2024 Annual Report of the Minister of Public Safety Concerning Criminal Code sections 83.031 to 83.0391: A Regime to Authorize Certain Activities in a Geographic Area that is Controlled By a Terrorist Group

Introduction

Canada’s strong anti-terrorism financing Criminal Code provisions play an important role in supporting Canada’s counter-terrorism efforts, including countering the evolving threat of terrorism, addressing domestic security considerations, and meeting international obligations to prevent and suppress terrorist financing. However, the Taliban takeover of Afghanistan in August 2021 highlighted the limitations that these provisions placed on the Government of Canada, Canadian charities, not-for-profit organizations, Canadian banks, and civil society to deliver important international assistance in areas controlled by a terrorist group.

In response to these limitations, in June 2023, Bill C-41 amended the specific Criminal Code terrorist financing provision to include a distinct exception for humanitarian assistance activities, as well as an Authorization Regime to facilitate the delivery of other needed activities in terrorist-controlled areas, where this would incur an incidental but unavoidable benefit to a terrorist group. This process provides new flexibility for organizations to obtain a shield from criminal liability for unavoidably benefitting a terrorist group when conducting specified activities in geographic areas controlled by a terrorist group. Public Safety Canada (PS), in concert with partnering departments and agencies, publicly launched the Authorization Regime on June 19, 2024.

Although the scenario in Afghanistan prompted the legislative change, the Authorization Regime is not restricted to this country and can apply in other areas of the world controlled by a terrorist group. The Authorization Regime is the Government of Canada’s response to a growing policy challenge with application beyond Afghanistan and into the future, particularly in light of current geopolitical developments, increasing volatility around the world, and the growing number of terrorist groups. As such, the Authorization Regime will continue to be of significant value into the future to facilitate the delivery of development assistance and other needed activities in geographic areas controlled by terrorist groups. The Authorization Regime continues to balance the need to maintain the strong anti-terrorist financing provisions included in the Criminal Code and support the national counter-terrorism efforts included in the Government of Canada’s mandate, with the imperative to facilitate the delivery of needed international assistance activities.

The humanitarian exception, which is outside of the scope of the Authorization Regime, has been in effect since Bill C-41 received Royal Assent. It was created to support the delivery of humanitarian assistance activities conducted under the auspices of impartial humanitarian organizations in accordance with international law, while using reasonable efforts to minimize any benefit to terrorist groups. The exception is automatically applicable to activities that meet the criteria, and may be used as a defence in the event a person is charged or prosecuted for committing certain terrorist financing offences while undertaking urgent, life-saving assistance activities. As there is no application process for the humanitarian exception, there is no mechanism to track the total amount of funding allocated to Canadians or Canadian organizations facilitated by the exception.

As a measure of accountability, pursuant to legislation, the Minister of PS must prepare an Annual Report on the operations of the Authorization Regime for the previous calendar year.

The 2024 Annual Report covers the period from January 1, 2024, to December 31, 2024, and is organized in the following manner:

Section I

Provides an overview of the procedures set out in sections 83.031 to 83.0391 of the Criminal Code, and the reporting requirements under subsections 83.0392(1) and (1.1);

Section II

Summarizes the operations of the Authorization Regime throughout 2024; and,

Section III

Outlines the areas of focus in 2025, to support the ongoing administration of the Authorization Regime.

Section I - Overview of Sections 83.031 to 83.0391 of the Criminal Code and Reporting Requirements under Subsections 83.0392(1) and (1.1)

Bill C-41 created an exception to the terrorist financing offence outlined in subsection 83.03(2) of the Criminal Code to facilitate the delivery of certain assistance activities in terrorist-controlled areas via authorizations granted by the Minister of PS or a designated authority. Specifically, the Authorization Regime was created under subsection 83.032(1) to provide a shield from criminal liability to Canadians and Canadian organizations wishing to carry out eligible activities, including health services, education services, livelihoods programming, human rights programming, immigration and safe passage services, and other Government of Canada operations, in geographic area(s) controlled by a terrorist group.

The Authorization Regime was established after significant consultation and negotiation, ensuring an appropriate balance between the risk of terrorist financing and the benefit of the proposed activities. The Regime is delivered by several departments and agencies with complementary mandates and authorities. Application submissions are assessed on a case-by-case basis to determine eligibility based on statutory requirements. This includes an initial assessment, conducted by the Minister of Foreign Affairs and/or the Minister of Immigration, Refugees and Citizenship Canada (IRCC), to be satisfied that, among other criteria, the proposed activity responds to a real and important need in the geographic area, and that the applicant is capable of administering funds and reporting on that administration in a high risk environment.

Once satisfied that the application meets the conditions for referral, applications are referred to the Minister of PS for a final assessment and decision. The final assessment must include a security review, which PS facilitates in consultation with security and intelligence partners. This comprehensive security review focuses on weighing the risk of terrorist financing associated with an application against the benefits of carrying out the activity. When granting an authorization, the Minister of PS may include any terms and conditions that they deem required to mitigate risk. PS is also responsible for enforcement and compliance monitoring activities related to the requirements stipulated in each issued authorization.

Bill C-41 also created the obligation, per subsection 83.032(2.1), for the Minister of PS to provide written information, upon request from prospective applicants, on the need for an authorization to carry out a proposed activity in a specified geographic area. This is an optional tool available to interested applicants to provide clarity around the need for an authorization in the ever-evolving terrorism landscape.

Per the statutory requirements of the Regime, the Minister of PS is required to table an Annual Report within the first 90 days of each calendar year, outlining the operations of sections 83.031 to 83.0391 for the previous year, as well as conduct and table a report on a Comprehensive Review of the operations of the first year of the Regime and every five years thereafter.

Section II - Summary of the Operations of the Authorization Regime in 2024

PS, in close coordination with partnering departments and agencies, publicly launched the Authorization Regime on June 19, 2024. Section II of this report outlines the operations of the Regime in 2024, including achievements both leading up to, and following, the public launch, which have facilitated the effective and ongoing administration of the Regime.

Authorization Regime Webpage and Guidance

In conjunction with the public launch on June 19, 2024, PS published a new Authorization Regime webpage with comprehensive information and guidance to support members of the public interested in applying for an authorization. This includes information on eligibility, the application process, potential reporting and compliance requirements, and resources available to support prospective applicants. The webpage also provides information on the distinction between the humanitarian exception and the scope of the Authorization Regime – an area of interest stakeholders sought guidance on throughout the consultation process.

This guidance material was prepared by PS, Global Affairs Canada (GAC), IRCC, and the Department of Justice (JUS), with input from other government departments and agencies. Feedback was sought from stakeholders in 2023 prior to the publication of the webpage, to ensure the materials were reflective of the key topics, questions, and areas of interest for the public and prospective applicants. Specifically, stakeholders were invited to provide written feedback on the guidance material and application form in July 2023, and were also invited to a follow-up meeting with PS, GAC, IRCC and JUS in August 2023 to provide additional comments and seek clarity from implementing partners.

Online Application Interface

To facilitate the application process, a secure online application interface and case management tool was launched on June 19, 2024. The interface allows applicants to securely submit applications, including personal and sensitive information, via an easily accessible system with appropriate privacy considerations and security mechanisms in place. This robust tool allows for an efficient and streamlined approach to the intake, triage, and processing of applications. Since June 2024, the online application interface has facilitated the secure submission of 100 percent of the total applications received by the Government of Canada.

Ensuring the application process continues to meet the needs of applicants remains a priority. In November 2024, PS, GAC and IRCC sought feedback from stakeholders on their experience with the application process to date, in order to identify issues and areas for improvement. Information collected during the first year of the Authorization Regime’s operations, and as the program matures more broadly, will continue to be used to enhance the overall user experience.

Authorization Requirement Inquiry

The Authorization Requirement Inquiry (ARI) mechanism became available to the public on June 19, 2024, following consultations with federal departments and agencies. This mechanism facilitates the Minister of PS’s statutory obligation to provide written information about whether an authorization is required to carry out an activity in a given geographic area, at the request of a prospective applicant.  

Stakeholders expressed a strong interest in establishing the ARI mechanism during the drafting of the legislation surrounding the Regime, to help inform decision making and provide clarity for prospective applicants. Given the dynamic terrorism environment, responses from the Minister of PS to inquiries are time bound and reflect the specific circumstances outlined at the time of the request, including terrorism control in the specific geographic areas proposed. As such, guidance may not remain valid in the event there are significant changes to the information provided and activities of terrorist groups. Additional inquiries may be submitted to the Minister of PS by prospective applicants who are interested in receiving an updated response.

Given current global events and the dynamic nature of terrorism, the ARI mechanism continues to offer value as an optional resource for prospective applicants seeking to more confidently discern whether an authorization is required to shield them from criminal liability for their particular circumstances.

Internal Operationalization Efforts

In 2024, teams across PS, GAC, IRCC, and the Royal Canadian Mounted Police (RCMP) worked in close collaboration to support the implementation and administration of the Authorization Regime, including the effective launch in June 2024.

Throughout 2024, resources were dedicated to developing and implementing key internal processes to support the administration of the Regime. This includes on-going development of a multi-institutional Privacy Impact Assessment which outlines the information management policies and procedures for all implicated departments and agencies. This document is meant to be evergreen, and will continue to be updated as necessary and appropriate. Similarly, resources focused on the implementation of additional security measures and standard operating procedures to ensure that any information collected as part of the application and assessment process, as well as reporting for authorization holders, is managed in accordance with appropriate safeguards.

Any information shared with PS and assisting departments and agencies for the purposes of the Regime is collected and stored in line with the rules and regulations set out by the Privacy Act, the Policy on Privacy Protection, the Directive on Privacy Practices and any other requirements established by the Treasury Board Secretariat. Other departments, including GAC and the RCMP, also implemented additional security measures to ensure compliance with privacy considerations. For example, GAC created a dedicated IT system to ensure application information is collected securely, and manages the information with strict access controls to ensure it is appropriately safeguarded and used for the purposes of administering the Regime only. Similarly, the RCMP put in place restricted access controls and information technology and data management safeguards. Overall, per legislation, any information collected or disclosed for the purposes of administering the Authorization Regime, and in support of the Minister of PS’s assessment, may only be used for the administration and enforcement of the Regime.

Over the past year, PS also worked closely with security and intelligence partners to refine the process for undertaking the mandatory security review and risk assessments of all applications referred to PS by GAC and/or IRCC, as outlined in section 83.032(10) of the Criminal Code.  This security review plays a critical role in assessing the impact of granting the authorization on financing terrorism, including the consideration of any mitigation measures that may be required to align risks and benefits. 

Stakeholder Engagement

Throughout 2024, PS, in close coordination with partnering departments and agencies, hosted two stakeholder engagement sessions, which included participation from a wide range of non-governmental organizations (NGOs) and not-for-profit organizations. This included a March 2024 engagement session attended by over 28 organizations which provided an update on the Government of Canada’s efforts to publicly launch the Authorization Regime. Questions by stakeholders focused predominantly on the timing of the launch and the distinction between activities under the humanitarian exception and the Authorization Regime. In response, PS and GAC shared resources on humanitarian activities and ensured the public guidance material included clear language on this issue. Following the June 2024 public launch, a second engagement session was held in November 2024, with representation from 39 organizations. This session sought to provide stakeholders with an update on the launch, including the tools and resources available to those interested in applying, and respond to key questions stakeholders submitted in advance. PS and partnering departments and agencies used this session to provide clarity on eligibility and application requirements, to support decision making by prospective applicants. Feedback received by stakeholders during this session continues be used to help enhance the delivery of this program.

In addition to the formal stakeholder engagement sessions, PS and GAC continue to engage directly with stakeholders via the departments’ respective Authorization Regime inboxes. In 2024, GAC and PS had over 100 interactions with the public across both inboxes. This method of communication allows stakeholders to engage directly with PS and GAC on items within their respective roles for the administration of the Regime, including on general inquiries and the online application interface itself.

The Government of Canada is committed to continuing engagement with stakeholders and key partners in 2025 to seek feedback and insights to ensure the Regime is effective and continues to meet its statutory obligations.

Reporting Requirements

Pursuant to the statutory reporting requirements on the operations of the Authorization Regime, the Minister of PS most recently tabled the 2024 Comprehensive Review Report in December 2024. This Report covered the period from June 20, 2023 to June 19, 2024, and took stock of activities undertaken in the lead-up to the public launch of the Authorization Regime, identified challenges and related remedies, and outlined the path forward to support the administration of the Regime. Recognizing the limited data available for the reporting period, PS committed to broadening the scope of the 2026 Annual Report to include an overview of the challenges encountered since the launch of the Regime, and how the Government is actively working to address these challenges.

Similarly, the Minister of PS tabled the 2023 Annual Report in March 2024. This Report, which covered the period from June 20, 2023 to December 31, 2023, outlined the progress achieved by PS and partnering departments and agencies to operationalize the Regime following the passage of Bill C-41, and provided an overview of the anticipated milestones and related timelines to support the public launch of the Regime in the coming year.

While the Authorization Regime is led by PS, both the 2024 Comprehensive Review Report and the 2023 Annual Report were prepared in consultation with partnering departments and agencies to capture the whole-of-government approach taken for the operationalization and ongoing administration of the Regime. Both Reports are available online on PS’s public webpage.

Applications for Authorizations

The Government of Canada has received 14 applications for authorizations to date, including 12 applications received in 2024. While no authorizations were granted or refused in the 2024 calendar year, PS is pleased to report that two authorizations have since been granted in 2025. PS and partnering departments and agencies are working collaboratively to ensure that the process continues to increase in efficiency as the program matures, and look forward to reporting on more of these developments in next year’s Annual Report.

While the Government of Canada cannot publicly disclose specific details pertaining to the applications received due to privacy considerations and safeguards in place to protect sensitive or potentially identifiable information, PS is pleased to provide a high-level overview of the 14 applications received to date.

Of these 14 applications, 10 were government-sponsored and four were from external applicants. The proposed activities fell primarily under health and education services, followed by livelihood supports and human rights programming, and other Government operations. Overall, applications involved activities to be conducted in the geographic areas of Afghanistan, Gaza, and Syria.    

Section III - Looking Forward: Next Steps for the Authorization Regime

Following the successful launch of the Authorization Regime in 2024, PS and partnering departments and agencies will continue to work in close collaboration to ensure the ongoing, effective administration of the Regime going forward. This includes continuing to prioritize the assessment and processing of applications for authorizations as expeditiously as possible. PS will also prioritize the compliance monitoring and enforcement activities for all issued authorizations.

As the program matures and applications continue to make their way through the assessment process, the Government of Canada will work to develop service standards to support transparency and expectations for prospective applicants. Given applications are assessed on a case-by-case basis, the length of time to process an application for an authorization will vary depending on a number of factors, including the nature and complexity of the activities and geographic areas proposed. PS and assisting departments and agencies remain committed to facilitating an application process that is clear and user-friendly, and will continue to work closely to ensure that prospective applicants have access to the resources and information necessary to support this process. This includes continued access to the Authorization Requirement Inquiry mechanism, to provide additional information to prospective applicants and inquirers on the need for authorizations based on their own unique circumstances.

The Authorization Regime has continued to benefit from meaningful engagement with a wide range of stakeholders. In 2025, PS, in concert with assisting departments and agencies, will continue to seek opportunities to engage with stakeholders through formal engagement sessions, as well as direct communications via the Authorization Regime inboxes. Feedback from stakeholders will continue to be taken into consideration as the program evolves, to ensure the Regime is administered in a manner that is consistent with the needs of those directly impacted by the program.

PS, alongside implicated departments and agencies, will also continue to prioritize efforts to secure ongoing funding past fiscal year 2024/25, to enable the continued administration of the Authorization Regime and meet the statutory obligations in the Criminal Code.

Looking ahead, PS will dedicate resources to begin developing Regulations respecting the statutory authorities pertaining to the Authorization Regime, to support and facilitate the administration of the Regime. Regulations could help to define the rules and scope of operations for the Authorization Regime, including to support the effective lifecycle of the application process. This could include providing clarity on the conditions for granting or renewing authorizations, conditions related to reporting requirements, and the process for amending, suspending or revoking granted authorizations.

While led by PS, the ongoing administration of the Authorization Regimes takes a whole-of-government approach. To that end, these efforts will continue to be bolstered by robust interdepartmental coordination, including joint efforts to identify opportunities to enhance the Regime and improve the overall experience, throughout 2025 and into the future.

Date modified:

2025-06-23