Criminal Code (R.S.C., 1985, c. C-46)

Marginal note:Mistaken identity

• 83.07 (1) An entity whose name is the same as or similar to a name, appearing on the list, of a listed entity and who claims not to be that listed entity may apply in writing to the Minister of Public Safety and Emergency Preparedness for a certificate stating that it is not that listed entity.

• Marginal note:Issuance of certificate

  (2) The Minister shall, within 30 days after receiving the application, issue a certificate if he or she is satisfied that the applicant is not that listed entity.

Freezing of Property

Marginal note:Freezing of property

• 83.08 (1) No person in Canada and no Canadian outside Canada shall knowingly

  • (a) deal directly or indirectly in any property that is owned or controlled by or on behalf of a terrorist group;

  • (b) enter into or facilitate, directly or indirectly, any transaction in respect of property referred to in paragraph (a); or

  • (c) provide any financial or other related services in respect of property referred to in paragraph (a) to, for the benefit of or at the direction of a terrorist group.

• Marginal note:No civil liability

  (2) A person who acts reasonably in taking, or omitting to take, measures to comply with subsection (1) shall not be liable in any civil action arising from having taken or omitted to take the measures, if they took all reasonable steps to satisfy themselves that the relevant property was owned or controlled by or on behalf of a terrorist group.

Marginal note:Exemptions

• 83.09 (1) The Minister of Public Safety and Emergency Preparedness, or a person designated by him or her, may authorize any person in Canada or any Canadian outside Canada to carry out a specified activity or transaction that is prohibited by section 83.08, or a class of such activities or transactions.

• Marginal note:Ministerial authorization

  (2) The Minister, or a person designated by him or her, may make the authorization subject to any terms and conditions that are required in their opinion and may amend, suspend, revoke or reinstate it.

• Marginal note:Existing equities maintained

  (3) All secured and unsecured rights and interests in the frozen property that are held by persons, other than terrorist groups or their agents, are entitled to the same ranking that they would have been entitled to had the property not been frozen.

• Marginal note:Third party involvement

  (4) If a person has obtained an authorization under subsection (1), any other person involved in carrying out the activity or transaction, or class of activities or transactions, to which the authorization relates is not subject to sections 83.08, 83.1 and 83.11 if the terms or conditions of the authorization that are imposed under subsection (2), if any, are met.

Marginal note:Disclosure

• 83.1 (1) Every person in Canada and every Canadian outside Canada shall disclose without delay to the Commissioner of the Royal Canadian Mounted Police or to the Director of the Canadian Security Intelligence Service

  • (a) the existence of property in their possession or control that they know is owned or controlled by or on behalf of a terrorist group; and

  • (b) information about a transaction or proposed transaction in respect of property referred to in paragraph (a).

• Marginal note:Immunity

  (2) No criminal or civil proceedings lie against a person for disclosure made in good faith under subsection (1).

Marginal note:Audit

• 83.11 (1) The following entities must determine on a continuing basis whether they are in possession or control of property owned or controlled by or on behalf of a listed entity:

  • (a) authorized foreign banks within the meaning of section 2 of the Bank Act in respect of their business in Canada, or banks to which that Act applies;

  • (b) cooperative credit societies, savings and credit unions and caisses populaires regulated by a provincial Act and associations regulated by the Cooperative Credit Associations Act;

  • (c) foreign companies within the meaning of subsection 2(1) of the Insurance Companies Act in respect of their insurance business in Canada;

  • (c.1) companies, provincial companies and societies within the meaning of subsection 2(1) of the Insurance Companies Act;

  • (c.2) fraternal benefit societies regulated by a provincial Act in respect of their insurance activities, and insurance companies and other entities engaged in the business of insuring risks that are regulated by a provincial Act;

  • (d) companies to which the Trust and Loan Companies Act applies;

  • (e) trust companies regulated by a provincial Act;

  • (f) loan companies regulated by a provincial Act; and

  • (g) entities authorized under provincial legislation to engage in the business of dealing in securities, or to provide portfolio management or investment counselling services.

• Marginal note:Monthly report

  (2) Subject to the regulations, every entity referred to in paragraphs (1)(a) to (g) must report, within the period specified by regulation or, if no period is specified, monthly, to the principal agency or body that supervises or regulates it under federal or provincial law either

  • (a) that it is not in possession or control of any property referred to in subsection (1), or

  • (b) that it is in possession or control of such property, in which case it must also report the number of persons, contracts or accounts involved and the total value of the property.

• Marginal note:Immunity

  (3) No criminal or civil proceedings lie against a person for making a report in good faith under subsection (2).

• Marginal note:Regulations

  (4) The Governor in Council may make regulations

  • (a) excluding any entity or class of entities from the requirement to make a report referred to in subsection (2), and specifying the conditions of exclusion; and

  • (b) specifying a period for the purposes of subsection (2).

Marginal note:Offences — freezing of property, disclosure or audit

• 83.12 (1) Every person who contravenes any of sections 83.08, 83.1 and 83.11 is guilty of an offence and liable

  • (a) on conviction on indictment, to imprisonment for a term of not more than 10 years; or

  • (b) on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than two years less a day, or to both.

• (2) [Repealed, 2013, c. 9, s. 5]

Seizure and Restraint of Property

Marginal note:Seizure and restraint of assets

• 83.13 (1) Where a judge of the Federal Court, on an ex parte application by the Attorney General, after examining the application in private, is satisfied that there are reasonable grounds to believe that there is in any building, receptacle or place any property in respect of which an order of forfeiture may be made under subsection 83.14(5), the judge may issue

  • (a) if the property is situated in Canada, a warrant authorizing a person named therein or a peace officer to search the building, receptacle or place for that property and to seize that property and any other property in respect of which that person or peace officer believes, on reasonable grounds, that an order of forfeiture may be made under that subsection; or

  • (b) if the property is situated in or outside Canada, a restraint order prohibiting any person from disposing of, or otherwise dealing with any interest in, that property other than as may be specified in the order.

• Marginal note:Contents of application

  (1.1) An affidavit in support of an application under subsection (1) may be sworn on information and belief, and, notwithstanding the Federal Court Rules, 1998, no adverse inference shall be drawn from a failure to provide evidence of persons having personal knowledge of material facts.

• Marginal note:Appointment of manager

  (2) On an application under subsection (1), at the request of the Attorney General, if a judge is of the opinion that the circumstances so require, the judge may

  • (a) appoint a person to take control of, and to manage or otherwise deal with, all or part of the property in accordance with the directions of the judge; and

  • (b) require any person having possession of that property to give possession of the property to the person appointed under paragraph (a).

• Marginal note:Appointment of Minister of Public Works and Government Services

  (3) When the Attorney General of Canada so requests, a judge appointing a person under subsection (2) shall appoint the Minister of Public Works and Government Services.

• Marginal note:Power to manage

  (4) The power to manage or otherwise deal with property under subsection (2) includes

  • (a) the power to make an interlocutory sale of perishable or rapidly depreciating property;

  • (b) the power to destroy, in accordance with subsections (5) to (8), property that has little or no value; and

  • (c) the power to have property, other than real property or a conveyance, forfeited to Her Majesty in accordance with subsection (8.1).

• Marginal note:Application for destruction order

  (5) Before a person who is appointed to manage property destroys property that has little or no value, they shall apply to a judge of the Federal Court for a destruction order.

• Marginal note:Notice

  (6) Before making a destruction order, a judge shall require notice in accordance with subsection (7) to be given to and may hear any person who, in the judge’s opinion, appears to have a valid interest in the property.

• Marginal note:Manner of giving notice

  (7) A notice shall

  • (a) be given in the manner that the judge directs or that may be specified in the rules of the Federal Court; and

  • (b) specify the effective period of the notice that the judge considers reasonable or that may be set out in the rules of the Federal Court.

• Marginal note:Destruction order

  (8) A judge shall order that the property be destroyed if they are satisfied that the property has little or no financial or other value.

• Marginal note:Forfeiture order

  (8.1) On application by a person who is appointed to manage the property, a judge of the Federal Court shall order that the property, other than real property or a conveyance, be forfeited to Her Majesty to be disposed of or otherwise dealt with in accordance with the law if

  • (a) a notice is given or published in the manner that the judge directs or that may be specified in the rules of the Federal Court;

  • (b) the notice specifies a period of 60 days during which a person may make an application to the judge asserting their interest in the property; and

  • (c) during that period, no one makes such an application.

• Marginal note:When management order ceases to have effect

  (9) A management order ceases to have effect when the property that is the subject of the management order is returned in accordance with the law, destroyed or forfeited to Her Majesty.

• Marginal note:For greater certainty

  (9.1) For greater certainty, if property that is the subject of a management order is sold, the management order applies to the net proceeds of the sale.

• Marginal note:Application to vary

  (10) The Attorney General may at any time apply to a judge of the Federal Court to cancel or vary an order or warrant made under this section, other than an appointment made under subsection (3).

• Marginal note:Procedure

  (11) Subsections 462.32(4) and (6), sections 462.34 to 462.35 and 462.4, subsection 487(3) and section 488 apply, with any modifications that the circumstances require, to a warrant issued under paragraph (1)(a). Any peace officer who executes the warrant must have authority to act as a peace officer in the place where it is executed.

• Marginal note:Procedure

  (12) Subsections 462.33(4) and (6) to (11) and sections 462.34 to 462.35 and 462.4 apply, with such modifications as the circumstances require, to an order issued under paragraph (1)(b).

Forfeiture of Property

Marginal note:Application for order of forfeiture

• 83.14 (1) The Attorney General may make an application to a judge of the Federal Court for an order of forfeiture in respect of

  • (a) property owned or controlled by or on behalf of a terrorist group; or

  • (b) property that has been or will be used, in whole or in part, to facilitate or carry out a terrorist activity.

• Marginal note:Contents of application

  (2) An affidavit in support of an application by the Attorney General under subsection (1) may be sworn on information and belief, and, notwithstanding the Federal Court Rules, 1998, no adverse inference shall be drawn from a failure to provide evidence of persons having personal knowledge of material facts.

• Marginal note:Respondents

  (3) The Attorney General is required to name as a respondent to an application under subsection (1) only those persons who are known to own or control the property that is the subject of the application.

• Marginal note:Notice

  (4) The Attorney General shall give notice of an application under subsection (1) to named respondents in such a manner as the judge directs or as provided in the rules of the Federal Court.

• Marginal note:Granting of forfeiture order

  (5) If a judge is satisfied on a balance of probabilities that property is property referred to in paragraph (1)(a) or (b), the judge shall order that the property be forfeited to Her Majesty to be disposed of as the Attorney General directs or otherwise dealt with in accordance with the law.

• Marginal note:Use of proceeds

  (5.1) Any proceeds that arise from the disposal of property under subsection (5) may be used to compensate victims of terrorist activities and to fund anti-terrorist initiatives in accordance with any regulations made by the Governor in Council under subsection (5.2).

• Marginal note:Regulations

  (5.2) The Governor in Council may make regulations for the purposes of specifying how the proceeds referred to in subsection (5.1) are to be distributed.

• Marginal note:Order refusing forfeiture

  (6) Where a judge refuses an application under subsection (1) in respect of any property, the judge shall make an order that describes the property and declares that it is not property referred to in that subsection.

• Marginal note:Notice

  (7) On an application under subsection (1), a judge may require notice to be given to any person who, in the opinion of the Court, appears to have an interest in the property, and any such person shall be entitled to be added as a respondent to the application.

• Marginal note:Third party interests

  (8) If a judge is satisfied that a person referred to in subsection (7) has an interest in property that is subject to an application, has exercised reasonable care to ensure that the property would not be used to facilitate or carry out a terrorist activity, and is not a member of a terrorist group, the judge shall order that the interest is not affected by the forfeiture. Such an order shall declare the nature and extent of the interest in question.

• Marginal note:Dwelling-house

  (9) Where all or part of property that is the subject of an application under subsection (1) is a dwelling-house, the judge shall also consider

  • (a) the impact of an order of forfeiture on any member of the immediate family of the person who owns or controls the dwelling-house, if the dwelling-house was the member’s principal residence at the time the dwelling-house was ordered restrained or at the time the forfeiture application was made and continues to be the member’s principal residence; and

  • (b) whether the member appears innocent of any complicity or collusion in the terrorist activity.

• Marginal note:Motion to vary or set aside

  (10) A person who claims an interest in property that was forfeited and who did not receive notice under subsection (7) may bring a motion to the Federal Court to vary or set aside an order made under subsection (5) not later than 60 days after the day on which the forfeiture order was made.

• Marginal note:No extension of time

  (11) The Court may not extend the period set out in subsection (10).