The proposed amendment to the Criminal Code seeks to impose new penalties for providing false or misleading information about identity verification under the Proceeds of Crime and Terrorist Financing Act. Offenses would be classified into two categories: indictable offenses with heavier penalties, including up to $1 million in fines or 10 years in prison, and summary offenses with lighter penalties.
Individuals and businesses engaged in financial transactions or ownership structures may be significantly affected. Companies, particularly smaller ones, might face increased compliance costs to ensure accuracy in reporting, while individuals could find themselves facing serious legal consequences for minor errors or misunderstandings in identity verification processes.
The amendment could lead to substantial costs both for businesses needing to comply with stricter verification measures and for individuals who could face hefty fines up to $1 million or lengthy prison sentences. The government may also incur additional expenses related to enforcement and legal proceedings against alleged violators, potentially straining public resources.
Supporters argue that the amendment is essential for fighting financial crimes like money laundering and terrorist financing. They believe that increased penalties will act as a strong deterrent against dishonest practices and enhance the overall integrity of the financial system, ultimately benefiting all participants by creating a more secure environment.
Critics contend that the strict penalties may be excessive, leading to severe punishments for minor infractions. They caution against the ambiguity surrounding what is deemed "false or misleading" information, which could result in misinterpretation and arbitrary enforcement. Additionally, smaller entities may struggle to meet stringent compliance demands, potentially hindering their growth and innovation in the market.
That the bill be now read a second time and referred to the Standing Committee on Justice and Human Rights.