Border, Immigration and Anti-Money Laundering Overhaul

Summary#

This federal bill makes wide changes to border, immigration, policing, marine security, anti–money laundering, and sex‑offender registry laws. It expands information sharing, tightens and streamlines parts of the refugee system, gives the government new powers to pause or end immigration processing in the public interest, increases financial crime penalties, and adds a fast track to list drug precursors. It also requires private operators of international travel and trade hubs to provide space for border officers at no charge.

• Requires owners of international bridges, tunnels, railways, airports, wharves, and docks to provide and maintain facilities for CBSA at no charge; gives officers access to export goods at certain sites (Part 1).
• Creates a temporary accelerated pathway to schedule drug precursors; lists specific substances and dates in Schedule V (Part 2 and Schedule).
• Confirms regulations that exempt designated police from certain Criminal Code “inchoate” drug offences during lawful investigations (Part 3).
• Adds “security” to Coast Guard services and allows collection and disclosure of security information (Part 4).
• Expands IRCC authority to disclose personal information within the department and to other Canadian governments under written agreements; restricts further foreign disclosure (Part 5).
• Alters the in‑Canada asylum system (e.g., removes designated countries of origin, adds pre‑referral abandonment/withdrawal, requires presence in Canada for hearings) and adds two new ineligibility grounds for late or irregular claims, with regulatory exceptions (Parts 6–8).
• Authorizes orders to stop accepting, suspend, terminate, or cancel classes of immigration applications/documents in the public interest; sets fee‑repayment rules (Part 7).
• Raises anti–money laundering (AML) penalties up to $20,000,000 (administrative) and $30,000,000 for compliance‑order violations; mandates compliance agreements; requires more entities to enroll with FINTRAC; allows disclosures to the Commissioner of Canada Elections (Part 9–10).
• Updates sex‑offender registry duties and allows CBSA to share travel movement data with law enforcement for enforcement of that Act (Part 11).

What it means for you#

• Households and travelers

  • CBSA officers can access export goods at transport, storage, and bonded facilities; you may see tighter checks on exports (Part 1).
  • If you are a refugee claimant, your hearing or appeal will be suspended if you are outside Canada; cases may be deemed abandoned in some circumstances (Parts 6, 104.1 and 168(1.1)).
  • New ineligibility if you entered Canada after June 24, 2020 and filed a claim more than 1 year after entry; or if you crossed the Canada–U.S. land border between ports and claimed after the Safe Third Country time limit. Some exceptions may be set by regulation (Part 8, s.101(1)(b.1),(b.2)).
  • Removal order timelines after negative decisions are shortened or clarified (e.g., 15 days after certain notices) (Part 6, s.49(2)(c)–(h)).
  • Children and persons unable to understand proceedings must have a designated representative in prescribed cases; the Minister may disclose personal information to that representative (Part 6, s.6.1).
  • Sex offenders face updated reporting duties (e.g., vehicle information within 7 days) and may have physical characteristics recorded; CBSA can share their travel movement data with police for enforcement (Part 11).

• Workers and students applying for status

  • The government may order a pause on accepting or processing specific application types, or terminate processing, if deemed in the public interest. Fees may be repaid without interest if the order says so (Part 7, s.87.301).
  • The government may cancel, suspend, or vary documents (e.g., work or study permits) and impose or vary conditions, for a set period, by order (Part 7, s.87.302).
  • People affected by such orders must answer questions truthfully and may be required to appear for examinations, including medicals (Part 7, s.87.304).

• Businesses and exporters

  • Owners/operators of international bridges, tunnels, railways, airports, wharves, and docks must provide and maintain, free of charge, adequate facilities for CBSA; failure could risk enforcement under the Customs Act (Part 1, s.6(1)).
  • Carriers and warehouse operators must give CBSA free access to goods destined for export and open packages on request (Part 1, new Exportation provisions).
  • Companies handling listed precursors (e.g., phenethyl bromide, propionic anhydride, benzyl chloride) and carisoprodol must comply with temporary controls during the specified periods (Part 2; Schedule V).
  • AML‑regulated entities must have risk‑based, effective compliance programs; many must newly enroll with FINTRAC and keep records as prescribed (Part 9, ss.9.6(1.1), 11.4001–11.4015, 39.02(6)).
  • Non‑compliance can trigger mandatory compliance agreements, public compliance orders, and higher penalties (Part 9, ss.73.16–73.18, 73.22).

• Financial institutions, fintechs, and payment service providers

  • Maximum administrative monetary penalties increase to $4,000,000 for individuals and $20,000,000 for entities per prescribed violation; caps may also be 3% of global income/revenue. Compliance‑order violations can reach $5,000,000 (individuals) and $30,000,000 (entities) or 3% of global revenue (Part 9, s.73.1(2)–(4); s.73.18(2)).
  • FINTRAC may disclose certain information to the Commissioner of Canada Elections when relevant (Part 9, ss.55(3)(f.2), 55.1(1)(d.1)).
  • The FINTRAC Director joins OSFI’s supervisory committee to improve coordination (Part 10).

• Law enforcement and public safety agencies

  • Regulations may exempt designated police and those under their control from certain Criminal Code inchoate drug offences during lawful operations; prior regulations are confirmed as valid (Part 3).
  • Coast Guard services explicitly include security patrols and the collection, analysis, and disclosure of information or intelligence (Part 4).
  • Police and certain agencies can receive more timely information from the sex‑offender registry and CBSA for prevention and investigation (Part 11).

• Local, provincial, and federal governments

  • IRCC can disclose defined personal information to other Canadian government bodies under written agreements that set limits on secondary use and onward transfer; provincial bodies cannot disclose that information to foreign entities without the Minister’s consent and safeguards (Part 5).
  • IRPA and IRCC may make regulations to set time limits and document requirements for refugee claims (Part 6, s.100(4), s.111.1(1)(a),(a.1)).

Expenses#

Estimated net cost: Data unavailable (no specific appropriations in the bill text).

• Fiscal note: No publicly available information.
• Explicit fiscal mechanisms in the bill:
  • Fee repayments without interest may be ordered when processing is suspended/terminated or documents are cancelled; amounts and frequency depend on future orders (Part 7, ss.87.301(2)(c), 87.301(3)).
  • Increased administrative penalties and fines may raise federal revenues; actual receipts depend on enforcement (Part 9).
  • Implementation and enforcement will require resources for CBSA, IRCC/IRB, FINTRAC, RCMP/PS, and Coast Guard; amounts not stated (Data unavailable).
  • Private operators of international transport facilities must bear capital and operating costs to provide CBSA facilities free of charge (costs are off‑book for the federal budget) (Part 1).

Proponents' View#

• Improves border integrity and export controls by giving CBSA access to export goods and requiring free, adequate facilities at key international points (Part 1).
• Speeds response to emerging drug threats via a temporary accelerated pathway to schedule precursors, with concrete listings and dates (e.g., phenethyl bromide April 14, 2025–April 13, 2026) (Part 2; Schedule V).
• Strengthens public safety by confirming lawful police undercover work in drug and cannabis cases, reducing legal risk to investigations (Part 3).
• Enhances marine security by making security patrols and intelligence activities an explicit Coast Guard function (Part 4).
• Protects program integrity by allowing targeted, time‑limited orders to pause, triage, or end processing for specific immigration streams during surges or crises, with transparency via Canada Gazette publication within 23 days (Part 7).
• Modernizes AML enforcement with mandatory compliance agreements, higher penalties tied to global revenue, and enrollment, improving deterrence and closing gaps used by sophisticated actors (Part 9).

Opponents' View#

• Shifts infrastructure costs to airports, ports, bridge and tunnel authorities, and railways by mandating free CBSA facilities; costs may be passed to carriers and travelers through higher fees (Part 1). Data on cost burden: Data unavailable.
• Grants broad executive power to cancel, suspend, or vary immigration documents and to stop, suspend, or terminate processing, with limited pre‑publication scrutiny (exempt from certain Statutory Instruments Act provisions); raises transparency and due‑process concerns despite post‑facto Gazette publication (Part 7).
• Adds new refugee ineligibility grounds (late filing and irregular border entry beyond a time limit), which may bar protection for some bona fide claimants who face barriers to timely filing; relies on future regulations for exceptions (Part 8).
• Expands information sharing across governments and agencies; increases risks of privacy breaches or misuse if agreements and safeguards are weak, despite limits on foreign onward disclosure (Part 5).
• Raises AML penalties to levels (up to $20,000,000 administrative; up to $30,000,000 for compliance‑order violations; or 3% of global revenue) that could drive over‑compliance, de‑risking, or reduced services for higher‑risk customers and charities; small firms may face disproportionate compliance costs (Part 9).
• Police exemption confirmations for inchoate offences, while targeted, may need strong oversight to prevent abuse in undercover operations; the bill relies on regulations rather than detailed statutory limits (Part 3).