IRCC Proposes Compensation Fund for Victims of Unethical Immigration Consultants

The Government of Canada is taking significant steps to protect immigrants and their families from dishonest practices. Immigration, Refugees and Citizenship Canada (IRCC) has introduced draft regulations to establish a compensation fund for individuals who fall victim to unethical immigration consultants.

This fund, which could total millions of dollars, is part of broader efforts to improve the governance and operations of the College of Immigration and Citizenship Consultants (CICC). The proposal was recently published in the Canada Gazette.

What is the College of Immigration and Citizenship Consultants?

Established in 2021 by IRCC, the CICC is the regulatory authority responsible for monitoring immigration and citizenship consultants. It aims to protect clients by ensuring that consultants operate ethically and within the law.

The Compensation Fund: How It Works

The proposed compensation fund would provide financial relief to individuals harmed by the dishonest acts of registered immigration consultants. Here’s what you need to know:

• Eligibility for Compensation:
  Clients who suffer financial losses due to a consultant’s unethical actions may qualify for payments from the fund.
• Estimated Payments:
  IRCC projects that the fund will issue approximately 146 payments in the first operational period, with an average payment of $4,652. Over the first ten periods, the total payments are estimated to reach $5.76 million.
• When Applications Are Required:
  Clients will need to apply for compensation in specific cases, such as:
• If the College’s Discipline Committee cannot determine the financial loss.
• If the consultant’s license was revoked before the complaint was referred to the Discipline Committee.
• Automatic Eligibility:
  Clients will automatically qualify for compensation in cases where the Discipline Committee determines both dishonesty and financial loss.
  
  

Strengthening Oversight and Accountability

The proposed regulations go beyond financial relief by introducing measures to improve the CICC’s operations:

• Public Register: A tool to verify whether a consultant is authorized to provide services.
• Enhanced Investigation Powers: The College will have more authority to investigate consultants suspected of fraudulent activities.
• Streamlined Complaints Process: Changes aim to make it easier for clients to report unethical behaviour.
  
  

Combating Misrepresentation with Harsher Penalties

In addition to these changes, IRCC plans to impose stricter penalties for consultants who encourage clients to misrepresent information in immigration applications. Misrepresentation involves providing false or misleading information to the government and can lead to severe consequences, including:

• Application rejections.
• A five-year ban from applying for Canadian immigration.
• Fines or removal from Canada.

Under the proposed regulations, fines for consultants advising misrepresentation could reach $1.5 million.

Public Disclosure of Violators

To enhance transparency, IRCC will publish details of consultants who violate regulations on its website. This includes:

• The nature of the offence.
• The amount of the penalty.
• Whether the penalty has been paid.
  
  

Who Are Immigration Consultants and Representatives?

Immigration consultants and representatives assist individuals and families in navigating Canada’s immigration system. They can provide advice, submit applications, and communicate with government authorities on behalf of their clients.

• Paid Representatives: Must be authorized professionals, such as:
• Members of Canadian law societies.
• Notaries in good standing with the Chamber of Notaries of Quebec.
• Members of the CICC.
• Unpaid Representatives: These can include family members or friends, but their involvement must be disclosed in immigration applications.
  
  

What’s Next?

These regulations are expected to come into effect in 2025, signalling IRCC’s commitment to a more transparent and ethical immigration system. The changes aim to hold consultants accountable, protect clients, and reinforce trust in Canada’s immigration processes.

If you’re planning to work with an immigration consultant, ensure they are authorized and in good standing with the CICC to avoid falling victim to unethical practices.