Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17)
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Act current to 2024-11-26 and last amended on 2024-11-01. Previous Versions
AMENDMENTS NOT IN FORCE
— 2023, c. 26, s. 181, as amended by 2024, c. 15, s. 299
181 Subsection 7.1(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:
Disclosure
7.1 (1) Every person or entity referred to in section 5 shall report to the Centre in accordance with the regulations if the person or entity is required to make a disclosure under
(a) section 83.1 of the Criminal Code;
(b) an order or regulation made under the United Nations Act;
(c) an order or regulation made under the Special Economic Measures Act; or
(d) subsection 7(2) of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law).
— 2023, c. 26, s. 182
182 The Act is amended by adding the following after section 9.8:
Definition of agent or mandatary
9.9 In sections 9.91 to 9.93, agent or mandatary means an agent or mandatary acting on behalf of a person or entity referred to in paragraph 5(h) to provide any of the services referred to in that paragraph.
Agent or mandatary
9.91 A person or entity referred to in paragraph 5(h) shall
(a) not engage a person or entity who is referred to in any of paragraphs 11.11(1)(a) to (f) as an agent or mandatary; and
(b) cease engaging an agent or mandatary if they are a person or entity referred to in any of those paragraphs.
Duty to verify
9.92 A person or entity referred to in paragraph 5(h) shall
(a) before engaging an agent or mandatary, verify whether they are a person or entity referred to in any of paragraphs 11.11(1)(a) to (f); and
(b) within 30 days after the second anniversary of the most recent verification of an agent or mandatary under this section, verify whether the agent or mandatary, if they are acting on behalf of the person or entity on that anniversary, is a person or entity referred to in any of those paragraphs.
Agent or mandatary — criminal convictions
9.93 (1) A person or entity referred to in paragraph 5(h) shall, in respect of an agent or mandatary, obtain and review the documents referred to in subsection (2)
(a) before engaging the agent or mandatary; and
(b) within 30 days after the second anniversary of the most recent review carried out in respect of the agent or mandatary under this subsection, if the agent or mandatary is acting on behalf of the person or entity on that anniversary.
Documents
(2) The documents to be obtained and reviewed are the following:
(a) if the agent or mandatary is a person, a document that sets out their record of criminal convictions, or states that the person does not have one, that is issued by a competent authority of — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides; or
(b) if the agent or mandatary is an entity, for each of the chief executive officer, the president and the directors of the entity and for each person who owns or controls, directly or indirectly, 20% or more of the entity or the shares of the entity, a document that sets out the person’s record of criminal convictions, or states that the person does not have one, and that is issued by a competent authority of — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides.
Translation
(3) If any document referred to in this section is made in a language other than English or French, the person or entity shall also obtain and review a translation of it into one of those languages that is attested to by a person who is recognized as a certified translator either by a provincial organization or body that is competent under provincial law to issue such certifications or by an organization or body in a foreign state that is competent under the laws of that state to do so.
Retention
(4) The person or entity shall retain, for a prescribed period and in the prescribed manner, any document obtained under this section as well as any prescribed information.
— 2023, c. 26, s. 185
185 (1) Paragraphs 11.12(1)(b) and (c) of the Act are replaced by the following:
(b) if the applicant is a person referred to in paragraph 5(h) or (h.1), a document that sets out the person’s record of criminal convictions, or states that the person does not have one, that is issued by a competent authority of — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides;
(c) if the applicant is an entity referred to in paragraph 5(h) or (h.1), for each of the chief executive officer, the president and the directors of the entity and for each person who owns or controls, directly or indirectly, 20% or more of the entity or the shares of the entity, a document that sets out the person’s record of criminal convictions, or states that the person does not have one, and that is issued by a competent authority of — or an entity or authority that is competent to issue the document in — the jurisdiction in which the person resides;
(c.1) if the applicant is a person or entity referred to in paragraph 5(h.1), the name and address for service of a person who resides in Canada and who is authorized to accept, on behalf of the person or entity, notices that are served or caused to be served by the Centre under this Act;
(c.2) if the applicant is an entity, the prescribed information in respect of the entity’s incorporation or formation; and
(2) Section 11.12 of the Act is amended by adding the following after subsection (1):
Translation
(1.1) If a document referred to in paragraph (1)(b) or (c) is made in a language other than English or French, the application shall include a translation of it into one of those languages attested to by a person who is recognized as a certified translator either by a provincial organization or body that is competent under provincial law to issue such certifications or by an organization or body in a foreign state that this competent under the laws of that state to do so.
— 2023, c. 26, s. 186
186 Subsection 11.13(2) of the Act is replaced by the following:
Denial or revocation
(2) If the name or address for service of a person referred to in paragraph 11.12(1)(c.1) changes, and an applicant or registered person or entity who is or was required to provide the information described in that paragraph does not, within the period referred to in subsection (1), provide the Centre with the new name or address for service, the Centre shall without delay after becoming aware of that fact deny the application, or revoke the registration, as the case may be, and shall, without delay, inform the applicant or registered person or entity of the denial or revocation.
— 2023, c. 26, s. 192
192 The Act is amended by adding the following after section 53.31:
National security or integrity of financial system
53.32 (1) For the purpose of assisting the Minister in determining whether to grant, revoke, suspend or amend an approval or in exercising the Minister’s powers or performing the Minister’s functions and duties under any of sections 32 to 47 and 96 of the Retail Payment Activities Act, the Director may, at the request of the Minister or an officer of the Department of Finance, disclose to the Minister or the officer, as the case may be, any information that is under the control of the Centre and that relates to national security or to safeguarding the integrity of Canada’s financial system.
Limitation
(2) Any information disclosed under subsection (1) may be used by the recipient only for the purpose of deciding whether to grant, revoke, suspend or amend an approval or in the exercise of the powers, or the performance of the functions and duties, referred to in subsection (1).
Records
(3) The Director shall cause to be kept a record of any request for information referred to in subsection (1) and of any information that is disclosed under that subsection.
Definition of approval
(4) In this section, approval has the same meaning as in section 973 of the Bank Act, section 1016 of the Insurance Companies Act and section 527.2 of the Trust and Loan Companies Act.
— 2023, c. 26, s. 205
205 The headings before section 83 of the Act are replaced by the following:
PART 6Transitional Provisions, Consequential and Conditional Amendments, Repeal and Coming into Force
Transitional Provisions
— 2023, c. 26, s. 206
206 The Act is amended by adding the following after section 83:
Definitions
83.1 The following definitions apply in this section and in sections 83.2 and 83.3.
- agent or mandatary
agent or mandatary, in relation to a specified person or entity, means any agent or mandatary acting on the commencement day on behalf of the specified person or entity to provide any of the services referred to in paragraph 5(h). (mandataire)
- commencement day
commencement day means the day on which this section and sections 83.2 and 83.3 come into force. (date de référence)
- second anniversary
second anniversary means the second anniversary of the commencement day. (deuxième anniversaire)
- specified person or entity
specified person or entity means a person or entity referred to in paragraph 5(h). (personne ou entité déterminée)
Agent or mandatary
83.2 (1) A specified person or entity shall, no later than the second anniversary,
(a) verify whether every agent or mandatary is a person or entity referred to in any of paragraphs 11.11(1)(a) to (f); and
(b) obtain and review the documents referred to in subsection 9.93(2) in respect of every agent or mandatary.
Deeming
(2) The verification and review carried out under subsection (1) are deemed to be a verification carried out under section 9.92 and a review carried out under subsection 9.93(1), respectively.
Documents — registration
83.3 (1) A specified person or entity that is registered with the Centre on the commencement day shall, in the prescribed form and manner, provide the Centre with the documents referred to in paragraph 11.12(1)(b) or (c) no later than the second anniversary.
Translation
(2) The obligation to provide a translation set out in subsection 11.12(1.1) applies with respect to those documents.
— 2024, c. 15, ss. 278(1), (3)
278 (1) The definition Minister in subsection 2(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act is replaced by the following:
- Minister
Minister means, in relation to sections 24.1 to 39 and 39.13 to 39.39, the Minister of Public Safety and Emergency Preparedness and, in relation to any other provision of this Act, the Minister of Finance. (ministre)
(3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:
- acquirer
acquirer means an entity that connects a private automated banking machine to a payment card network, as defined in section 3 of the Payment Card Networks Act, to facilitate transactions. (acquéreur)
- private automated banking machine
private automated banking machine means any automated banking machine that is not owned or operated by a bank as defined in section 2 of the Bank Act, by an association regulated by the Cooperative Credit Associations Act or by a cooperative credit society, a savings and credit union or a caisse populaire regulated by a provincial Act. (guichet automatique privé)
— 2024, c. 15, s. 279
279 (1) Paragraph 5(h) of the Act is amended by striking out “or” at the end of subparagraph (iv) and by adding the following after that subparagraph:
(iv.1) in relation to a private automated banking machine, acquirer services, or
(2) Paragraph 5(h.1) of the Act is amended by striking out “or” at the end of subparagraph (iv) and by adding the following after that subparagraph:
(iv.1) in relation to a private automated banking machine, acquirer services, or
— 2024, c. 15, s. 285
285 The Act is amended by adding the following after section 39:
PART 2.1Reporting of Goods
Interpretation
Definitions
39.01 The following definitions apply in this Part.
- goods
goods has the same meaning as in subsection 2(1) of the Customs Act. (marchandises)
- officer
officer has the same meaning as in subsection 2(1) of the Customs Act. (agent)
Reporting
Reporting
39.02 (1) Every person or entity referred to in subsection (3) that reports the importation or exportation of goods under section 12 or 95 of the Customs Act shall declare to an officer, in accordance with the regulations,
(a) whether the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are goods relating to money laundering, to the financing of terrorist activities or to sanctions evasion; and
(b) that the goods are actually being imported or exported, as the case may be.
Limitation
(2) A person or entity is not required to make a declaration under subsection (1) if the prescribed conditions are met in respect of the person, entity, importation or exportation, and if the person or entity satisfies an officer that those conditions have been met.
Who must report
(3) Goods shall be declared under subsection (1)
(a) in the case of goods in the actual possession of a person arriving in or departing from Canada, or that form part of their baggage if they and their baggage are being carried on board the same conveyance, by that person or, in prescribed circumstances, by the person in charge of the conveyance;
(b) in the case of goods imported into Canada by courier or as mail, by the exporter of the goods or, on receiving notice under subsection 39.03(2), by the importer;
(c) in the case of goods exported from Canada by courier or as mail, by the exporter of the goods;
(d) in the case of goods, other than those referred to in paragraph (a) or imported or exported as mail, that are on board a conveyance arriving in or departing from Canada, by the person in charge of the conveyance; and
(e) in any other case, by the person or entity on whose behalf the goods are imported or exported.
Payment for goods
(4) A declaration referred to in subsection (1) must be made in respect of any financial transaction purporting to pay for goods being imported or exported in respect of which such declaration is required under that subsection.
Duty to answer
(5) Every person or entity referred to in subsection (3) that reports the importation or exportation of goods shall answer any questions asked by an officer in the exercise of their powers and the performance of their duties and functions under this Part.
Records
(6) Any person or entity that imports or exports goods or that causes or arranges for goods to be imported or exported — for sale or for any industrial, occupational, commercial, institutional or other like use, or any other use that may be prescribed — or that produces, supplies, distributes or consumes those goods for such a purpose shall keep at the person or entity’s place of business in Canada, or at any other place that the Minister may designate, any records in respect of the goods in any manner and for any period of time that may be prescribed. The person or entity shall, if an officer so requests, make the records available to the officer, within the time specified by the officer, and answer any questions asked by the officer in respect of them.
Customs Act
(7) Subsection 40(2) and sections 42 and 43 of the Customs Act apply, with any modifications that the circumstances require, to a person or entity that is required to keep records under subsection (6).
Obligation to provide accurate information
(8) Any information provided to an officer in the administration or enforcement of this Part shall be true, accurate and complete.
Retention
Temporary retention
39.03 (1) Subject to subsections (2) to (5), if a person or an entity indicates to an officer that they have goods to declare under section 39.02 but the declaration has not yet been completed, the officer may, after giving notice in the prescribed manner to the person or entity, retain the goods for the prescribed period.
Importation or exportation by courier or as mail
(2) In the case of goods imported or exported by courier or as mail, the officer shall, within the prescribed period, give the notice to the exporter if the exporter’s address is known, or, if the exporter’s address is not known, to the importer.
Limitation
(3) Goods may no longer be retained under subsection (1) if the officer is satisfied that the goods have been the subject of a declaration under section 39.02.
Content of notice
(4) The notice referred to in subsection (1) must state
(a) the period for which the goods may be retained;
(b) that if, within that period, the goods are declared under section 39.02, they may no longer be retained; and
(c) that goods retained at the end of that period are forfeited to His Majesty in right of Canada at that time.
Forfeiture
(5) Goods that are retained by an officer under subsection (1) are forfeited to His Majesty in right of Canada at the end of the period referred to in that subsection.
Searches
Search of person
39.04 (1) If an officer suspects on reasonable grounds that they have secreted on or about their person goods that have not been declared in accordance with section 39.02 or that are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are goods relating to money laundering, to the financing of terrorist activities or to sanctions evasion, the officer may search
(a) any person who has arrived in Canada, within a reasonable time after their arrival in Canada;
(b) any person who is about to leave Canada, at any time before their departure; or
(c) any person who has had access to an area designated for use by persons about to leave Canada and who leaves the area but does not leave Canada, within a reasonable time after they leave the area.
Person taken before senior officer
(2) An officer who is about to search a person under this section shall, on the person’s request, without delay take the person before the senior officer at the place where the search is to take place.
Discharge or search
(3) A senior officer before whom a person is taken under subsection (2) shall, if the senior officer believes there are no reasonable grounds for suspicion under subsection (1), discharge the person or, if the senior officer believes otherwise, direct that the person be searched.
Search by same sex
(4) No person shall be searched under this section by a person who is not of the same sex, and if there is no officer of the same sex at the place where the search is to take place, an officer may authorize any suitable person of the same sex to perform the search.
Customs Act
39.05 Paragraphs 99(1)(a) to (c.1), (e) and (f), subsection 99(4) and paragraph 99.1(2)(b) of the Customs Act apply, with any modifications that the circumstances require, to goods that must be declared under section 39.02.
Seizures
Seizure and forfeiture
39.06 (1) If an officer has reasonable grounds to believe that goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, the financing of terrorist activities or sanctions evasion, the officer may seize as forfeit the goods.
Notice of seizure
(2) An officer who seizes goods under subsection (1) shall
(a) if the goods were not imported or exported as mail, give the person from whom they were seized written notice of the seizure and the right to review and appeal set out in sections 39.14 and 39.21;
(b) if the goods were imported or exported as mail and the address of the exporter is known, give the exporter written notice of the seizure and the right to review and appeal set out in sections 39.14 and 39.21; and
(c) take the measures that are reasonable in the circumstances to give notice of the seizure to any person or entity that the officer believes on reasonable grounds is entitled to make an application under section 39.23 in respect of the goods.
Service of notice
(3) The service of a notice under paragraph (2)(b) is sufficient if it is sent by registered mail addressed to the exporter.
Power to call in aid
39.07 An officer may call on other persons to assist the officer in exercising any power of search, seizure or retention that the officer is authorized under this Part to exercise, and any person so called on is authorized to exercise that power.
Recording of reasons for decision
39.08 If an officer decides to exercise powers under subsection 39.06(1), the officer shall record in writing reasons for the decision.
Report to President
39.09 If the goods have been seized under section 39.06, the officer who seized them shall without delay report the circumstances of the seizure to the President.
Transfer to the Minister of Public Works and Government Services
Forfeiture under subsection 39.03(5)
39.1 (1) An officer who retains goods forfeited under subsection 39.03(5) shall send the goods to the Minister of Public Works and Government Services.
Seizure
(2) An officer who seizes goods shall send the goods to the Minister of Public Works and Government Services.
Forfeiture
Time of forfeiture
39.11 Subject to sections 39.14 to 39.22, goods seized under subsection 39.06(1) are forfeited to His Majesty in right of Canada from the time of the contravention in respect of which they were seized, and no act or proceeding after the forfeiture is necessary to effect the forfeiture.
Review and Appeal
Review of forfeiture
39.12 The forfeiture of goods seized under this Part is final and is not subject to review and is not to be set aside or otherwise dealt with, except to the extent and in the manner provided by sections 39.13 and 39.14.
Corrective measures
39.13 The Minister, or any officer delegated by the President for the purposes of this section, may, within 90 days after a seizure made under subsection 39.06(1), cancel the seizure if the Minister is satisfied that there was no contravention.
Request for Minister’s decision
39.14 A person or entity from which goods were seized under subsection 39.06(1), or the lawful owner of the goods, may, within 90 days after the date of the seizure, request a decision of the Minister as to whether the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, to the financing of terrorist activities or to sanctions evasion by giving notice to the Minister in writing or by any other means satisfactory to the Minister.
Extension of time by Minister
39.15 (1) If no request is made under section 39.14 within the period provided in that section, the person, entity or lawful owner referred to in that section may apply to the Minister in writing or by any other means satisfactory to the Minister for an extension of the time for making the request.
Content
(2) An application shall set out the reasons why the request was not made on time.
Burden of proof
(3) The burden of proof that an application has been made under subsection (1) lies on the person, entity or lawful owner claiming to have made it.
Notice of decision
(4) The Minister shall, without delay after making a decision in respect of an application, notify the applicant in writing of the decision.
Conditions for granting application
(5) The application is not to be granted unless
(a) it is made within one year after the end of the period provided in section 39.14; and
(b) the applicant demonstrates that
(i) within the period provided in section 39.14, they were unable to act or to instruct another person to act in their name or had a bona fide intention to request a decision,
(ii) it would be just and equitable to grant the application, and
(iii) the application was made as soon as circumstances permitted.
Extension of time by Federal Court
39.16 (1) The person, entity or lawful owner referred to in section 39.14 may apply to the Federal Court to have their application under section 39.15 granted
(a) within the period of 90 days after the Minister dismisses that application, if it is dismissed; or
(b) after 90 days have expired after that application was made, if the Minister has not notified the person, entity or lawful owner of a decision made in respect of it.
Application process
(2) The application shall be made by filing in the Federal Court a copy of the application made under section 39.15, and any notice given in respect of it. The applicant shall notify the Minister that they have filed the application immediately after having filed it.
Powers of the Court
(3) The Court may grant or dismiss the application and, if it grants the application, may impose any terms that it considers just or order that the request made under section 39.14 be deemed to have been made on the date the order was made.
Conditions for granting application
(4) The application is not to be granted unless
(a) the application under section 39.15 was made within one year after the end of the period provided in section 39.14; and
(b) the applicant demonstrates that
(i) within the period provided in section 39.14, they were unable to act or to instruct another person to act in their name or had a bona fide intention to request a decision,
(ii) it would be just and equitable to grant the application, and
(iii) the application was made as soon as circumstances permitted.
Notice of President
39.17 (1) If a request for a decision is a made under section 39.14, the President shall without delay serve on the person, entity or lawful owner who requested it written notice of the circumstances of the seizure in respect of which the decision is requested.
Evidence
(2) The person, entity or lawful owner may, within 30 days after the notice is served, furnish any evidence in the matter that they desire to furnish.
Decision of Minister
39.18 (1) Within 90 days after the expiry of the period referred to in subsection 39.17(2), the Minister shall decide whether the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, to the financing of terrorist activities or to sanctions evasion.
Deferral of decision
(2) If charges are laid with respect to a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence in respect of the goods seized, the Minister may defer making a decision but shall make it in any case no later than 30 days after the conclusion of all court proceedings in respect of those charges.
Notice of decision
(3) The Minister shall, without delay after making a decision, serve on the person, entity or lawful owner who requested it a written notice of the decision together with the reasons for it.
Return of goods
39.19 If the Minister decides that the goods are not proceeds of crime as defined in subsection 462.3(1) of the Criminal Code and are not related to money laundering, to the financing of terrorist activities or to sanctions evasion, the Minister of Public Works and Government Services shall, on being informed of the Minister’s decision, return the goods or an amount of money equal to their value at the time of the seizure, as the case may be.
Confirmation of forfeiture
39.2 If the Minister decides that the goods are proceeds of crime as defined in subsection 462.3(1) of the Criminal Code or are related to money laundering, to the financing of terrorist activities or to sanctions evasion, the Minister may, subject to the terms and conditions that the Minister may determine, subject to any order made under section 39.24 or 39.25, confirm that the goods are forfeited to His Majesty in right of Canada.
Appeal to Federal Court
39.21 (1) A person, entity or lawful owner who makes a request under section 39.14 for a decision of the Minister may, within 90 days after being notified of the decision, appeal the decision by way of an action in the Federal Court in which they are the plaintiff and the Minister is the defendant.
Ordinary action
(2) The Federal Courts Act and the rules made under that Act that apply to ordinary actions apply to actions instituted under subsection (1) except as varied by special rules made in respect of such actions.
Delivery after final order
(3) The Minister of Public Works and Government Services shall give effect to the decision of the Court on being informed of it.
Limit on amount paid
(4) If the goods were sold or otherwise disposed of under the Seized Property Management Act, the total amount that can be paid under subsection (3) shall not exceed the proceeds of the sale or disposition, if any, less any costs incurred by His Majesty in right of Canada in respect of the goods.
Service of notices
39.22 The service of the President’s notice under section 39.17 or the notice of the Minister’s decision under section 39.18 is sufficient if it is sent by registered mail addressed to the person or entity on which it is to be served at their latest known address.
Third Party Claims
Interest as owner
39.23 (1) If goods have been seized as forfeit under this Part, any person or entity, other than the person or entity in whose possession the goods were when seized, that claims in respect of the goods an interest as owner or, in Quebec, a right as owner or trustee may, within 90 days after the seizure, apply by notice in writing to the court for an order under section 39.24.
Date of hearing
(2) A judge of the court to which an application is made under this section shall fix a day, not less than 30 days after the date of the filing of the application, for the hearing.
Notice to President
(3) The applicant shall serve notice of the application and of the hearing on the President, or an officer delegated by the President for the purpose of this section, not later than 15 days after a day is fixed under subsection (2) for the hearing of the application.
Service of notice
(4) The service of a notice under subsection (3) is sufficient if it is sent by registered mail addressed to the President.
Definition of court
(5) In this section and sections 39.24 and 39.25, court means
(a) in the Province of Ontario, the Superior Court of Justice;
(b) in the Province of Quebec, the Superior Court;
(c) in the Provinces of Nova Scotia, British Columbia, Prince Edward Island and Newfoundland and Labrador, in Yukon and in the Northwest Territories, the Supreme Court;
(d) in the Provinces of New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of King’s Bench; and
(e) in Nunavut, the Nunavut Court of Justice.
Order
39.24 On the hearing of an application made under subsection 39.23(1), the applicant is entitled to an order declaring that their interest or right is not affected by the seizure and declaring the nature and extent of their interest or right at the time of the contravention that resulted in the seizure if the court is satisfied
(a) that the applicant acquired the interest or right in good faith before the contravention;
(b) that the applicant is innocent of any complicity in the contravention and of any collusion in relation to it; and
(c) that the applicant exercised all reasonable care to ensure that any person permitted to obtain possession of the goods seized would declare them in accordance with section 39.02.
Appeal
39.25 (1) A person or entity that makes an application under section 39.23 or His Majesty in right of Canada may appeal to the court of appeal from an order made under section 39.24 and the appeal shall be asserted, heard and decided according to the ordinary procedure governing appeals to the court of appeal from orders or judgments of a court.
Definition of court of appeal
(2) In this section, court of appeal means, in the province in which an order referred to in subsection (1) is made, the court of appeal for that province as defined in section 2 of the Criminal Code.
Delivery after final order
39.26 (1) The Minister of Public Works and Government Services shall, after the forfeiture of goods has become final and on being informed by the President that a person or entity has obtained a final order under section 39.24 or 39.25 in respect of the goods, give to the person or entity
(a) the goods; or
(b) an amount calculated on the basis of the interest of the applicant in the goods at the time of the contravention in respect of which they were seized, as declared in the order.
Limit on amount paid
(2) The total amount paid under paragraph (1)(b) shall, if the goods were sold or otherwise disposed of under the Seized Property Management Act, not exceed the proceeds of the sale or disposition, if any, less any costs incurred by His Majesty in right of Canada in respect of the goods.
Disclosure and Use of Information
Prohibition
39.27 (1) Subject to this section and subsection 12(1) of the Privacy Act, no official shall disclose the following:
(a) information set out in a declaration made under section 39.02, whether or not it is completed;
(b) any other information obtained for the purposes of this Part; or
(c) information prepared from information referred to in paragraph (a) or (b).
Use of information
(2) An officer may use information referred to in subsection (1) if the officer has reasonable grounds to suspect that the information is relevant to determining whether a person is a person described in sections 34 to 42 of the Immigration and Refugee Protection Act or is relevant to an offence under any of sections 91, 117 to 119, 126 or 127 of that Act.
Disclosure of relevant information
(3) If an officer has reasonable grounds to suspect that information referred to in subsection (1) would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, the officer may disclose the information to
(a) the appropriate police force;
(b) the Canada Revenue Agency, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence of obtaining or attempting to obtain a rebate, refund or credit to which a person or entity is not entitled, or of evading or attempting to evade paying taxes or duties imposed under an Act of Parliament administered by the Minister of National Revenue;
(c) the Agence du revenu du Québec, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence of obtaining or attempting to obtain a rebate, refund or credit to which a person or entity is not entitled, or of evading or attempting to evade paying taxes imposed under an Act of Parliament or of the legislature of Quebec administered by the Minister of Revenue of Quebec;
(d) the Canada Revenue Agency, if the officer also has reasonable grounds to suspect that the information is relevant to determining
(i) whether a registered charity, as defined in subsection 248(1) of the Income Tax Act, has ceased to comply with the requirements of that Act for its registration as such,
(ii) whether a person or entity that the officer has reasonable grounds to suspect has applied to be a registered charity, as defined in subsection 248(1) of the Income Tax Act, is eligible to be registered as such, or
(iii) whether a person or entity that the officer has reasonable grounds to suspect may apply to be a registered charity, as defined in subsection 248(1) of the Income Tax Act,
(A) has made or will make available any resources, directly or indirectly, to a listed entity as defined in subsection 83.01(1) of the Criminal Code,
(B) has made available any resources, directly or indirectly, to an entity as defined in subsection 83.01(1) of the Criminal Code that was at that time, and continues to be, engaged in terrorist activities as defined in that subsection or activities in support of them, or
(C) has made or will make available any resources, directly or indirectly, to an entity as defined in subsection 83.01(1) of the Criminal Code that engages or will engage in terrorist activities as defined in that subsection or activities in support of them;
(e) the Communications Security Establishment, if the officer also determines that the information is relevant to the foreign intelligence aspect of the Communications Security Establishment’s mandate, referred to in section 16 of the Communications Security Establishment Act;
(f) the Competition Bureau, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under the Competition Act, the Consumer Packaging and Labelling Act, the Precious Metals Marking Act or the Textile Labelling Act or an attempt to commit such an offence;
(g) an agency or body that administers the securities legislation of a province, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under that legislation;
(h) the Minister of Foreign Affairs or a Minister designated under subsection 6(2) of the Special Economic Measures Act, if the officer also determines that the information is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) of that Act;
(i) the Minister of Foreign Affairs or a Minister designated under subsection 2.1(2) of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law), if the officer also determines that the information is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) of that Act;
(j) the Department of the Environment, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under an Act administered by the Minister of the Environment or an attempt to commit such an offence; and
(k) the Department of Fisheries and Oceans, if the officer also has reasonable grounds to suspect that the information would be relevant to investigating or prosecuting an offence under an Act administered by the Minister of Fisheries and Oceans or an attempt to commit such an offence.
Disclosure — threats to security of Canada
(4) If an officer has reasonable grounds to suspect that information referred to in subsection (1) would be relevant to threats to the security of Canada, the officer may disclose the information to
(a) the Canadian Security Intelligence Service;
(b) the appropriate police force, if the officer also has reasonable grounds to suspect that the information is relevant to investigating or prosecuting an offence under Canadian law that the officer has reasonable grounds to suspect arises out of conduct constituting such a threat;
(c) the Department of National Defence and the Canadian Forces, if the officer also has reasonable grounds to suspect that the information is relevant to the conduct of the Department’s or the Canadian Forces’ investigative activities related to such a threat; and
(d) the Office of the Superintendent of Financial Institutions, if the officer also has reasonable grounds to suspect that the information is relevant to the exercise of the powers or the performance of the duties and functions of the Superintendent under the Office of the Superintendent of Financial Institutions Act.
Disclosure of information to Centre
(5) An officer may disclose to the Centre information referred to in subsection (1) if the officer has reasonable grounds to suspect that it would be of assistance to the Centre in the detection, prevention or deterrence of money laundering, of the financing of terrorist activities or of sanctions evasion.
Recording of reasons for decision
(6) If an officer decides to disclose information under subsection (3), (4) or (5), the officer shall record in writing the reasons for the decision.
Powers, duties and functions
(7) An official may disclose information referred to in subsection (1) for the purpose of exercising powers or performing duties and functions under this Part.
Immunity from compulsory processes
(8) Subject to section 36 of the Access to Information Act and sections 34 and 37 of the Privacy Act, an official is required to comply with a subpoena, an order for production of documents, a summons or any other compulsory process only if it is issued in the course of
(a) criminal proceedings under an Act of Parliament that have been commenced by the laying of an information or the preferring of an indictment; or
(b) any legal proceedings that relate to the administration or enforcement of this Part.
Definition of official
(9) In this section and section 39.28, official means a person who obtained or who has or had access to information referred to in subsection (1) in the course of exercising powers or performing duties and functions under this Part.
Use of information
39.28 No official shall use information referred to in subsection 39.27(1) for any purpose other than exercising powers or performing duties and functions under this Part or for the purposes of the Special Economic Measures Act, the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law), the Customs Act or any other law relating to customs.
Feedback, research and public education
39.29 (1) The Canada Border Services Agency may
(a) inform persons and entities that have provided a declaration under section 39.02 about measures that have been taken with respect to those declarations;
(b) conduct research into trends and developments in the area of money laundering, the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada relating to the importation and exportation of goods and into improved ways of detecting, preventing and deterring money laundering, the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada; and
(c) undertake measures to inform the public, any persons and entities referred to in section 39.02, any authorities engaged in the investigation and prosecution of money laundering offences, terrorist activity financing offences and sanctions evasion offences and any others with respect to
(i) their obligations under this Part,
(ii) the nature and extent of money laundering inside and outside Canada relating to the importation and exportation of goods,
(iii) the nature and extent of the financing of terrorist activities inside and outside Canada relating to the importation and exportation of goods,
(iv) the nature and extent of the financing, inside and outside Canada, of threats to the security of Canada relating to the importation and exportation of goods,
(v) the nature and extent of sanctions evasion inside and outside Canada relating to the importation and exportation of goods, and
(vi) measures that have been or might be taken to detect, prevent and deter money laundering — as well as the financing of terrorist activities, sanctions evasion and the financing of threats to the security of Canada — inside or outside Canada, and the effectiveness of those measures.
Limitation
(2) The Canada Border Services Agency shall not disclose under subsection (1) any information that would directly or indirectly identify any of the following persons or entities:
(a) a person who provided a report or information to the Canada Border Services Agency;
(b) a Canadian citizen or a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act about whom a report or information was provided;
(c) a person in Canada or an entity that has a place of business in Canada about whom a report or information was provided.
Agreements for Exchange of Information
Agreements with foreign states
39.3 The Minister, with the consent of the Minister designated for the purposes of section 42, may enter into an agreement or arrangement in writing with the government of a foreign state, or an institution or agency of that state, that has reporting requirements similar to those set out in this Part, whereby
(a) information set out in a declaration made under section 39.02, and any other related information, in respect of goods imported into Canada from that state will be provided to a department, institution or agency of that state that has powers and duties similar to those of the Canada Border Services Agency in respect of the reporting of goods; and
(b) information contained in reports, and any other related information, in respect of goods imported into that state from Canada will be provided to the Canada Border Services Agency.
Agreements with foreign states
39.31 The Minister, with the consent of the Minister designated for the purpose of section 42, may enter into an agreement or arrangement in writing with the government of a foreign state, or an institution or agency of that state, that has powers and duties similar to those of the Canada Border Services Agency, whereby the Canada Border Services Agency may, if it has reasonable grounds to believe that information collected under this Part would be relevant to investigating or prosecuting a money laundering offence, a terrorist activity financing offence or a sanctions evasion offence, provide that information to that government, institution or agency.
Delegation
Minister’s duties
39.32 (1) The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial powers or duties of the Minister, under this Part.
President’s duties
(2) The President may authorize an officer or a class of officers to exercise powers or perform duties of the President under this Part.
Forms
Declaration
39.33 The Minister may include on any form a declaration, to be signed by the person completing the form, declaring that the information given by that person on the form is true, accurate and complete.
Electronic Administration and Enforcement
Electronic administration and enforcement
39.34 (1) This Part may be administered and enforced using electronic means. Any person on whom powers, duties or functions are conferred under this Part may exercise any of those powers or perform any of those duties or functions using the electronic means made available or specified by the Minister.
Authorization
(2) Any person who has been authorized to exercise any power or perform any duty or function conferred on a person referred to in subsection (1) under this Part may do so using the electronic means that are made available or specified by the Minister.
Provision of information
39.35 For the purposes of sections 39.36 to 39.38, providing information includes providing a signature and serving, filing or otherwise providing a record or document.
Conditions for electronic version
39.36 A requirement under this Part to provide information — in any form or manner or by any means — is satisfied by providing the electronic version of the information if
(a) the electronic version is provided by the electronic means, including an electronic system, that are made available or specified by the Minister, if any; and
(b) any prescribed requirements with respect to electronic communications or electronic means have been met.
Deemed timing of receipt
39.37 Any information provided by electronic means, including an electronic system, in accordance with section 39.34 or 39.36, is deemed to be received
(a) if the regulations provide for a day, on that day;
(b) if the regulations provide for a day and time, on that day and at that time; or
(c) if the regulations do not provide for a day or a day and a time, on the day and at the time that the information is sent.
Regulations
39.38 (1) The Governor in Council may, on the recommendation of the Minister, make regulations in respect of electronic communications and electronic means, including electronic systems, or any other technology to be used in the administration or enforcement of this Part, including regulations respecting
(a) the provision of information for any purpose under this Part in electronic or other form;
(b) the payment of amounts under this Part by electronic instructions; and
(c) the manner in which and the extent to which any provision of this Part, or its regulations, applies to the electronic communications or electronic means, including electronic systems, and adapting any such provision for the purpose of applying it.
Classes
(2) Regulations made for the purpose of section 39.36 may establish classes and distinguish among those classes.
Administrative Monetary Penalties
Regulations
39.39 (1) The Governor in Council may make regulations establishing an administrative monetary penalties scheme for the purpose of promoting compliance with this Part, including regulations
(a) designating as a violation the contravention of a specified provision of this Part;
(b) classifying each violation or series of violations;
(c) respecting the penalties that may be imposed for a violation, including in relation to
(i) the amount, or range of amounts, of the penalties that may be imposed on persons or entities or classes of persons or entities,
(ii) the factors to be taken into account in imposing a penalty,
(iii) the payment of penalties that have been imposed, and
(iv) the recovery, as a debt, of unpaid penalties and any additional penalty to be paid in respect of those unpaid penalties;
(d) respecting the powers, duties and functions of the Canada Border Services Agency and of any person or class of persons who may exercise powers or perform duties or functions with respect to the scheme, including the designation of such persons or classes of persons by the President of the Agency;
(e) respecting the proceedings in respect of a violation, including in relation to
(i) commencing the proceedings,
(ii) the defences that may be available in respect of a violation, and
(iii) the circumstances in which the proceedings may be brought to an end; and
(f) respecting reviews or appeals of any orders or decisions in the proceedings.
Violation or offence
(2) If an act or omission may be proceeded with as a violation or as an offence, proceeding with it in one manner precludes proceeding with it in the other.
— 2024, c. 15, s. 296
296 Paragraph 73(1)(k) of the Act is replaced by the following:
(k) respecting the reports referred to in section 12(1) and the declarations referred to in section 39.02; and
— 2024, c. 15, s. 297
297 The portion of subsection 74(1) of the Act before paragraph (a) is replaced by the following:
General offences
74 (1) Every person or entity that knowingly contravenes any of sections 6, 6.1 and 9.1 to 9.31, subsection 9.4(2), sections 9.5 to 9.7, 11.1, 11.43, 11.44 and 11.6, subsections 12(1) and (4) and 36(1), section 37, subsections 39.02(1), (4), (5) and (8) and 39.27(1), section 39.28, subsections 55(1) and (2), section 57 and subsections 62(2), 63.1(2) and 64(3) or the regulations is guilty of an offence and liable
— 2024, c. 17, ss. 340(2), (4)
340 (2) Subparagraph 5(h)(iii) of the Act is replaced by the following:
(iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments,
(4) Subparagraph 5(h.1)(iii) of the Act is replaced by the following:
(iii) issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments,
— 2024, c. 17, s. 341
341 The Act is amended by adding the following after section 11:
Disclosure without consent
11.01 (1) A person or entity referred to in section 5 may disclose an individual’s personal information to another person or entity referred to in that section without the individual’s knowledge or consent if
(a) the information was collected in the course of the person or entity’s activities;
(b) the disclosure is reasonable for the purpose of detecting or deterring money laundering, terrorist activity financing or sanctions evasion;
(c) making the disclosure with the individual’s knowledge or consent would risk compromising the ability to detect or deter money laundering, terrorist activity financing or sanctions evasion; and
(d) the disclosure is made in accordance with the regulations.
Collection and use
(2) A person or entity referred to in section 5 may collect or use an individual’s personal information without their knowledge or consent if the information was disclosed to the person or entity under subsection (1) and the collection or use is carried out in accordance with the regulations.
Immunity
(3) No criminal or civil proceedings lie against a person or an entity that, in good faith, discloses information under subsection (1) or collects or uses information under subsection (2).
— 2024, c. 17, s. 342(2)
342 (2) Subsection 55(3) of the Act is amended by adding the following after paragraph (g):
(g.1) an agency or body that administers the civil asset forfeiture legislation of a province, if the Centre also has reasonable grounds to suspect that the information would be relevant to proceedings under that legislation;
— 2024, c. 17, s. 344
344 Subsection 73(1) of the Act is amended by adding the following after paragraph (i):
(i.1) respecting the disclosure of information under subsection 11.01(1) or the collection or use of information under subsection 11.01(2), including the establishment and implementation of codes of practice by persons and entities referred to in section 5 and respecting the roles of the Privacy Commissioner and the Centre in relation to those codes;
— 2024, c. 17, s. 346
346 The Act is amended by adding the following after section 77:
Verifications and reviews — sections 9.92 and 9.93
77.01 Every person or entity that knowingly contravenes section 9.92 or 9.93 is guilty of an offence and liable
(a) on summary conviction, to a fine of not more than $250,000 or to imprisonment for a term of not more than two years less a day, or to both; or
(b) on conviction on indictment, to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both.
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