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The Liberal government has introduced draft regulations that would significantly weaken Canada’s long-promised foreign influence registry, despite Parliament mandating strict transparency measures to counter election interference.

The proposed regulations were published without announcement in the Canada Gazette on January 3, the Friday after New Year’s, a timing clearly designed to avoid scrutiny.

The registry was created under Bill C-70, passed by Parliament in June 2024. The law requires anyone acting on behalf of a foreign entity to publicly register, with penalties of up to five years in prison or a $5 million fine for non-compliance.

However, draft regulations released by the Department of Public Safety dramatically scale back enforcement. Under the proposed rules, penalties for failing to register could be as low as $50, and offenders could enter compliance agreements that reduce or eliminate penalties altogether.

The regulations also allow key information to be withheld from public view. Compensation paid to foreign agents would remain secret, despite Parliament’s intention that Canada’s registry mirror the United States Foreign Agents Registration Act, which requires disclosure of who is paying and how much.

In a Regulatory Impact Analysis Statement, the government said it was concerned that publicly naming foreign agents could cause “suspicion or discrimination” toward racialized communities if certain countries appeared more frequently than others. To address this, the registry would be “country-neutral,” and the Commissioner would conduct outreach and education efforts to mitigate stigma.

Public Safety Minister Gary Anandasangaree is responsible for the regulations. His department estimates approximately 2,422 individuals and businesses in Canada could be required to register as foreign agents.

The changes come after years of controversy surrounding foreign interference in Canadian elections. A federal commission confirmed interference in the 2019 and 2021 elections but declined to publicly identify the parliamentarians who benefited. Canadians went into the 2025 election without knowing which 11 MPs were linked to foreign influence allegations.

Critics have also raised concerns about Prime Minister Mark Carney appointing Justice Marie-Josée Hogue, who oversaw the interference inquiry, to a senior public service role involved in implementing the registry.