The Foreign Influence Transparency and Accountability Act: What Businesses Need to Know Now

Executive Summary

The Canada Foreign Influence Transparency and Accountability Act (“FITAA”) received Royal Assent on June 20, 2024, but is not yet in force. FITAA introduces a new transparency regime intended to address concerns regarding covert foreign influence in Canadian political and governmental processes. Once proclaimed in force, FITAA will require individuals and organizations to disclose certain activities undertaken on behalf of foreign principals, and these disclosures will form part of a publicly accessible “Foreign Influence Registry”.

Draft regulations were published for comment earlier this year, meaning we are inching closer to the legislation coming into force. With short reporting deadlines of 14 days for new arrangements and 60 days for pre‑existing ones, businesses should begin preparing now for compliance.

Overview of the Foreign Influence Transparency and Accountability Act

FITAA was enacted in response to concerns about non‑transparent interference by foreign states and foreign‑linked actors in Canadian public institutions. The FITAA preamble references the use of foreign influence registries as a tool for enhancing transparency and protecting democratic processes, aligning Canada’s regime with a global trend toward greater scrutiny of foreign political engagement.

FITAA applies to a wide array of political and governmental processes including legislative proceedings, the development of legislative proposals, policy or program development, government decision‑making (including procurement decisions), elections and referenda, nomination processes, and the development of political party platforms. In practice, this means that influence efforts directed at any level of government or political activity within Canada may fall within FITAA’s scope.

A broad range of businesses may be affected, including professional service firms, multinational corporations, communications and public relations agencies, government relations consultants, and any organization that engages with public office holders, disseminates political or governmental information, or provides funds, services, or benefits connected to political or governmental processes. Because FITAA applies not only at the federal level but also to provincial, territorial, municipal, and Indigenous governance, its reach is extensive.

A central concept in FITAA is the “arrangement,” broadly defined as an arrangement under which a person carries out certain influence activities under the direction of, or in association with, a foreign principal. Influence activities include communicating with public office holders, disseminating information related to political or governmental processes and distributing money, items of value, services or the use of facilities. Foreign principals, in turn, include foreign states, foreign powers, entities controlled by foreign states and individuals or entities acting on their behalf.

Under FITAA, any person who enters into such an arrangement must provide detailed information to the Commissioner within the prescribed timelines. FITAA prohibits providing false or misleading information, authorizes administrative monetary penalties and criminal sanctions for violations and directs the Commissioner to maintain a public registry of designated information. FITAA also provides for a due‑diligence defence where a person can establish that they took reasonable steps to prevent the contravention.

Overview of the Draft Foreign Influence Transparency and Accountability Regulations

The draft regulations, published on January 3, 2026, offer additional guidance on the information businesses will need to disclose to the Commissioner and what will be made public through the proposed foreign influence registry. Although still subject to change, the draft regulations confirm that reporting obligations will be substantial. Organizations must provide core corporate information, identify individuals significantly involved in influence activities and describe the arrangement in detail, including its duration, compensation, targeted political or governmental processes and the foreign principal’s objectives.

Additional detail is required for activities involving communications with public office holders, dissemination of information, or the provision of money, items of value, services or facilities. While only a portion of the submitted information will be publicly accessible, the registry will still display corporate and foreign principal identities, individuals involved in influence activities, the nature of those activities, and the foreign principal’s objectives. Information may remain public for up to 20 years after an arrangement ends.

The draft regulations also outline administrative monetary penalties ranging from $50 to $1,000,000, with the specific amount depending on factors such as compliance history, severity of harm, intent, capacity to pay and cooperation with the Commissioner. The Commissioner may also enter into compliance agreements that reduce or waive penalties.

Recommendations for Businesses Preparing for FITAA

Although the FITAA regime is not yet in force, organizations that may engage in influence activities should begin preparing now. The short reporting deadlines and the detailed nature of the required disclosures mean that compliance systems should be ready in advance.

Businesses should begin by organizing the corporate and individual information that will eventually need to be disclosed. This includes determining which employees, contractors or other representatives may play a significant role in influence activities and ensuring that necessary personal information can be collected in a manner that is consistent with privacy obligations. Because FITAA’s disclosure obligations extend to individuals involved in the arrangement, preparation in advance will reduce the risk of non‑compliance once the legislation becomes active.

Organizations should also revisit and enhance their client‑onboarding and due‑diligence processes. Identifying whether a client qualifies as a foreign principal will be essential whenever influence activities are contemplated. Businesses may wish to incorporate additional client identification questions, beneficial‑ownership inquiries, certifications regarding the truth of information provided and explanations of FITAA’s definitions. Where foreign entities are involved, it may be advisable to seek client confirmation as to whether they meet the definition of a foreign principal and to obtain indemnities in cases where false information could expose the organization to penalties. A strong due‑diligence process will also support reliance on FITAA’s due‑diligence defence, should it be needed.

Reviewing existing clients and engagements is another important preparatory step. Businesses should identify clients who may qualify as foreign principals and assess whether any ongoing or upcoming work could constitute influence activities. Initiating conversations with these clients early, before FITAA comes into force, will allow time to explain the potential disclosure obligations and determine whether the client wishes to proceed with such activities knowing that information may become public. Where ongoing arrangements are likely to be captured, businesses should begin compiling the information necessary to meet the 60‑day reporting requirement.

Updating existing engagement letters, contracts and internal policies will also be critical. Standard documentation should include express authorization for disclosure of client information where required by FITAA, along with provisions requiring the client to provide timely and accurate information and to update the organization if circumstances change. Including such language helps mitigate the risk of confidentiality disputes arising from mandated disclosures.

Finally, businesses should consider implementing internal compliance procedures and training. Given the breadth of activities captured by FITAA - including communications, information dissemination and provision of benefits - employees may inadvertently trigger reporting obligations. Establishing internal escalation pathways, monitoring systems for arrangements and influence activities and training staff on the basics of FITAA will help reduce the risk of unintentional non‑compliance and ensure readiness once FITAA comes into force.

For further information, please contact Stuart Chambers or Lydia Roseman.