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Canada Introduces Compensation Fund for Victims of Immigration Consultant Fraud

New regulations have been introduced in Canada to provide stronger protection for people who hire licensed immigration consultants. The regulation came into force on 15 July 2026. A compensation fund will be given to eligible clients of licensed consultants regulated by the College of Immigration and Citizenship Consultants (CICC) to recover financial losses that have been caused by dishonest conduct committed by licensed consultants on or after November 23, 2021.

The fund covers losses incurred by clients due to various reasons such as fraud, theft, misappropriation of money, knowingly failing to report or cooperate with professional liability insurance claims, or advising clients to misrepresent facts. To qualify for the compensation fund, the client should have hired or reasonably believed they had hired a licensed CICC consultant and must not have participated in the dishonest act themselves. Further there must be a CICC disciplinary finding that the consultant committed a dishonest act causing the financial loss. The payment for the compensation fund will come from a dedicated fund maintained by the CICC. CICC has the authority to recover costs from consultants found responsible for the losses.

The regulations also strengthen the CICC’s governance by establishing dedicated Complaints, Discipline, Compensation Fund, and Capacity Evaluation Committees. The College must submit annual reports to the federal government, including information about complaints, finances, and compensation fund cases. 

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