Standing Senate Committee on National Finance (NFFN) (May 28, 2024)
ANNEX B: Summary of Budget 2024 initiatives of relevance from other departments/agencies appearing with FCAC

Canada Mortgage and Housing Corporation

• Budget 2024 announces the government’s intention to introduce flexibilities to the Federal Community Housing Initiative to ensure that eligible housing providers can access funding to maintain housing affordability for low-income tenants and co-op members.
• Budget 2024 also proposes to introduce legislative amendments to the National Housing Act to permanently increase the in-force limits for guarantees issued by the Canada Mortgage and Housing Corporation (CMHC) in respect of mortgage-backed securities and Canada Mortgage Bonds and for mortgage default insurance provided by CMHC from the temporary $750 billion to $800 billion. In addition, the government proposes to amend the Borrowing Authority Act to ensure that Canada Mortgage Bonds purchased by the government do not count towards the borrowing limit.

Innovation, Science and Economic Development Canada

• Budget 2024 announces that the federal government will work with provinces and territories to identify and target junk fees charged in Canada. The federal Office of Consumer Affairs will help reveal deceptive junk fee practices—wherever they exist in Canada—by advancing research and advocacy projects.

Financial Transactions and Reports Analysis Centre of Canada

In Budget 2024 the government announced its intention to introduce legislative amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), the Criminal Code, the Income Tax Act, and the Excise Tax Act. ­ Proposed amendments to the PCMLTFA would:

• Enhance the ability of reporting entities under the PCMLTFA to share information with each other to detect and deter money laundering, terrorist financing, and sanctions evasion, while maintaining privacy protections for personal information, including an oversight role for the Office of the Privacy Commissioner under regulations;
• Permit the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to disclose financial intelligence to provincial and territorial civil forfeiture offices to support efforts to seize property linked to unlawful activity;
• Enable anti-money laundering and anti-terrorist financing regulatory obligations to cover factoring companies, cheque cashing businesses, and leasing and finance companies to close a loophole and level the playing field across businesses providing financial services;
• Allow FINTRAC to publicize more information around violations of obligations under the PCMLTFA when issuing administrative monetary penalties to strengthen transparency and compliance; and,
• Make technical amendments to close loopholes and correct inconsistencies.

Proposed amendments to the Criminal Code meanwhile would:

• Allow courts to issue an order to require a financial institution to keep an account open to assist in the investigation of a suspected criminal offence; and,
• Allow courts to issue a repeating production order to authorize law 314 Chapter 7 enforcement to obtain ongoing, specified information on activity in an account or multiple accounts connected to a person of interest in a criminal investigation.
• Budget 2024 also proposes to provide $1.7 million over two years, starting in 2024-25, to the Department of Finance to finalize the design and legal framework for the Canadian Financial Crimes Agency.

Transport Canada

• Nothing of relevance to FCAC’s mandate. However the main measures touching on Transport Canada’s AOR in the 2024 Budget focus on on railway infrastructure, high frequency trail, electric vehicles and screening of cargo bound for Canada.

Reliable transportation in Atlantic Canada

• $2.5 million over two years, starting in 2024-25, to Transport Canada to freeze fares under the Ferry Services Contribution Program until December 2025
• $13.7 million over two years, starting in 2024-25, to Transport Canada to negotiate a continued toll freeze on the Confederation Bridge in 2025 and 2026.

Advancing High Frequency Rail

• $371.8 million over six years, starting in 2024-25, to VIA HFR-VIA TGF Inc. and Infrastructure Canada to advance design and development of high frequency rail.

Using AI to Keep Canadians Safe

• $6.7 million over five years, starting in 2024-25, to Transport Canada to establish the Pre-Load Air Cargo Targeting Program to screen 100 per cent of air cargo bound for Canada. This program, powered by cutting-edge artificial intelligence, will increase security and efficiency, and align Canada’s air security regime with those of its international partners.

More Affordable Electric Vehicles

• $607.9 million over two years, starting in 2024-25, to Transport Canada to top-up the Incentives for Zero Emission Vehicles program

Investing in Passenger Rail Across Canada

• $63.1 million over three years, starting in 2024-25, for Transport Canada to renew the Remote Passenger Rail Program, which supports Indigenous-owned rail operators providing services to communities in Manitoba, Quebec, and Labrador