Amendments to the Business Corporations Act passed in the Yukon Legislative Assembly

The Government of Yukon is cracking down on white collar crime with Bill No. 43, Act to Amend the Business Corporations Act (2024), which received royal assent yesterday in the Yukon Legislative Assembly. These amendments will enhance transparency around the ownership and control of Yukon corporations, supporting investigations into activities like money laundering and tax evasion.

Under the new rules, privately held Yukon corporations will maintain an up-to-date register of individuals with significant control. This includes anyone who holds, directs or controls 25 per cent or more of the corporation’s voting rights or share value.

Corporations will be required to disclose this information upon request from investigative bodies for law enforcement, tax and regulatory purposes. The Registrar, as well as directors and shareholders, will also have access to this information for corporate compliance and matters only. Additionally, any bearer share certificates will be cancelled and replaced with registered certificates identifying the owner.

These amendments align with similar provisions in federal and most provincial corporate laws, as well as with international standards aimed at combating money laundering.

We know criminal organizations have used corporate entities with opaque structures to hide the true owner of property and disguise funds derived from crime. This legislation meets our government’s priorities for effective enforcement, market integrity, sustainable economic growth and intergovernmental cooperation.

Minister of Community Services Richard Mostyn

Corporate transparency addresses risks that corporations can be misused for money laundering and tax evasion and other illegal conduct. These crimes threaten the integrity and stability of the global financial system and broader economy. To respond to these concerns, we developed the amendments in collaboration with territorial, provincial and federal partners.

Minister of Finance Sandy Silver

Quick facts
  • The 2016 Panama Papers and other leaks highlighted how criminals were hiding behind opaque corporate structures to launder money, evade taxes and finance terrorism. International standards were updated, and many countries enacted equivalent rules.

  • In 2017, all finance Ministers in Canada agreed to pursue amendments to territorial, provincial and federal corporate statutes for beneficial ownership transparency.

  • In 2018, an intergovernmental working group planned harmonized rules and undertook outreach to national-level business organizations and other stakeholders for their input.

  • Corporate directors also need to know who has significant control to properly deal with banks and other entities that are subject to the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The regulations have know-your-client rules under which these entities must verify the identity of their corporate customers. This involves obtaining the names of directors and the names and addresses of all those who own or control, directly or indirectly, 25 per cent or more of the shares.

  • Three jurisdictions (federal, British Columbia and Quebec) enacted further amendments for corporations to file their transparency registers with the Registrar who makes some information made publicly available. Officials in other jurisdictions, including the Yukon, are monitoring and considering those changes.

Media contact

Laura Seeley
Cabinet Communications
867-332-7627
[email protected]

 

Bonnie Venton Ross
Community Services
867-332-5513
[email protected]

News release #:
24-539
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