By Michal Jaworski and Lina Kim
Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman.
Louis Dembitz Brandeis, Other People’s Money—and How Bankers Use It (1914).
While using sunlight as a disinfectant is not necessarily good science when it comes to human health, the metaphor holds for the health of democracies. In particular, transparency in government is critical to citizen oversight of elected officials. In an interconnected world, where people, businesses, and institutions have international reach, it’s important to know who is speaking to government officials and whose best interests they are advancing.
This insight has resulted in various laws, including freedom of information laws and laws requiring the registration of lobbyists. In recent years, attention has turned to the influence of foreign powers on Canada’s laws, government, and policy, including its foreign policy. A recent development is a Canadian law now commonly referred to as FITAA, the Foreign Influence Transparency and Accountability Act.
FITAA in a nutshell
FITAA creates a public Foreign Influence Registry and requires every Canadian to register every “arrangement” that they enter into with a “foreign principal”. Broadly speaking, an “arrangement” is an “influence activity” directed at any level of Canadian government at the direction of or in association with a foreign government or a foreign government-controlled entity.
FITAA was adopted by the Canadian Parliament in 2024, but it has only recently been brought into force with new regulations. Most importantly, it brings with it registration obligations commencing on October 3, 2026 (the date by which ongoing influence activities from the past 14 days must be registered).
The questions you need to ask
The questions every Canadian individual, business, non-profit, and institution—whether public and private—must now ask themselves include:
> How am I interacting with government entities and processes, whether they be municipal (local and regional), provincial, or federal? This includes core government as well as their various departments and agencies, regulatory issues (such as seeking permits, licenses, contracts, etc.), and involvement in political processes like elections.
> Are the people I commonly deal with “foreign principals”? In an interconnected, international world, knowing the line between what FITAA defines as a “foreign principal” and what we might call informally a “foreign” or an “international” person or entity is critical.
> If I do have a relationship of some sort with a “foreign principal”, is it an “arrangement” caught by FITAA? This is the big question, and has two aspects, generally speaking:
(1) Are we engaging with government (directly or indirectly) about a political or governmental process?
(2) Am I acting independently of the foreign principal?
If you are acting at the direction of or in association with a foreign principal and are engaging in what the FITAA regulations define as “influence activities,” then you must register the activity.
The answers to these (and other) questions require a careful consideration of both FITAA and the regulations adopted under FITAA, and a careful consideration of your specific circumstances, including who exactly you’re dealing with and what you’re talking about (and not just to whom).
Importantly, these questions must be asked for each activity (it is not sufficient to register once, if you are an individual or entity that commonly enters into arrangements with foreign principals).
Practically speaking…
Answering these questions is only part of the exercise. If you determine that an activity is registrable, you’ll need to collect and submit the required information, which itself can be administratively burdensome and potentially challenging. As a result, you may wish to develop policies and adapt your engagements and contracts to ensure that you’re well-positioned to (a) proactively identify registrable activities; and (b) register within the 14-day timeline.
And, of course, there are also the implications of registration. The Canadian government and the Office of the Foreign Influence Commissioner stress that there is nothing inherently problematic about engaging in influence activities under the direction or in association with a foreign principal. However, not everyone will feel that way, especially if the activity is not placed in its full context. Ultimately, the Foreign Influence Registry is public—and it will likely be of interest to many, including journalists and politicians, as well as partners, customers, and competitors. Having a communications strategy would therefore be useful for preparing for any questions that may be raised in public and in private.
If you have any questions about the application of FITAA to your activities, the authors would be pleased to speak with you.