coverage for up to 9mn Canadians once fully implemented by 2025.
Beginning in 2023, coverage will be available to uninsured Canadians under 18, seniors who have an annual family income of less than $90k, and persons with disabilities.
Additionally, there are no-pays for those with an annual family income under $70k.
Predatory Lending
Criminal rate of interest was lowed from 47% Annual percentage rate (APR) to 35%.
Governor in Council may fix a limit on the total cost of borrowing for payday loans.
Education Savings Plan
Increased full-time student education savings plan withdrawal limits from $5k to $8k.
Savings plan withdrawal limits increased from $2,500 to $4k for part-time students.
Divorced and separated spouses may open joint registered education savings plans.
Workers Benefits
Deliver automatic advance payments of the Canada Workers Benefit starting Jul. 2023.
Provided $714 for single workers, and $1,231 for a family, split between 3 payments.
AML Reporting
Amended Criminal Code and the Proceeds of crime (money laundering) and terrorist financing act (PCMLTFA) (CAN LEG SC 2000 c17) to strengthen the AML/ATF tools.
Law enforcement permitted to freeze and seize virtual assets that are linked to crime.
Information sharing standards between CAN Revenue Agency and C-FINTRAC defined.
Introduced offense for structuring financial transactions to avoid C-FINTRAC reporting.
Set registration framework for currency dealers and other MSBs to prevent abuse.
Criminalized operation of unregistered money services businesses; defined penalties.
Established powers for C-FINTRAC to disseminate strategic analysis related to the financing of threats to the safety of Canada; provided whistleblower protections.
Broadened the use of non-compliance reports by C-FINTRAC in criminal investigations.
Financial sector sanctions-related information reporting obligations are established.
Financial Sector Oversight
C-OSFI must supervise Federally regulated financial institutions (FRFIs) to determine if the FRFI has adequate policies and procedures to protect against foreign interference.
Expanded the range of circumstances where C-OSFI can take control of an FRFI.
Minister of Finance is authorized to impose enhanced due diligence requirements to protect Canada's financial system from the financing of national security threats.
Allowed C-FINTRAC Director to share intelligence analysis with the Minister of Finance to help assess national security or financial integrity risks posed by financial entities.
C-FINTRAC must provide C-OSFI with disclosures pertaining to threats to CAN security.
Reporting Tax Avoidance
Implemented certain measures in respect of Income tax act (CAN GVT RSC 1985 c. 1). and Income tax regulations (CAN GVT CRC C. 945), mandatory disclosure rules (MDR).
Modified reporting requirements to introduce reporting for notifiable transactions.
Provision provided reporting requirements with respect to uncertain tax treatments.
Additionally, bill extended the reassessment periods applicable to those transactions and creating or modifying penalties for non-compliance with those requirements.
Legislative History
On Apr. 20, 2023, bill was introduced in House of Commons; pending review and vote.
Said amendments help mitigate bank failure risk after recent US cases, see #165681.
Would expand Minister’s toolkit to promote/maintain stability, efficiency of Canada’s financial system by giving them temporary authority increase deposit insurance limit.
Also, allow CDIC to administer the Minister’s crisis management powers under the FAA.
Document dated May 17, 2023, received May. 24, and summarized on May 26.
In Jun. 2023, CAN GVT issued consultations on budget 2023 measures, see #175369.
Jun. 2023 CAN GVT Royal Assent
On Jun. 26, 2023, C-OSFI, CAN GVT reported Bill C-47 received royal assent Jun. 22.
C-47 requires federally regulated financial institutions (FRFIs) have protections in place to counter threats to their integrity or security, including from foreign interference.
Also expands the C-OSFI’s mandate; changes complement its existing purpose, which includes to contribute to public confidence in the Canadian financial system.
Starting Jan. 1, 2024, FRFIs will be required to comply and C-OSFI will examine them.
C-OSFI will annually report on these examinations to the Minister of Finance.
Jun. 26, 2023 C-OFSI Superintendent Statement
On Jun. 26, 2023, C-OFSI Superintendent Peter Routledge issued statement on bill C-47 passage on the Budget implementation act (BIA) to enhance oversight of FRFIs.
Routledge said that Act expands Office of the Superintendent of Financial Institution’s mandate; adds to the suite of compliance and intervention tools available.
He added that regulator will examine each FRFI’s policies and procedures to determine if they are adequate, and annually report on these examinations to Minister of Finance.
Document dated Jul. 26, 2023, received on Aug. 15, summarized on Aug. 15, 2023.
In Sep. 2023, C-OSFI issued letter on steps to implement its new mandate, #184023.
Jun. 2024 CAN GVT Gazette
On Jun. 19, 2024, CAN GVT published an order fixing Jan. 1, 2025 as the day which sections 610 to 612 of the Budget Implementation Act, 2023, No. 1 come into force.
Brings into force Criminal Code amendments that lower criminal interest rate.
Authorizes the Governor in Council to make regulations exempting certain types of loans from the criminal interest rate and fixing the cost of borrowing for payday loans.
Regulators
CAN GVT; CDIC; C-OSFI
Entity Types
Bank; Corp; Ins; MSB; Pension
Reference
C-OSFI: PR, 6/26/2023; PR, 6/26/2023; CAN GVT: OG, SI/2024-25, 6/19/2024; Act, 6/22/2023; Sp, 5/17/2023; Bill C-47, PR, 4/20/2023; CDIC: PR, 5/17/2023; Citation: CAN LEG SC 2000 c17; *CAN GVT* CRC C. 945, RSC 1985 c. 1;
