IRCC suggests creating funds to compensate victims of Fraud consultants

Canada is taking a significant step to protect immigration applicants from dishonest consultants. Immigration, Refugees and Citizenship Canada (IRCC) has proposed new regulations that could create a compensation fund to help victims of fraudulent immigration consultants. This move is part of a broader set of proposed changes aimed at improving the oversight of immigration professionals.

The College of Immigration and Citizenship Consultants (CICC), established by IRCC in 2021, is responsible for regulating consultants who help individuals navigate the complex immigration and citizenship processes. The proposed compensation fund would provide financial relief to clients who suffer as a result of a consultant’s dishonest actions.

According to the IRCC’s estimates, in the first year of the fund’s operation, 146 payments could be made, with an average compensation amount of $4,652. Over a decade, this could total over $5.7 million in payouts. The regulations would clarify how clients could apply for compensation and when they could receive compensation without applying. If a consultant’s dishonest actions lead to financial loss, the College’s Discipline Committee would determine eligibility for compensation. Clients would automatically be informed if they qualify for compensation. However, in cases where a financial loss can't be determined, or the consultant’s license was revoked, clients would need to apply for compensation.

The proposed rules aim to promote honesty among paid representatives by creating a system that holds consultants accountable for their actions. The regulations are expected to come into effect in 2025, making it crucial for immigration consultants to act transparently and ethically.

In addition to the compensation fund, the new regulations would increase the College’s authority in several key areas. One major change is the public register of immigration consultants, allowing individuals to verify whether a consultant is authorized to provide immigration services. There will also be improvements to complaints and disciplinary processes to make it easier for individuals to report misconduct. The College will be given more power to investigate consultants suspected of fraud.

These changes build on earlier announcements made by Marc Miller, Minister of Immigration, who emphasized stricter penalties for immigration representatives who break the law. New fines could reach up to $1.5 million for consultants who advise clients to misrepresent themselves to immigration authorities. Misrepresentation can lead to serious consequences, including application rejections, fines, or even being banned from applying for Canadian immigration for five years.

In addition to fines, the IRCC plans to make the names of violators public. The information disclosed will include the nature of the violation, the penalty amount, and whether the consultant has paid the fine. This transparency aims to deter future violations and help applicants avoid dishonest representatives.

Immigration consultants, whether paid or unpaid, play an essential role in guiding people through the immigration system. Paid consultants, who the government must authorize, include lawyers, notaries, and accredited immigration professionals. Individuals who hire these consultants must ensure that their representative is authorized, as failing to disclose the use of a paid representative can result in application rejection.

The proposed changes reflect Canada’s commitment to protecting its immigration system from fraud and ensuring that individuals receive fair treatment during their immigration journey.