Canada

The Privacy Commissioner of Canada has launched an investigation into IDScan.net following a data breach exposing 153 million driver's license scans. The probe will examine the company's security practices and whether it provided adequate breach notifications under PIPEDA, signaling increased regulatory scrutiny of identity verification vendors.

Bill C-12, which received royal assent on March 26, 2026, amends Canada's PCMLTFA to introduce a new serious violation for failing to maintain a 'reasonably designed, risk-based and effective' AML compliance program, with penalties increased forty-fold and capped at the greater of C$20 million or 3% of gross global revenue. FINTRAC's May 2026 guidance shifts assessment from written policies to operational effectiveness, using cross-sector benchmarking and STR output as evidence, and enforcement since March 2026 already reflects this with penalties for repeated STR filing failures.

Five Canadian provinces—Manitoba, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan—will raise general minimum wages effective October 1, 2026, with PEI scheduling an additional increase on April 1, 2027. Employers must update payroll systems, monitor jurisdiction-specific rates, and address potential wage compression.

Canada announced that full expensing for machinery, equipment, and patent rights will be made permanent and broadened from approximately 15% to two-thirds of business capital investment. This tax policy change requires amendments to Canada's Income Tax Act and will affect corporate tax planning, financial reporting, and compliance obligations for businesses operating in Canada.

Canada's proposed taxonomy for abatement measures aims to classify greenhouse gas reduction activities, affecting ESG reporting and investment decisions. The proposal has sparked debate over credibility and greenwashing risks, with implications for Canadian asset managers and pension funds.

The Ontario Court of Appeal ruled that RSU forfeiture clauses that stop vesting upon termination violate the Employment Standards Act, 2000, entitling dismissed employees to damages for RSUs that would have vested during the notice period. Employers must review and amend equity compensation plans to ensure compliance with ESA minimum standards.

Ontario's WSIB has closed the SIEF retroactively to June 16, 2026, eliminating cost relief for new claims involving pre-existing conditions. Employers will face higher claim costs and must enhance claims management and appeal strategies.

Quebec enacted a new regulation expanding the definition of sexual violence to include even a single sexual joke, requiring employers to implement comprehensive prevention measures, mandatory training, and complaint procedures. Non-compliance may lead to legal liability.

Canada's Bill C-12 introduces stricter requirements for screening and monitoring politically exposed persons (PEPs) and high-risk individuals under the PCMLTFA. Financial institutions and reporting entities must update compliance programs to include more rigorous ongoing monitoring and periodic risk assessment updates.

Canada's proposed sustainable finance taxonomy includes a controversial 'abatement measures' category that allows continued investment in fossil fuel projects with abatement technologies. The taxonomy aims to define green and transition activities, with implications for ESG reporting and investment classification.

Canada's proposed Lawful Access Act would require U.S. tech companies to store user metadata for up to a year, create encryption backdoors, and modify systems for surveillance. U.S. Senator Wyden urges opposition, citing national security risks and a statutory vacuum. The bill has passed Canada's House of Commons and awaits Senate approval.

New Brunswick, Canada has enacted two employment law reforms effective June 12, 2026: the Pay Transparency Act requiring salary ranges in job postings and prohibiting compensation history inquiries, and amendments to the Employment Standards Act creating a new unpaid leave of up to 27 weeks for serious illness or injury. Employers must update job postings, compensation policies, and leave procedures.

Canada is developing a taxonomy for sustainable finance, including a new 'abatement measures' category and environmental/social safeguards. This framework will define green and transition activities, impacting ESG reporting and compliance for companies operating in Canada.

Canada's Business Future Pathways released a draft methodology for a Sustainable Finance Taxonomy with a novel 'Abatement' category for oil and gas production decarbonization. Public comment is open until August 13, 2026, with sector guidelines expected by end of 2027.

Ontario has eliminated the separate server minimum wage, with a general minimum wage of $17.60/hour as of October 2025. Proposed Bill 105 would prohibit employers from charging employees for mandatory uniforms. Employers must also comply with tip pooling rules and the three-hour rule for reporting pay.

Canada is modernizing its payment infrastructure with the Real-Time Rail system, requiring fintechs to comply with new regulatory standards and technical requirements. Fintechs must adapt to changes in payment processing, data security, and interoperability to remain compliant.

Bill C-35 proposes a ban on forced labour in Canadian supply chains, requiring health and safety leaders to extend due diligence beyond their own worksites. Companies must implement enhanced monitoring, reporting, and risk management across their entire supply chain.

Prince Edward Island's new Employment Standards Act (Bill 76) introduces major changes including reduced standard work hours, new scheduling and rest requirements, expanded sick leave, improved vacation, and revised termination rules. Employers must update policies and practices to comply by the effective date.

Québec has approved a new regulation on the prevention of sexual violence in the workplace, expanding employer duties. It requires written information for workers, mandatory training every three years, and a formal complaint process. Most provisions take effect May 27, 2027.

Québec has approved a new Regulation under the Act respecting occupational health and safety requiring employers to implement measures to prevent sexual violence, including mandatory training every three years and formal complaint procedures. Most obligations take effect May 27, 2027, with training requirements effective in 2028.