Emergency Economic Measures Order

Proposed Response:

If pressed on actions taken as a result of the order:

If pressed on Charter concerns of the order:

If pressed on what issues are being addressed by the economic measures in the order:

If pressed for more details on the frozen payment processor account:

If pressed on implications of revoking Emergencies Act and economic measures in the order

Background:

On February 14, 2022, the Government of Canada declared a public emergency, invoking the Emergencies Act, along with the Emergency Economic Measures Order (the Order) and the Emergency Measures Regulations (the Regulations). The provisions of the Order, as outlined above, came into force immediately on Tuesday, February 15, 2022.

MPs in the House of Commons voted to affirm use of the Emergencies Act on Monday February 21, 2022. The Emergencies Act was revoked by the Government of Canada the afternoon of February 23, 2022, formally ending the state of emergency.

Collectively, the Order and the Regulations were intended to limit funding of illegal blockades and restore public order. This order contained the following key authorities:

Reporting Requirements for Crowdfunding Platforms

Temporary Cessation of Financial Services

Reporting certain property and assets to RCMP and CSIS

Disclosure of Information:

Some of the new temporary measures in the Order built on Canada’s AML/ATF framework. Prior to the order, crowdfunding platforms and some payment service providers were not subject to obligations under the PCMLTFA. By extending certain PCMLTFA requirements to include crowdfunding platforms and the payment service providers, the Government was able to mitigate the risks that these platforms could be used for illicit purposes. It also allowed for FINTRAC to receive increased financial transaction information, and makes more information available to support investigations by law enforcement.

Other authorities were intended to address gaps highlighted by the illegal blockade actions. In particular, existing federal financial institutions statutes do not include an authority to require financial service providers to review their business relationships and cease dealing with persons conducting illegal activities. The laws and regulations covering other financial services providers, such as securities dealers or funding platforms, vary by province. There is no overall authority to restrict the funds that go to support illegal assemblies. As such, the Order provided crucial authorities in these areas to further bolster the Government’s ability to disrupt the financing of these illegal actions.

Any steps taken by the Government under the Emergencies Act, including the Order, must be consistent with the Canadian Charter of Rights and Freedoms, and must be reasonable and proportional to the risks to the public health and safety of Canadians. For instance, the measures cease to apply in respect of a person’s property, transactions and account when they stop participating in an illegal assembly. In other words, financial entities will be able to resume their dealings with persons that have stopped participating in the unlawful activities. RCMP's federal Financial Crime units are also working with financial institutions, to assist them, when possible, to determine when assets can be unfrozen.

Enforcement of the Order:

As key partners in Canada’s Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime, FINTRAC, CSIS and the RCMP operate within well-defined mandates that give them legislative authorities to counter illicit financial activity. The authorities in the Order were intended to enhance law enforcement investigations and disruption of blockades, and make it more challenging to use crowdfund platforms to fund illegal activities.

The groups behind the blockades were well-funded, with financial support being provided through a variety of means, including through crowdfunding platforms and cryptocurrency-based platforms. The Order allowed law enforcement to work more closely with Canadian financial institutions and has enhanced the effectiveness of law enforcement investigations into the blockades.

Under the Order, designated entities have expanded requirements to report to CSIS certain activities linked to designated persons. CSIS is engaging with its financial partners to ensure that disclosures relate to its national security mandate. Under the PCMLTFA, FINTRAC makes intelligence disclosures to CSIS when legislated thresholds are met. If a reasonable nexus to national security is determined, CSIS may use the information as part of any investigation into threats as defined under section 2 of the Canadian Security Intelligence Service Act.

Revocation of the Emergencies Act

Since the declaration of a public order emergency was revoked, the Emergency Measures Regulations and the Emergency Economic Measures Order are also revoked. Investigations into offences which occurred while the measures were in force can continue after the Regulationswere revoked, subject to police discretion and to prosecution decisions as to whether there is a reasonable prospect of conviction and whether it is in the public interest to proceed.

Property seized under the Regulations may be retained by police in accordance with the usual Criminal Code provisions if it is required as evidence in an investigation or for a prosecution. Property seized but not required as evidence may be returned. The normal provisions of the Criminal Code regarding the return of such property apply.

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