Loopholes could allow foreign money into elections, Perrault says

Loopholes in election financing rules could allow money from foreign countries to influence Canadian elections, the chief electoral officer told the inquiry probing foreign interference Tuesday.

Stéphane Perrault noted that, under the law, only citizens and permanent residents are allowed to donate to a party or candidate and that those donations are supposed to be made from personal funds. Foreign nationals, groups and governments aren't allowed to donate.

However, Perrault said that can be hard to police and no system is airtight.

Elections Canada audits candidate filings and publishes the names of those who contribute more than $200, he said, and that someone outside Canada would have to use proxies to funnel money to a candidate.

«We do not have information that would allow to vet whether all of these contributors are either Canadian citizens or permanent residents,» he said.

Perrault also suggested that some cash contributions might exceed the limits.

«It's not lawful to make contributions in cash in excess of $20. That doesn't mean it doesn't happen.»

Spending by third parties is another area of concern, said Perrault. Under the current rules, a third party can receive money from foreign sources outside an election period, amass it then spend it during an election.

«When they use this money, they are using their own funds,» Perrault said.

«In this way, a certain amount of illegal funding could find its way into third-party expenditures during an election.»

He said third parties are increasingly declaring that they have used their own funds to help a candidate or party.

Perrault's comments reflect the findings of a March 2023 summary of foreign interference threats which was tabled with the inquiry on Tuesday.

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