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Canada's Fight against Foreign Bribery - twenty-fourth Annual Report to Parliament

Implementation of the Organisation for Economic Co-operation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the Enforcement of the Corruption of Foreign Public Officials Act

(September 2022 – August 2023)

Contents

Highlights – September 2022 to August 2023

Background

On December 17, 1997, Canada signed the OECD Convention,Footnote i and Parliament passed the CFPOA to implement Canada's obligations under the OECD Convention into Canadian law.Footnote ii With the adoption of the CFPOA, which received Royal Assent on December 10, 1998, the Government of Canada deposited its instrument of ratification with the OECD on December 17, 1998, thereby becoming a State Party to the OECD Convention and triggering its coming into force on February 15, 1999.Footnote iii The CFPOA came into force on February 14, 1999.

The OECD Convention

The OECD Convention aims to stop the flow of bribes and remove bribery as a non-tariff barrier to trade, producing a level playing field in international business. At present, there are 45 States Parties to the OECD Convention, including all 38 member states of the OECD and seven non-member states: Argentina, Brazil, Bulgaria, Peru, Romania, Russia,Footnote iv and South Africa.Footnote v Since the OECD Convention entered into force, 687 individuals and 264 entities have been convicted or criminally sanctioned for foreign bribery, and 76 individuals and 109 entities have been convicted or criminally sanctioned for related offences (false accounting or money laundering). Furthermore, 88 individuals and 121 entities have received sanctions for foreign bribery through administrative or civil proceedings, and 76 individuals and 192 entities have received sanctions for related offences (false accounting or money laundering) through administrative or civil proceedings. Based on the most recent enforcement data published in December 2022, 481 investigations are ongoing in 35 States Parties, and 180 prosecutions are ongoing in 12 States Parties relating to offences under the OECD Convention.Footnote vi

Companion Instruments

The OECD Convention is supplemented by a number of companion instruments:

The 2009 Recommendation—The OECD Recommendation for Further Combating Bribery of Foreign Public Officials in International Business Transactions (2009 Recommendation)Footnote vii was adopted by the OECD CouncilFootnote viii on November 26, 2009, and released on December 9, 2009, on the tenth anniversary of the OECD Convention. The 2009 Recommendation aims to strengthen mechanisms for the prevention, detection, and investigation of foreign bribery.

The 2021 Recommendation—In 2018, the WGB began a comprehensive review of the 2009 Anti-Bribery Recommendation to ensure it continues to reflect the range of good practices and addresses current challenges. After rigorous assessment and discussions of the 2009 Recommendation, including two rounds of extensive consultations with external partners, the 2021 Anti-Bribery Recommendation (2021 Recommendation) was adopted by the OECD Council on November 26, 2021.Footnote ix

The Recommendation committed Parties to the OECD Convention to take new measures to reinforce efforts to prevent, detect and investigate foreign bribery. The 2021 Recommendation includes new sections on key topics that have emerged or significantly evolved in the anti-corruption area, including strengthening the enforcement of foreign bribery laws, addressing the demand side of foreign bribery, enhancing international cooperation, introducing principles on the use of non-trial resolutions in foreign bribery cases, incentivizing anti-corruption compliance by companies, and providing comprehensive and effective protection for reporting persons.

Guidelines for Multinational Enterprises—The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (Guidelines) contain guidance on responsible business conduct (RBC) for multinational enterprises. Last updated in June 2023, the Guidelines include a chapter with recommendations to enterprises on combating bribery and other forms of corruption. Countries adhering to the Guidelines are required to maintain National Contact Points (NCPs) to promote the Guidelines and to help resolve disputes about the observance of the Guidelines by multinational enterprises. Canada's NCP can review instances of alleged non-observance of the Guidelines by multinational enterprises operating in or from Canada and offer its good offices to help parties resolve the issues through facilitated dialogue or mediation. Canada's NCP updated its case-handling procedures in September 2022 by:

Other companion instruments include the OECD Recommendation on Tax Measures for Further Combating Bribery of Foreign Public Officials in International Business TransactionsFootnote x and the Convention on Mutual Administrative Assistance in Tax Matters,Footnote xi the OECD Recommendation on Bribery and Officially Supported Export Credits,Footnote xii and the Recommendation on Anti-Corruption Proposals for Bilateral Aid and Procurement.Footnote xiii

The Mandatory Peer Monitoring Process

The OECD Convention provides for mandatory peer evaluation of the implementation and enforcement of the OECD Convention and the 2021 Recommendation. The peer evaluations are carried out by the WGB, which is comprised of representatives from the States Parties to the OECD Convention.Footnote xiv The purpose of ongoing mutual evaluations of the implementation of the OECD Convention and the 2021 Recommendation is to maintain an up-to-date assessment of the structures put in place to enforce related laws and rules and their application in practice.

The peer review monitoring system has been carried out in four phases. Phase 1 is designed to evaluate whether the legal frameworks through which participants implement the OECD Convention meet the standards set by it.Footnote xv Phase 2 studies and assesses the structures put into place to enforce national laws and determine their practical application.Footnote xvi Phase 3 is intended to be more focused than the Phase 2 evaluation, concentrating on progress made by the States Parties on the recommendations made during Phase 2, on issues raised by changes in domestic legislation or institutional frameworks of the States Parties, and on enforcement efforts, results, and other horizontal issues.Footnote xvii

Phase 4 was launched in March 2016. As well as focusing on key horizontal issues, it endeavours to take a tailor-made approach, considering each country's unique situation and challenges, progress made on weaknesses identified in previous phases of evaluation, enforcement efforts and results, and any issues raised by changes in the domestic legislation or institutional framework of each State Party.

Canada and the Peer Review Process

As a State Party to the OECD Convention, Canada is committed to and actively participates in the peer review mechanism as a lead examiner, evaluated country, and member of the WGB. Canada's participation includes the following:

Canada as Lead Examiner—Canada and the Republic of Korea served as co-lead examiners for the OECD WGB’s additional follow-up review to Australia’s Phase 4 Evaluation Report, which updated Australia’s progress in implementing measures to strengthen enforcement of the OECD Convention. The review culminated in the Additional Written Follow-up Report, which was published in January 2023.

In December 2021, Canada, along with Switzerland, completed its duties as co-lead examiners for the OECD WGB’s Phase 4 review of France’s implementation of the OECD Convention. The WGB adopted the comprehensive report on France’s efforts to implement the OECD Convention, and issued an executive summary and media release. As a next step, Canada and Switzerland will lead the written follow-up review of France’s Phase 4 Report. Preparations for this work began in the spring of 2023 and the review is scheduled for completion by March 2024.

Canada as Evaluated Country—A delegation representing the WGB and comprised of officials from the OECD Secretariat, together with representatives from Austria and New Zealand as Lead Examiner countries, undertook a country visit to Canada from May 29 to June 2, 2023 in conjunction with the WGB's upcoming Phase 4 evaluation review of Canada. The incoming delegation participated in Panels organized in Toronto (May 29-30, 2023) and Ottawa (May 31-June 2, 2023), meeting with representatives from Canada's media, private sector, legal community, academia, and civil society, as well as officials from Canadian government departments and partners. The WGB issued its initial draft Phase 4 evaluation review Report on Canada in August 2023, prior to the formal review of Canada by WGB members that is scheduled to take place in October 2023.

In addition to its ongoing participation in the mandatory peer review process, Canada continues to provide publicly available information on its law enforcement efforts and relevant legislative developments in the context of the WGB’s "Tour de Table" exercise.

The Corruption of Foreign Public Officials Act

The CFPOA criminalizes the bribery of a foreign public official and the maintenance or destruction of books and records to facilitate or hide the bribing of a foreign public official. The CFPOA and the Criminal Code also criminalize a conspiracy or attempt to commit those offences, as well as aiding and abetting in committing those offences, an intention in common to commit those offences and counselling others to commit those offences. Laundering the proceeds of such offences, as well as possession of property and proceeds obtained by crime, are offences under the Criminal Code.Footnote xviii

As described below, Canada continues to take significant steps to further deter Canadian companies and persons from paying bribes to foreign public officials in the course of business. As part of these efforts, the Government of Canada has been conducting outreach to enhance awareness and encourage companies to adopt measures that can effectively implement their legal obligations with a zero-tolerance approach to the bribery of foreign public officials.

Investigations and Prosecutions

To date, there are currently 19 active investigations, six convictions, two cases in which charges have been laid but not yet concluded under the CFPOA, and one remediation agreement.

Ongoing Matters

Damodar Arapakota—On November 12, 2020, charges were laid against Mr. Damodar Arapakota with respect to allegations of bribes to a public official from Botswana pursuant to subsection 3(1) of the CFPOA. It is alleged that Mr. Arapakota, a former executive from IMEX Systems Inc., a Canadian company located in Toronto, provided a financial benefit to a Botswanan public official and his family.

An investigation was initiated in October 2018 after the new management of the company self-reported allegations of Mr. Arapakota's illegal acts to the RCMP. On October 21, 2021, an Ontario Provincial Court Judge committed Arapakota to trial, and on December 1, 2021, four weeks were set aside for the trial from September 9 to October 7, 2022. In an oral decision rendered on January 16, 2023, the Ontario Superior Court of Justice found that, based on the evidence presented, the Crown had failed to prove Mr. Arapakota’s guilt on the foreign bribery charges under section 3(1)(a) of the CFPOA beyond a reasonable doubt. The written decision acquitting Mr. Arapakota followed on March 7, 2023. In May 2023, the PPSC initiated an appeal.

Ultra Electronics Forensic Technology Inc. —On September 20, 2022, Montreal-based company Ultra Electronics Forensic Technology Inc. (UEFTI) and its four former executives were charged with bribery of a foreign public official under sections 3(1)(a) and 3(1)(b) of the CFPOA and section 380(1)(a) of the Criminal Code. It is alleged that the corporation and the accused individuals directed local agents in the Philippines to bribe foreign public officials to influence and expedite a multi-million-dollar contract.

On October 4, 2022, the PPSC filed an application for a remediation agreement under Part XXII.1 of the Criminal Code. The PPSC and UEFTI requested an in-court approval hearing that would proceed in camera in order to protect settlement privilege. On November 16, 2022, the Superior Court of Quebec released a decision addressing a temporary publication ban in the context of the approval hearing for the remediation agreement. The Court ordered a temporary publication ban on the contents of the approval hearing in order to protect the fair trial rights of the individuals accused awaiting trial on similar charges facing the corporation. The matter remains pending before the Court. On May 16, 2023, the Superior Court of Quebec published the details of the four-year remediation agreement, including:

Matters Concluded

Sami Bebawi—On December 15, 2019, Sami Bebawi was found guilty of fraud, corruption of a foreign public official, laundering proceeds of crime and two counts of possession of proceeds of crime by a jury in the Quebec Superior Court. On January 10, 2020, he was sentenced to 8 years and 6 months’ imprisonment. On September 2, 2020, the Superior Court ordered the forfeiture of the assets of Sami Bebawi, which are worth over $4 million, related to his conviction. Mr. Bebawi was also fined $24.6 million in lieu of the seizure of additional proceeds of crime; failure to reimburse this amount within the subsequent six months would have him serve an additional 10-year prison sentence. Sami Bebawi appealed his conviction and sentence. On February 14, 2023, Mr. Bebawi’s appeal against his conviction was dismissed, but his sentence appeal was partially successful in that the Court varied the payment order for his fine, allowing him 2 years to pay rather than 6 months.

Groupe SNC Lavalin Inc.—On February 19, 2015, Groupe SNC-Lavalin Inc. and two of its subsidiaries, SNC-Lavalin Construction Inc. and SNC-Lavalin International Inc., were charged with one count of bribery contrary to paragraph 3(1)(b) of the CFPOA and one count of fraud contrary to paragraph 380(1)(a) of the Criminal Code. The charges related to the alleged payment of bribes to secure an advantage for the company in relation to major construction projects in Libya. In addition, the company and its subsidiaries were charged with defrauding the Great Socialist People’s Libyan Arab Jamahiriya, the Management and Implementation Authority of the Great Man Made River Project of Libya, the General People’s Committee for Transport Civil Aviation Authority of Libya, Lican Drilling Co. Ltd., and the Organization for Development of Administrative Centers of Benghazi in Libya in the amount of $129,832,830. A preliminary inquiry commenced in October 2018 and concluded on May 29, 2019 with the accused being ordered to stand trial.

The Director of Public Prosecutions (DPP) declined to invite SNC-Lavalin to enter into negotiations for a remediation agreement in the fall of 2018. SNC-Lavalin sought judicial review of this decision in the Federal Court of Canada on October 9, 2018. The DPP then brought a motion to end the application for judicial review. The DPP’s motion was granted and the application for judicial review was dismissed by the Federal Court of Canada on March 8, 2019. On April 4, 2019, SNC-Lavalin filed an appeal in the Federal Court of Appeal of Canada. This appeal was abandoned in January 2020.

On December 18, 2019, SNC-Lavalin Construction Inc. (SLCI) pleaded guilty to fraud contrary to subsection 380(1) of the Criminal Code. In an Agreed Statement of Facts filed with the Court, the company admitted that between 2001 and 2011, $47,689,868 was directed to Saadi Gadhafi. In exchange for the payments, Saadi Gadhafi used his influence as the son of the Libyan dictator Muammar Ghadafi to secure construction contracts for the benefit of SLCI, altering the competitive bidding process and causing a loss or a risk of loss to the Libyan people.

The money was directed through two representative companies, Duvel Securities Inc. and Dinova International Inc., both of which listed Riadh Ben Aissa, former vice-president and president of SLCI, as the sole beneficial owner. Additionally, amounts totalling $73,582,219 were paid through the representative companies to Mr. Ben Aissa and to Sami Bebawi, former president of SLCI, for their personal benefit. Mr. Ben Aissa pleaded guilty in Switzerland in 2014 to corruption of foreign public officials, disloyal management of funds, fraud and money laundering in relation to these same events.

The PPSC and counsel for SLCI made joint submissions for a fine of $280,000,000, payable in equal regular instalments over a five-year period. The Court also issued a three-year probation order, with conditions that SLCI cause the SNC-Lavalin Group to maintain, and as required, further strengthen its compliance program, record keeping, and internal control standards and procedures. The period of supervised probation ended in December 2022.

Canada and the Fight against Foreign Bribery

A number of federal departments, agencies and Crown corporations play key roles in Canada's fight against foreign bribery. They work in close cooperation to implement Canada's two-pronged approach to foreign bribery, which focuses on enforcement and prevention.

Royal Canadian Mounted Police (RCMP)

Enforcement—The International Anti-Corruption Program is managed under the umbrella of the RCMP Federal Policing Criminal Operations (FPCO) directorate. The FPCO provides subject matter expertise internally and externally to national and international partners, including government departments. The RCMP has the capability to track all CFPOA cases and, aided by its exclusive authority (since 2014) to lay an information in respect of CFPOA offences, expects that all credible foreign bribery allegations, including those initially reported to Canadian law enforcement agencies or other government officials (such as those in foreign missions), will be referred to the RCMP for evaluation and investigation if deemed appropriate.

To date, the RCMP has received information from various reliable sources, including former employees of corporations involved in alleged corruption, GAC, Canadian law enforcement agencies, foreign law enforcement agencies via mutual legal assistance requests, Interpol, non-governmental organizations, and corporations and/or their law firms representing these corporations who are self-reporting.

Among other responsibilities, RCMP investigators in the Sensitive and International Investigations Unit, 'O' Division (Ottawa), are responsible for investigating offences under the CFPOA.Footnote xix They are tasked with:

Allegations of corruption can have serious repercussions in relation to business transactions and international relations. They are taken very seriously by the RCMP and treated with the utmost confidence for reasons of privacy and ensuring the integrity of investigations.

Integrated Approach—Through a tip-line partnership launched in April 2017, the RCMP receives triaged information from the Competition Bureau of Canada (CB) regarding allegations of bid-rigging, bribery, price fixing, conflict of interest, false invoicing, and product switching.Footnote xx This information is analyzed to determine whether an investigation is warranted.

The RCMP has an established point of contact within the Department of Justice's (JUS) International Assistance Group (IAG) to ensure that priority is given to requests for mutual legal assistance in foreign bribery matters.

Remediation Agreement Regime—The first remediation agreement was approved by a Quebec Superior Court Judge on February 23, 2022, in a case of domestic corruption committed by a Canadian company (SNC-Lavalin Inc.) investigated by the RCMP's Sensitive and International Investigations Unit. Although the case did not involve a CFPOA offence, this first remediation agreement will undoubtedly have a positive impact on international corruption.

On February 28, 2023, a second remediation agreement was approved by a Quebec Superior Court Judge in a case of international corruption committed by a Canadian company (Ultra Electronics Forensic Technology Inc.) operating abroad. The RCMP has seen an increase in corporations demonstrating interest in remediation agreements. This increase was observed following the enactment of the legislation in 2018. Another contributing factor of increased interest is that in order to be considered for a remediation agreement, there must be a likelihood of conviction which is satisfied by a police investigation gathering the necessary evidence.

Training and Outreach—The RCMP remains committed to its awareness and outreach activities, which it views as a critical component of its anti-corruption efforts. To that end, the RCMP ensures that all corruption-related material on its internal and external websites is kept up to date on an ongoing basis.

The RCMP has been proactive in reaching out to key stakeholders and developing partnerships with various organizations and institutions to promote its prevention efforts and initiatives. The RCMP continuously seeks to leverage opportunities, such as International Anti-Corruption Day, media requests, conferences and selected anti-corruption workshops to promote its efforts to prevent corruption-related offences. In May 2023, the RCMP Outreach Coordinator provided an English 1-hour session virtually to GAC. A French session was held in June 2023. These sessions targeted the next rotation of Trade Commissioners (TC) heading overseas. Both sessions were designed to provide current information on CFPOA enforcement and provide TCs with the knowledge and comfort to initiate difficult conversations with Canadian companies operating overseas in high-risk areas. The RCMP used this opportunity to expand the capacity of its outreach program by having additional investigators attend and monitor the sessions. In addition, the RCMP Outreach Coordinator and investigators attended the inaugural conference (June 2023) hosted by Transparency International (TI), the Canadian International Council (CIC) and the Canadian Centre of Excellence for Anti-Corruption (CCEAC) at the University of Ottawa on integrating anti-corruption in Canadian foreign policy. The RCMP Anti-Corruption Outreach Coordinator and investigators used this as a collaboration and networking opportunity.

The RCMP Anti-Corruption Outreach Coordinator continued its work and maintained its engagement with current contacts using videoconference, social media websites, and the RCMP website to raise awareness on the CFPOA and the role of the RCMP in the Remediation Agreement Regime.

The use of a networking platform has increased the visibility of the RCMP with domestic and international stakeholders by posting awareness raising videos on foreign corruption, press releases on high-profile investigations, and interviews with mainstream media outlets on the overall efforts of the RCMP in combatting corruption at a high level. As a result, local and international stakeholders interested in these topics have contacted the RCMP Anti-Corruption Outreach Coordinator, creating new opportunities to coordinate presentations and explore potential collaborations.

The RCMP Anti-Corruption Outreach Coordinator continues to collaborate with Trade Commissioners from GAC by educating them and Canadian companies on the risk of exposure to foreign corruption. For example, the Anti-Corruption Outreach Coordinator, along with the Officer in Charge of the Sensitive and International Investigations Foreign Corruption Team, were invited by the TC for Morocco to travel to Morocco and speak about foreign corruption and the Remediation Agreement Regime. They attended two events where they presented and answered questions from Canadian companies and local companies, stakeholders, law enforcement, and civil society. Their presentations included foreign corruption indicators for Canadian companies operating locally, CFPOA legislation, and best practices in order to prevent foreign bribery.

The RCMP anti-corruption outreach program has expanded its visibility and has worked in partnership with or proactively sought referrals from numerous departments, agencies, and organizations. The RCMP has worked with, inter alia, GAC, the Canadian Ombudsperson for Responsible Enterprise, Health Canada, Industry Canada, Public Services and Procurement Canada (PSPC), PPSC, Export Development Canada (EDC), and the Canadian Commercial Corporation (CCC).

This year, the annual Prospectors and Developers Association of Canada (PDAC) mining convention was held in March 2023. The RCMP Anti-Corruption Outreach Coordinator was in attendance and worked in collaboration with TCs to prepare for the event.

The RCMP foreign corruption investigative team has given several interviews to reputable investigative journalists who posted articles in major newspaper outlets or televised these interviews. These interviews created opportunities to publicize the CFPOA in general as well as the mandate of the RCMP's foreign corruption team.

International Foreign Bribery Taskforce—The RCMP and its Five Eyes partners, including the United Kingdom, United States, New Zealand, and Australia, meet annually as the International Foreign Bribery Task Force (IFBT) to discuss foreign corruption investigations, share best practices, challenges, and collaborate/leverage police-to-police exchange of information. In October 2022, the RCMP hosted the annual IFBT meetings in Ottawa, Ontario.

Public Prosecution Service of Canada (PPSC)

Prosecutions—The Public Prosecution Service of Canada (PPSC) prosecutes criminal offences under federal statutes, including the CFPOA, on behalf of the Attorney General of Canada. To ensure a standard approach to the prosecution of offences under the CFPOA, the PPSC has established a subject-matter expert position located in Ottawa for international corruption cases. The subject-matter expert has developed linkages with the FPCO and other key government interlocutors involved with the enforcement and development of the CFPOA.

Training and Outreach—Internally, training in relation to the CFPOA has been provided to designated contacts in each of the PPSC's regional offices. These contacts, who are generally senior prosecutors, will act as local points of contact and coordinators in relation to CFPOA matters as they arise for prosecution. In addition, presentations have been made to the PPSC's Regional Directors to increase awareness of the OECD Convention, the CFPOA and the current activities of the RCMP and the PPSC in this area. The PPSC has also made presentations and actively participated in panels raising awareness of Canada's anti-corruption activities.

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

As Canada's Financial Intelligence Unit, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) facilitates the detection, prevention and deterrence of money laundering and the financing of terrorist activities while ensuring the protection of personal information under its control.

Compliance—In accordance with the first of its two operational mandates, FINTRAC is responsible for ensuring that all persons and entities subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations ("reporting entities") comply with their legal obligations, including those related to client identification, record keeping and reporting. These include an obligation for all reporting entities to determine in specific circumstances whether an individual is a domestic Politically Exposed Person (PEP), a foreign PEP, a Head of an International Organization (HIO), or a family member or close associate of one of those individuals.Footnote xxi Once the reporting entity has made this determination, it must assess whether a domestic PEP, an HIO, or their family member or close associate poses a high risk for committing a money laundering (ML) offence or a terrorist financing (TF) offence and, if required, must undertake other specific measures. Foreign PEPs, their family members, and their close associates must automatically be treated as high-risk clients.

FINTRAC provides comprehensive guidance on domestic and foreign PEP obligations and risk-mitigating measures for high-risk clients to build awareness and ensure consistent internal and external communication of regulatory compliance requirements.

Actionable Intelligence—In accordance with its second operational mandate, FINTRAC, based on its analysis and assessment, produces actionable financial intelligence that it must disclose to the police and other domestic recipients listed in the PCMLTFA when specific legal thresholds are met. Prior to disclosing tactical financial intelligence, FINTRAC must have reasonable grounds to suspect that the information it is authorized to disclose would be relevant to investigating or prosecuting an ML offence or a TF offence. In addition to disclosing financial intelligence to domestic recipients, FINTRAC also maintains over 100 Memoranda of Understanding (MOUs) with foreign financial intelligence units, to which it is authorized to disclose financial intelligence relevant to ML and TF. Between September 2022 and May 15, 2023, FINTRAC produced 22 disclosures relevant to ML, which also included information related to bribery and/or corruption. Of these, 4 were disseminated to foreign recipients. Furthermore, as part of FINTRAC's commitment to being a centre of excellence on ML and TF matters, intelligence analysts and compliance officers from the Centre regularly attend training sessions involving corruption.

Raising Awareness—FINTRAC uses various means to enhance public awareness and understanding of ML and TF. These include Operational Alerts, Briefs, and Assessments and Public-Private Partnerships (PPPs). FINTRAC also produces strategic financial intelligence, including specialized research reports and trends analysis on ML and TF, which can be used by police, the Canadian security and intelligence community, federal policy and decision-makers, reporting entities across the country, and other stakeholders.

Global Affairs Canada (GAC)

Global Affairs Canada (GAC) plays a lead role in representing Canada at international anti-corruption fora such as the OECD WGB, in outreach efforts with emerging economies regarding corruption, and coordinating Canada's whole-of-government approach to meeting its international anti-corruption obligations.

Trade Promotion—Canadian missions abroad raise awareness of Canada's CFPOA among Canadian companies active overseas. Canada's missions abroad are also provided instructions on the steps that should be taken when a Canadian company or individual is alleged to have bribed a foreign public official or committed other bribery-related offences. Canada's missions are charged with conveying relevant information to Canadian law enforcement in accordance with Canadian law and established procedures.

A new RBC Strategy for Canadian companies abroad – Responsible Business Conduct Abroad: Canada’s Strategy for the Future – was launched on April 28, 2022. This five-year Strategy continues Canada's balanced approach to RBC, which includes preventative measures, legislation in select areas, and access to remedy in the form of non-judicial dispute-resolution mechanisms. It applies to all Canadian companies, no matter their size, sector, or scope, and encompasses anti-corruption and anti-bribery efforts under the broader category of responsible business conduct.

Trade, Development, Risk Management, and Reporting Obligations—GAC continues to apply the 2010 Policy and Procedure for Reporting Allegations of Bribery abroad by Canadians or Canadian Companies, which instructs Canadian missions on the steps that must be taken when allegations arise that a Canadian company or individual has bribed a foreign public official or committed other bribery-related offences. Information is conveyed to law enforcement in accordance with Canadian law and established procedures. In addition, in September 2014, Integrity Declarations (previously known as Declarations Regarding Corruption) were developed for Canadian businesses to sign before trade advocacy support services were provided by Canadian missions abroad. Since its inception, over 5,100 Integrity Declarations have been signed by Canadian companies. At the end of this reporting period, over 1,000 Declarations were in force.

Canada's International Assistance—In line with Canada's Feminist International Assistance Policy, international assistance programs undertaken by GAC aim to work with developing country partners to lower the risk of corruption by improving accountability and transparency in the delivery of public services. Lowering opportunities for corruption and increasing constraints on corrupt actors by supporting integrity in the delivery of services that matter to people in their communities is an important entry point for addressing the root causes of corruption.

In recent years, anti-corruption has been less of a focus of Canada's international assistance programs. However, in 2022-23, Canada disbursed $4.3 million on programs aimed at developing the capacity of anti-corruption organizations and institutions. Furthermore, Canada's broader international assistance programming in support of governance and civil society engagement strengthens anti-corruption capacity within government and civil society, although anti-corruption results to which these programs contribute are not tracked by GAC at this time. This programming may include efforts to improve decentralization; improve accountability and transparency arrangements and institutions; strengthen local governments; improve citizen engagement in budget processes, including through gender-responsive budgeting; establish or strengthen social accountability initiatives that engage people as the end-users of public services in the design, monitoring, and oversight of public services and initiatives; improve public financial management systems and processes; or strengthen statistical capacity, including the analysis and publication of open data to foster greater transparency.

GAC continues to improve its tools for managing fiduciary risks in international assistance. As part of GAC's Grants and Contributions Transformation Initiative, work is underway to harmonize and integrate risk-management processes for all of GAC's grants and contributions. The Risk Management Advisory Group is a key platform for engaging a broad range of programs in risk management. The framework to promote a consistent and systematic approach to managing risk has been developed with a focus on facilitating knowledge sharing and reducing duplication.

Since January 2020, GAC has had a dedicated Grants and Contributions Fraud Management Unit to support fraud prevention, detection and management within its grants and contributions portfolio. The unit provides advisory services on fraud management and manages reporting channels on allegations of financial misconduct related to grants and contributions. The unit relies on internal and external investigation capacity to conduct investigations when deemed appropriate. The unit is also responsible for raising awareness and building capacity within recipients and internal stakeholders on fraud prevention and detection, and workaround tools to achieve this goal are currently in progress. The Grants and Contributions Fraud Review Committee provides governance and oversight over fraud risk management activities, including support to the Chief Financial Officer with recommendations on courses of action for highly sensitive cases due to their complexity or other considerations. The Committee's composition includes Senior General Counsel.

In addition, GAC is funding the Transparency International (TI) project, "Inclusive Service Delivery Africa" ($9.7 million, 2021-2025), which aims to address the impact of gender-based corruption in access to health and educations services in five countries in sub-Saharan Africa: Republic of Congo, Ghana, Madagascar, Rwanda, and Zimbabwe. Based on lessons learned from previous anti-corruption programming, the project establishes partnerships with women's rights and civil society organizations working at local and national levels to promote women's participation in decision-making and hold elected officials accountable at various levels.

Since 2015, Canada has been actively engaged in the global Methodology for Assessment of Procurement Systems (MAPS) initiative, centred on a universal tool used to evaluate the quality of public procurement systems, including specific anti-corruption measures.Footnote xxii The core tool features enhanced accountability, integrity, and transparency assessment criteria. Since 2018, assessments of dozens of countries have been undertaken. For the development portfolio, MAPS assessments are used as part of fiduciary risk due diligence when considering programming approaches that rely on country systems. Links to MAPS and other key complementary resources on anti-corruption in public procurement are integrated into GAC's corporate guidance. Canada supported the establishment of an independent Secretariat in 2020, hosted by the OECD, to maintain MAPS, ensure quality control, and certify and publish assessments when requested by countries.

Training and Outreach—GAC personnel at all levels, who are responsible for trade matters, including Heads of Mission, Senior Trade Commissioners (STC), and TCs, are invited to participate in a targeted responsible business conduct pre-posting training annually that includes information on anti-corruption policy and procedures. Two sessions of the 6-hour pre-posting virtual training were delivered in May and June 2023 and attended by 27 departing TC and STCs. The training included modules on Canada's international obligations to prevent and combat corruption, promoting RBC, officials' responsibilities pursuant to the CFPOA, corruption concerns in specific markets, as well as facilitated case studies. Other general TC training, such as fundamental, core and advanced Trade Commissioner training programs, also include anti-corruption efforts, tools, and resources. A total of 206 TCs participated in one or more of those programs during this reporting period.

In addition, missions abroad and regional offices in Canada are offered support from GAC's internal Responsible Business Fund. The Fund allows missions to develop responsible business conduct initiatives in their respective regions. Initiatives can include anti-corruption content and participation in various activities organized by local and bilateral chambers of commerce, government organizations (local, national, international) and multilateral organizations. TCs' participation in these activities has reinforced key messaging on responsible business conduct and anti-corruption, with particular emphasis on the CFPOA, and how it, directly and indirectly, affects Canadian companies doing business abroad.

Again this year, the TCS worked with the RCMP to assist Canadian companies in understanding the obligations of the CFPOA through webinars and targeted presentations organized by GAC's network of missions abroad, including a joint presence at the PDAC Convention in March 2023.

In 2019, GAC joined the U4 Anti-Corruption Resource Centre (U4),Footnote xxiii whose mission is to help reduce the harmful impact of corruption on sustainable and inclusive development. The benefits to all staff – at headquarters and in missions – include access to opportunities for online training and for specialized in-country workshops in sectors vulnerable to corruption, to the helpdesk, and to an extensive collection of research publications and tools. Since 2020, GAC has extended access to online training to its implementing partners. In September 2022, GAC hosted a two-day headquarters visit to Ottawa by U4 focused on corruption risk management attended by over 300 participants, including staff and representatives from partner organizations. Given massive incoming funding to Ukraine from the international community, including Canada, to support anti-corruption being embedded in Ukraine's stabilization and reconstruction, GAC's financial support in 2023 enabled deliverables, including Ukrainian-language online training as well as the development of briefs/reports and tailored advice and guidance to inform practical anti-corruption efforts on the ground. U4 continued to pursue evolving themes such as corruption risks related to climate change finance, fragile states, peace and security, and collaborative approaches.

Export Development Canada (EDC)

Combating Corruption—Export Development Canada (EDC) leadership continues to reinforce its zero-tolerance policy to bribery and corruption by allocating resources to reinforcing principles of ethical business conduct. EDC is dedicated to Anti-Bribery and Corruption efforts and working with customers who share its commitment to ethical business practices, as set out in the EDC Code of Conduct.

EDC performs the necessary due diligence to ensure that it does not knowingly engage in or support any transaction that involves any form of bribery or corruption.Footnote xxiv EDC's Financial Crime Program (which includes the Financial Crime Policy, the Anti-Bribery/Anti-Corruption Guideline, the Anti-Money Laundering/Anti-Terrorist Financing Guideline, the Sanctions Guideline, and other procedure documents) outlines measures that EDC will apply to combat corruption, including (i) possible notification to law enforcement authorities, and (ii) refusal to provide support where, in EDC's opinion, there is credible evidence that bribery was involved in a transaction. Further, EDC's Program consists of processes and documentary safeguards, such as the requirement for customers to submit anti-corruption declarations and/or accept relevant provisions in their contracts, to help ensure that EDC upholds its commitments. EDC underwriting and business development staff conduct up-front corruption screening on transactions. If screening reveals concerns, enhanced due diligence is then undertaken by a specialized team. EDC may work with Canadian government departments to ensure alignment in its approach to companies facing corruption-related issues.

In addition, EDC has strengthened its controls, not only as they relate to bribery and corruption but also as they relate to financial crime risks generally. This is part of EDC's continuous improvement efforts that reflect evolving best practices. EDC continues to improve the standardization of due diligence for counterparties and transactions through the use of new or expanded automation tools and implement continuous improvements to its enhanced due diligence for higher-risk counterparties and transactions, employee training, program oversight and other controls that support EDC's ability to detect and deter bribery and corruption among other financial crime risks.

Raising Awareness—As EDC assists customers in pursuit of international opportunities, it informs them about conducting business in a socially-responsible and ethical manner. This includes providing information, training, and awareness-raising measures to both customers and representatives abroad on: a) the risks of bribery and corruption and mitigating practices; b) responsible business conduct; c) the strength of anti-corruption policies and best practices and setting the proper "tone from the top"; d) how to make improvements in corporate governance and compliance practices; and e) how to educate employees about the CFPOA and other legal frameworks that aim to combat bribery in international business transactions.Footnote xxv

EDC continues to promote ethical business practices through its participation in anti-corruption events and initiatives, such as the FC3 Spin Cycle 2023Footnote xxvi conference held by Public Safety Canada and Phase 4 of the OECD WGB peer review process. Further, EDC provides customers with information and resources on financial crime risks and EDC's risk management approach. EDC also reports on its practices related to combating bribery in international business transactions in its corporate Annual Report.

In this reporting period, EDC outreach included providing continued access to a variety of resources, including EDC's Anti-Corruption Resources Centre, where exporters are provided with materials on anti-corruption best practices. EDC also continues its Trade Insights email newsletter with links to responsible business conduct materials and continues to host useful blog articles on topics such as how to preserve business integrity during COVID-19. Through ongoing efforts to educate and promote sound ethical conduct, EDC seeks to support companies as they manage risks in existing operations and enter new markets.

Canada Revenue Agency (CRA)

The Canada Revenue Agency (CRA) has a large network of international partners, with 94 tax treaties and 24 Tax Information Exchange Agreements (TIEAs). Canada is also a State Party to the Convention on Mutual Administrative Assistance in Tax Matters (CMAATM), which includes 147 jurisdictions Combined, the CRA can exchange tax information with a total of 153 jurisdictions. These instruments facilitate the exchange of information to detect and combat tax avoidance and tax evasion, including ways which may deter the bribery of foreign officials. In addition, the CRA is engaged in exchanging non-residents' financial account information with over 90 jurisdictions under the Common Reporting Standard with account holders' countries of residence, which resulted in the CRA receiving financial account information from other jurisdictions in respect of accounts owned by Canadian residents.

Since September 2017, as a result of legislative amendments with respect to serious offences information sharing, the CRA is allowed to share taxpayer information with police organizations when they are investigating serious offences, such as terrorism, criminal organization offence, fraud or corruption of government officials, child pornography and money laundering. Under this particular context, the sharing of taxpayer information is permitted, however, it will be limited to instances where it would be in CRA's interests in the administration or enforcement of the Income Tax Act or Excise Tax Act (i.e., by means of an audit or criminal investigation).

Prior to sharing taxpayer information, the CRA will ensure that the requirements of the serious offences provisions are satisfied. The CRA will independently review the information received from the police to determine if there are reasonable grounds to believe that the CRA has information that will afford evidence of a listed serious offence. In such cases, the CRA may release information; however, the CRA would continue to be responsible for determining if and what taxpayer information would be provided. In the case of information provided to the CRA by foreign governments under tax treaties, TIEAs or the CMAATM, the CRA may be prevented from sharing or would require the written consent of the sending jurisdiction.

In addition, the CRA continues to be committed to the exchange of information through specific, spontaneous, and automatic exchange mechanisms that facilitate cooperation and tax transparency. This includes engaging with Canada's treaty partners and collaborating with foreign tax administrations in numerous OECD working groups and bodies, as well as the Global Forum on Transparency and Exchange of Information for Tax Purposes. The CRA remains engagedFootnote xxvii in numerous capacity-building efforts, such as the OECD's Global Relations Programme and the International Academy for Tax Crime Investigation, which assists other countries in developing their tax administration expertise. The CRA also participates in the OECD's Task Force on Tax Crime and Other Crimes and is one of five founding members of the Joint Chiefs of Global Tax Enforcement (J5), a multi-national group formed in 2018 to increase collaboration in the fight against international and transnational tax crime and money laundering.

Department of Justice Canada (JUS)

Minister of Justice and Attorney General of Canada (AGC)—The Department of Justice (JUS) supports the dual roles of the Minister of Justice and AGC. The Department supports the Minister of Justice in their responsibilities for 49 statutes and areas of federal law by ensuring a bilingual and bijural national legal framework principally within the following domains: criminal justice (including youth criminal justice), family justice, access to justice, Aboriginal justice, public law and private international law. The Department also supports the AGC as the chief law officer of the Crown, both in terms of the ongoing operations of government and of the development of new policies, programs and services for Canadians. As chief law officer of the Crown, the AGC oversees federal prosecutions within the framework of the Director of Public Prosecutions Act (DPPA). The DPPA gives primary authority for the initiation and conduct of prosecutions to the DPP under and on behalf of the AGC. 

On March 18, 2019, the Prime Minister of Canada appointed the Honourable Anne McLellan to be his Special Advisor on the roles of the Minister of Justice and AGC. In this capacity, she examined the structure of having the roles of the Minister of Justice and AGC held by the same person to determine whether changes were needed to protect against the possibility of partisan interference, while providing for public accountability. She also reviewed the operating policies and practices across Cabinet, and the role of public servants and political staff in their interactions with the Minister of Justice and AGC.

The McLellan Report concluded that structural changes to the dual roles of the Minister of Justice and AGC were not required to protect prosecutorial independence and promote public confidence in the criminal justice system. However, it made several recommendations to the Government on how to clarify and reinforce these distinct roles. Two of the key recommendations are reproduced below:

  1. I recommend that the Attorney General of Canada develop a detailed protocol to govern ministerial consultations in specific prosecutions. This protocol should apply to ministers, their staff, the Office of the Clerk of the Privy Council and the public service. The protocol should address the following issues:
    1. Who is entitled to initiate consultations;
    2. Who determines the process for such consultations;
    3. When and where the consultations take place;
    4. Who is entitled to be part of the consultation discussions;
    5. What the scope of the discussion should be; and
    6. The Attorney General’s options and obligations in response to such consultations.
  2. I recommend that the Public Prosecution Service of Canada Deskbook and the 2014 Directive on Section 13 noticed contained within it be updated to clarify the following:
    • Section 13 notices are privileged;
    • The Attorney General may share section 13 notices with the Deputy Minister of Justice or others to obtain advice on whether they should exercise their authority to issue a directive or take over a prosecution, without affecting the privileged status of the notices;
    • The Attorney General may seek additional information from the Director of Public Prosecutions upon receiving a section 13 notice; and
    • The Attorney General may issue specific directives or take over a prosecution on public interest grounds or because they are of the view that there is no reasonable prospect of conviction.

Canada made important progress in the implementation of these recommendations. In response to Recommendation 1, Canada published the Protocol for the Conduct of Ministerial Public Interest Consultation by the Attorney General of Canada in the Exercise of the Attorney General of Canada’s Authority under the Director of Public Prosecutions Act, which governs ministerial consultations in specific prosecution and applies to ministers, their staff, the Office of the Clerk of the Privy Council and the public service. It clarifies that the AGC has the sole authority to initiate public interest consultations and sets clear rules about how such consultations must be conducted, thereby reducing the risk of improper influence of partisan considerations.  

In response to Recommendation 2, the AGC issued an updated directive regarding the DPP’s duty to inform the AGC under section 13 of the DPPA. This directive replaces the previous Public Prosecutions Service of Canada Deskbook Directive 1.2 Duty to Inform the Attorney General under section 13 of the Director of Public Prosecutions Act. Changes brought forward by this updated directive outline practices adopted relating to communications between the DPP, the AGC and others about matters contained within section 13 notices. They also clarify the reasons why the AGC may decide to assume control over a prosecution.

International Anti-Corruption Activity—JUS officials participate in international anti-corruption fora, including in meetings of the OECD WGB. A member of the Canadian delegation from Justice Canada also participates in the WGB's Management Group, which supervises the agenda of the WGB and supports the Chair.

Mutual Legal Assistance—The IAG is Canada's central authority for mutual legal assistance in criminal matters. Canada has bilateral mutual legal assistance (MLA) treaties with 35 countries, pursuant to which Canada can provide formal assistance in criminal matters. Further, Canada has commenced treaty negotiations with a number of countries with whom a formal or updated treaty would facilitate international cooperation. Additionally, the OECD Convention, the United Nations Convention against Corruption (UNCAC), the Inter-American Convention against Corruption, and the Inter-American Convention on Mutual Legal Assistance in Criminal Matters provide Canada with the legal means to provide formal assistance to countries that have signed and ratified those conventions.

The IAG has designated a legal counsel to deal with all incoming and outgoing corruption-related mutual legal assistance requests. This legal counsel works closely with the RCMP and other relevant law enforcement officials and prosecutors. Given the ever-increasing number of incoming requests for assistance, the responsibility for corruption-related requests is being shared with other counsel within the IAG, under the supervision of the designated legal counsel, who remains the point of contact for corruption-related requests.

Additionally, the IAG has designated another legal counsel to coordinate asset recovery efforts on behalf of Canada. Having this additional point of contact allows Canada to address requests for asset recovery with increased efficiency and effectiveness.

Training and Outreach—The IAG regularly liaises with the central authorities from other countries to educate foreign officials with respect to the Canadian legal requirements to obtain effective assistance in criminal matters. The IAG works closely with foreign officials to provide assistance in drafting requests for legal assistance, which allows them to make more effective requests to Canada in the fight against corruption. The IAG regularly hosts and attends consultations with foreign authorities to discuss ways to improve the efficiency and effectiveness of the mutual legal assistance process. Most recently, the IAG participated in a meeting of Central Authorities in Abu Dhabi, UAE, geared toward improving asset recovery efforts.

Moreover, the IAG provides advice and training to Canadian prosecutors and law enforcement and foreign officials regarding the assistance that can be provided to foreign law enforcement and prosecution authorities without the requirement of a formal request.

In terms of outgoing Canadian requests on corruption matters, the IAG also provides advice and training to Canadian prosecutors and law enforcement officials on the legal requirements for seeking assistance from other countries. Additionally, the IAG maintains a website that provides guidance to foreign officials on making requests to Canada and Canadian officials on making requests to foreign jurisdictions.

Of further note, in December 2018, Canada's Mutual Legal Assistance in Criminal Matters Act (MLACMA), Income Tax Act, Excise Act and Excise Tax Act were amended to enhance Canada's capacity to share tax/excise information with Canada's bilateral MLA treaty partners for certain serious crimes pursuant to a request made under the MLA treaty. The MLACMA was also amended to include tax information exchange agreements with the definition of "agreement" to which the Act applies.

Canada also participates in capacity-building exercises hosted by international organizations such as the Commonwealth Secretariat and the International Institute for Justice and the Rule of Law. These initiatives are geared towards assisting countries in developing their international cooperation regimes. Canada provides information on the Canadian legal system, including Canada's approach to dealing with mutual legal assistance in criminal matters. Canada will also provide input and insights on hypothetical problems so that developing nations can gain some experience in addressing the real-world problems that we face in the area of international cooperation.

Canadian Commercial Corporation (CCC)

Combating Corruption—Anti-bribery and corruption is a key component of the Canadian Commercial Corporation (CCC)'s Responsible Business Conduct Framework and Code of Conduct and Business Ethics that provide specific guidance and direction to CCC's employees and clients regarding ethical behaviour in all CCC business activities. These policies are available for employees and clients on CCC's external website. CCC's policies and processes, including its transactional due diligence, form the basis for CCC's approach to identifying, analyzing, preventing, and mitigating bribery and corruption risks. CCC periodically reviews its Responsible Business Conduct Framework to keep its policies up to date in accordance with applicable laws, standards, and best practices, including consulting with Portfolio partners and other Crown corporations to ensure alignment of policies and procedures.

CCC also leverages external resources to bolster its anti-corruption due diligence and practices. CCC is a member of TRACE International, a non-profit organization founded to provide members with anti-bribery compliance support and to provide training assistance. CCC utilizes TRACE International for due diligence, third-party reviews, training, and resources. CCC provides its employees with annual responsible business conduct training that includes content on anti-bribery and corruption. In fiscal year 2022-23, a specialized in-house training session was offered to all CCC employees on the specific integrity risks that are most prominent in CCC's operating environment.

Through CCC's due diligence process, specific references are made to the principles and standards in the OECD Guidelines and the UN Guiding Principles in the due diligence forms completed by exporters and the transactional due diligence reviews performed by CCC. Through the due diligence declaration form, CCC requires exporters to sign an acknowledgement that they will cooperate in good faith with the OECD NCP in any investigation naming the company. Due diligence provided by exporters is reviewed by an Integrity Compliance Committee (ICC). This committee reviews all CCC transactions for bribery and corruption risks and makes recommendations to senior management. The ICC provides exporters with recommendations and resources to strengthen and improve their compliance programs. CCC is pleased to report that numerous exporters have improved their compliance programs in fiscal year 2022-23 by implementing and improving anti-bribery and corruption policies and training. CCC has also extended additional training to specific exporters through its membership with TRACE International. Some exporters have leveraged this training while they develop their training programs.

As part of each integrity review, CCC works collaboratively with exporters to address specific integrity risks in transactions and devises plans and strategies to mitigate those risks. Ongoing monitoring is an essential component of CCC's due diligence process, whereby risks relating to bribery and corruption are monitored on a continuous basis.

In April 2023, CCC released a Code for Exporters that outlines the expectations and performance standards regarding responsible business conduct, including anti-bribery and corruption. There is a reporting mechanism outlined in this Code that allows any third-party to report a potential or actual violation of CCC policies, including bribery and corruption concerns. The Code for Exporters also provides exporters with additional resources to undertake further reading on various anti-bribery and corruption conventions, guidance, and best practices.

Public Services and Procurement Canada (PSPC)

Combating Corruption—Public Services and Procurement Canada (PSPC) administers the government-wide Integrity Regime, introduced in July 2015, to help ensure that Canada conducts business with ethical suppliers. The Regime is a policy-based instrument (the Ineligibility and Suspension Policy), enforced through corresponding contractual clauses that incorporate the Ineligibility and Suspension Policy by reference. Under the Regime, Canada may declare a supplier ineligible, or suspend a supplier from being awarded a contract or real property agreement if they have been convicted of, or charged with, an applicable listed offence (e.g., offences related to corruption, fraud, bribery) within the past three years, in Canada or a similar offence abroad. The names of all ineligible and suspended companies are published on the PSPC website, as well as those who have entered into an administrative agreement with PSPC.Footnote xxviii To date, four companies have been declared ineligible, and two companies have signed administrative agreements with PSPC to reduce their period of ineligibility in lieu of suspension.

Since its introduction, all departments or agencies identified in Schedules I, I.1 and II of the Financial Administration Act have signed MOUs with PSPC to obtain supplier integrity verification services. This allows organizations to verify that a supplier is not ineligible to conduct business with the government under the Regime prior to awarding a contract or real property agreement. Additionally, three Crown Corporations have voluntarily adopted the policy and have signed MOUs with PSPC for verification services.

Raising Awareness—PSPC works closely with the private sector, industry partners and civil society organizations to promote an ethical business culture and integrity in public procurement. Senior PSPC officials participate as guest speakers and deliver presentations at a range of events on Canada's approach to combating fraud and corruption in procurement and real property transactions, the government-wide Regime, and the Department's framework to manage wrongdoing and fraud risk.

The Department collaborates with federal partners on measures to prevent, mitigate and address unethical business practices within public procurement and real property. This includes participating in working groups, committees, and bilateral meetings. PSPC is also actively involved in discussions with like-minded countries to share lessons learned on emerging trends related to corruption and federal procurement. 

Competition Bureau of Canada (CB)

Combating Corruption—There can be a close relationship between collusive behaviour and corruption. Given this possible connection, the CB continues to maintain and improve its relationships with police forces, procurement authorities, and other organizations to complement each organization's efforts to promote competition and combat corruption.

The CB continues to receive tips through the Federal Contracting Fraud Tip Line, a joint initiative of the CB, PSPC, and the RCMP established in April 2017. A dedicated telephone line and online form are available to Canadians to report anonymously suspected fraud, collusion or corruption in federal government contracts and real property agreements. It complements measures already in place to ensure that federal contracts are lawful, ethical, and fair. The information received through the Tip Line may be used to conduct investigations, gather intelligence, and introduce due diligence measures to protect the integrity of federal government contracts and real property agreements.

Although not directly targeted at combating bribery or corruption, the CB developed a tool to fight bid-rigging and help procurement agents minimize factors that increase the risk of collusion. The Collusion Risk Assessment Tool helps procurement agents who draft and administer tender specifications to identify potential collusion and put in place mitigation strategies that promote competition. The Tool is free and web-based (available here). It can be used anonymously by both public and private sector procurement officers and purchasing agents.

Raising Awareness—The Cartels Directorate of the CB continues to prioritize outreach presentations to public procurement organizations at all levels of government. The goal is to provide procurement officials with the information they need to detect, prevent and report bid-rigging to the CB. These presentations cover topics including:

The CB continues to encourage procurement authorities to require a Certificate of Independent Bid Determination (CIBD) as part of all tenders (available here). Through its signature, the supplier attests that it determined and submitted its bid independently of other competitors. Suppliers include a signed CIBD form as part of the submission package. This encourages ethical decision-making by potential suppliers at the point of bid submission.

Treasury Board Secretariat (TBS)

The Treasury Board Secretariat (TBS) provides advice and makes recommendations to the Treasury Board committee of ministers on how the federal government spends money on programs and services, how it regulates and how its human resources are managed. To achieve this objective, the TBS sets the government-wide management agenda and provides guidance to departments on a wide range of management issues.

Public confidence is enhanced, and a culture of accountability and integrity is promoted, when there are effective mechanisms to combat and address the bribery of foreign public officials. This includes having effective procedures for disclosing wrongdoing and for protecting those who disclose wrongdoing and acts of corruption within the public sector. In November 2022, the President of the Treasury Board appointed an external task force to conduct a statutory review of Canada's Public Servants Disclosure Protection Act (PSDPA) to consider opportunities to enhance the federal disclosure process and make recommendations to strengthen protections and supports for public servants who come forward to disclose wrongdoing.

During the reporting period, Canada continued to focus on strengthening awareness activities and training for federal public servants, as well as on making continuous improvements to guidance and reporting related to the internal disclosure process.

On the international front, Canada continues to be represented by a TBS official as a member of the OECD Working Party of Senior Public Integrity Officials (SPIO), a sub-group of the OECD's Public Governance Committee. The SPIO aims to strengthen public sector governance and institutions involved in policymaking related to safeguarding integrity and preventing corruption and the underlying conditions that shape policymaking processes. As a member of the SPIO, Canada regularly provides technical guidance on the promotion of integrity frameworks related to public governance. For instance, the TBS contributed towards revising, validating, and establishing indicator values for the OECD Public Integrity Indicator on Accountability of Public Policy Making. In addition, Canada is currently being evaluated as part of the Phase 4 peer review of the implementation of the OECD Convention and the 2021 Recommendation. The evaluation aims to identify Canada's achievements and good practices in combating foreign bribery, identify existing challenges, and examine how they can be addressed within Canada's legal framework. The focus of the evaluation is on detecting foreign bribery offences, enforcement, and the responsibility of legal persons. The TBS contributed to the evaluation by providing input on the PSDPA as well as on financial policies that contribute to combatting corruption.

In September 2022, the President of the Treasury Board released Canada's 2022–24 National Action Plan on Open Government. National Action Plans (NAPs) are released every two years as part of Canada's participation in the Open Government Partnership. They serve as a mechanism for the Government of Canada to improve transparency, participation, and accountability in government processes and operations. The 2022-24 NAP will advance openness, transparency, and accountability in the Government of Canada through goals set in five thematic areas, including: (1) climate change and sustainable growth, (2) democracy and civic space, (3) fiscal, financial, and corporate transparency, (4) justice and (5) open data for results. During each NAP planning cycle, Canadians have the opportunity to engage in how government makes decisions and directly shape activities within the Plan. The government has gathered and used public feedback to ensure that the plan reflects what matters most to the people of Canada. Also, by continuing to improve the Access to Information and Privacy Online Request Service (ATIP Online),Footnote xxix the Government of Canada is making it easier for Canadians to access government information.

Further to Action Plan Commitments, in 2022 the Evaluation of Proactive Publication Under the Access to Information ActFootnote xxx was completed, recommending that the TBS foster institutional monitoring to understand better the compliance of institutions with their proactive publication obligations and to promote and support the use of ATIP Online. In response, the TBS has published a Directive on Proactive Publication under the Access to Information Act,Footnote xxxi communicating directions to institutions on institutional monitoring and to make ATIP Online the prescribed platform for publishing proactive publication records. These initiatives are intended to promote transparency and openness by ensuring that proactive publication records are consistently available from a central source.

The Guidelines on Proactive Disclosure of ContractsFootnote xxxii provide guidance to managers and functional specialists on the identification, collection, reporting and publication of contract information. The Guidelines were amended in 2022 to update the procurement reporting requirements to reflect the transition from the Contracting PolicyFootnote xxxiii to the Directive on the Management of Procurements,Footnote xxxiv including the reporting of contracts and amendments awarded to Indigenous businesses.

Among other purposes, contracting data is gathered to strengthen the transparency of the procurement process for Canadians to hold their government to account. These Guidelines support the public disclosure of contract information by government entities and Ministers' offices under the Access to Information Act, which requires the proactive publication of contracts with a value of over $10,000, a contract amendment when it modifies the contract value to exceed $10,000, and amendments to contracts that increase or decrease the value of the contract by more than $10,000. Appendix A of the Guidelines presents the data elements for annual reporting to PSPC and the quarterly publication on the Open Government Portal. Appendix B of the Guidelines presents the data elements for annual publication of the aggregate contract and amendment activity for contracts $10,000 and under on the Open Government Portal.

The Guidelines on the Reporting of Grants and Contributions AwardsFootnote xxxv provide guidance to managers and functional specialists on the identification, collection and publication of grants and contributions (Gs&Cs) award information. These Guidelines support the public disclosure of Gs&Cs information requirements for government entities under the Access to Information Act, which requires government entities to proactively publish Gs&Cs with a value of more than $25,000, as well as Gs&Cs that are of a value of $25,000 or less but which were amended so that their value is over $25,000, as well as any amendments to these Gs&Cs.

Natural Resources Canada (NRCan)

The Extractive Sector Transparency Measures Act (ESTMA) requires mining, oil and gas companies active in Canada to disclose publicly, on an annual basis, certain types of payments made to governments in Canada and abroad. These disclosures raise transparency, reduce corruption, and enable communities to hold their governments to account for the revenues generated from oil, gas, and mining resources.

Relevant activities during this reporting period have included:

Compliance program launched—Natural Resources Canada (NRCan) launched the ESTMA Compliance Program in September 2022, which takes a risk-based approach to compliance verification and assesses ESTMA reports based on an internal risk assessment framework to ensure ESTMA compliance and data integrity. The compliance program relies on data analytics based on reputable data sources to identify companies at the highest risk of non-compliance. This includes gathering data from ESTMA reports and leveraging data from public Canadian securities filings, reputable paid corporate databases, and international corruption indexes. Further, the process includes reviewing media reports for companies that have been flagged as high-risk for non-compliance, as well as regular flagging of media reports to the team that implements the ESTMA. Individuals can also submit third-party complaints about ESTMA reports, including potential missing payments.

Ongoing stakeholder engagement and compliance promotion—NRCan has undertaken significant compliance promotion activities to ensure that stakeholders are aware of the ESTMA reporting requirements. This includes online webinars, in-person targeted information sessions, and participation in oil, gas and mining conferences across Canada. Some of these events were co-hosted with private sector representatives or civil society organizations. For example, in September 2022, PricewaterhouseCoopers invited NRCan to speak at events in Calgary and Vancouver on ESTMA updates and compliance. Similarly, the Saskatchewan Mining Association invited NRCan to present on ESTMA. More recently, in March 2023, NRCan co-hosted an event with the Extractive Industries Transparency Initiative on the margins of the PDAC Convention. Information on how third-party complaints can be made was also shared as part of the aforementioned compliance promotion activities.

Data portal launched—The ESTMA Data Portal, which NRCan launched in collaboration with Statistics Canada in September 2022, increases access to and searchability of data reported under the ESTMA. The data portal allows users to search the payment information by entity, payee and project, and it will include summaries of key data points and visualizations.Footnote xxxvi

Website regularly updated with the latest information—As part of a periodic review, the NRCan website sections about ESTMAFootnote xxxvii were updated in July 2023 to reflect the latest information.

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