Corporate Crime in Canada: Simple Guide to Do Business in Canada

Corporate Crime in Canada

Law enforcement organizations in Canada and throughout the world are working hard against inappropriate and unlawful corporate activities.

The companies should consult a team of legal specialists with national and international expertise and experience to assure compliance with the complex system of laws, rules, and governance standards to prevent any corporate crimes.

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Corporate Crime in Canada

As a result of the COVID-19 crisis’s economic volatility and shattered supply networks, numerous businesses in Canada and worldwide face various fraud and corruption risks.

Because of the focus on pandemic response, certain corporations have been susceptible, while anti-corruption initiatives have received less attention.

What is White-collar Crime?

Occupational and corporate crime are both types of white-collar criminality.

Occupational crime refers to crimes perpetrated by people of higher social standing against lawful organizations (such as enterprises or the government).

Occupational and corporate crime are both types of white-collar criminality.

White-collar crime in Canada is ever-growing, especially in the pandemic and not only in Canada.

Public corruption, health-care fraud, mortgage fraud, securities fraud, and money laundering are a few examples of white-collar crime.

Fines, house arrest, social isolation, paying the prosecution, asset seizures, etc., are some of the consequences for white-collar crimes?

When at least one victim has incurred significant financial injury, the Federal Sentencing Guidelines recommend a lengthier prison sentence.

Read Also: What are Sex Crimes: How to Find Sex Crime Lawyer?

Types of White-collar Crime

1. Foreign Corruption

The Foreign Corrupt Practices Act (FCPA) was repealed in 1998 by the Corruption of Foreign Public Officials Act (CFPOA).

The Act of offering or delivering a reward or advantage to a foreign public official in return for an act or failure to act in connection with the execution of that official’s responsibilities is prohibited under CFPOA.

Canadian law will take you under their jurisdiction if you are-

  • A Canadian citizen
  • A permanent dweller of Canada
  • Working under a company that is under Canadian property.

The CFPOA’s enforcement has risen since the year of 2011.

For example, in 2011, Niko Resources Ltd. pled guilty to violating the Act and was fined 9.5 million dollars.

Griffiths Energy, a Canadian oil business based in Africa’s Chad, was fined 10.25 million dollars in 2013.

Sami Bebawi, a former vice-president of a multinational firm, was sentenced to 8.6 years in prison in 2020 on five fraud charges, corruption of foreign authorities, and laundering profits of crime.

These cases appear to be part of a growing pattern of prosecuting persons implicated in international business misconduct.

The Extractive Industry Transparency Measures Act currently requires companies in the extractive sector in Canada to participate.

2. Anti-trust Law

The Antitrust or Competition Act is a long-standing and important part of Canadian corporate law.

The Act’s goal is to eradicate practices that stifle competition in the field.

According to recent case law, courts might take steps to punish specific non-inspiring behavior severely.

The penalties include up to 14 years in jail and/or a fine of up to 25 million dollars.

3. Security-based Precautions

Security regulations in Canada are not handled by the federal government, unlike other countries. In other countries, it is handled by the provinces and territories.

In addition to securities and accounting fraud laws, each provincial securities act includes quasi-criminal provisions, such as restrictions on insider trading.

Convictions for security offenses can result in prison time and penalties.

According to the Criminal Code of different provisions for securities offenses, such as insider trading, there can be additional overlapping of charges, although they are hardly violated.

4. Fraud

In the Canadian business setting, the criminal code of Canada fraud is one of the most regularly punished offenses.

A company or an employee can commit a crime or be prosecuted for it.

For example, a person commits criminal fraud when he or she defrauds the public or another individual of property, money under a certain company.

5. Corporate Criminal Liability

According to Canada’s Supreme Court for many years, the corporate vehicle occupies such a substantial percentage of the industrial, economic, and social sectors.

Where a senior official is implicated in a crime, the Criminal Code allows for corporation criminal culpability.

To be held criminally liable, the senior officer must have intended to benefit the organization somehow.

The senior official must follow certain grounds –

  • If the authority acts out against the law, then the higher official is responsible.
  • If the higher official directs other employees to the offense.
  • Failing to take important steps according to criminal laws in Canada to avoid the devastating results.
  • Other precautions

In Canada, there are various regulatory regimes with criminal or quasi-criminal powers. Occupational health and safety laws, environmental laws, and a wide range of economic laws are among the regulatory regimes.

6. Anti-money Laundering

In June 2000, Canada passed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The Act is designed to identify and, eventually, discourage handling any black money or transferring funds for terrorist activity.

Failure to cooperate with the law may end in disastrous endings such as bigger fines, prison time, etc.

Corporate Crime Lawyer

An experienced lawyer in the corporate field is well-aware of the criminal, and civil investigations offer by the field. Therefore, their defense team is made up of professional and experienced lawyers.

They will help clients deal with foreign corruption, anti-trust cases, anti-money laundering, and other security and precautionary problems.

Often as part of a worldwide settlement strategy, legal firms will assist companies in resolving disputes.

They will try to collaborate with the customers’ legal teams and external experts to establish a strategy and personalized solution to the specific circumstance.

Conclusion

Due to investment fraud, around one million Canadian lost their money. Among them, one-third of them say that it had a severe impact on personal economic problems.

Simply by diverting investors away from specific goods and services, white-collar crime may stifle profitability and productivity.

So, to avoid this kind of disastrous reality, stay tuned with your legal team. Under any circumstances, talk to your lawyers. They are the ones getting paid for helping you.

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