New measures aim to reduce fraud and money laundering29 March 2022
FREDERICTON (GNB) – Amendments to the Business Corporations Act were introduced today which aim to reduce fraud and money laundering in the province by ensuring transparent ownership of private corporations.
“The amendments would require corporations to maintain a registry of individuals who have significant control in their companies, and make this registry available to law enforcement, tax and other authorities,” said Service New Brunswick Minister Mary Wilson.
The amendments would bring New Brunswick in line with other Canadian jurisdictions and with changes made to the Canada Business Corporations Act in 2019.
The amendments include:
- defining who has significant control in a corporation;
- requiring corporations to create, maintain and hold a registry of individuals who are considered to have significant control; and
- prescribing penalties for non-compliance.
For each individual, the registry must include:
- the name, date of birth and last known address;
- their jurisdiction of residence for tax purposes;
- the date on which the individual became and/or ceased to be someone with significant control; and
- a description of how the person meets the definition of an individual with significant control.
In addition, Wilson said, officials from Service New Brunswick and Finance and Treasury Board will continue to participate in discussions with the federal, provincial and territorial governments to monitor progress on the creation of a national public corporate beneficial ownership registry and examine how such a registry would impact New Brunswick.