Ottawa Issues Emergencies Act Proclamation, Order And Regulations, Citing Blockades At Various Locations In Canada

Executive Summary

The steps that the Canadian government has recently taken under the Emergencies Act in relation to blockades that are stated to be occurring in places throughout Canada pose significant compliance challenges for financial services providers. Firstly, they are required to cease dealings with persons who have participated in certain newly prohibited activities, and it will be challenging for financial services providers to make these determinations. At this point, it is unclear whether government institutions will provide lists of names. Further, some financial services providers will have new reporting obligations to FINTRAC¹. Platform fund raisers (e.g., crowdfunding platforms) and payment processors will also be required to register with FINTRAC as domestic or foreign "money services businesses" if not already registered.