The Government of Canada has introduced the Strong and Free Elections Act to overhaul political financing rules and close gaps linked to untraceable contributions.
The proposal was formally tabled on 26 March 2026 as an amendment to the existing Canada Elections Act, which governs federal election conduct and funding.
Officials aim to strengthen transparency by restricting how political parties, candidates, and third-party groups receive financial support.
The bill specifically targets payment methods considered difficult to track, placing cryptocurrency under direct restriction alongside prepaid cards and money orders.
Lawmakers argue that these tools create blind spots in financial oversight and may be used to obscure the true source of political donations.
Under the proposal, political organisations would be prohibited from accepting such contributions regardless of size or frequency.
The legislation also introduces tighter rules for third-party political spending, limiting funding sources primarily to Canadian citizens and permanent residents.
Exceptions may apply for minimal contributions, though these would still fall under stricter disclosure and verification requirements.
Authorities are also pushing for stronger safeguards on how political entities manage and store personal data collected from voters and donors.
The bill outlines new obligations for political parties to ensure that vendors handling sensitive information meet higher privacy and security standards.
In addition, the proposal seeks to clamp down on foreign funding channels that could indirectly influence Canadian elections.
Regulators plan to increase administrative penalties to discourage violations, with fines reaching up to $25,000 for individuals and $100,000 for organisations.
These increased penalties signal a tougher enforcement stance as concerns grow around digital finance and election interference risks.
The proposed changes would also expand the jurisdiction of enforcement bodies beyond Canada’s borders in cases involving cross-border financial activity.
Investigators would gain broader authority to examine international transactions and digital tools that could impact electoral outcomes.
The Commissioner of Canada Elections would receive enhanced powers to pursue complex cases involving emerging financial technologies.
Officials believe the reforms are necessary to maintain trust in democratic systems as digital assets become more widely used.
The proposal remains under review and will undergo legislative scrutiny before any final adoption into law.