Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) (S.C. 2017, c. 21)

Marginal note:Payment out of Proceeds Account

4.4 After consulting with the Minister of Finance and the Minister of Foreign Affairs, the Minister may — at the times and in the manner, and on any terms and conditions, that the Minister considers appropriate — pay out of the Proceeds Account, as defined in section 2 of the Seized Property Management Act, amounts not exceeding the net proceeds from the disposition of property forfeited under section 4.2, but only to compensate victims of the circumstances described in subsection 4(2).

Tabling in Parliament

Marginal note:Order or regulation

5 A copy of each order or regulation made under paragraph 4(1)(a) must be tabled in each House of Parliament within 15 days after it is made. It may be sent to the Clerk of the House if the House is not sitting.

Duty to Determine

Marginal note:Determination

6 Each of the following entities must determine on a continuing basis whether it is in possession or control of property that it has reason to believe is the property of a foreign national who is the subject of an order or regulation made under section 4:

• (a) authorized foreign banks, as defined in 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, as defined in subsection 2(1) of the Insurance Companies Act, in respect of their insurance business in Canada;

• (d) companies, provincial companies and societies, as those terms are defined in subsection 2(1) of the Insurance Companies Act;

• (e) 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;

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

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

• (h) loan companies regulated by a provincial Act;

• (i) entities that engage in any activity described in paragraph 5(h) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act if the activity involves the opening of an account for a client;

• (j) entities authorized under provincial legislation to engage in the business of dealing in securities or to provide portfolio management or investment counselling services; and

• (k) other entities of a prescribed class of entities.

Disclosure

Marginal note:Duty to disclose — supervising and regulating agencies

• 7 (1) If it determines that it is in possession or control of any property referred to in section 6, an entity referred to in that section must disclose without delay, and once every three months after that, to the principal agency or body that supervises or regulates it under federal or provincial law the fact that it is in possession or control of the property, the number of persons or dealings involved and the total value of the property.

• Marginal note:Duty to disclose — RCMP or CSIS

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

  • (a) that they have reason to believe that property in their possession or control is owned, held or controlled by or on behalf of a foreign national who is the subject of an order or regulation made under section 4; and

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

• Marginal note:Immunity

  (3) No proceedings under this Act and no civil proceedings lie against a person for a disclosure made in good faith under subsection (1) or (2).

Marginal note:Sharing of information

7.1 The following persons may assist the Minister in matters relating to the making, administration or enforcement of an order or regulation referred to in subsection 4(1) and, for that purpose, may collect information from and disclose information to each other:

• (a) the Minister of Foreign Affairs;

• (b) the Minister of Finance;

• (c) the Minister of Public Works and Government Services;

• (d) the Minister of Public Safety and Emergency Preparedness;

• (d.1) the Minister of Transport;

• (d.2) the Minister of National Revenue;

• (d.3) the Minister of Justice and Attorney General of Canada;

• (d.4) the Minister of Citizenship and Immigration;

• (e) the Director of the Canadian Security Intelligence Service;

• (f) the Chief of the Communications Security Establishment;

• (g) the President of the Canada Border Services Agency; and

• (h) the Superintendent of Financial Institutions.

Marginal note:RCMP

• 7.2 (1) The Commissioner of the Royal Canadian Mounted Police may assist the Minister in matters related to the making of an order under paragraph 4(1)(b), the seizure or restraint of any property that is the subject of such an order or the making of an application for forfeiture of the property under section 4.2 and, for that purpose, may collect information from and disclose information to the persons referred to in section 7.1.

• Marginal note:For greater certainty

  (2) For greater certainty, nothing in subsection (1) is to be construed as affecting the powers of a peace officer that are conferred under legislation or the common law.

Marginal note:FINTRAC

7.21 The Minister may disclose to the Financial Transactions and Reports Analysis Centre of Canada any information that is relevant to the making, administration or enforcement of an order or regulation referred to in subsection 4(1).

Marginal note:Provision of information

• 7.3 (1) The Minister of Foreign Affairs may require any person to provide to that Minister any information that that Minister believes on reasonable grounds is relevant for the purposes of the making, administration or enforcement of an order or regulation referred to in subsection 4(1).

• Marginal note:Duty to comply

  (2) Every person who is required to provide information under subsection (1) must comply with the requirement within the time and in the form and manner specified by that Minister.

Rights of Foreign Nationals Who are the Subject of an Order or Regulation

Marginal note:Application

• 8 (1) A foreign national who is the subject of an order or regulation made under paragraph 4(1)(a) may apply in writing to the Minister to cease being the subject of the order or regulation.

• Marginal note:Property

  (1.1) A foreign national whose property is the subject of an order made under paragraph 4(1)(b) may, unless the property is the subject of a forfeiture order, apply at any time in writing to the Minister to request that the property cease being the subject of the order made under that paragraph.

• Marginal note:Reasonable grounds

  (2) On receipt of the application, the Minister must decide whether there are reasonable grounds to recommend to the Governor in Council that the order or regulation be amended or repealed, as the case may be, so that the applicant or their property ceases to be the subject of it.

• Marginal note:Time limit

  (3) The Minister must make a decision on the application within 90 days after the day on which the application is received.

• Marginal note:Notice if application rejected

  (4) The Minister must give notice without delay to the applicant of any decision to reject the application.

• Marginal note:New application

  (5) If there has been a material change in the applicant’s circumstances since their last application under subsection (1) was submitted, he or she may submit another application.

Application for a Certificate

Marginal note:Mistaken identity

• 9 (1) Any person in Canada or any Canadian outside Canada whose name is the same as or similar to the name of a foreign national who is the subject of an order or regulation made under section 4 may, if they claim not to be that foreign national, apply to the Minister in writing for a certificate stating that they are not that foreign national.

• Marginal note:Determination by Minister

  (2) Within 45 days after the day on which the application was received, the Minister must,

  • (a) if he or she is satisfied that the applicant is not the foreign national, issue the certificate to the applicant; or

  • (b) if he or she is not so satisfied, provide a notice to the applicant of his or her determination.

Marginal note:Reasonable expenses

• 10 (1) A foreign national who is the subject of an order or regulation made under section 4 may apply to the Minister in writing for a certificate to exempt property from the application of the order or regulation if the property is necessary to meet the reasonable expenses of the person and their dependents.

• Marginal note:Certificate

  (2) If the Minister determines that the property is necessary to meet the reasonable expenses of the applicant and their dependents, the Minister must issue a certificate to the applicant.

• Marginal note:Time limit

  (3) The Minister must make a decision on the application and, if applicable, issue a certificate within 90 days after the day on which the application is received.

Offences

Marginal note:Offence and punishment

11 Every person who knowingly contravenes or fails to comply with an order or regulation made under section 4

• (a) is guilty of an indictable offence and is liable to imprisonment for a term of not more than five years; or

• (b) is guilty of an offence punishable on summary conviction and is liable to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both.

General

Marginal note:No civil liability

12 A person who, in relation to any property that is the subject of an order or regulation made under section 4, acts reasonably in taking, or omitting to take, measures to comply with the order or regulation is not 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 property was property that is the subject of the order or regulation.

Marginal note:Ranking

13 All secured and unsecured rights and interests in any property that is the subject of an order made under paragraph 4(1)(b) that are held by a person are entitled to the same ranking that they would have been entitled to had the order not been made, unless

• (a) the person is a foreign national described in any of paragraphs 4(2)(a) to (d); or

• (b) the property is forfeited to Her Majesty in right of Canada under section 4.2.