Enhanced record keeping requirements set to help police track illicit financial activities
The Yukon government has introduced new corporate transparency regulations requiring private companies to identify and disclose individuals with significant control, in an effort to curb money laundering, tax evasion and the misuse of corporate structures for illicit activities, according to a June 2 press release.
The changes align Yukon with national and international financial crime standards, the press release states. Regulators and law enforcement willhave access to ownership information to investigate suspicious activities and protect the integrity of the territory’s economy and corporate sector, the release states.
Effective June 1, Yukon corporations must identify individuals who own, control or benefit from at least 25 per cent of the company’s shares. Businesses have until June 1, 2026, to comply with updates to the Business Corporations Act, allowing time to meet new transparency requirements.
Certain corporations, including those wholly owned by a First Nation, a municipality or the territorial government, are exempt from the new rules, according to the government’s announcement.
The Yukon RCMP has welcomed new transparency measures, stating in an email to the News that while it is too early to assess their direct impact on criminal investigations, the changes send a clear message that the proceeds oforganized crime will not find a safe havenin the Yukon.
“The Yukon is not immune to the reaches of organized crime and related activities, such as money laundering,” the RCMP stated, noting that enhanced corporate disclosure could strengthen efforts to track illicit financial activities.
The Yukon RCMP told the News theyworkwith the Canada Revenue Agency (CRA) on financial crime investigations, including cases involving money laundering, proceeds of crime and drug trafficking. Greater transparency in corporate ownership records could support cross-agency efforts to prevent financial crime, the email from police states.
“Yukon RCMP do regularly work with the CRA on organized crime investigations such as money laundering, proceeds of crime and drug trafficking,” Sgt. Calista Macleod said.
Public information sessions hosted by the Yukon government are expected to take place in late June, though details have yet to be confirmed.
“This change will strengthen our economy, ensure greater accountability and bring us in line with best practices across the country and beyond,” said Community Services Minister Richard Mostyn in the press release.
Contact Jake Howarth atjake.howarth@yukon-news.com
