Critical Cyber Systems Protection Act (S.C. 2026, c. 9, s. 11)

Marginal note:Entering into compliance agreements

• The following provision is not in force.

  103 (1) If the Superintendent offers to enter into a compliance agreement with the designated operator or other person, the agreement is subject to any terms that the Superintendent considers appropriate, including the reduction, in whole or in part, of the penalty for the violation.

• The following provision is not in force.

  Marginal note:Representations

  (2) If a compliance agreement is entered into, the designated operator or other person cannot make any representations under paragraph 101(2)(a).

• The following provision is not in force.

  Marginal note:Deeming

  (3) A designated operator or other person that enters into a compliance agreement with the Superintendent is deemed to have committed the violation in respect of which the compliance agreement was entered into.

• The following provision is not in force.

  Marginal note:Notice of compliance

  (4) If the Superintendent is of the opinion that a designated operator or other person that has entered into a compliance agreement has complied with it, the Superintendent must serve a notice to that effect on the designated operator or other person and, on the service of the notice, the proceedings commenced in respect of the violation are ended.

• The following provision is not in force.

  Marginal note:Notice of default

  (5) If the Superintendent is of the opinion that a designated operator or other person that has entered into a compliance agreement has not complied with it, the Superintendent must cause the designated operator or other person to be served with a notice of default informing them that

  • The following provision is not in force.

    (a) they are liable to pay, within the time and in the manner set out in the notice of default, the penalty set out in the notice of violation in respect of which the compliance agreement was entered into, less any amount they paid under the compliance agreement; and

  • The following provision is not in force.

    (b) the Superintendent may make public the designated operator’s or other person’s name, the nature of the violation, the scope of the non-compliance with the compliance agreement and the penalty payable.

• The following provision is not in force.

  Marginal note:Effect of payment

  (6) If a designated operator or other person pays the penalty set out in the notice of default within the time and in the manner set out in that notice, the Superintendent must accept the amount as complete satisfaction of the penalty owing in respect of the violation and the proceedings commenced in respect of the violation are ended.

Marginal note:Designation

104 The Minister of Industry may designate persons or classes of persons who are authorized to issue notices of violation and to enter into a compliance agreement with a designated operator.

Marginal note:Notice of violation — designated person

• The following provision is not in force.

  105 (1) If a person designated under section 104 has reasonable grounds to believe that a designated operator or other person has committed a violation, the person so designated may issue a notice of violation to the designated operator or other person. If a notice of violation is issued, the person designated under section 104 must cause it to be served on the designated operator or other person.

• The following provision is not in force.

  Marginal note:Contents of notice of violation

  (2) The notice of violation must name the designated operator or other person that is alleged to have committed the violation, identify the alleged violation and set out

  • The following provision is not in force.

    (a) the penalty for the violation that the designated operator or other person is liable to pay;

  • The following provision is not in force.

    (b) the right of the designated operator or other person, within 30 days after the notice is served or within any longer period that the person designated under section 104 specifies, to pay the penalty or to make representations to the Minister of Industry with respect to the violation or the proposed penalty, or both, and the manner for doing so; and

  • The following provision is not in force.

    (c) the fact that, if the designated operator or other person does not pay the penalty or make representations in accordance with the notice, the designated operator or other person will be deemed to have committed the violation and be liable to the penalty set out in the notice.

• The following provision is not in force.

  Marginal note:Correction or cancellation of notice of violation

  (3) At any time before the designated operator or other person makes representations in respect of a notice of violation to the Minister of Industry or enters into a compliance agreement with the person designated under section 104, the person so designated may cancel the notice of violation or correct an error in it.

Marginal note:Penalty

106 The penalty for a violation is to be determined by taking into account

• The following provision is not in force.

  (a) the designated operator’s or other person’s history of compliance or non-compliance with the provisions of this Act or of the regulations;

• The following provision is not in force.

  (b) the nature and scope of the violation;

• The following provision is not in force.

  (c) whether the designated operator or other person made reasonable efforts to mitigate or reverse the effects of the violation;

• The following provision is not in force.

  (d) whether the designated operator or other person derived any competitive or economic benefit from the violation;

• The following provision is not in force.

  (e) any other factors prescribed by the regulations; and

• The following provision is not in force.

  (f) any other factors that the person designated under section 104 who issued the notice of violation considers relevant.

Marginal note:Payment

• The following provision is not in force.

  107 (1) If the designated operator or other person named in the notice of violation pays the penalty set out in the notice, they are deemed to have committed the violation and the proceedings commenced in respect of the violation are ended.

• The following provision is not in force.

  Marginal note:Alternatives

  (2) Instead of paying the penalty set out in the notice, the designated operator or other person named in the notice may, in accordance with the notice,

  • The following provision is not in force.

    (a) make representations to the Minister of Industry in respect of the alleged violation or of the penalty; or

  • The following provision is not in force.

    (b) if the person designated under section 104 offers a compliance agreement, enter into the compliance agreement with the person so designated to ensure the designated operator’s or other person’s compliance with the provision to which the violation relates.

Marginal note:Representation

• The following provision is not in force.

  108 (1) The Minister of Industry must decide, on a balance of probabilities, after considering any representations made under paragraph 107(2)(a), whether the designated operator or other person committed the violation and, if that Minister so decides, that Minister may, subject to the regulations made under paragraph 135(1)(h), impose the penalty set out in the notice, a lesser penalty or no penalty.

• The following provision is not in force.

  Marginal note:Decision

  (2) The Minister of Industry must render a decision in writing, including reasons for it and must serve a copy of the decision on the designated operator or other person.

• The following provision is not in force.

  Marginal note:Responsibility to pay penalty

  (3) If the Minister of Industry determines that the designated operator or other person committed the violation, the designated operator or other person is liable to the penalty as set out in the decision.

• The following provision is not in force.

  Marginal note:Effect of payment

  (4) If the designated operator or other person pays the penalty set out in the decision, the Minister of Industry must accept the amount as complete satisfaction of the penalty in respect of the violation and the proceedings commenced in respect of the violation are ended.

• The following provision is not in force.

  Marginal note:Violation not committed — effect

  (5) If the Minister of Industry determines that the designated operator or other person did not commit the violation, the proceedings commenced in respect of it are ended.

Marginal note:Entering into compliance agreements

• The following provision is not in force.

  109 (1) If the person designated under section 104 offers to enter into a compliance agreement with the designated operator or other person, the agreement is subject to any terms that the person so designated considers appropriate, including the reduction, in whole or in part, of the penalty for the violation.

• The following provision is not in force.

  Marginal note:Representations

  (2) If a compliance agreement is entered into, the designated operator or other person cannot make any representations under paragraph 107(2)(a).

• The following provision is not in force.

  Marginal note:Deeming

  (3) A designated operator or other person that enters into a compliance agreement with the person designated under section 104 is deemed to have committed the violation in respect of which the compliance agreement was entered into.

• The following provision is not in force.

  Marginal note:Notice of compliance

  (4) If the person designated under section 104 is of the opinion that a designated operator or other person that has entered into a compliance agreement has complied with it, the person so designated must serve a notice to that effect on the designated operator or other person and, on the service of the notice, the proceedings commenced in respect of the violation are ended.

• The following provision is not in force.

  Marginal note:Notice of default

  (5) If the person designated under section 104 is of the opinion that a designated operator or other person that has entered into a compliance agreement has not complied with it, the person so designated must cause the designated operator or other person to be served with a notice of default informing them that

  • The following provision is not in force.

    (a) they are liable to pay, within the time and in the manner set out in the notice of default, the penalty set out in the notice of violation in respect of which the compliance agreement was entered into, less any amount they paid under the compliance agreement; and

  • The following provision is not in force.

    (b) the Minister of Industry may make public the designated operator’s or other person’s name, the nature of the violation, the scope of the non-compliance with the compliance agreement and the penalty payable.

• The following provision is not in force.

  Marginal note:Effect of payment

  (6) If a designated operator or other person pays the amount set out in the notice of default within the time and in the manner specified in that notice, the Minister of Industry must accept the amount as complete satisfaction of the amount owing in respect of the violation and the proceedings commenced in respect of the violation are ended.

Marginal note:Notice of violation — Bank

• The following provision is not in force.

  110 (1) If the Bank has reasonable grounds to believe that a designated operator or other person has committed a violation, the Bank may issue a notice of violation to the designated operator or other person. If a notice of violation is issued, the Bank must cause it to be served on the designated operator or other person.

• The following provision is not in force.

  Marginal note:Contents of notice of violation

  (2) The notice of violation must name the designated operator or other person, identify the alleged violation and set out

  • The following provision is not in force.

    (a) the penalty for the violation that the designated operator or other person is liable to pay;

  • The following provision is not in force.

    (b) the right of the designated operator or other person, within 30 days after the notice is served or within any longer period that the Bank specifies, to pay the penalty or to make representations to the Governor with respect to the violation or the proposed penalty, or both, and the manner for doing so; and

  • The following provision is not in force.

    (c) the fact that, if the designated operator or other person does not pay the penalty or make representations in accordance with the notice, the designated operator or other person will be deemed to have committed the violation and be liable to the penalty set out in the notice.

• The following provision is not in force.

  Marginal note:Correction or cancellation of notice of violation

  (3) At any time before the designated operator or other person makes representations in respect of a notice of violation to the Governor or enters into a compliance agreement with the Bank, the Bank may cancel the notice of violation or correct an error in it.

Marginal note:Penalty

111 The penalty for a violation is to be determined by taking into account

• The following provision is not in force.

  (a) the designated operator’s or other person’s history of compliance or non-compliance with the provisions of this Act or of the regulations;

• The following provision is not in force.

  (b) the nature and scope of the violation;

• The following provision is not in force.

  (c) whether the designated operator or other person made reasonable efforts to mitigate or reverse the effects of the violation;

• The following provision is not in force.

  (d) whether the designated operator or other person derived any competitive or economic benefit from the violation;

• The following provision is not in force.

  (e) any other factor prescribed by the regulations; and

• The following provision is not in force.

  (f) any other factors that the Bank considers relevant.

Marginal note:Payment

• The following provision is not in force.

  112 (1) If the designated operator or other person named in the notice of violation pays the penalty set out in the notice, they are deemed to have committed the violation and the proceedings commenced in respect of the violation are ended.

• The following provision is not in force.

  Marginal note:Alternatives

  (2) Instead of paying the penalty set out in the notice, the designated operator or other person named in the notice may, in accordance with the notice,

  • The following provision is not in force.

    (a) make representations to the Governor in respect of the alleged violation or of the penalty; or

  • The following provision is not in force.

    (b) if the Bank offers a compliance agreement, enter into the compliance agreement with the Bank to ensure the designated operator’s or other person’s compliance with the provision to which the violation relates.