Finance Canada’s Transition Binder, December 2024

Structure and Management

• Federal-Provincial Relations and Social Policy Branch
• Financial Sector Policy Branch
• Tax Policy Branch
• International Trade and Finance Branch
• Economic Development and Corporate Finance Branch
• Communications and Public Affairs Branch
• Law Branch
• Corporate Services Branch
• Economic and Fiscal Policy Branch

A full organizational chart is included in Section 2 of your binder.

Key Stakeholders by Sector

A list of stakeholders by sector is available upon request.

2024–2025 Departmental Budget

The Department has an operating budget of $146.5 million and a staff of 922 full-time equivalents (FTEs), excluding exempt staff working in the office of the Minister of Finance. In addition, the department is responsible for the expenditure of roughly $144.8 billion in statutory items composed mainly of major transfers to other levels of government (e.g., Canada Social Transfer, Canada Health Transfer, etc.) and public debt charges.

The department of finance canada portfolio organizations and responsibilities

Crown corporations part of the department of finance canada portfolio, for which the minister of finance has statutory responsibility

A. Bank of Canada (Tiff Macklem, Governor; Carolyn Rogers, Senior Deputy Governor)

The Bank of Canada is Canada's central bank, directly responsible for Canada's monetary policy. The Minister of Finance, with the approval of the Governor in Council, appoints the members of the Bank's Board of Directors for three-year terms. There is currently one vacancy on the Board. The terms of three incumbents are expired, and the term of one incumbent will expire in February 2025. The current Governor was appointed to a seven-year term on June 2, 2020.

The Board of Directors is solely responsible for setting spending priorities through the Bank's annual budget process. The Bank prepares an annual report that the Minister of Finance must table in Parliament. The Minister must also table the Bank's Annual Report to Parliament on the Administration of the ATI and Privacy Acts.

Officials from the Department of Finance work closely with colleagues at the Bank on such issues as macroeconomic performance, debt management, and financial sector regulation. In addition, the Minister of Finance and the Governor consult regularly on monetary policy with respect to its relation to economic policy.

The Bank of Canada is responsible for the design and production of bank notes. Under the Bank of Canada Act, the Minister must approve the composition and design of bank notes. In addition, the Bank acts as fiscal agent for the government and is thus directly concerned with the management of the public debt.

As fiscal agent for the government, the Bank of Canada also acts as agent and advisor in the management of Canada's foreign exchange reserves, which are largely held in the Exchange Fund Account in the name of the Minister of Finance.

The Bank of Canada is responsible under the Payment Clearing and Settlement Act to oversee payment systems in Canada. The Governor of the Bank can designate payment systems as systemically important, with the approval of the Minister of Finance, if they can trigger or transmit major shocks across the domestic or international financial system, and can designate, with the approval of the Minister of Finance, other payment systems as prominent if their failure or disruption could cause a significant adverse effect on economic activity in Canada.

The Bank of Canada will also be responsible under the Retail Payment Activities Act to oversee payment service providers - such as payments processors and e-wallets - to ensure they are safe and secure for consumers and businesses. Payment service providers were required to register with the Bank of Canada in November 2024, with the substantive regulatory requirements coming into force in September 2025. The Act also includes safeguards, under the authority of the Minister of Finance, to address national security-related risks.

The Bank receives no appropriations from government. The main source of the Bank's revenue is interest earned on holdings of federal government securities.

The Bank of Canada reported a net loss of $5.6 billion in 2023. These losses are largely due to the Government of Canada Bond Purchase Program, launched in March 2020 during COVID, which provided liquidity to the financial system. Such losses are not unique to the Bank of Canada, as many other central banks, including Australia, the U.K. and U.S. are also experiencing such losses. These losses are not expected to affect the Bank's ability to conduct monetary policy.

B. Canada Deposit Insurance Corporation (Leah Anderson, President and CEO; Robert Sanderson, Chair of the Board of Directors)

The Canada Deposit Insurance Corporation's (CDIC) mandate is to insure deposits in member institutions (up to $100,000 in each of the nine eligible categories) and contribute to financial stability in Canada. Its members are federally incorporated deposit-taking institutions and provincially incorporated institutions that are authorized by provincial legislation to apply for its deposit insurance.

The Minister recommends CDIC's Corporate Plan for Governor in Council approval, and recommends Treasury Board approval of its operating and capital budgets. The Minister must also approve the Corporation's annual borrowing plan, the deposit insurance premiums charged to member institutions, and any change in the formula used to calculate the premiums. The Minister must also approve and table in Parliament the annual Summary of the Corporate Plan, as well as the CDIC Annual Report.

The Canada Deposit Insurance Corporation Act sets out the powers that the Corporation can use in the case of failure of one its members. If the Minister supports the Corporation's resolution options, a ministerial recommendation to the Governor in Council would be made to execute the resolution strategy.

The President & CEO and Chairperson are appointed by the Governor in Council after the Minister has consulted the Board of Directors. Up to six private sector directors are appointed by the Minister with approval of the Governor in Council. Six public sector directors sit as Board members from the Department of Finance Canada, the Bank of Canada, the Office of the Superintendent of Financial Institutions, the Financial Consumer Agency, and the Canada Deposit Insurance Corporation.

The Deputy Minister of Finance is the public sector director from the Department of Finance. With the approval of the Minister of Finance, a director may designate an alternate to attend any board meeting. As a matter of practice, the position of alternate to the CDIC directors is assumed by a directors' Deputy or in the case of the Deputy Minister of Finance, the Assistant Deputy Minister, Financial Sector Policy Branch. The Board typically meets quarterly.

CDIC is funded through the premiums collected from member institutions. In fiscal year 2023-24, it collected $891 million in insurance premiums and maintained approximately $9.1 billion to resolve problem member institutions.

C. Canada Development Investment Corporation (Jennifer Reynolds, Lead Director; Elizabeth Wademan, President and Chief Executive Officer)

The Canada Development Investment Corporation's (CDEV) initial mandate was to manage Crown corporations and other government investments assigned to it, and to divest these holdings when appropriate. Since 2018, CDEV's role has grown considerably, and it has been responsible for implementing a number of the government's major economic policies. These include, among others, the acquisition of the Trans Mountain assets and construction of the Trans Mountain Expansion Project, the establishment of the Large Employer Emergency Financing Facility, as part of the government's COVID-19 economic response, the $15 billion Canada Growth Fund and the recent launch of the Canada Indigenous Loan Guarantee Corporation to administer the Indigenous Loan Guarantee Program in the 2024 Fall Economic Statement. Going forward, CDEV is expected to play a role in supporting Indigenous economic participation in Trans Mountain.

CDEV currently has eight wholly owned subsidiaries:

• The Trans Mountain entities, including Trans Mountain Corporation, which operate the expanded Trans Mountain Pipeline system;
• Canada Growth Fund (CGF), a $15 billion arm's length and independent investment fund that catalyzes private-sector investment into Canadian businesses and projects to help transform and grow Canada's economy at speed and scale on the path to net zero;
• Canada Enterprise Emergency Funding Corporation (CEEFC), which is responsible for administering the Large Employer Emergency Financing Facility (LEEFF) portfolio of bridge loans for large Canadian companies that were affected by COVID-19;
• Canada Indigenous Loan Guarantee Corporation (CILGC), which was established in December 2024 to administer the Indigenous Loan Guarantee Program, which will offer up to $5 billion in loan guarantees to support Indigenous equity ownership in natural resources and energy projects;
• Canada Hibernia Holding Company (CHHC), which manages the Government's 8.5 per cent interest in the Hibernia oil project offshore of Newfoundland;
• Canada 16324251 Inc., which will provide a loan of $2.14 billion to Telesat LEO to support its low-earth orbit satellite project;
• Canada Eldor Inc. (CEI), which holds the remaining federal liabilities resulting from the 1988 privatization of Eldorado Nuclear; and
• *Bullet redacted*.

The Minister of Finance is responsible to Parliament for the Canada Development Investment Corporation, and makes recommendations to the Governor in Council on appointments to i Board of Directors of the parent, including the Chairperson, and the President and CEO. CDEV currently has six directors (including the President and CEO, who serves on the board). The position of chair of the board has been vacant since October 1, 2024, when the incumbent, Stephen Swaffield, retired. Ms. Jennifer Reynolds acts as lead director until a new chair has been appointed by the Governor in Council. The Minister is also required annually to submit CDEV's five-year corporate plans and capital budgets for Treasury Board consideration and approval. In addition, the Minister of Finance is required to table CDEV's Corporate Plan Summary, Annual Report, and Annual Reports from CDEV and its subsidiaries under the Access to Information and Privacy acts.

D. Royal Canadian Mint (Marie Lemay, President and Chief Executive Officer; Phyllis Clark, Chair of the Board of Directors)

The Royal Canadian Mint (the Mint) was established in 1908 as a branch of the Royal Mint in Great Britain, and in 1931 became a branch of the Department of Finance Canada. Since 2011, the Mint has reported to Parliament through the Minister of Finance.

The Mint's mandate is to "mint coins in anticipation of profit and to carry out other related activities". The Mint's core activities are to produce the circulation and non-circulation coins of Canada, manage the coinage system and provide advice to the Minister of Finance on all matters related to coinage. The Mint has four main business lines: Canadian Circulation, Foreign Circulation, Numismatics, and Bullion Products & Services.

The Mint must prepare a Corporate Plan and capital budget every year, and the Minister of Finance is responsible for seeking Treasury Board approval of the plan and capital budget. The Minister is responsible for tabling a summary of the Corporate Plan, and the Annual Report before Parliament. The Minister is also responsible for approving the corporation's borrowings and exchange traded receipts plan.

The Minister of Finance is responsible for recommending approval, to the Governor in Council, for changes to circulation coin designs, commemorative coin designs, and new coin denominations. The Mint may also produce numismatic coins and precious metal coins. The Minister is required to approve designs for numismatic coins.

The Board of Directors of the Mint consists of the Chairperson of the Board, the President and CEO (Master of the Mint) and nine other directors. The Chairperson of the Board is appointed by the Governor in Council, whereas the Minister appoints other directors subject to Governor in Council approval.

E. Canada Pension Plan Investment Board (John Graham, President and CEO; Dean Connor, Chair of the Board of Directors)

The Canada Pension Plan Investment Board (CPPIB) was created in 1998 as part of a federal- provincial agreement to reform the Canada Pension Plan (CPP). CPPIB is an arm's-length investment corporation with a mandate to invest net new CPP contributions in a diversified portfolio of assets, including equities, fixed income securities, real estate, infrastructure and other assets in the best interests of plan members.

The federal government and the provinces have joint responsibility for CPPIB, including its enabling legislation and associated regulations. Every three years, as part of the review of the CPP and related CPPIB legislation, the Office of the Chief Actuary issues a report on the financial sustainability of the Plan. Any changes to the CPP and CPPIB acts require the approval of at least two-thirds of the provinces representing at least two-thirds of the population.

As at September 31, 2024, CPP net assets totalled $675.1 billion. Over the past ten years, the annualized net rate of return on investment has been 9.1 per cent. The base CPP net assets total $626.1 billion and have generated a five-year annualized net return of 8.0 per cent. An additional CPP account, introduced in January 1, 2019 to increase the maximum benefit level from one- quarter to one-third of average work earnings covered by the CPP, has generated a 5.1 per cent annualized net return over the past five-years. The net assets of the additional CPP account total $49.0 billion.

The Minister of Finance makes recommendations to the Governor in Council on appointments to the CPPIB's 12-member board of directors, including the chairperson. Prior to making these recommendations, the Minister must consult with the appropriate Ministers of participating provinces (all but Quebec). The Minister of Finance also appoints the chairperson of the nominating committee. Since October 2014, when amendments to the CPPIB Act came into force, up to three of the twelve directors may be non-residents of Canada. CPPIB leads the search and assessment process before providing the nominating committee with a shortlist of recommended candidates.

The Minister of Finance, in consultation with the provinces, is responsible for proposing any changes to the CPPIB legislative framework to Parliament, and for the special examination of the CPPIB's internal controls, systems, and management practices every six years.

CPPIB must send the Minister of Finance its quarterly financial statements and annual report. The Minister annual report must table in Parliament by the Minister of Finance.

As an arm's-length Crown Corporation, the Department of Finance has no direct influence over CPPIB's investment policies or practices, but it does closely monitor its governance, risk management and factors that may affect the funding of the CPP.

To ensure the sustainability of the CPP, CPPIB invests monies not immediately required to pay CPP benefits in order to maximize returns without undue risk of loss. At March 31, 2024, CPPIB had annual operating expenses of $1.6 billion.

Agencies part of the department of Finance Canada portfolio, for which the Minister of Finance has statutory responsibility

A. Office of the Superintendent of Financial Institutions (OSFI) (Peter Routledge, Superintendent)

The Office of the Superintendent of Financial Institutions (OSFI) is an independent federal government agency that regulates and supervises more than 400 federally regulated financial institutions and 1,200 federally regulated pension plans to determine whether they are in sound financial condition and meeting their requirements.

OSFI's mandate is to:

• Foster sound risk management and governance practices through the advancement of a regulatory framework designed to control and manage risk.
• Supervise federally regulated financial institutions and pension plans to determine whether they are in sound financial condition and meeting regulatory and supervisory requirements.
• Monitor and evaluate system-wide or sectoral developments that may have a negative impact on the financial condition of federally regulated financial institutions.
• Protect the rights and interests of depositors, policyholders, financial institution creditors and pension plan beneficiaries while having due regard for the need to allow financial institutions to compete effectively and take reasonable risks.
• Ensure federally regulated financial institutions protect themselves against threats to their integrity and security, including foreign interference.

As of June 2023, OSFI's mandate was expanded to include supervising federally regulated financial institutions to determine whether they have adequate policies and procedures to protect themselves against threats to their integrity and security, including protection against foreign interference.

OSFI reports to Parliament through the Minister of Finance, and the Minister is responsible for tabling OSFI's Annual Report in Parliament, as well as providing the Departmental Plan and Departmental Results Report to the President of the Treasury Board for tabling. OSFI briefs the Minister regarding companies on its watch list. The Superintendent is appointed by the Governor in Council. As a matter of practice, the Minister makes the recommendation to the Governor in Council. Peter Routledge was appointed Superintendent of Financial Institutions on June 29, 2021, for a seven-year term.

OSFI has a statutory role to facilitate consultations and exchange information on matters relating directly to the supervision of financial institutions through a committee chaired by the Superintendent called the Financial Institutions Supervisory Committee (FISC). Members of the committee are the Superintendent, Deputy Minister of Finance, Governor of the Bank of Canada, CEO of the Canada Deposit Insurance Corporation, and the Commissioner of the Financial Consumer Agency of Canada. The FISC generally meets quarterly, with additional semi-annual meetings to discuss a pro-cyclical capital buffer that OSFI applies to the largest Canadian banks. The FISC is supported by a sub-committee (i.e., sub-FISC) that is composed of senior managers from the same federal financial agencies represented in the FISC.

For the 2024-25 fiscal year, OSFI's planned total expenses is $321.9 million. OSFI is funded mainly through assessments on the financial institutions and private pension plans it regulates and, to a small extent, a user-pay program for selected services that are issued pursuant to a statutory authority.

B. Financial Consumer Agency of Canada (FCAC) (Shereen Benzvy Miller, Commissioner)

The Financial Consumer Agency of Canada (FCAC) supervises the compliance of federally regulated financial institutions with the consumer provisions in the financial institutions and payments statutes. As part of the new Financial Consumer Protection Framework brought into force in 2022, the FCAC's mandate was expanded to include new supervisory and enforcement powers and tools.

The FCAC's mandate was further expanded in Budget 2024 to include oversight of the Consumer-Driven Banking Framework, which is enshrined in the Consumer-Driven Banking Act (CDBA). The CDBA and related amendments to the FCAC Act establish a new position, the Senior Deputy Commissioner for Consumer-Driven Banking, to oversee and enforce the Framework. The position is to be hired by the Commissioner, but with the concurrence of the Minister of Finance. Additional legislative amendments to complete the Framework and enable the FCAC to fully implement its new mandate are forthcoming.

The FCAC also monitors voluntary codes of conduct designed to protect the interests of consumers and merchants, undertakes research on trends and emerging issues that impact consumers, and collaborates and coordinates activities with stakeholders to strengthen the financial literacy of Canadians.

The Commissioner is appointed by the Governor in Council for a term of five years. As a matter of practice, the Minister makes the recommendation to the Governor in Council. The current Commissioner of the FCAC, Shereen Benzvy Miller took office on November 7, 2024.

The Minister of Finance approves the FCAC's corporate/financial documents such as the Annual Report tabled in Parliament and an annual business plan. In addition, the Commissioner of the Agency reports to the Minister on the FCAC's operations, federally regulated financial institutions' compliance with consumer protection measures, the implementation of the Consumer-Driven Banking Framework, and any other special examinations.

The FCAC is funded through assessments on federally regulated financial institutions and by an annual statutory appropriation of $5 million to support its financial literacy activities. FCAC is receiving specific cash funding for its CDBA-related activities until it transitions to a cost recovery model.

The Agency's role is complementary to the Office of the Superintendent of Financial Institutions by ensuring compliance with the federal consumer protection laws that apply to banks and federally incorporated trust, loan and insurance companies. It also provides consumers with accurate and objective information about financial products and services through its financial literacy and education initiatives.

C. Canadian International Trade Tribunal (CITT) (Frédéric Seppey, Chairperson)

The Canadian International Trade Tribunal (CITT) is an independent, quasi-judicial tribunal which reports to Parliament through the Minister of Finance. Given its independent nature, the Minister of Finance maintains a strict arms-length relationship with the Tribunal.

A Chairperson, Vice-chairperson and up to five other permanent, full-time members are appointed by the Governor in Council. Up to five additional temporary members may also be appointed by the Governor in Council if workload so requires. The Tribunal is currently comprised of one Chairperson, one Vice-Chairperson, five permanent Members, and three temporary Members.

The department has a central role in the formulation and management of Canada's import policies and in the evaluation of domestic economic policies against Canada's international obligations and relations with other countries. Day-to-day responsibility for Tribunal-related issues resides with the department's International Trade Policy Division.

The Tribunal is an administrative body operating within Canada's trade system. It is responsible for the conduct of anti-dumping and countervailing duty injury inquiries, as well as safeguard injury inquiries. It also conducts inquiries into any economic, tariff, trade and commercial matters that may be referred to by the Governor in Council or the Minister of Finance. As well, the Tribunal hears appeals of decisions on customs and excise matters, and adjudicates complaints from suppliers that federal public procurement decisions are in breach of obligations under certain trade agreements. The Administrative Tribunals Support Service of Canada (ATSSC) under the Minster of Justice is responsible for providing support services and facilities to the CITT and 10 other federal administrative tribunals.

The main laws and regulations governing the work of the Tribunal are the Canadian International Trade Tribunal Act, the Special Import Measures Act, the Customs Act, the Excise Tax Act, the Canadian International Trade Tribunal Regulations, the Special Import Measures Regulations, the Canadian International Trade Tribunal Procurement Inquiry Regulations, and the Canadian International Trade Tribunal Rules.

D. Financial Transactions and Reports Analysis Centre of Canada (Sarah Paquet, Director and Chief Executive Officer)

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada's financial intelligence unit and anti-money laundering/anti-terrorist financing regulator. It is responsible for the detection, prevention and deterrence of money laundering and terrorist financing activities, while ensuring the protection of personal information under its control and safeguarding individuals' privacy and Charter rights.

FINTRAC was established as an independent agency, operating at arm's length to the police and other departments and agencies of government to whom it can provide financial intelligence (e.g., RCMP, Canada Revenue Agency, Canadian Security Intelligence Service). FINTRAC:

• Collects and analyses information received from financial transaction reports and reports of suspicious financial activities.
• Ensures compliance by reporting entities with customer identification, reporting, record keeping and compliance obligations.
• Makes disclosures of financial intelligence to the appropriate law enforcement agency or other designated authorities.
• Conducts outreach to reporting entities to enhance awareness and understanding of trends related to money laundering and terrorist financing.
• Conducts its activities while ensuring the protection of the personal information under its control.
• Administers an administrative monetary penalty regime for non-compliance.

While an independent agency, the Minister of Finance is responsible for reviewing and approving FINTRAC's Annual Report, Departmental Plan, and Departmental Results Report, which are tabled in Parliament. FINTRAC also provides an annual report to the Minister on the measures it takes to ensure the compliance of reporting entities with their obligations. FINTRAC, with the Minister's approval, enters into Memoranda of Understanding with other countries for the sharing of information between the financial intelligence units.

The Governor in Council appoints the Director for a term of not more than five years. The Director is eligible for reappointment and may serve up to a maximum of ten years in office. As a matter of practice, the Minister makes the recommendation to the Governor in Council. The appointment of the current Director of FINTRAC, Sarah Paquet, expires on November 18, 2025.

FINTRAC supervises approximately 24,000 reporting entities including financial institutions, securities dealers, money services businesses, accountants, casinos, dealers in precious metals and stones, and life insurance and real estate companies. It receives more than 30 million new financial transaction reports every year.

Crown corporations for which the Minister of Finance has shared statutory responsibility

A. Business Development Bank of Canada (Isabelle Hudon, President and Chief Executive Officer; Mike Pedersen, Chairperson)

Shared responsibility with Minister of Small Business

The Minister of Small Business is the designated Minister responsible to Parliament for the Business Development Bank of Canada (BDC). The Minister of Finance recommends, jointly with the responsible minister, the approval of BDC's annual corporate plans and approves its borrowing plan and other financial authorities (e.g., shares).

The BDC operates as a complementary financial institution to the private sector for addressing the needs of small and medium-sized enterprises (SMEs), with an emphasis on supporting entrepreneurship by providing financing (loans, venture capital and subordinate financing) and consulting services. The BDC has 108 business centres across Canada, serving more than 70,000 clients directly. The BDC provides its services directly to Canadian SMEs on a commercial basis, at rates commensurate with risk.

The BDC's core loan portfolio was approximately $40 billion in fiscal year 2023-24, *part of sentence redacted*. Budget 2024 announced that the BDC should increase financing for promising new and high-growth businesses and accelerate reorientation of its venture capital investments toward emerging and higher-risk sectors to help attract more private capital.

B. Export Development Canada (Mairead Lavery, President and Chief Executive Officer, Vivian Abdelmessih, Chairperson) and FinDev Canada (Lori Kerr, Chief Executive Officer, Mairead Lavery, Chairperson)

Shared responsibility with Minister of Export Promotion, International Trade and Economic Development

Export Development Canada (EDC) offers export credit, insurance and financing services to support Canadian companies of all sizes pursuing international trade and investment opportunities.

The Minister of Export Promotion, International Trade and Economic Development is responsible to Parliament for EDC. The Minister of Finance recommends the approval of EDC's annual corporate plans and approves its borrowing authorities. In addition, the Minister of Finance has a direct role in approving transactions proposed under the Canada Account, which is an account administered by EDC that the Government may use to support exporters with various financing tools in cases where EDC is unable to rely on its Corporate Account due to financial capacity or risk constraints.

Recent high profile Canada Account transactions include the Government of Canada's financing of the Trans Mountain Expansion Project, the Canada Emergency Business Account (CEBA), and most recently support for the construction of CANDU reactors in Romania and Telesat Lightspeed satellites in 2024. The Canada Account is also used to support industrial development in key sectors such as clean technology.

The Minister of Finance is also responsible, along with the Minister of International Trade, for the regulatory framework regarding EDC's activities, which is reviewed every ten years. FinDev Canada, Canada's Development Finance Institution, is a subsidiary of EDC. It is headquartered in Montreal and has its own Board and CEO. Its corporate reporting is consolidated with that of EDC. The Minister of Finance is responsible for approving EDC's borrowing plan and recommending EDC's Corporate Plan for Treasury Board's approval. The Department of Finance also leads Canada's delegation to the OECD on export credit arrangements, a forum created to govern the use of official export credits by export credit agencies, including EDC, with a view to promoting a level playing field for exporters.

EDC is a significant player in financial and insurance markets, facilitating over $100 billion in business per year. The Government is financially responsible for the Corporation's liabilities and directly bears the risks of all Canada Account activities, and provisions against those risks.

C. Canadian Commercial Corporation (Robert Kwon, President and Chief Executive Officer Douglas Harrison, Chair of the Board of Directors)

Shared responsibility with Minister of Export Promotion, International Trade and Economic Development

The Canadian Commercial Corporation (CCC) acts as a prime contractor on behalf of Canadian suppliers in their export transactions with foreign government buyers. The Government of Canada, through the CCC, guarantees the performance of Canadian suppliers to foreign governments. CCC's two primary business lines are supporting Canadian exporters contracting with the US Department of Defense through the Canada-US Defence Production Sharing Agreement, and with foreign governments in defence and non-defence sectors.

The Minister of Export Promotion, International Trade and Economic Development is responsible to Parliament for CCC. The Minister of Finance approves the Corporation's Borrowing Plan and exercises the authority to recommend CCC's Corporate Plan for Treasury Board's approval. The Minister also has a direct role in approving CCC's involvement in large projects through the Significant Project Instruction (SPI). The SPI was developed to enhance oversight of CCC activities and requires that the Ministers of Export Promotion, International Trade and Economic Development and Finance authorize capital projects over $100 million and all other transactions over $300 million.

The Department of Finance's interest in CCC relates to risk management, borrowing, and the broader public policy role of the Corporation.

In fiscal year 2023-2024, CCC activities contributed to $3.6 billion in goods and services exports from Canadian firms, approximately 80 per cent of which were small- and medium-sized enterprises, and supported almost 15,000 jobs.

D. Farm Credit Canada (Justine Hendricks, President and Chief Executive Officer; Jane Halford, Chair of the Board of Directors)

Shared responsibility with Minister of Agriculture and Agri-Food

Farm Credit Canada's purpose is "to enhance rural Canada by providing specialized and personalized business and financial services and products to farming operations, including family farms, and to those businesses in rural Canada, including small and medium-sized businesses, that are businesses related to farming". FCC provides financial and business services to the agriculture and agri-food industry. producers, agribusinesses and agri-food operations. FCC does not accept deposits. According to FCC's annual report for fiscal year 2023-24, net interest income was $1.36 billion in 2023-24 and $1.35 billion in 2022-23.

The Minister of Agriculture and Agri-Food is responsible to Parliament for the FCC. However, for the purpose of capital injections and at the request of FCC, the Minister of Finance may, with the approval of the Governor in Council, pay FCC (out of the Consolidated Revenue Fund) amounts not exceeding certain limits established through the Farm Credit Canada Act, or such greater aggregate amount as may be authorized from time to time under an Appropriation Act. These payments do not require reimbursement. The Minister of Finance may also, upon request from FCC, lend money to FCC from the Consolidated Revenue Fund, on such terms and conditions as the Minister deems appropriate.

The Minister of Finance also has discretionary authority over the FCC's Corporate Plan, and may require that his or her recommendation, in addition to the recommendation of the Minister of Agriculture and Agri-Food, be obtained before the Corporate Plan or amendment is submitted to the Governor in Council for approval.

FCC is Canada's largest agricultural lender delivering financing and other services to 100,000 primary producers, value-added operators, suppliers and processors along the agricultural value chain. In some instance, FCC competes directly with other financial institutions and credit unions. FCC's market share of total farm debt remained unchanged at 29 per cent in 2022, with $40.7 billion in outstanding loans, second only to the chartered banks at a combined $49.7 billion. Currently, FCC's board has defined an acceptable market share range of 23 to 35 per cent. FCC is financially self-sustaining and profitable; *part of sentence redacted*. In 2023-24, FCC paid dividends of $210 million to the Government of Canada, and $471 million in 2022-23.

E. Canada Mortgage and Housing Corporation (Coleen Volk, President and Chief Executive Officer; Don Iveson, Chair of the Board of Directors)

Shared responsibility with Minister of Housing, Infrastructure and Communities

The Deputy Minister is an ex-officio member of the Canada Mortgage and Housing Corporation (CMHC) Board, although the Deputy Minister often delegates attendance at Board meetings to the Associate Deputy Minister, or the Assistant Deputy Minister of the Financial Sector Policy Branch. The Board typically meets eight times per year.

CMHC has a mandate to promote housing affordability and choice, to facilitate access to housing finance, and contribute to the well-being of the housing sector. As Canada's national housing agency, it plays a significant role in administering federal investments in social housing through agreements with provinces and territories and First Nations communities. The agency also plays a major role in the housing finance system and housing markets through the provision of mortgage loan insurance and securitization programs and through its role as administrator of the covered bond framework, and undertakes and disseminates research on Canada's housing market.

The Minister of Housing, Infrastructure and Communities has been designated as the Minister responsible to Parliament for CMHC, with Housing, Infrastructure and Communities Canada taking on the role of portfolio department to support the Minister of Housing. However, the Minister of Finance has legislated powers and duties, including:

• Approving CMHC borrowings.
• Recommending CMHC's Corporate Plan before it is submitted to GIC.
• Setting the parameters for government-backed insured mortgages (after consulting the Governor of the Bank of Canada and the Superintendent of Financial Institutions).
• Setting the parameters for government-backed mortgage securitization guarantees.
• Setting the parameters for covered bonds.
• Setting the fees CMHC must pay for exposure to risks related to mortgage insurance and mortgage securitization guarantees.

CMHC is one of the largest Crown corporations in the Government's portfolio by assets, liabilities, and revenue and government funding ($299 billion, $287 billion and $7.5 billion, respectively, at year-end 2023). Through its mortgage insurance and securitization operations, CMHC is one of the largest financial institutions in Canada and plays an important role in the housing finance market and the financial sector more broadly.

At the end of 2023, CMHC's insurance-in-force was $414 billion and guarantees-in-force totalled $508 billion. As an agent Crown corporation, the Government fully backs CMHC liabilities, including its borrowings.

F. Canada Infrastructure Bank (Ehren Cory, Chief Executive Officer; Jane Bird, Interim Chair of the Board of Directors)

Shared responsibility with Minister of Housing, Infrastructure and Communities

The Canada Infrastructure Bank (CIB) is a Crown corporation established in 2017 through legislation with the purpose to invest, and seek to attract investment from private sector investors and institutional investors, in revenue-generating infrastructure projects that are in the public interest. It works with provinces, territories and municipalities to deliver infrastructure in a more efficient and sustainable way by attracting private sector and institutional investors to finance, build and risk manage more infrastructure over the long-term.

The Minister of Housing, Infrastructure and Communities is designated as the Minister responsible to Parliament for the CIB. The Minister of Finance has the statutory power to appropriate up to $35 billion out of the Consolidated Revenue Fund to the CIB, responsibility for providing concurrence to its corporate plans and associated capital and operating budgets, and authorities with respect to the provision of its loan guarantees.

The CIB is expected to help close Canada's infrastructure deficit and help jurisdictions to adopt more fiscally sustainable practices around planning, financing and delivering necessary infrastructure for Canadians. It is able to deploy $15 billion in funding on an accrual basis ($35 billion on a cash basis).

The CIB has five priority investment areas, each with an investment allocation, as follows: Clean Power (at least $10 billion), Green Infrastructure (at least $10 billion), Trade and Transportation (at least $5 billion), Public Transit (at least $5 billion), and Broadband (at least $3 billion). Budget 2022 announced a broadened role for the CIB to invest in private sector-led infrastructure projects that will accelerate Canada's transition to a low-carbon economy. Building on this, Budget 2023 positioned the CIB as the government's primary financing tool for supporting clean electricity generation, transmission and storage projects, including for major projects. As part of Budget 2024, the CIB also launched its Infrastructure for Housing Initiative to support infrastructure projects, in line with its priority investment areas, that will enable more housing construction.

G. Freshwater Fish Marketing Corporation (Stanley Lazar, President and CEO; Kevin Stringer, Chairperson of the Board)

Shared responsibility with the Minister of Fisheries and Oceans and the Canadian Coast Guard

The FFMC is a federal crown corporation established in 1969 and headquartered in Winnipeg, Manitoba. Under the Freshwater Fish Marketing Act (the Act), the corporation has the exclusive right to market and trade freshwater fish in interprovincial and export markets. This applies to designated products supplied by participating jurisdictions. It is a critical market access point for fish harvesters who live in isolated communities.

Over the past 10 years, FFMC's operating environment has undergone significant changes. In 2011, Ontario withdrew from the Act in favour of an open market, followed by Saskatchewan in 2012. In 2014, Alberta closed its commercial in-land fishery, but remains a signatory to the Act. In 2017, Manitoba withdrew from the Act, creating an open market in the province. Currently, the Northwest Territories is the only participating jurisdiction under the Act. However, harvesters in other jurisdictions may sell to FFMC under contract, and many have chosen to do so.

The Minister of Fisheries and Oceans and the Canadian Coast Guard is designated as the Minister responsible to Parliament for FFMC. The corporation conducts its operations on a financially self-sustaining basis without parliamentary appropriations, though the Minister of Finance may guarantee borrowing by and make loans to it. Under the Act, the Minister of Finance may guarantee borrowing by and make loans to the Corporation (Section 16 (1)). The aggregate outstanding at any time of the amounts borrowed by the Corporation and the amounts lent by the Minister of Finance are also not to exceed $50 million dollars (Section 16 (2)).

In November 2023, the Government of Canada announced plans to proceed with the Corporation's divestiture through an open, transparent, and competitive process. In December 2024, the RFP process for the divestiture of FFMC was launched by Fisheries and Oceans Canada.

H. Canadian Dairy Commission (CDC)

Shared responsibility with the Minister of Agriculture and Agri-Food

The CDC is a Crown corporation which was established in 1966 to coordinate federal and provincial dairy policies and create a control mechanism for milk production which would help stabilize farm revenues and avoid costly surpluses. As outlined under the Canadian Dairy Commission Act (the Act), the mandate of the CDC is: to provide efficient producers of milk and cream with the opportunity of obtaining a fair return for their labour and investment and to provide consumers of dairy products with a continuous and adequate supply of dairy products of high quality.

The Minister of Agriculture and Agri-Food is designated as the Minister responsible to Parliament for CDC.

Under the Act, and at the request of the Commission, the Minister of Finance may, out of the Consolidated Revenue Fund, make loans to the Commission on such terms and conditions as are approved by the Governor in Council (Section 16 (1)). The total aggregate amount outstanding at any time of loans made and amounts drawn shall also not exceed $500 million dollars.

According to CDC's 2024-25 to 2028-29 Corporate Plan, the borrowing that was included for 2024-25 was set at $350 million, which is comprised of borrowings from the Consolidated Revenue Fund and a $50 million line of credit, with total outstanding borrowings at any time not exceeding $350 million.

I. Canada Post Corporation (Doug Ettinger, President and Chief Executive Officer; André Hudon, Chair of the Board of Directors)

Shared responsibility with the Minister of Public Services and Procurement

Canada Post Corporation (CPC) is a Crown corporation that functions as the primary postal operator in Canada. CPC was created as a Crown Corporation in 1981, under the Canada Post Corporation Act, and has a mandate to operate on a self-sustaining financial basis to provide postal services to all Canadians at a fair and reasonable rate.

The Minister of Public Services and Procurement is designated as the Minister responsible to Parliament for the CPC. The Minister of Finance has legislated powers and duties under the Financial Administration Act, including approving CPC borrowing and recommending CPC's Corporate Plan before it is submitted to the Treasury Board. Under Section 31 of the Canada Post Corporation Act, the Minister of Finance, with the approval of the Governor in Council, may provide cash injections if needed to the Corporation to maintain solvency.

*Paragraph redacted*.

Statutory responsibilities for other organizations

A. Office of the Auditor General (Karen Hogan, Auditor General of Canada)

The Auditor General (AG) is an officer of Parliament, appointed by the Governor in Council (GIC) under the Great Seal for a term of ten years, and removable from office only on joint address of the Senate and House of Commons.

The AG carries out three main types of legislative audits:

• Financial audits – testing whether financial transactions support the amounts and disclosures in the financial statements.
• Performance audits – assessing of how well government is managing its activities, responsibilities and resources.
• Special examinations – assessing whether a Crown corporation's systems and practices provide reasonable assurance that its assets are safeguarded, its resources are managed economically and efficiently, and its operations are carried out effectively.

As part of the Minister of Finance's mandate, the AG audits the Public Accounts of Canada and provides an opinion as to whether they present fairly information in accordance with the government's stated accounting principles. The AG also expresses an opinion on the Annual Financial Report of the Government of Canada, which is published by the Department of Finance Canada.

The AG is authorized to investigate and report to the House of Commons (through the Speaker) on how well the financial affairs of Canada have been managed. The AG is required to report once a year and may make up to three other reports in a year, as well as a special report where it is a matter of urgency. Pursuant to the Standing Orders of the House, all reports of the AG are automatically referred to the Standing Committee on Public Accounts.

The AG is independent of the government and reports directly to Parliament through the Speaker. The Minister of Finance has no statutory or parliamentary responsibilities in respect of the AG.

For historical reasons, the appropriations by Parliament to cover the expenditures of the Office of the Auditor General appear in the Estimates under the Minister of Finance portfolio. As all submissions to Treasury Board require the signature of an authorized Minister, the Minister of Finance has been designated to be that Minister with respect to submissions by the Auditor General. This arrangement does not carry any special duties or responsibilities for the Minister of Finance.

The Auditor General is an Officer of Parliament appointed for a non-renewable 10-year term upon resolution of the House of Commons and Senate. The Minister of Finance has been designated as the appropriate Minister for the purposes of the Financial Administration Act. Karen Hogan was appointed as Auditor General of Canada on June 8, 2020.

The AG is the auditor of the Department of Finance Canada and all of the Crown corporations and agencies for which the Minister of Finance is responsible to Parliament, except the Bank of Canada, the Exchange Fund Account and the Canada Pension Plan Investment Board, which are audited by private audit firms.

The AG has specific duties relating to the public debt. Under the Auditor General Act, the AG may audit the accounts and records of any registrars appointed by the Minister of Finance under Part IV of the Financial Administration Act in respect of government borrowings. The Minister of Finance may also require that the AG participate in the destruction of redeemed or cancelled debt securities.

B. Payments Canada (Garry Foster, Chair of the Board, Susan Hawkins, President and Chief Executive Officer)

Payments Canada owns and operates the country's core clearing and settlement payment systems. Banks are required to be members of Payments Canada and other regulated financial institutions (Caisse Populaires, Credit Unions, Trust Companies, etc.) can voluntarily join.

Under the Canadian Payments Act, the Minister of Finance must approve any new by-laws or by-law changes. In addition, any changes to Payments Canada's rules are subject to a 30-day period of examination by the Minister, during which the Minister may disallow the rule. Payments Canada must submit a five-year Corporate Plan on an annual basis for the Minister's approval. The Minister must also be consulted on any appointments to Payments Canada's Stakeholder Advisory Council. The Minister has a directive power over Payments Canada, which can be used if the Minister is of the opinion that it is in the public interest.

Canada's clearing and settlement systems enable consumers and businesses to make and receive payments throughout the country quickly and reliably. Payments Canada operates the national clearing and settlement systems that facilitate this flow of funds between institutions and mitigates risk to payment system participants. In 2023, Payments Canada's systems cleared and settled more than $450 billion worth of transactions each business day, representing over $112 trillion on an annual basis. These include interbank and wire transfers, cheques, direct deposits, pre-authorized debits, bill payments, and point-of-sale and online debits.

Payments Canada is engaged in a multi-year modernization project to bring about payment systems that are fast, flexible and secure, that promote innovation and strengthen Canada's competitive position. As part of this modernization effort, a key priority is developing the Real- Time Rail system, which will facilitate the instantaneous exchange, clearing and settlement of data-rich payments 24/7. As part of the modernization initiative, amendments were also made, but not yet in force, to expand membership eligibility in Payments Canada to other regulated entities, including payment service providers that will be supervised by the Bank of Canada under the Retail Payment Activities Act.

Relationships with international groups and organizations

The Minister of Finance has a wide range of international responsibilities with respect to international trade, finance and development. The Minister of Finance is responsible for certain areas of Canada's export-oriented financial Crown Corporations. In addition, the Minister of Finance is the Canadian Governor for the World Bank Group, the International Monetary Fund (IMF), the European Bank for Reconstruction and Development (EBRD), and the Asian Infrastructure Investment Bank (AIIB).

In addition, the Minister of Finance is called upon to attend a range of international meetings of Finance Ministers, including the G7, G20, the Organisation for Economic Cooperation and Development (OECD), Asia-Pacific Economic Cooperation (APEC), Regional Finance Ministers of the Americas, as well as the Commonwealth and La Francophonie.

There are also issues on which the Department of Finance Canada (the Department) regularly engages with the Minister of Finance in support of Canada's effective engagement on international matters, including international trade and finance. Prominent among these is the joint management (with the Ministers of Foreign Affairs and International Development) of Canada's International Assistance Envelope. In addition, international climate finance and managing ongoing and potential new macro financial assistance loans are current priorities, including in support of Ukraine. With respect to international trade, there are emerging international discussions on climate change, supporting Canada's participation at the World Trade Organization, as well as opportunities to finance clean technology exports.

Group of Seven (G7)

The Group of Seven (G7) comprises the seven largest advanced economies: the U.S., Japan, Germany, France, the U.K., Italy, and Canada. G7 Finance Ministers and Central Bank Governors have a main Ministerial meeting once a year, generally a few weeks prior to G7 Leaders Summits, but also hold more frequent calls and meetings, usually on the margins of other international meetings, to coordinate actions, for example those related to the response to Russia's war in Ukraine.

Italy held the G7 Presidency in 2024. Defence of the rules-based international system, including maintaining support to Ukraine and economic pressure on Russia and the Middle-East, artificial intelligence, cross-border payments, health and finance, debt and the green transition have been key priorities of Italy in the G7 Finance Track. Canada will assume the G7 Presidency in 2025, followed by France in 2026. *Sentences redacted*.

Relationship to the Department

G7 Deputies typically meet on the margins of ministerial meetings and hold stand-alone meetings of their own to address a wide range of topics reflecting current events in the global economy. The Department plays a strong role in preparing Canada's Deputy and Minister of Finance ahead of G7 meetings. The Department of Finance Canada also provides support to the "G7 Sherpa", the Prime Minister's personal representative for the G7, typically a Deputy Head- level official at Global Affairs Canada (GAC). The G7/G20 Finance Deputy responsibility is led by the Assistant Deputy Minister of International Trade and Finance.

Significance

The G7 continues to serve as an important forum for frank and informal policy discussions on world economic issues among a small group of like-minded countries. The Finance Track is one of the most important tracks in the G7.

Group of Twenty (G20)

The Group of Twenty (G20) was established by Finance Ministers in 1999 as a forum for dialogue among economic policy makers from key industrialized countries and "systemically important" emerging markets. Members include the G7 countries, Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Türkiye, the European Union, and the African Union. International organizations such as the International Monetary Fund (IMF), the World Bank, the Financial Stability Board (FSB) and the OECD, also participate in the meetings.

The G20 gained additional prominence in 2008 when the U.S. convened the first G20 Leaders' Summit in response to the global financial crisis. In the Finance Ministers' Track, the G20 covers a range of issues, including promoting global economic growth, financial stability, reform of the international financial architecture, and international taxation standards. South Africa holds the Presidency in 2025 followed by the United States in 2026. South Africa's priorities include: strengthening disaster resilience and response; ensuring debt sustainability for low- income countries; mobilizing finance for a just energy transition; and harnessing critical minerals for inclusive growth and sustainable development. G20 Finance Ministers and Central Bank Governors lead the Finance Track, which will focus on issues pertaining to: the global economy; reform of multilateral development banks (MDBs); global debt vulnerabilities; building resilient, inclusive and sustainable infrastructure; crypto assets and cross-border payments; finance-health coordination; international tax reforms; and climate finance.

Relationship to Minister

The Minister of Finance attends Finance Ministers and Central Bank Governors Meetings. They typically meet approximately four times per year, including on the margins of the IMF/World Bank Spring and Annual Meetings. The Minister of Finance is also invited to G20 Summits alongside the Prime Minister, as well as to other joint meetings with other Ministers including health and energy. South Africa is scheduled to host the 2025 Leaders' Summit on November 22-23.

Relationship to the Department

G20 Deputies typically meet on the margins of ministerial meetings and hold stand-alone meetings of their own. The Department of Finance Canada also provides support to the "G20 Sherpa", the Prime Minister's personal representative for the G20, typically a Deputy Head-level official at Global Affairs Canada (GAC). The G7/G20 Finance Deputy responsibilities are currently being led by the Assistant Deputy Minister for International Trade and Finance.

Significance

In 2009, Leaders designated the G20 as the premier forum for global economic cooperation. Its annual Summit endorses decisions and policies in a number of areas of multilateral interest, including financial sector regulation, tax, international financial architecture, and macroeconomic policy. Canada hosted two G20 Finance Ministers Meetings in 1999 and 2002, and a G20 Summit in Toronto in 2010.

International Monetary Fund (IMF) Relationship to Minister

The Minister of Finance is Canada's Governor at the IMF and is responsible for the management of Canadian interests at the Fund. The position of Governor is an automatic appointment upon being sworn in as Minister of Finance. The Governor of the Bank of Canada is Canada's Alternate Governor of the IMF. Neither appointment has a term limit.

As Governor, the Minister influences IMF issues by voting on resolutions presented to the IMF Board of Governors, making interventions at the Spring and Annual Meetings of the International Monetary and Finance Committee, and meeting periodically with the Managing Director of the IMF. Kristalina Georgieva is the current Managing Director of the IMF, a role she has held since October 1, 2019.

The Minister also exercises influence by nominating (with the approval of the Prime Minister) Canada's Executive Director to a two-year term at the IMF's Executive Board. The position is currently vacant. Alongside the 24 other Executive Directors comprising the Executive Board, Canada's Executive Director makes decisions on country financing requests and other issues requiring approval by the Board (e.g., governance, surveillance, capacity development), with input and direction from the Department. Our Executive Director also represents 11 other countries (Ireland and 10 Caribbean countries).

Relationship to the Department

The Department of Finance Canada coordinates policy advice on IMF issues and Canada's operational interests at the IMF. The Department reports on the operations of the IMF as part of the annual Report to Parliament on the Government of Canada's International Assistance. The Department also participates in the IMF's annual Article IV consultation with Canada, which consists of annual assessments of a country's economic policies and prospects.

Significance

The IMF is the central multilateral institution in the international financial system. Its role is to promote a sound global financial system and broad-based economic growth through surveillance, capacity development and the provision of financial assistance to countries experiencing unsustainable external imbalances and related economic difficulties.

The IMF operates similarly to a credit union. It has a large pool of liquid assets which it makes available to help members finance temporary balance of payments problems. Upon joining and subject to regular reviews, each member of the IMF is assigned a quota, based broadly on its relative weight and integration in the world economy. A country's quota, in turn, helps determine the amount of Fund resources that it may access. Canada is the IMF's 11th largest shareholder, with a quota of 11.02 billion Special Drawing Rights (roughly $20 billion), or 2.3 per cent of total IMF quotas. *Sentences redacted*.

The IMF's quota resources are supplemented by standing borrowing agreements with some large member countries. In the event that it exhausts its quota-based resources, the IMF can use borrowed resources to lend to countries in crisis. Canada is a participant in both of the main borrowing arrangements: the New Arrangements to Borrow and the Bilateral Borrowing Agreements. Taken together with our quota, Canada's total financial commitment to the IMF's main lending window is about $40 billion. Canada also contributes separately to two donor- funded trusts: the IMF's Poverty Reduction and Growth Trust (PRGT), which provides concessional financing to low-income countries, and the new Resilience and Sustainability Trust (RST), which provides longer-term, affordable financing to address challenges such as climate change and pandemic preparedness.

During the COVID-19 pandemic, the IMF provided an unprecedented volume of emergency financing (approximately US$171 billion to 90 member countries). To boost global liquidity, the Fund also created US$650 billion worth of new global reserves in 2021 through a process known as a general allocation of Special Drawing Rights (SDRs). Reserves were credited to member countries in proportion to their Fund quota. Canada received roughly $18 billion in SDRs. G7 and G20 Leaders agreed to channel US$100 billion of SDRs, or approximately 20 per cent of their own allocations, to the benefit of low-income and vulnerable countries. This target has been exceeded in terms of pledges, but much remains to be implemented. Canada has exceeded its target by channeling roughly 60 per cent of its SDR allocation, including $2.3 billion in total contributions to the IMF's PRGT and a $2.44 billion contribution to the IMF's new RST.

In response to Russia's invasion of Ukraine, the IMF has also provided significant financial support to Ukraine. Following months of intensive negotiations (with significant support by the G7), the IMF provided a new US$15.6 billion program for Ukraine on March 31, 2023. The IMF also created a dedicated Administered Account for Ukraine in April 2022. This account, championed by Canada, provides IMF member countries with a flexible and efficient mechanism for channeling bilateral financial support to the Government of Ukraine. Canada has provided financial support to Ukraine through the IMF Administered Account for Ukraine (disbursed to Ukraine by the IMF in SDRs), which as of October 2024 totalled $6.75 billion. Canada continues to engage with other IMF member countries to encourage them to also do their fair share. In addition to Canada, other countries have made use of this account including Germany, the Netherlands and Belgium.

Canada's main objectives for the IMF are to: 1) sustain global economic stability and promote a stronger recovery from the current conjuncture; 2) improve resiliency among the poorest and most vulnerable members; and 3) work with likeminded countries to champion IMF policy changes, including in new areas such as gender and climate, and champion the interests of the Caribbean and other small developing states.

World Bank Group

Relationship to Minister

The Minister of Finance is Canada's Governor on the Board of Governors of the World Bank Group. Canada's Alternate Governor is Christopher MacLennan, Deputy Minister of International Development.)

Most decisions are delegated to a resident Board of Executive Directors. However, as Governor, the Minister of Finance is asked to formally approve various Board resolutions and usually attends both the Spring and Annual (Fall) meetings of the World Bank Group, which are jointly held with the IMF. Governors discuss key policy issues in the joint Development Committee of the World Bank Group and IMF, which convenes during the Spring and Annual meetings.

Relationship to the Department

The Department of Finance Canada (the Department) coordinates Canadian policy advice on World Bank Group issues and Canada's operational and strategic interests in the World Bank Group. The Department consults with Global Affairs Canada (GAC) on most issues relating to the World Bank Group's activities.

The management of Canada's day-to-day interactions with the World Bank Group senior management is the responsibility of the Executive Director, Canada's representative on the institution's Executive Board. In addition to Canada, the Canadian Executive Director also represents 12 other countries (Ireland and 11 Commonwealth Caribbean countries) in our constituency at the Executive Board. The current Executive Director is Katharine Rechico.

The Minister of Finance nominates Canada's Executive Director and the nominee is formally elected by Governors of our constituency countries. The approval of the Prime Minister is required when the position is staffed at the Deputy Minister level.

Significance

The World Bank Group is owned by 189 of the world's sovereign governments and its primary mission is to reduce poverty and promote shared prosperity in a sustainable manner. The World Bank Group provides loans, equity investments, grants, guarantees and technical assistance to developing country governments and private sector entities in pursuit of its objective of poverty reduction. The World Bank Group is the world's largest official source of development financing. The World Bank Group is led by President Ajay Banga, who was appointed for a five- year term beginning June 2, 2023.

The World Bank Group consists of five entities. The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) together form the World Bank. The IBRD provides non-concessional financing and technical assistance to the governments of middle-income borrowing countries, while IDA provides concessional loans and grants to the governments of the world's poorest countries. The International Finance Corporation (IFC) is the World Bank Group's private sector arm that provides financing to private companies on commercial terms, with a mandate to encourage private sector growth in emerging markets. The Multilateral Investment Guarantee Agency (MIGA) promotes private foreign investment in developing countries through the provision of guarantees and other insurance against non-commercial risk, such as expropriation, currency inconvertibility, political instability, and breach of contract. The fifth entity, the International Centre for Settlement of Investment Disputes (ICSID), provides conciliation and arbitration services for international investment disputes.

Canada makes annual contributions of about $487 million to replenish IDA. Replenishment negotiations occur on a three-year cycle, with Canada's most recent three-year IDA commitment amounting to $1.46 billion between 2026 and 2028.

Canada also makes periodic commitments to recapitalize the IBRD and IFC. Budget 2021 provided $224 million to fully purchase the shares allocated to Canada by the IFC as part of the 2018 capital increase.

There currently are various high-level initiatives calling for MDBs to reform. For example, the World Bank Group is currently undergoing a significant reform exercise, following a call from G20 Leaders for all MDBs, starting with the World Bank Group, to "evolve" to better address global challenges, such as climate change. As a result, the World Bank has held extensive discussions on changes to its mission, operating and financial models. The Bank recently approved some financial model changes to unlock an estimated US$50 billion in additional lending capacity over the next ten years. These efforts are in line with a broader G20 initiative and long-standing Canadian priority to unlock additional financing for development by reviewing MDB Capital Adequacy Frameworks. Other high-level initiatives such as the Bridgetown Initiative also call for broad MDB reform.

As part of these efforts, the Prime Minister announced on June 13, 2024, Canada's intention to buy US$200 million in hybrid capital at IBRD, a new financial product with special leveraging potential that expands the Bank's lending capacity to developing countries. Canada's contribution is expected to leverage up to $1.6 billion in additional lending capacity over 10 years.

Since February 2022, working with development partners, the World Bank has mobilized more than US$56 billion in financial support to Ukraine through a variety of programs largely targeted at broad based budget support alongside critical infrastructure. In March 2023, Canada provided $115 million in grant assistance to repair Kyiv's power grid, to be provided through the World Bank Group Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF).

Additionally, The World Bank Group established the Facilitation of Resources to Invest in Strengthening Ukraine (F.O.R.T.I.S. Ukraine) Financial Intermediaries Fund (FIF) as a mechanism to provide coordinated financial contributions to support Ukraine's recovery and reconstruction efforts amidst ongoing challenges. The United States transferred USD 20 billion to the fund, as part of the $50 billion G7 Extraordinary Revenue Acceleration (ERA) Loans initiative. *Sentence redacted*. To address Ukraine's baseline financing needs through 2027, the Bank recently approved the Second Growth Foundations Development Policy Operation (DPO) for Ukraine, which will disburse a portion of the FIF funds to Ukraine.

European Bank for Reconstruction and Development (EBRD)

Relationship to Minister

The Minister of Finance is Canada's Governor to the European Bank for Reconstruction and Development (EBRD). Each of the Bank's 73 shareholders are represented on the Board of Governors, the Bank's highest decision-making body.

Governors meet annually, usually in May. Previous Ministers of Finance have generally not attended Annual Meetings in the past, and have designated a senior Departmental official to represent Canada. At the Annual Meetings, Governors (or their designates) typically make a short oral intervention outlining their views on the operations and priorities of the Bank. The 2025 Annual Meeting will be held in London in May.

The position of Governor is an automatic appointment upon being sworn in as Minister of Finance. The Alternate Governor is also a position-based appointment, assigned to the Deputy Minister of Foreign Affairs, as agreed to by the Governor in Council on the recommendation of the Minister. Neither appointment has a term limit. The Minister of Finance is also responsible for nominating Canada's Director on the EBRD Board of Directors, who represents a constituency of countries (Morocco, Jordan and Tunisia). Glenn Purves is currently Canada's Executive Director, but will leave his position effective January 3, 2025. Finance officials will seek your approval for nominating a new Executive Director.

Relationship to the Department

The Department of Finance Canada (the Department) coordinates Canadian policy advice on EBRD issues and Canada's operational interests in the EBRD. The management of Canada's interests in the ongoing work of the EBRD is the responsibility of Canada's representative on the Board of Directors. The Canadian executive director is one of 23 Directors. In addition to Canada, he represents Morocco, Jordan, and Tunisia, with the four countries forming one constituency at the Board of Directors.

Significance

The EBRD's mandate is to invest in financially viable projects that promote the transition to a market-oriented economy in the countries of Central and Eastern Europe, Central Asia, and the Southern and Eastern Mediterranean region that respect the principles of multiparty democracy, pluralism, and market economics. Additionally, the Bank is in the process of expanding its operations into six new cub-Saharan African countries (Kenya, Nigeria, Cote d'Ivoire, Benin, Ghana, and Senegal) and Iraq. Through its investments, the Bank contributes to continued economic reform in these regions and improved integration with the world economy. The EBRD President, Ms. Odile Renaud Basso, was elected at the October 2020 Annual Meeting.

As of January 1, 2025, the EBRD's total authorized capital will stand at €34 billion (about C$51 billion), following the €4 billion paid-in capital increase to support future investments in Ukraine coming into effect (Canada announced it will purchase its €137.2 billion €137.2 million allocated shares in this capital increase in Budget 2024, with payments to be made over the next 5 years). In total, Canada has subscribed to 3.43 per cent – or €1.16 billion (about C$1.7 billion) – of the Bank's capital, of which about 30 per cent is paid-in capital, with the remaining subscription consisting of callable shares.

The EBRD's mandate and operations have evolved considerably since it was established in 1991. The Bank's operations have expanded to South-Eastern Europe, Central Asia, Turkey, the Southern and Eastern Mediterranean region, and now Sub-Saharan Africa, which presents greater operational challenges and financial risks compared to Central and Eastern Europe.

Supporting Ukraine's resilience and reconstruction is a priority for Canada at the EBRD, given its great transition needs and the ongoing conflict. In view of Russia's illegal full-scale invasion in February 2022, the EBRD has suspended Russia and Belarus' access to project financing and expertise, and closed its Resident Offices in Moscow and Minsk. In addition to participating in the €4 billion capital increase to support ongoing and future investments in Ukraine, in October 2022, Canada announced a €36.5M ($50M) loan guarantee to enable, alongside other shareholders, a €300M EBRD loan to Naftogaz, Ukraine's natural gas state-owned enterprise. This guarantee is no longer in effect having matured in March 2024.

Asian Infrastructure Investment Bank (AIIB) Relationship to Minister

The Minister of Finance is Canada's Governor to the Asian Infrastructure Investment Bank (AIIB). Each of the Bank's 96 shareholders are represented on the Board of Governors, the Bank's highest decision-making body.

On June 14, 2024, following serious allegations against the AIIB by a former employee of the Bank, the former Minister instructed the Department of Finance to halt all government led activities with the Bank and conduct a review of the allegations and Canada's involvement in the AIIB. On December 8, 2023, the former Minister announced the continuation of the review in consultation with like-minded partners and stated that Canada's participation in the AIIB will remain indefinitely suspended pending the outcome of this review.

AIIB's Governors meet annually, usually in September. Prior to Canada's halt in government-led activities, the former Minister of Finance does not generally attend this meeting and has designated a senior Departmental official to represent Canada. At the annual meeting, Governors (or their designates) may make a short oral intervention outlining Canada's views on the operations and priorities of the Bank.

The AIIB is led by President Jin Liqun, who was re-elected for a second five-year term at the AIIB's virtual annual meeting held on July 28, 2020. As AIIB Presidents may only be re-elected once, President Jin's term will conclude in summer 2025. The election for his successor is scheduled to take place during the June 2025 AIIB Annual Meeting in Beijing.

Relationship to the Department

The Department of Finance Canada (the Department) coordinates Canadian policy advice on AIIB issues and Canada's operational interests in the Bank. Prior to June 2023, the management of Canada's interests in the ongoing work of the AIIB was done through Canada's participation in the institution's non-resident Board of Directors.

Canada was part of a constituency composed of countries from the Americas and Africa, which included nineteen countries at the time when Canada suspended its activities (Argentina, Algeria, Benin, Brazil, Canada, Chile, Côte d'Ivoire, Ecuador, Egypt, Ethiopia, Guinea, Liberia, Madagascar, Morocco, Peru, Rwanda, Sudan, Tunisia and Uruguay). Canada's interests were represented at the twelve-member AIIB Board through a Director that is elected by the Governors of our constituency's member countries. As per an agreement amongst our constituency members, an Egyptian official held the Director position at the Board. The Director General of our International Finance and Development Division used to serve as the Alternate Director for our constituency.

Under our constituency agreement, Canada was scheduled to assume directorship for the constituency in July 2024. However, due to our ongoing review of the AIIB, Canada did not participate in the 2024 Board of Directors election and is currently not part of a constituency. Egypt has continued to hold the Director position for this constituency pending the conclusion of Canada's review.

Significance

Established in January 2016 and based in Beijing, the AIIB is a multilateral development bank focused on infrastructure financing in Asia. China was the principal driver in creating the AIIB, which was seen in part as a response to their dissatisfaction, and that of India and other emerging economies, with the slow pace of reform to the voting powers of existing institutions within the Bretton Woods international financial architecture.

Canada joined the AIIB in March 2018. Other members of the AIIB include Australia, China, France, Germany, India, Italy, South Korea and the U.K.. The U.S. and Japan have not joined the AIIB.

World Trade Organization Relationship to Minister

Primary responsibility for Canada's participation in the World Trade Organization, including attendance at Ministerial meetings, rests with the minister responsible for international trade. However, the Minister of Finance holds statutory responsibility for Canada's import policy and financial services. *Sentence redacted*.

Relationship to the Department

The Department plays a lead role in the negotiation and implementation of multilateral trade rules, including tariff commitments and the current negotiations on fisheries subsidies. Also, in the context of its economic advisory responsibilities, the Department plays an active role in the co-ordination and management of Canada's broader participation in the organization's activities, including relevant committees and trade disputes.

The Department is represented at the Canadian Mission to the World Trade Organization by a Finance Counsellor appointed by the Department. Departmental officials typically lead in a number of negotiations and committee meetings.

Significance

The World Trade Organization is the main global international organisation governing trade between nations. At its heart are a number of agreements that set out the ground rules for national policies bearing on trade in goods and services. The organization currently has 166 members and its decisions, including the launch and conclusion of negotiations, are made by consensus. Rights and obligations established in the various multilateral agreements are enforced through a binding dispute settlement process.

*Paragraph redacted*.

Canada is actively participating in efforts to reform the organization by leading a group of 14 members (Ottawa Group) looking to address current challenges and developing ideas for reform.

Organisation for Economic Cooperation and Development (OECD) Relationship to Minister

The OECD holds an annual Ministerial Council Meeting for Finance and Trade Ministers. This event is usually held in the spring at the OECD's headquarters in Paris. The Minister of Finance is always invited but has not attended in recent years. The Associate Minister of Finance attended in 2023.

Relationship to the Department

Although Global Affairs Canada is the lead department for Canada's participation at the OECD, the Department of Finance Canada leads in certain committees related to economic, financial and fiscal affairs. These include:

• the Economic and Development Review Committee, which conducts peer reviews of member and certain non-member economies;
• the Committee on Fiscal Affairs, which covers different tax policy and administration issues under its various working parties, and which has a wide membership when meeting in its Inclusive Framework format (described below);
• the Committee on Financial Markets, which focuses on financial developments;
• the Committee on Insurance and Private Pensions and several financial sector working parties covering debt management, financial consumer protection, long-term financing, and financial literacy;
• the Economic Policy Committee, which discusses economic developments and related policy issues;
• the OECD Working Party on Export Credits and Credit Guarantees, and the Participants to the Arrangement on Officially Supported Export Credits, which negotiate rules to foster a level playing field among export credit agencies (such as Export Development Canada) and guidelines on topics such as environmental and social due diligence standards;
• the Advisory Task Force on the OECD Codes of Liberalization, which discusses issues primarily related to capital flows; and
• the Working Party of Senior Budget Officials, which leads on budgeting and expenditure issues.

The OECD's Economic Survey of Canada, which occurs every 18 to 24 months, is coordinated by the Department of Finance Canada. The most recent Survey was published on March 6, 2023.

The Department of Finance Canada is represented at the Canadian Delegation to the OECD by a Finance Counsellor appointed by the Department for a 3-4 year term. Departmental officials typically take the lead in most committee meetings.

Significance

The OECD committees in which the Department of Finance Canada is involved are doing work in a number of areas, particularly with respect to the interlinkages of macroeconomic and structural policy analysis. The OECD is the leading body responsible for developing global norms in the international tax area, with significant influence on the content and interpretation of bilateral tax treaties and guidance on transfer pricing. The OECD-led Inclusive Framework on Base Erosion and Profit Shifting, a body connected with the Committee on Fiscal Affairs, has a broad membership of 143 jurisdictions, which are cooperating to implement standards designed to address aggressive tax avoidance by multinational enterprises, and developing changes to global norms in response to the tax challenges of digitalization, profit shifting and tax competition. In addition, the Global Forum on Transparency and Exchange of Information for Tax Purposes, whose membership similarly extends well beyond OECD members to include more than 160 jurisdictions, is tasked with monitoring the implementation of the OECD standards on exchange of information, in support of the fight against international tax evasion. The OECD has also contributed to fostering international policy discussions on emerging issues such border carbon adjustments.

OECD export credit rules are intended to foster a level playing field among exporters by disciplining the use of government-backed financing. The rise of non-OECD countries as significant providers of export credits has heightened attention on issues of export credit competitiveness.

Five Finance Ministers Meetings

At the beginning of the COVID-19 pandemic, Finance Ministers from Australia, Canada, New Zealand, United Kingdom (U.K.), and United States (U.S.) agreed to hold regular meetings to co-ordinate economic responses to COVID-19 and ensure global financial stability. These meetings are referred to as the Five Finance Ministers (FFM) meetings.

The inaugural call in June 2020 focused on the global economic outlook and economic responses to COVID-19. The group has continued to meet, including at the officials' levels. Most recently, meetings have focused on respective fiscal responses and strategies to support a continued global economic recovery as well as economic security issues, including strengthening global supply chains and collective action against economic coercion.

Relationship to Minister

The chair for each meeting rotates among the five members. The Minister of Finance represents Canada at FFM meetings. Public statements are typically released by the chairing country following the meeting. Canada most recently chaired the first in-person meeting held in Washington, D.C. on April 13, 2023, which focused on how best to collectively respond to economic coercion.

Relationship to the Department

The Department of Finance Canada prepares the background for Canada's participation at the FFM meetings. Deputies hold ad hoc meetings to ensure work being carried out by respective Finance departments remains aligned. Officials meet on an ongoing basis.

Significance

These regular FFM meetings provide an opportunity to exchange views about various domestic economic initiatives and global economic challenges, which can then be brought forward in other fora. It provides Ministers a secure space to share information and discuss strategies amongst like-minded partners.

Asia-Pacific Economic Cooperation (APEC) Relationship to Minister

The APEC Finance Ministers Meeting is typically held in the fall. For 2025, the Republic of Korea will host the meeting in Incheon in October. The focus will be on restoring economic dynamism, fiscal sustainability, and enhancing the stability of digital finance.

Relationship to the Department

Canada's APEC Finance Deputy is the associate ADM of the International Trade and Finance Branch, who usually accompanies the Minister or Parliamentary Secretary participating in the Ministerial meeting. In addition, there are Finance Deputies and officials' meetings during the year to help develop the Ministerial agenda.

Significance

APEC was initially established as a trade ministers' forum in 1989, with an early ambition of making the region the world's largest free-trade zone. Discussions have since spread to cooperation on a wide range of economic and social issues. There are 21 APEC member economies, representing approximately 60% of the world economy. Canada's main objective at APEC meetings is to maintain engagement in this dynamic region.

The APEC process is consultative, based on consensus and has a rotating chair. The Republic of Korea is chairing in 2025 and China will chair in 2026. *Sentence redacted*.

APEC Finance Ministers started meeting annually in 1994. Although these meetings are usually separate from the APEC Leaders' Meetings, key outcomes can occasionally form a part of the Leaders' agenda. Finance Ministers' discussions often center around socializing certain G20 themes and outcomes to this wider group, sharing experiences on policy approaches and piloting some regional projects.

Commonwealth Finance Ministers (CFMM) Relationship to Minister

Ministers of Finance of all Commonwealth countries are invited annually to participate in the Commonwealth Finance Ministers' Meeting (CFMM) to discuss global issues of mutual concern. The Commonwealth's membership includes 54 countries, including five G20 countries (Australia, Canada, India, South Africa, and United Kingdom), as well as numerous small islands and African states.

Since 2010, the CFMM has been held on the margins of the International Monetary Fund and the World Bank's Annual Meetings, in the hopes of making it a more effective forum and securing a higher participation level amongst Finance Ministers. The Canadian Minister of Finance chaired the 2010 meeting and the 2017 CFMM. Senior Finance officials have represented Canada in recent meeting.

Relationship to the Department

The Department of Finance Canada prepares the background briefs and interventions for Canada's participation at the CFMM.

Significance

Discussions at this forum provide an opportunity to consult members and engage in an open dialogue among a diverse group of countries on key economic issues. Commonwealth Ministers met on the margins of the International Monetary Fund and the World Bank's Annual Meetings in October 2025 to discuss national fiscal policies, and financial sustainability measures, as well as potential financial architecture reforms to enable resilient and sustainable development.

Paris Club

Canada is a founding member of the Paris Club, an informal group of 23 official creditors whose role is to find coordinated and sustainable solutions to the international debt payment difficulties experienced by debtor countries. The French Ministry of the Economy and Finance acts as Secretariat and hosts regular meetings and negotiations.

Relationship to Minister

The Minister of Finance is responsible for approving debt relief or forgiveness provided to countries through the Paris Club and for ensuring that other Canadian government departments and agencies, such as Global Affairs Canada and Export Development Canada, restructure their bilateral claims against these countries in line with Paris Club agreements.

Relationship to the Department

Today, Canada's financial exposure at the Paris Club totals $8.6 billion in loans to 32 developing countries ($6.9 billion of this exposure is with Ukraine). This debt is owed to the Department of Finance Canada (macro financial assistance loans and guarantees); Global Affairs Canada (official development assistance, export development loans and guarantees); and Export Development Canada (export finance loans).

The Department of Finance Canada leads the Canadian delegation to the Paris Club with support from Export Development Canada and Global Affairs Canada. At regular "Tour d'Horizon meetings", officials monitor economic developments, exchange information on payment issues, and may negotiate debt relief with debtor countries. Representatives of international institutions, notably the IMF and the World Bank, also attend meetings as observers.

Significance

The Paris Club helps maintain the stability of the international financial system and helps sovereign creditors maximize returns on sovereign claims. Since 1956, the Paris Club has reached 480 agreements with 102 different debtor countries. The total debt treated in the framework of Paris Club agreements amounts to US$616 billion. By ensuring that borrower countries can deal with major creditors at once and on the same terms, the Paris Club seeks to minimize the cost, complexity, and inequality of debt treatments.

Recently, the Paris Club has played an integral role in the development and implementation of the G20 Common Framework, *part of sentence redacted*. *Sentence redacted*.

Financial Action Task Force (FATF) Relationship to Minister

The Minister is responsible for approving the overall FATF mandate, which was made open- ended in 2019. Ministerial meetings takes place every two years starting in 2022 to discuss strategic issues and progress against the mandate, usually on the margins of IMF and World Bank annual meetings. Canada has been appointed FATF Vice-President, commencing in July 2023. In addition, Canada is the co-chair of the Asia/Pacific Group on Money Laundering (APG), an affiliate organization of the FATF, alongside Australia from 2022 to 2024. The Minister will open the weeklong annual meeting of the APG that will take place in Vancouver in July 2023.

Relationship to the Department

As policy lead and coordinator for Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime, the Department of Finance Canada leads Canada's delegation to the FATF. Meetings of the FATF Plenary, its decision making body, are held three times per year in February, June and October.

Significance

Established in 1989 under G7 leadership, the FATF is an intergovernmental body that sets global standards for combatting money laundering, terrorist financing and proliferation financing. Canada is a founding member of the FATF, which has 39 members and a global network of more than 200 countries committed to the implementation of FATF standards. The FATF uses a comprehensive peer review process to assess member's compliance with these standards. Canada was last evaluated in 2016 and will be evaluated again in 2026. The FATF identifies and engages with countries that pose money laundering and terrorist financing risks to the financial system and issues public lists of high-risk and uncooperative jurisdictions. It also assesses trends, risks and emerging issues in money laundering, terrorist financing and proliferation financing, and conducts outreach to private sector and non-governmental organizations. In February 2023, the FATF suspended Russia's membership given the country's war of aggression against Ukraine.

Coalition of Finance Ministers for Climate Action Relationship to Minister

Canada joined the Coalition of Finance Ministers for Climate Action on June 14, 2019. The Coalition serves as a forum for Finance Ministers to promote a common set of climate action that Ministers can pursue within their mandates, and to share experiences on climate change-related fiscal policies and practices. The Coalition aims to meet at least once a year during the World Bank Group and International Monetary Fund (WBG-IMF) Spring or Annual Meetings.

Relationship to the Department

The Department of Finance Canada helps prepare for Coalition meetings, as well as being directly engaged with Coalition's Secretariat or other countries in technical work. A designated Sherpa, a senior official within the Department, is also responsible for attending Sherpa meetings that take place throughout the year. Senior Finance Officials have attended recent Ministerial meetings.

Significance

The Coalition was launched at the WBG-IMF Spring Meetings in April 2019 with the aim to drive stronger collective action on climate change and its impacts. The members of the Coalition endorsed a set of six common principles, known as the "Helsinki Principles" that promote national climate action, especially through fiscal policy and the use of public finance.

The Coalition and its Principles align with the Government of Canada's action on climate change, particularly the Pan-Canadian Framework on Clean Growth and Climate Change and the Government's announcement at the 2021 G7 Leader's Summit to double its international climate finance commitment to $5.3 billion over five years to help developing countries mitigate and adapt to the impacts of climate change.

The Coalition comprises 87 members, including all G7 participants and some G20 participants (Argentina, Australia, Indonesia, South Korea, and Mexico). The Co-Chairs are Finland and Indonesia.

International Platform on Sustainable Finance (IPSF) Relationship to Minister

The IPSF was launched in October 2019 to serve as a multilateral forum to promote information sharing and dialogue on sustainable finance matters. The IPSF has thirteen member countries that together represent approximately 50 per cent of global GHG emissions. The IPSF aims to meet at least annually at the World Bank Group and International Monetary Fund (WBG-IMF) Spring or Annual Meetings.

Relationship to the Department

The Department of Finance Canada has a designated IPSF Sherpa who represents Canada at IPSF meetings, sharing Canada's approach to sustainable finance and broadly engaging in a manner that supports the IPSF's mandate and work plan. The IPSF secretariat is housed within the European Commission. The Department is responsible for briefing the Minister of Finance for high-level Sherpa ministers' meetings.

Significance

The IPSF is the only international forum that is exclusively focused on advancing sustainable finance issues on a global basis. Its focus is to promote information and dialogue among members so that sustainable finance standards and practices are developed more consistently, in a manner that reflects the global nature of financial markets. The IPSF may ultimately evolve into a body that sets standards for sustainable finance.

Federal-provincial relations

The Minister and the Department of Finance Canada have a long-established process for consultations with provinces and territories.

Traditionally, the consultative process largely consists of meetings/teleconferences at various levels: among Ministers once or twice a year; among Deputies as required; and among Assistant Deputy Ministers two or three times a year each on tax matters, on economic and fiscal matters, and as required on federal-provincial transfers and on the Canada Pension Plan. These meetings/teleconferences are supported by working groups, some of which meet regularly or as needed. Throughout the COVID-19 pandemic, teleconferences, particularly at the ministerial level, occurred much more frequently.

Except for the Canada Pension Plan Committee (see below), these meetings are consultative. They serve as a venue for an exchange of views as well as playing a role in co-ordinating policy between the federal and provincial/territorial governments. The discussions are not binding and the committees have no decision-making power.

Finance Ministers' Meetings

Federal-provincial-territorial Finance Ministers' Meetings have taken place regularly since 1959 to discuss economic and fiscal issues, recognizing that the spending and taxing policies of both the federal and provincial-territorial governments often have direct or indirect impacts on each other.

Meetings are chaired by the federal Minister of Finance and are held at the call of the Chair, usually once or twice per year. One is generally held pre-budget, typically in December, and the other post-budget in or around the month of June. The December meeting is customarily face-to- face, while the other meeting has at times been held via teleconference depending on the nature of the issues being covered. Ministers often have an informal dinner the evening before the meeting.

In 2022, it was agreed that the following would be standing agenda items going forward:

• economic growth and investment, including discussion of key economic indicators (GDP per capita, labour productivity, business investment) and issues such as internal trade, infrastructure investments and innovation; and
• tax policy issues.

In addition, a typical agenda for a face-to-face meeting might include discussions on:

• the economic and fiscal outlook and issues influencing it, including financial market developments, commodity prices, exchange rate developments, debt targets, Budget directions, etc.;
• presentation on global and Canadian economic and financial developments from the Governor of the Bank of Canada;
• transfer issues (e.g., Equalization, Canada Health Transfer and Canada Social Transfer);
• the Canada Pension Plan;
• infrastructure investments; or,
• other issues with federal-provincial implications.

Federal and provincial Ministers of Finance are jointly responsible for conducting a formal review of the Canada Pension Plan every three years. Any decisions to change the Canada Pension Plan must have the formal support of at least two thirds of the provinces representing at least two-thirds of Canada's population.

Locations of meetings vary around the country, with Ottawa traditionally being the locale for about half of them.

Continuing Committee of Officials

The Continuing Committee of Officials (CCO), established in 1955, is made up of the federal, provincial, and territorial Deputy Ministers of Finance.

Chaired by the federal Deputy Minister of Finance, the Committee consults on finance-related issues with federal-provincial-territorial implications. Meetings at the Deputy Minister of Finance level are held at the call of the Chair. Routine meetings are held at lower levels.

The Committee may launch sub-committees, technical committees and/or working groups on federal-provincial fiscal, taxation or transfer issues as appropriate. The sub-committees generally meet more frequently, for example, twice per year in the case of the sub-committee on Fiscal and Economic Issues.

In the past, the federal Deputy Minister of Finance has preferred to hold Finance Deputy Ministers' Retreats rather than calling a meeting of the Continuing Committee of Officials. The mandate and membership of the DM Retreats and Deputy Minister CCO are identical. Deputy Ministers often have an informal dinner the evening before an in-person Finance Ministers Meeting.

Finance Deputy Ministers' Retreats

Federal, Provincial and Territorial Finance Deputy Ministers' Retreats are chaired by the federal Deputy Minister of Finance to consult on federal-provincial fiscal, taxation or transfer issues with federal-provincial implications. Retreats at the Deputy Minister of Finance level are held at the call of the Chair. The last DM retreat was held in 2016.

B. Other finance committees

Fiscal Arrangements Committee

The Fiscal Arrangements Committee (FAC) is comprised of Assistant Deputy Ministers responsible for federal-provincial fiscal relations. The meetings are chaired by the federal Assistant Deputy Minister, Federal-Provincial Relations and Social Policy, and meet and/or hold teleconferences as required.

The Committee consults on fiscal transfer issues, including the Equalization program, the Canada Health Transfer and the Canada Social Transfer, and on federal-provincial issues generally. A sub-committee on transfers meets regularly, generally once or twice per year.

Senior Financial Arrangements Committee

The Senior Financial Arrangements Committee (SFAC) is comprised of territorial Deputy Ministers of Finance and the federal Assistant Deputy Minister, Federal-Provincial Relations and Social Policy. The committee is chaired by the federal Assistant Deputy Minister, and meets as required.

The Committee consults on fiscal transfer issues relevant to the territories, in particular, Territorial Formula Financing. A sub-committee meets regularly at the working level, generally once or twice per year.

Canada Pension Plan Committee

Comprised of officials responsible for the Canada Pension Plan policy, the Committee is chaired by the federal Director General, Federal-Provincial Relations Division, of the Federal-Provincial Relations and Social Policy Branch, at the discretion of the Assistant Deputy Minister.

The purpose of the Committee is to provide a forum for federal-provincial-territorial officials to discuss possible changes to the Plan and the Triennial Review process. Federal and provincial Ministers of Finance are the co-stewards of the Plan.

The Committee meets as often as required, from two times a year during down periods to as often as bi-weekly during active periods. Officials from other federal departments and agencies, such as Employment and Social Development Canada and the Office of the Chief Actuary, also participate in the meetings.

Federal-Provincial Committee on Taxation (Tax Committee)

Federal-provincial/territorial collaboration and coordination in matters of tax policy is supported through the operation of the Tax Committee. This Committee is comprised of the federal, provincial and territorial Assistant Deputy Ministers responsible for tax policy. The Tax Committee is chaired by the federal Assistant Deputy Minister, Tax Policy Branch, and usually meets two times annually.

The Tax Committee provides a forum for senior federal, provincial and territorial finance officials to discuss common current and emerging tax policy issues and examine their consequences for the national and provincial/territorial economies. These discussions can be very useful in providing an exchange of information, with the potential of guiding policy development in a common direction for the benefit of both national and regional economies. It also effectively serves as the Cannabis Taxation Policy Committee under the Coordinated Cannabis Taxation Agreements (CCTAs) which is tasked with overseeing the coordinated cannabis duty system.

From time to time, the Tax Committee will establish sub-committees to undertake joint federal- provincial-territorial work on issues of common interest.

Federal-Provincial Tax Policy Review Committee / Tax Harmonization Committee

The Federal-Provincial Tax Policy Review Committee (TPRC) was established under the Comprehensive Integrated Tax Coordination Agreements (CITCAs) with provinces that are part of the Harmonized Sales Tax (HST): Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario and Prince Edward Island. The federal Minister of Finance and the Ministers of Finance of the participating provinces, each appoint a member to the committee. The TPRC's role is to monitor the ongoing operation of, and resolve issues in relation to, the HST system. The Committee is chaired by the federal member and meetings are held on an as required basis.

The federal and provincial members each communicate, as appropriate, the results of the deliberations of the TPRC to the relevant federal and provincial Deputy Ministers.

Also created under the CITCA with the HST provinces, the Revenue Allocation Sub-Committee (RASC), which reports to the TPRC, is responsible for overseeing the HST revenue allocation mechanism and ensuring that it functions in the interests of the federal government and the participating provinces.

In the case of Quebec, the oversight role contemplated in the Canada-Quebec CITCA is carried out by the bilateral Tax Harmonization Committee (THC). The THC's role is to consider issues related to the GST/HST and QST, including the harmonized tax base and associated administrative, structural and definitional parameters. There is no RASC equivalent under the Canada-Quebec CITCA since GST and QST revenues are not apportioned by a revenue allocation mechanism.

Federal-Provincial-Territorial Financial Sector Policy Dialogue

Comprised of Assistant Deputy Heads with financial sector oversight responsibilities and Deputy Heads from all federal financial sector regulators Office of the Superintendent of Financial Institutions, Financial Consumer Agency of Canada, the Bank of Canada, Canada Deposit Insurance Corporation and Canada Mortgage and Housing Corporation, the Committee is chaired by the federal Assistant Deputy Minister, Financial Sector Policy Branch. The Committee meets once a year and discuss financial sector related initiatives.

A typical agenda might include discussions on:

• financial sector innovation (financial technology, retail payments)
• housing markets
• anti-money laundering, anti-terrorist financing regime and corporate transparency
• consumer protection
• other financial sector issues (trade initiatives, cybersecurity, catastrophic risk/earthquake risk)

From time-to-time, the Committee will establish working groups to undertake financial sector related work.

Heads of Agencies

The Heads of Agencies committee is comprised of the Deputy Heads of organizations with financial sector oversight responsibilities from the federal government (Department of Finance Canada, Bank of Canada, and the Office of the Superintendent of Financial Institutions) and the major provincial securities regulators (British Columbia, Alberta, Ontario, and Quebec). The Heads of Agencies committee is chaired by the Governor of the Bank of Canada, and meets twice a year to share information and discuss financial sector related issues of common interest.

A typical Heads of Agencies agenda might include discussions on:

• Financial sector risks and vulnerabilities
• Financial sector technology (cyber security)
• Emerging asset classes (green assets, crypto assets)
• Market structure (financial benchmarks, securities settlement)
• Market regulation (derivatives, federal and provincial regulations)
• Any other financial sector issues of common interest

Council of Ministers of Participating Jurisdictions (Cooperative Capital Markets Regulatory System)

The governments of British Columbia, Ontario, Saskatchewan, New Brunswick, Nova Scotia, Newfoundland and Labrador, Prince Edward Island, Yukon, and Canada are working together to establish the Cooperative Capital Markets Regulatory System, with the aim of enhancing regulatory efficiency, strengthening enforcement and investor protection, and increasing capacity to manage systemic risk in Canada's capital markets. The Cooperative System would consist of a single regulatory authority administering uniform securities legislation in participating provinces and territories as well as federal systemic risk and criminal enforcement legislation on a national basis.

The Council of Ministers of Participating Jurisdictions is overseeing the establishment of the Cooperative System. The Council is comprised of the federal Minister of Finance and the Ministers responsible for capital markets regulation in each provincial and territorial participating jurisdiction. It is co-chaired by the federal Minister of Finance and the Ministers of Finance of British Columbia and Ontario (who rotate every two years).

C. Other types of federal–provincial-territorial consultations

Throughout the year, multi- and bilateral meetings with the federal Finance Minister or Deputy Minister could be held.

In the case of bilateral ministerial meetings, provincial/territorial ministers often request meetings with the federal finance minister or deputy minister to discuss concerns specific to their province/territory.

Finally, provinces and territories may appear before parliamentary committees studying bills to provide comments.

Legislation and statutory responsibilities

The statutory responsibilities of the Minister of Finance fall into three categories:

1. statutes for which the Minister of Finance is named by Parliament or designated by the Governor in Council as the responsible minister or for which there is no named Minister but the Act is otherwise identified as falling under the responsibility of the Minister of Finance (listed in Section A below);
2. statutes for which another minister is named as the responsible minister but for which the Minister of Finance has policy responsibility by virtue of her responsibility under s. 15 of the Financial Administration Act for "the supervision, control and direction of all matters relating to the financial affairs of Canada not by law assigned to the Treasury Board or to any other minister" (listed in Section B below);
3. statutes under which the Minister of Finance has assigned powers, duties and functions but for which another minister is responsible to Parliament (listed in Section C below).

A. Statutes for Which the Minister of Finance is the Responsible Minister

The Minister of Finance is responsible for the following statutes because they are named or designated, or jointly named, as such or because there is no named minister but the Act is otherwise identified as falling under the responsibility of the Minister of Finance. The Acts are grouped in order of major and lesser importance:

Statutes of Major Importance

• Asian Infrastructure Investment Bank Agreement Act Bank Act
• Bank for International Settlements (Immunity) Act Bank of Canada Act
• Bills of Exchange Act^{Footnote 1}
• Borrowing Authority Act
• Bretton Woods and Related Agreements Act Budget Implementation Acts^{Footnote 2} (under various titles)
• Canada Deposit Insurance Corporation Act Canada Pension Plan^{Footnote 3}
• Canada Pension Plan Investment Board Act Canadian International Trade Tribunal Act Canadian Gender Budgeting Act^{Footnote 4}
• Canadian Payments Act Consumer-Driven Banking Act Currency Act
• Customs Tariff
• Depository Bills and Notes Act
• European Bank for Reconstruction and Development Agreement Act Federal-Provincial Fiscal Arrangements Act
• Financial Administration Act^{Footnote 5}
• Financial Consumer Agency of Canada Act First Nations Goods and Services Tax Act Income Tax Conventions Interpretation Act Insurance Companies Act
• Interest Act
• Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act
• Office of the Superintendent of Financial Institutions Act Payment Card Networks Act
• Payment Clearing and Settlement Act Pension Benefits Standards Act, 1985 Pooled Registered Pension Plans Act
• Proceeds of Crime (Money Laundering) and Terrorist Financing Act^{Footnote 6} Protection of Residential Mortgage or Hypothecary Insurance Act Retail Payment Activities Act
• Royal Canadian Mint Act^{Footnote 7} Tax-Back Guarantee Act
• Trust and Loan Companies Act
• Winding-up and Restructuring Act (Parts II and III)

The Minister of Finance is authorized by statute to delegate some or all of their powers, duties and functions under the Bank Act, Trust and Loan Companies Act, Insurance Companies Act, Cooperative Credit Associations Act, and Canadian Payments Act to a Minister of State.

A.2 Statutes of Lesser Importance

• An Act respecting payments to a trust established to provide provinces and territories with funding for community development
• An Act respecting the provision of funding for diagnostic and medical equipment Bank of British Columbia Business Continuation Act
• Beechwood Power Project Act, An Act to authorize a Loan to the Government of New Brunswick in respect of the
• Canada Health Care, Early Childhood Development and Other Social Services Funding Act
• Canadian Commercial Bank Financial Assistance Act Cooperative Credit Associations Act
• Eldorado Nuclear Limited Reorganization and Divestiture Act^{Footnote 8} Energy Costs Assistance Measures Act
• Export Credits Insurance Act (Parts II and III) Federal-Provincial Fiscal Revision Act, 1964
• Financial Institutions and Deposit Insurance System Amendment Act Financial Institutions Depositors Compensation Act
• First Nations' Sales Tax (Part 4 of the Budget Implementation Act, 2000)
• Garnishment, Attachment and Pension Diversion Act (Part II)^{Footnote 9} Green Shield Canada Act^{Footnote 10}
• Halifax Relief Commission Pension Continuation Act Newfoundland and Labrador Additional Financial Assistance Act Nordion and Theratronics Divestiture Authorization Act^{Footnote 11}
• Petro-Canada Public Participation Act^{Footnote 12} Prince Edward Island Subsidy Act Provincial Subsidies Act
• Spending Control Act
• Teleglobe Canada Reorganization and Divestiture Act^{Footnote 13}

B. Statutes for Which the Minister of Finance Has Policy Responsibility But is Not Named as Responsible Minister

Although another Minister is named as responsible minister for the following statutes, the Minister of Finance has policy responsibility in respect of these Acts by virtue of their responsibility under s. 15 of the Financial Administration Act for "the supervision, control and direction of all matters relating to the financial affairs of Canada not by law assigned to the Treasury Board or to any other minister". In some cases, the Minister of Finance is not mentioned in the Act. In other cases, the Minister has assigned responsibilities under the Acts in addition to their policy responsibility.

B.1 Statutes of Major Importance

• Air Travellers Security Charge Act
• Customs and Excise Offshore Application Act Digital Services Tax Act
• Excise Act Excise Act, 2001 Excise Tax Act
• Global Minimum Tax Act
• Greenhouse Gas Pollution Pricing Act (Part 1) Income Tax Act
• Select Luxury Items Tax Act Special Import Measures Act Underused Housing Tax Act

B.2 Statutes of Lesser Importance

• Canada Development Corporation Reorganization Act
• Canada-Newfoundland and Labrador Atlantic Accord Implementation Act
• Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (Parts IV)
• Crown Corporations Dissolution or Transfer Authorization Act Economic Development Agency of Canada for the Regions of Quebec Act Income Tax Application Rules
• Multilateral Instrument in Respect of Tax Conventions Act Tax Convention Acts (several under various names)
• Telesat Canada Reorganization and Divestiture Act^{Footnote 14}
• Multilateral Instrument in Respect of Tax Conventions Act

C. Statutes Under Which the Minister of Finance Has Certain Powers, Duties and Functions

The Minister of Finance has powers, duties and functions under the following statutes for which another Minister is responsible to Parliament. These powers, duties and functions relate to the Minister's responsibility under s. 15 of the Financial Administration Act for the management of the Consolidated Revenue Fund (CRF) (e.g., loans, advances, guarantees, purchases of shares, and other payments out of the CRF).

• Agricultural Marketing Programs Act Apprentice Loans Act
• Atlantic Canada Opportunities Agency Act Atlantic Fisheries Restructuring Act
• Auditor General Act (notional responsibilities) Broadcasting Act
• Buffalo and Fort Erie Public Bridge Company Act Building a Green Prairie Economy Act
• Business Development Bank of Canada Act
• Canada Border Services Agency Act Canada Council for the Arts Act Canada Infrastructure Bank Act Canada Education Savings Act
• Canada Emergency Response Benefit Act Canada Emergency Student Benefit Act
• Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act
• Canada-United Kingdom Trade Continuity Agreement Implementation Act
• Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act
• Canada Marine Act
• Canada Mortgage and Housing Corporation Act Canada Post Corporation Act
• Canada Revenue Agency Act
• Canada Small Business Financing Act Canada Student Financial Assistance Act
• Canada Transportation Act Canadian Agricultural Loans Act
• Canadian Commercial Corporation Act Canadian Dairy Commission Act Canadian Energy Regulator Act Canadian Food Inspection Agency Act Canadian Forces Superannuation Act
• Canadian National Montreal Terminals Act Canadian Net-Zero Emissions Accountability Act Canadian Ownership and Control Determination Act Canadian Space Agency Act
• Cape Breton Development Corporation Act CN Commercialization Act
• Competition Act Criminal Code
• Crown Liability and Proceedings Act Cultural Property Export and Import Act Customs Act
• Department of Industry Act Employment Insurance Act Energy Administration Act Energy Monitoring Act Export Development Act Expropriation Act
• Farm Credit Canada Act Farm Income Protection Act Farm Products Agencies Act
• Federal Framework on Autism Spectrum Disorder Act Fisheries Improvement Loans Act
• Foreign Missions and International Organizations Act Freshwater Fish Marketing Act
• Hibernia Development Project Act Immigration and Refugee Protection Act Indian Act
• International Development (Financial Institutions) Assistance Act International Development Research Centre Act
• International Financial Assistance Act Land Titles Repeal Act
• Laurier House Act
• Mackenzie Gas Project Impacts Funds Act Marine Liability Act
• National Battlefields at Quebec Act
• National Capital Act National Housing Act Northwest Territories Act Nunavut Act
• Official Development Assistance Accountability Act Parks Canada Agency Act
• Petroleum and Gas Revenue Tax Act Pilotage Act
• Public Service Superannuation Act Railway Relocation and Crossing Act Regional Development Incentives Act
• Royal Canadian Mounted Police Pension Continuation Act Royal Canadian Mounted Police Superannuation Act Saskatchewan Treaty Land Entitlement Act
• Security of Canada Information Disclosure Act Seized Property Management Act
• Special Economic Measures Act Supreme Court Act
• Telefilm Canada Act
• Western Economic Diversification Act Yukon Act